DOTDIGITAL GROUP PLC — Interim / Quarterly Report 2014

Feb 11, 2014

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RNS Number : 6945Z

dotDigital Group plc

11 February 2014

An analyst meeting will be held at 09.30am today at the offices of N+1 Singer, One Bartholomew Lane, EC2N 2AX

Enquiries, please contact Lisa Baderoon (lisa.baderoon@dotdigitalgroup.co.uk)

dotDigital Group Plc

("dotDigital", "Company" or the "Group")

INTERIM RESULTS ANNOUNCEMENT

For the six months ended 31 December 2013

"Continued strong organic growth in line with forecast"

dotDigital Group Plc (AIM:DOTD), the UK's leading provider of intuitive email marketing and marketing automation software and managed services to digital marketing professionals, announces its results for the six months ended 31 December 2013.

Six Month Key Highlights

·     Revenues from continuing operations up 32.5%  to £7.6m from £5.7m

·     Monthly recurring revenues from dotMailer's Software as a Service ("SaaS") based usage charges up 29% to £5.8m

·     Email related creative and managed service up 164% to £0.8m

·     Group operating profit before tax and exceptionals up 17.8 % to £2.1m

·     Net cash generated from operating activities of £2.0m

·     Strong net cash position of £7.3m as at 31st December 2013

dotMailer

·     426 new clients signed in the period including Skanska, Santander, GFK, Fujifilm, Harley Davidson, Metapack and Fraser Hart

·     Average monthly recurring spend per client increased from £238 to £284

Magento connector

·     Over 75 clients on the newly launched Magento connector

·     Average recurring spend from clients of £700 per month

International Initiatives

·     Revenue from the US region grew from $88k to $456k reflecting good initial progress

On outlook, Peter Simmonds, Chief Executive said:

"I am delighted that the strategy of focusing on fast growing medium sized businesses and corporate clients has driven average monthly spend up by 19%. This combined with a focus on longer term contracts and client retention is leading to significantly higher client lifetime values.

The initiatives to accelerate organic growth that we announced in August 2013 are already starting to deliver increased sales although as a Software as a Service business with monthly recurring revenues, the full impact will not be seen in our results until future periods.

Based on the strong performance at the half year to 31 December 2013 and the forward pipeline, the Board remains confident of achieving both revenue and profit expectations for 2014 and of delivering long term shareholder value."

For further enquiries please contact:

dotDigital Group Plc Peter Simmonds, Chief Executive	Tel: 020 7654 8686
Financial PR and Investor Relations Lisa Baderoon lisa.baderoon@dotdigitalgroup.co.uk	Tel: 07721 413 496
N+1 Singer, NOMAD & Broker Shaun Dobson, Head of Corporate Finance Nick Donovan, Corporate Finance Graeme Summers, Head of Corporate Broking	Tel: 020 7496 3000
finnCap, Joint Broker Stuart Andrews, Corporate Finance Brian Patient, Corporate Broking	Tel: 020 7220 0500

CHIEF EXECUTIVE REVIEW

Overview

As announced in the trading update on 8 January 2014, dotDigital continued to deliver strong growth in both revenues and profits in line with market forecasts for the six months ended 31 December 2013.

		DOTMAILER			DISCONTINUED			CENTRAL COSTS			CONSOLIDATED
				%			%			%			%
		Dec-13	Dec-12	Inc*	Dec-13	Dec-12	Inc*	Dec-13	Dec-12	Inc*	Dec-13	Dec-12	Inc*
		£'m	£'m		£'m	£'m		£'m	£'m		£'m	£'m
Sales		7.6	5.7	32.5%	0.2	1.1	(84.1)%				7.8	6.8	13.9%
Cost of Sales		0.5	0.4	28.2%	0.1	0.6	(82.0)%				0.6	1.0	(37.8)%
Gross Profit		7.1	5.3	32.8%	0.1	0.5	(88.0)%				7.2	5.8	23.5%
Administrative Expenses		4.5	3.1	46.0%	0.1	0.6	(82.0)%	0.5	0.3	52.9%	5.1	4.0	26.7%
Operating Profit before tax and exceptionals		2.6	2.2	17.4%	0.0	(0.1)	(60.6)%	(0.5)	(0.3)	52.9%	2.1	1.8	17.8%
* Actual %l increase is based on unrounded numbers

