23 February 2016 – interim results
Software group dotDigital has announced its interim results for the six months to 31 December 2015 showing revenue up 29% to £12.9m (2014: £10.0m) with recurring monthly revenues up an impressive 35% to £10.0m. Pre-tax profits rose by 30% to £3.3m and earnings per share were 35% ahead at 1.04p (2014: 0.77p). At the end of the period the group had net cash balances of £14.8m. The group is confident over prospects for the current financial year although it believes that revenue growth will slow in 2016/17 due to lower investment in the current year. Nevertheless the longer term prospects remain solid and we therefore rate the shares a LONG TERM BUY.