Slide 1: Interims 2011 AIM Admission: The story so far
Interims 2011 AIM Admission The story so far
Slide 2: The Board
The Board Simon Bird – Technical Director Peter Simmonds – CEO & Finance Director Skip Fidura – Client Services Director Tink Taylor - Business Development Director
Slide 3: Company Summary
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
Slide 4: The Digital Journey
The Digital Journey Conversion 4
Slide 5: Some of our Clients
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Slide 6: Some of our Clients
. @e@ Some of our Clients dotDigitalGroup »« 25 WE ARE ° look MACMILLAN. CANCER SUPPORT reener smarter trave Postcode Anywhere Bes of Wales Russell Hobbs fa Sage L 3663, Es, ® on aie ne Westwoo. hmvcurRZON hropenonen RUSH Q secnationat tm a defra” ee Riimatnen meen: HENLEYS
Slide 7: Significant Achievements last 18 months
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 launche
Slide 8: Our people are key to the success
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
Slide 9: Financial Highlights – 2009/10 Full Year
Financial Highlights – 2009/10 Full Year
Slide 10: 2010/11 Interims
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 & Scotlan
Slide 11: 5 Year Financial Summary
5 Year Financial Summary £m 12 Months to 12 Months to Yr to 30 April Yr to 30 April Yr to 30 April June 2010 June 2009 2008 2007 2006 Turnover 6.0 4.2 2.5 1.2 0.8 Admin Costs 4.6 3.3 1.7 0.9 0.5 PBT 1.4 0.9 0.75 0.3 0.3 PAT 1.14 0.77 0.57 0.23 0.23
Slide 12: Cash Flow Summary
Cash Flow Summary dotbigitalgroup Consolidated statement of cash flow Samonthsto Sxmonthsto 12 months to 31 December 31 December 30 June 2010 2009 2010 unaudited unaudited aucites Note 000s 7000s, £0005 Operating activities 5 1.164 654 1,276 Corporation tax paid = = 183) Finance costs | () (0) Net c
Slide 13: Low dependence on largest clients
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
Slide 14: Google rankings drive enquiries
Google rankings drive enquiries Keywords Google email marketing 1 email marketing software 1 email marketing templates 1 email marketing services 1 bulk email marketing 1 email templates 6 email marketing campaign 1 email marketing company 1 email marketing solution 1 email marketing solutions 2 ema
Slide 15: Google rankings
Google rankings Keywords Google ecommerce solutions 1 ecommerce solution 2 bespoke ecommerce 1 ecommerce business solutions 1 ecommerce web site solution 5
Slide 16: Google Rankings
Google Rankings Keywords Google design agency 20 web design agency 14 website design agency 2
Slide 17: Google rankings
Google rankings Keywords Google seo agency 4 search engine optimisation agency 5 seo agency in london 1 seo agencies 3 website seo services 6
Slide 18: Google Rankings
Google Rankings Keywords Google strategic search engine marketing 2 search engine marketing company 4 search engine marketing 5 internet marketing company 6 search engine marketing companies 6 search engine marketing firm 8 search engine marketing service 9 seo marketing 14 internet marketing 15
Slide 19: Focus on recurring revenues
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
Slide 20: Interims - Impact of new products on growth
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 revenue
Slide 21: Further organic growth opportunities
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
Slide 22: Further organic growth opportunities
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.
Slide 23: Acquisition Targets
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
Slide 24: Acquisition Criteria
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 bas
Slide 25: Acquisition of Netcallidus
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
Slide 26: Netcallidus – financial overview of deal
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
Slide 27: Our commitment to life as a plc
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
Slide 28: In conclusion
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