The table above shows the performance in the core business division under the brand dotMailer and the trailing revenue of circa £30k per month from the discontinued 'Services' operation (Web Design and Search marketing) that was announced in the full year accounts ending 30 June 2013. As the ecommerce clients re-platform their websites this revenue line will continue to reduce over the next 12 - 24 months.

dotMailer: Email Marketing & Marketing Automation Software - SaaS Products

The performance from the high margin SaaS product based email marketing platform continues to go from strength to strength with revenue growth for the six month period of 32.5% to £7.6m (2012: £5.7m) with strong recurring revenue continuing to form a significant part of this total. Profit before tax grew by 17.4% to £2.6m and reflects the ongoing investment the Company is making in the business in order to accelerate future organic growth.

This strong growth was helped by the focus on winning higher value clients, as well as growth in recurring spend from existing clients and improved client retention driven by clients signing up to longer term contracts. The average monthly billing from all clients increased by 19% from £238 per month to £284.  Following the strategy to focus on high value corporates and mid-sized clients, the monthly commitment from new clients increased by 36%. In the interim period 426 new clients were signed with an average monthly committed spend of £295. Client numbers were lower than the corresponding period last year reflecting the Company's strategy to focus on fast growing mid-size businesses and enterprise clients with a significantly higher lifetime value. The average monthly commitment in the pipeline suggests that this will trend upwards. Notable client wins included Harley Davidson, Metapack, OFGEM, Fraser Hart, Payzone, Skanska, GFK, Santander, Fujifilm and Fruit of the Loom.

With the Board's strategy of continued investment in the business to capitalise on long term organic growth, an additional 24 people in Sales and Account management have been recruited. The addition of this headcount has already started to pay off generating £200k of incremental revenue since the start of the investment program in August 2013. Further investment will continue to be made in marketing of the dotMailer platform and adding further revenue generating personnel. At the half year end, dotMailer had committed to £1.2m of annualised spend in sales, account management and marketing salaries.

Revenues from the US region have started well increasing from $88k to $456k, a five-fold increase compared to the same period in 2012. The New York sales office continues to focus on sector niches and higher value corporate clients that it has identified which are the most attractive for the dotMailer product platform. The pipeline is continuing to grow with prudent additional investment in headcount and marketing activities.

Our email creative and managed services revenue more than doubled from £0.3m to £0.7m during the period. There is further revenue growth potential that can be unlocked from these new services. This offering helps generate positive return on investment (ROI) for our clients and helps time poor marketers to outsource their creative and campaign management/strategy to email marketing experts.

New SaaS products

The Company has launched two new additions to its core email marketing automation platform. It has now fully launched the Magento connector, which will allow ecommerce customers that use the Magento platform to synchronise their data between the two platforms. This will also enable customers to segment their data and send targeted campaigns to prospects and customers. Some recent client users include Heals, World Duty Free, Vax and Paperchase.

The first half of the year also saw the beta  launch of the customer insight module, which allows a customer to build complex, behavioural based customer segments for hyper personalisation in minutes using dotMailer's drag and drop query building technology. This allows our customers to send relevant and targeted content to recipients delivering significant email marketing ROI. The Company expects to launch this to the full user base in March 2014.

Financial Summary

Consolidated EBITDA

Overall group EBITDA rose from £2.2m to £2.6m, an increase of 18%, reflecting the strong performance in the core products division.

Balance Sheet & Cash Position

The Company continues with its strong cash generation from operations with the interim end net cash balance growing to £7.3m after capital expenditure of £0.1m, hardware/software upgrades of £0.2m and research and product development of £0.6m. This has also been partly due to further efficiencies in the cash collection process and a decrease in debtor turnover ratio. The Company also continues not to have any debt finance. These highly efficient internal accounting practices contributed to the Company having an even stronger balance sheet at the six months end.

Dividend Policy

A maiden dividend of 0.1p per ordinary share was proposed by the Company at the time of the annual results in October last year demonstrating a clear commitment from the Board to delivering value by focusing on total shareholder return in the future.  This dividend was approved by shareholders at the Annual General Meeting on the 17 December 2013 and paid on 31 January 2014. The Company's ongoing policy will be to review dividends at the time of the year end. The Board is therefore not proposing an interim dividend.

Current Trading & Outlook

The core email marketing business continues to perform strongly and the strategy to continue to invest in the business is delivering pleasing results. 

