DOTDIGITAL (DOTD:AIM) 94.9p

Loss to date: -2.2%

Original entry point: Buy at 97p, 21 December 2017

We could barely have called DotDigital (DOTD:AIM) better when we recently said an imminent trading update ‘may well be the catalyst to put investor concerns to bed’.

The bulletin on 19 July indeed confirmed more robust growth, profits bang in line with expectations, an 18% increase in average revenue per user (ARPU) and, hopefully, an end to longer-run growth worries on new GDPR data protection rules.

The digital marketing tools supplier effectively confirmed that the strong progress was right across the board, although burgeoning US and Asia-Pacific regions were real standouts, revenue up 43% and 85% respectively.

This fed investors a clear sense of relief and led the share price to jump more than 20% on the day, and the stock has kept climbing since.

This suggests to us that full year results in October could spark further demand for this fast-growth investment story.

In the meantime, don’t rule out acquisitions as the company is keen to add extra technology tools, customers and geographic footprint. Its seamless integration with Comapi, its first purchase, bodes well.

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