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dotdigital Group PLC on Wednesday said profit fell during its most recent financial year despite an increase in revenue, as its expenses increased.
The London-based online marketing company said pretax profit for the financial year that ended June 30 was £13.2 million, down 8.3% from £14.4 million the year before.
Revenue rose 14% to £79.0 million from £69.2 million last year. However, administrative expenses increased 17% to £47.2 million from £40.4 million, while cost of sales grew 13% to £16.2 million from £14.4 million. Amortisation of acquired intangibles rose to £1.5 million from £120,000 last year, and exceptional costs multiplied to £973,000 from £114,000.
dotdigital declared a final dividend of 1.1 pence per share, up 10% from 1.0p last year.
The group said its combined offering with Fresh Relevance Ltd, following its £25 million acquisition of the London-based cross-channel personalisation technology vendor in September 2023, resulted in around a 60% increase in average order value from new customer wins during the year.
Chief Executive Officer Milan Patel said: ‘We are pleased to have delivered a strong performance in financial 2024, which saw growth across all geographic regions and continued robust cash generation to support further investment and acquisitions.
‘Our [customer experience and data platform] offering has developed substantially during the year through further product innovation and the acquisition of Fresh Relevance, which brings sought-after personalisation technology and opens doors to larger market opportunities. With Fresh Relevance now primed to scale outside of its core [Europe, the Middle East & Africa] market, we anticipate further larger value opportunities and increased engagement from our customer base with the platform.
‘As we enter financial 2025, with market drivers continuing to work in our favour and an enhanced product offering, we are positioned well for further growth.’
Shares in dotdigital were up 2.3% at 89.00 pence in London on late Wednesday morning.
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