The client take up of the new Magento product has been strong with the average monthly spend of new customers increasing to over £700 per month. The product has been well received as evidenced by feedback gained from both clients and Magento implementation partners.

Whilst the International revenues are still at an early stage we have confidence from existing prospects and the pipeline that has been built up in the US. Our analysis shows that we have more potential customers with larger email databases in the US which should translate into greater client by client revenue values/spends. With continued good hiring and carefully managed investment we are confident of revenues from the US region building over the next 12 months.

I am delighted that the strategy of focusing on fast growing medium sized businesses and corporate clients has driven average monthly spend up by 19%. This combined with a focus on longer term contracts and client retention is leading to significantly higher client lifetime values.

The initiatives to accelerate organic growth that we announced in August 2013 are already starting to deliver increased sales although as a Software as a Service business with monthly recurring revenues, the full impact will not be seen in our results until future periods.

Based on the strong performance at the half year to 31 December 2013 and the forward pipeline, the Board remains confident of achieving both revenue and profit expectations for 2014 and of delivering long term shareholder value.

DOTDIGITAL

CONSOLIDATED INCOME STATEMENT

For the six months ended 31 December 2013

					6 months		6 months		12 months
					to 31 Dec 2013		to 31 Dec 2012		to 30 June 2013
					Unaudited		Unaudited		Audited
				note	£'000s		£'000s		£'000s
	Continuing operations						(restated)
	Revenue				7,570		5,714		12,197
	Cost of sales				(491)		(383)		(887)
	Gross profit				7,079		5,331		11,310
	Administrative expenses				(4,926)		(3,364)		(7,338)
	Operating profit				2,153		1,967		3,972
	Finance income				9		1		13
	Profit before tax from continuing operations				2,162		1,968		3,985
	Loss from discontinuing operations			4	(54)		(1,757)		(3,023)
	Profit before income tax				2,108		211		962
	Income tax expense				(304)		(87)		(220)
	Profit for the period from continuing and discontinuing
	operations attributable to shareholders				1,804		124		742
	Earnings per share:
	Basic (pence)			5	0.65		0.04		0.27
	Diluted (pence)			5	0.63		0.04		0.26
	Adjusted excluding exceptional items (pence)			5	0.65		0.60		1.11
	Adjusted diluted excluding exceptional items (pence)			5	0.63		0.59		1.07

DOTDIGITAL

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 31 December 2013

					6 months		6 months		12 months
					to 31 Dec 2013		to 31 Dec 2012		to 30 June 2013
					Unaudited		Unaudited		Audited
					£'000s		£'000s		£'000s
							(restated)
	Profit for the period				1,804		124		742
	Exchange differences on translating foreign operations				5		-		(2)
	Total comprehensive income
	attributable to:
	Owners of the parent				1,809		124		740

DOTDIGITAL

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

For the six months ended 31 December 2013

							6 months			6 months		12 months
							to 31 Dec 2013			to 31 Dec 2012		to 30 June 2013
							Unaudited			Unaudited		Audited
							£'000s			£'000s		£'000s
	Assets
	Non current assets
	Goodwill						609			1,395		609
	Intangible assets						2,742			2,104		2,449
	Property, plant and equipment						514			519		472
							3,865			4,018		3,530
	Current assets
	Trade and other receivables						3,164			2,634		2,893
	Cash and cash equivalents						7,290			4,617		6,072
							10,454			7,251		8,965
	Total assets						14,319			11,269		12,495
	Equity attributable to  the
	owners of the parent
	Called up share capital				7		1,396			1,379		1,387
	Share premium						4,953			4,781		4,863
	Reverse acquisition reserve						(4,695)			(4,695)		(4,695)
	Other reserves						43			98		11
	Retained earnings						10,596			8,326		9,071
	Total equity						12,293			9,889		10,637

DOTDIGITAL

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

For the six months ended 31 December 2013

					6 months		6 months		12 months
					to 31 Dec 2013		to 31 Dec 2012		to 30 June 2013
					Unaudited		Unaudited		Audited
				note	£'000s		£'000s		£'000s
	Liabilities
	Non-current liabilities
	Trade and other payables
	Deferred tax				14		25		14
					14		25		14
	Current liabilities
	Trade and other payables				1,612		1,240		1,681
	Tax payable				400		115		163
					2,012		1,355		1,844
	Total liabilities				2,026		1,380		1,858
	Total equity and liabilities				14,319		11,269		12,495

