280 likes | 385 Vues
Interims 2011 AIM Admission The story so far. The Board. Simon Bird – Technical Director Peter Simmonds – CEO & Finance Director Skip Fidura – Client Services Director Tink Taylor - Business Development Director. Company Summary. B2B Digital Marketing products and services
E N D
Interims 2011 AIM Admission The story so far
The Board Simon Bird – Technical Director Peter Simmonds – CEO & Finance Director Skip Fidura – Client Services Director Tink Taylor - Business Development Director
Company Summary • B2B Digital Marketing products and services • Established 1999 • 135 staff • 3500+ Clients • Winner - National Business Awards –Best Growth Strategy • Offices in Croydon, London Bridge, Manchester, Northampton & Minsk
The Digital Journey Conversion
Significant Achievements last 18 months • AIM Admission announced • Increased sales & software engineering teams • Grew client base significantly • Implemented Microsoft Dynamics CRM • Implemented Sage 200 • Implemented new IT infrastructure • Successfully launched dotCommerce • Successfully launched dotSEO • Acquired Netcallidus • Created SEO team in Belarus • Maintained the high energy entrepreneurial culture
Our people are key to the success • Young team - average age is 26 • Highly empowered • All staff become option holders • Focus on goal alignment • We aim to hire the best people • We aim to keep our good people
2010/11 Interims • Revenues increased by 48% (From £2,785k to £4,123k) • Profits after tax increased by 48% (From £520k to £771k) • Up 56% excluding IFRS2 charge relating to options of £38k • Strong growth in customer numbers • An expansion of products and services • New Offices in Belarus & Scotland • Earnings per share up 50%
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
Focus on recurring revenues • dotMailer monthly recurring revenue continues to grow strongly • dotSEO/Netcallidus recurring revenue now increasing significantly • dotCommerce recurring revenue starting to build
Interims - Impact of new products on growth • New products showing good growth • Email marketing continues to perform strongly • Managed service aids retention • Search marketing boosted by Netcallidus acquisition • Project revenues declining in absolute terms and as a percentage • Recurring revenues increasing as a percentage of total revenue
Further organic growth opportunities • dotMailer V5 • Currently in Beta testing, full launch early 2011 • - powerful new editor • - intuitive new step process • - powerful split testing • dotSurvey • new product Beta launch in Q1 2011 • Saas version dotCommerce • target Beta late 2011 • - features now built for “bespoke” version • - powerful new editor in development
Further organic growth opportunities • Open new partner distribution channels through development of connectors to CRM tools eg Microsoft Dynamics • Appointment of International resellers • Opening of further sales offices in UK and International • Edinburgh office opened on Tuesday this week.
Acquisition Targets • The target sectors selected for potential acquisitions are: • SEO • Mobile • Word of Mouth Marketing …….. “Social” • Surveys • Analytics • Usability testing • Research
Acquisition Criteria • The “ideal” criteria agreed for acquisition targets are as follows: • High proportion of recurring revenues ideally minimum 40% of total • No more than 10% of revenue from one client • Strong technology with ownership of IP • Not dependant on one (few) key person(s) • Client base closely matches the dotMailer/Group client profiles • Turnover £1m plus or potential to be £1m plus inside two years • Total consideration ideally 3-7 PE ratio • Deferred consideration to ensure goal alignment to dotDigital shareholders • Consideration LT 50% cash with the remainder payable in shares
Acquisition of Netcallidus • SEO has been our main focus • In depth discussions & negotiations with four targets • Compared each business against our criteria • In addition to financial criteria we wanted cultural fit & a scalable infrastructure • Netcallidus ticked all those boxes
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
Our commitment to life as a plc • Orderly Market - Continual matching of buyers with sellers of shares • Executive directors shareholding - 49% • Acquisition concluded using blend paper & cash • Commitment to first class corporate governance and reporting procedures • Annual accounts produced to AIM standard • AIM admission process conducted smoothly • AIM Admission document published 14th march 2011
In conclusion • High growth profitable business in attractive market sectors • Cash generative • Significant opportunities for organic & adjacent growth • Opportunities for international expansion • 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