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Interims 2011 AIM Admission The story so far. The Board Simon Bird – Technical Director Peter Simmonds – CEO & Finance Director Skip Fidura – Client Services.

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Presentation on theme: "Interims 2011 AIM Admission The story so far. The Board Simon Bird – Technical Director Peter Simmonds – CEO & Finance Director Skip Fidura – Client Services."— Presentation transcript:

1 Interims 2011 AIM Admission The story so far

2 The Board Simon Bird – Technical Director Peter Simmonds – CEO & Finance Director Skip Fidura – Client Services Director Tink Taylor - Business Development Director

3 Company Summary o B2B Digital Marketing products and services o Established 1999 o 135 staff o 3500+ Clients o Winner - National Business Awards –Best Growth Strategy o Offices in Croydon, London Bridge, Manchester, Northampton & Minsk

4 The Digital Journey 4 Conversion

5 Some of our Clients

6

7 Significant Achievements last 18 months o AIM Admission announced o Increased sales & software engineering teams o Grew client base significantly o Implemented Microsoft Dynamics CRM o Implemented Sage 200 o Implemented new IT infrastructure o Successfully launched dotCommerce o Successfully launched dotSEO o Acquired Netcallidus o Created SEO team in Belarus o Maintained the high energy entrepreneurial culture

8 Our people are key to the success o Young team - average age is 26 o Highly empowered o All staff become option holders o Focus on goal alignment o We aim to hire the best people o We aim to keep our good people

9 Financial Highlights – 2009/10 Full Year

10 2010/11 Interims o Revenues increased by 48% (From £2,785k to £4,123k) o Profits after tax increased by 48% (From £520k to £771k) o Up 56% excluding IFRS2 charge relating to options of £38k o Strong growth in customer numbers o An expansion of products and services o New Offices in Belarus & Scotland o Earnings per share up 50%

11 5 Year Financial Summary £m12 Months to June 2010 12 Months to June 2009 Yr to 30 April 2008 Yr to 30 April 2007 Yr to 30 April 2006 Turnover6.04.22.51.20.8 Admin Costs4.63.31.70.90.5 PBT1.40.90.750.3 PAT1.140.770.570.23

12 Cash Flow Summary

13 Low dependence on largest clients Largest Client less than 5% of total revenue Top 20 clients less than 15% of total revenue Largest Debtor less than £40k Client base spread across many sectors 51% of dotMailer customers on direct debit with 14 payment terms

14 Google rankings drive enquiries KeywordsGoogle email marketing1 email marketing software1 email marketing templates1 email marketing services1 bulk email marketing1 email templates6 email marketing campaign1 email marketing company1 email marketing solution1 email marketing solutions2 email marketing uk1 email marketing service1 email marketing agency4

15 Google rankings KeywordsGoogle ecommerce solutions1 ecommerce solution2 bespoke ecommerce1 ecommerce business solutions1 ecommerce web site solution5

16 Google Rankings KeywordsGoogle design agency20 web design agency14 website design agency2

17 Google rankings KeywordsGoogle seo agency4 search engine optimisation agency5 seo agency in london1 seo agencies3 website seo services6

18 Google Rankings KeywordsGoogle strategic search engine marketing2 search engine marketing company4 search engine marketing5 internet marketing company6 search engine marketing companies6 search engine marketing firm8 search engine marketing service9 seo marketing14 internet marketing15

19 Focus on recurring revenues o dotMailer monthly recurring revenue continues to grow strongly o dotSEO/Netcallidus recurring revenue now increasing significantly o dotCommerce recurring revenue starting to build

20 Interims - Impact of new products on growth o New products showing good growth o Email marketing continues to perform strongly o Managed service aids retention o Search marketing boosted by Netcallidus acquisition o Project revenues declining in absolute terms and as a percentage o Recurring revenues increasing as a percentage of total revenue

21 Further organic growth opportunities o dotMailer V5 o Currently in Beta testing, full launch early 2011 - powerful new editor - intuitive new step process - powerful split testing o dotSurvey o new product Beta launch in Q1 2011 o Saas version dotCommerce o target Beta late 2011 - features now built for “bespoke” version - powerful new editor in development

22 Further organic growth opportunities o Open new partner distribution channels through development of connectors to CRM tools eg Microsoft Dynamics o Appointment of International resellers o Opening of further sales offices in UK and International o Edinburgh office opened on Tuesday this week.

23 Acquisition Targets The target sectors selected for potential acquisitions are: o SEO o Mobile o Word of Mouth Marketing …….. “Social” o Surveys o Analytics o Usability testing o Research

24 Acquisition Criteria The “ideal” criteria agreed for acquisition targets are as follows: o High proportion of recurring revenues ideally minimum 40% of total o No more than 10% of revenue from one client o Strong technology with ownership of IP o Not dependant on one (few) key person(s) o Client base closely matches the dotMailer/Group client profiles o Turnover £1m plus or potential to be £1m plus inside two years o Total consideration ideally 3-7 PE ratio o Deferred consideration to ensure goal alignment to dotDigital shareholders o Consideration LT 50% cash with the remainder payable in shares

25 Acquisition of Netcallidus o SEO has been our main focus o In depth discussions & negotiations with four targets o Compared each business against our criteria o In addition to financial criteria we wanted cultural fit & a scalable infrastructure o Netcallidus ticked all those boxes

26 Netcallidus – financial overview of deal Seeking goal alignment Earnings enhancing v dotDigital shareholders Shared vision for growth Deal structure 5 x PAT for y/e June 2010 = (5x£230k) £1.15m (Cash £1m) Deferred consideration 4X PAT for y/e June 2011 less £1.15 paid so far 3X PAT for y/e June 2012 less previous payments Deferred consideration split 60% dotDigital Shares 40% cash

27 Our commitment to life as a plc o Orderly Market - Continual matching of buyers with sellers of shares o Executive directors shareholding - 49% o Acquisition concluded using blend paper & cash o Commitment to first class corporate governance and reporting procedures o Annual accounts produced to AIM standard o AIM admission process conducted smoothly o AIM Admission document published 14 th march 2011

28 In conclusion o High growth profitable business in attractive market sectors o Cash generative o Significant opportunities for organic & adjacent growth o Opportunities for international expansion o Opportunities for acquisitions & joint ventures 2011 will be a year of further investment for future growth: Investment in marketing Investment in people Investment in products


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