DOTDIGITAL

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 31 December 2013

		Share		Share			Retained					Other					Reverse				Retranslation					Total
		capital		premium			earnings					reserves					acquisition				Reserve
																	reserve
		£'000s		£'000s			£'000s					£'000s					£'000s				£'000s					£'000s
	As at 1 July 2012	1,377		4,755			8,202					127					(4,695)				-					9,766
	Profit after tax for the period	-		-			124					-					-				-					124
	Issue of share capital	2		26			-					-					-				-					28
	Share based payment	-		-			-					(29)					-				-					(29)
	As at 31 December 2012	1,379		4,781			8,326					98					(4,695)				-					9,889
	As at 1 July 2012	1,377		4,755			8,202					127					(4,695)				-					9,766
	Profit after tax for the year	-		-			742					-					-				-					742
	Reclassification of reserves	-		-			127					(127)					-				-					-
	Retranslation reserve	-		-			-					-					-				(2)					(2)
	Issue of share capital	10		108			-					-					-				-					118
	Share based payment	-		-			-					13					-				-					13
	As at 30 June 2013	1,387		4,863			9,071					13					(4,695)				(2)					10,637
	As at 1 July 2013	1,387		4,863			9,071					13					(4,695)				(2)					10,637
	Profit after tax for the period	-		-			1,804					-					-				-					1,804
	Retranslation reserve	-		-			-					-					-				5					5
	Dividends	-		-			(279)					-					-				-					(279)
	Issue of share capital	9		90			-					-					-				-					99
	Share based payment	-		-			-					27					-				-					27
	As at 31 December 2013	1,396		4,953			10,596					40					(4,695)				3					12,293

·     Share capital is the amount subscribed for shares at nominal value

·     Share premium represents the excess of the amount subscribed for share capital over the nominal value net of the share issue expenses

·     Retained earnings represents the cumulative earnings of the Group attributable to equity shareholders.

·     The reverse acquisition reserve relates to the adjustment required to account the reverse acquisition inaccordance with International Financial Reporting Standards

·     Other reserves relate to the charge for the share based payments in accordance with International Financial Reporting Standard 2

·     Retranslation reserve relates to the retranslation of a foreign subsidiary into the functional currency of the Group

DOTDIGITAL

CONSOLIDATED STATEMENT OF CASHFLOWS

For the six months ended 31 December 2013

					6 months		6 months				12 months
					to 31 Dec 2013		to 31 Dec 2012				to 30 June 2013
					Unaudited		Unaudited				Audited
				note	£'000s		£'000s				£'000s
	Cash flow from operating activates			6	2,024		1,561				3,817
	Tax paid				(66)		(159)				(253)
	Net cash generated from operating activities				1,958		1,402				3,564
	Cash flow from investing activates
	Purchase of intangible fixed assets				(690)		(615)				(1,352)
	Purchase of tangible fixed assets				(165)		(220)				(292)
	Sale of tangible fixed assets				7		-				-
	Interest received				9		1				13
	Net cash used in investing activities				(839)		(834)				(1,631)
	Cash flows from financing activities
	Share issue				99		28				118
	Net cash generated from financing activities				99		28				118
	Increase in cash and cash equivalents				1,218		596				2,051
	Cash and cash equivalents at beginning of period				6,072		4,021				4,021
	Cash and cash equivalents at end of period				7,290		4,617				6,072

DOTDIGITAL

NOTES TO THE FINANCIAL STATEMENTS

For the six months ended 31 December 2013

	1. GENERAL INFORMATION
	dotDigital Group Plc is a company incorporated in England and Wales and quoted on the AIM market.
	2. BASIS OF INFORMATION
	These consolidated interim financial have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union and on a historical basis, using the accounting policies which are consistent with those set out in the Group's annual report and accounts for the year ended 30 June 2013. The interim financial information for the six months to 31 December 2013, which complies with IAS 34 'Interim Financial Reporting' has been approved by the Board of Directors on 11 February 2014
	The unaudited interim financial information for the period ended 31 December 2013 does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The comparative figures for the year ended 30 June 2013 are extracted from the statutory financial statements which have been filed with the Registrar of Companies and contain an unqualified audit report and did not contain statements under Section 498 to 502 of the Companies Act 2006.
	3. SIGNIFICANT ACCOUNTING POLICIES
	The accounting policies applied are consistent with those of the annual financial statements for the year ended 30 June 2013, as described in those financial statements.
	Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total earnings.

DOTDIGITAL

NOTES TO THE INTERIM FINANCIAL STATEMENTS

For the six months ended 31 December 2013

	4. DISCONTINUED OPERATIONS
	Analysis of continuing and discontinuing operations is as follows:
			6 months to 31 Dec						6 months to 31 Dec					12 months to 30 June
			2013						2012					2013
			Continued			Discontinued			Continued		Discontinued			Continued	Discontinued
			£'000			£'000			£'000		£'000			£'000	£'000
	Revenue		7,570			173			5,714		1,085			12,197	1,651
	Cost of sales		(491)			(113)			(383)		(588)			(887)	(1,033)
	Gross profit:		7,079			60			5,331		497			11,310	618
	Administrative expenses		(4,926)			(114)			(3,364)		(715)			(7,338)	(1,315)
	Operating profit before
	exceptional items:		2,153			(54)			1,967		(218)			3,972	(697)
	Exceptional items: Impairment
	of goodwill		-			-			-		(1,539)			-	(2,326)
	Finance income		9			-			1		-			13	-
	Corporation tax		(304)			-			(87)		-			(220)	-
	Profit for the year attributable
	to owners:		1,858			(54)			1,881		(1,757)			3,765	(3,023)

DOTDIGITAL

NOTES TO INTERIM FINANCIAL STATEMENTS

For the six months ended 31 December 2013

	5. EARNINGS PER SHARE
								6 months				6 months							12 months
								to 31 Dec 2013				to 31 Dec 2012							to 30 June 2013
								Unaudited				Unaudited							Audited
	Continuous operations and discontinuing operations
	Earnings per Ordinary share:
	Basic (pence)							0.65				0.04							0.27
	Diluted (pence)							0.63				0.04							0.26
	Adjusted excluding exceptional items (pence)							0.65				0.60							1.11
	Adjusted diluted excluding exceptional items (pence)							0.63				0.59							1.07
	Discontinuing operations
	Earnings per Ordinary share:
	Basic (pence)							(0.02)				(0.08)							(0.01)
	Diluted (pence)							(0.02)				(0.08)							(0.01)
	Adjusted earnings represents earnings normalised for unique charges and income in the period:
								6 months				6 months							12 months
								to 31 Dec 2013				to 31 Dec 2012							to 30 June 2013
								Unaudited				Unaudited							Audited
								£'000s				£'000s							£'000s
	Profit attributable to shareholders							1,804				124							742
	Impairment of goodwill							-					1,539			2,326
	Profit figure utilised for adjusted EPS							1,804					1,663			3,068
	Weighted average number of shares in issue as follows:
							6 months			6 months						12 months
							to 31 Dec 2013			to 31 Dec 2012						to 30 June 2013
							Unaudited			Unaudited						Audited
							£'000s			£'000s						£'000s
	Weighted average number
	Basic						279,172,065			275,932,065						275,839,565
	Diluted						286,365,836			282,567,459						285,687,852
	Adjusted excluding exceptional items (pence)						279,172,065			275,932,065						275,839,565
	Adjusted diluted excluding exceptional items (pence)						286,365,836			282,567,459						285,687,852

DOTDIGITAL

NOTES TO INTERIM FINANCIAL RESULTS

For the six months ended 31 December 2013

	6. RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING ACTIVITIES
					6 months		6 months		12 months
					to 31 Dec 2013		to 31 Dec 2012		to 30 June 2013
					Unaudited		Unaudited		Audited
					£'000s		£'000s		£'000s
	Profit before income tax				2,108		211		962
	Adjustments for:
	Exceptional items: impairment of goodwill				-		1,539		2,326
	Depreciation and amortisation				512		371		831
	Loss on disposal of fixed assets				-		-		50
	Share based payments				27		(29)		13
	Finance costs				-		64		-
	Finance income				(9)		(1)		(13)
	Retranslation reserve				5		-		(2)
	Increase in trade and other receivables				(271)		(436)		(696)
	Increase in trade and other payables				(348)		(94)		346
	Net cash from operating activates				2,024		1,625		3,817
	7. CALLED UP SHARE CAPITAL
	The issued share capital as at 31 December 2013 was 279,172,065, Ordinary Shares of £0.005 per share (30 June
	2013: 277,472,065 Ordinary Shares of £0.005 per share as per the audited accounts).
	8. SHARE BASED PAYMENTS
	The measurement requirements of IFRS2 have been implemented in respect of the share options that were granted
	after 7 November 2002. The expense recognised for share based payments made during the period is £27,000
	(31 Dec 2012: £29,000 credit, 30 June 2013: £13,000 expense).
	In addition to the options issued up to 30 June 2013, as outlined in the statutory financial statements, The Board
	of Directors also granted 3,555,000 options to employees of the Group exercisable on or after 01 November 2015
	until 31 October 2018. Vesting conditions of the options dictate that the employee must remain part of the Group
	up to the date they choose to exercise their options to qualify.

DOTDIGITAL

NOTES TO THE INTERIM RESULTS

For the six months ended 31 December 2013

	9. SEGMENTAL REPORTING
	IFRS 8 requires that operating segments be identified on the basis of internal reporting and decision making. The operating segments represent those assessed by the board and relate to the Group's services and products sold to the open market.
	Period ended 31 December 2013			Products			Services				Central costs				TOTAL
				£'000s			£'000s				£'000s				£'000s
	Sales			7,570			173				-				7,743
	Cost of sales			(491)			(113)				-				(604)
	Gross profit			7,079			60				-				7,139
	Overheads			(4,553)			(114)				(419)				(5,086)
	Finance income			9			-				-				9
	Profit before tax and exceptional items			2,535			(54)				(419)				2,062
	Period ended 31 December 2012			Products			Services				Central costs				TOTAL
				£'000s			£'000s				£'000s				£'000s
	Sales			5,714			1,085				-				6,799
	Cost of sales			(383)			(588)				-				(971)
	Gross profit			5,331			497				-				5,828
	Overheads			(3,118)			(634)				(327)				(4,079)
	Finance income			1			-				-				1
	Profit before tax and exceptional items			2,214			(137)				(327)				1,750
	Year ended 30 June 2013			Products			Services				Central costs				TOTAL
				£'000s			£'000s				£'000s				£'000s
	Sales			12,197			1,651				-				13,848
	Cost of sales			(887)			(1,033)				-				(1,920)
	Gross profit			11,310			618				-				11,928
	Overheads			(6,807)			(1,116)				(731)				(8,654)
	Finance income			13			-				-				13
	Exceptional items			-			(2,325)				-				(2,325)
	Profit before tax and exceptional items			4,516			(2,823)				(731)				962

DOTDIGITAL

NOTES TO THE INTERIM RESULTS

For the six months ended 31 December 2013

	10. RELATED PARTY NOTE
	Transactions between the company and its subsidiaries, who are related parties, have been eliminated on
	consolidation and are not disclosed in this note.
	Key  management remuneration:
	Key management includes, Directors, Associate Directors, Members of the Executive Committee and the
	Company Secretary. The remuneration paid for key management employee services are as follows:
						6 months		6 months				12 months
						to 31 Dec 2013		to 31 Dec 2012				to 30 June 2013
						Unaudited		Unaudited				Audited
						£'000s		£'000s				£'000s
	Remuneration and other short term benefits					310		301				931
	Share based payments					(5)		(1)				-
						305		300				931
	Directors & Non-Executive Directors
	Aggregate emoluments					298		272				588
	Company contributions to pension scheme					8		13				38
						306		285				626
	The following transactions were carried out with related parties
	Sale of services
	Entities controlled by non - executive directors of the Group:
	Cadence Performance Ltd - Email marketing services					1		-				1
						1		-				1

DOTDIGITAL

NOTES TO THE INTERIM RESULTS

For the six months ended 31 December 2013

								6 months					6 months					12 months
								to 31 Dec 2013					to 31 Dec 2012					to 30 June 2013
								Unaudited					Unaudited					Audited
								£'000s					£'000s					£'000s
	Purchase of services
	Entities controlled by non - executive directors of the Group:
	F Beechinor Collins - Consultancy services							-					7					6
	Barretts of Old Limited							16					-					12
								16					7					18
	11. SUBSEQUENT EVENTS TO 31 DECEMBER 2013
	As at the date of these statements and the date they were approved by the Board of Directors there were no such
	events to report.
	12. COPIES OF INTERIM FINANCIAL STATEMENTS
	Copies of this interim statement are available from the Company at its registered office at, Finsgate, 5-7
	Cranwood Street, London EC1V 9EE. The interim financial information document will also be available on the
	Company's website www.dotdigitalgroup.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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