Daily Internet Share Discussion Threads

[flashheart] 10/9/2014 15:05

Up on small so its not going to take much.

[aishah] 10/9/2014 14:16

Non-exec chairman of DAIP - huge vote of confidence

[flashheart] 10/9/2014 11:33

Mmm....interesting indeed. Don't think this will take too long now to get noticed and respond accordingly.

[ashtree2] 10/9/2014 10:01

Interesting,worth googling Michael Edelson on Wikipedia.

[fenseal3] 10/9/2014 08:43

If ever there was a statement that showed confidence in a company it has to be that one....13.6m shares bought @ 1.825p


RNS Number : 2455R

Daily Internet PLC

10 September 2014

10 September 2014

Daily Internet plc

("Daily Internet" or "the Company" or "the Group")

Disclosure of Dealings

The Company announces that Michael Edelson yesterday purchased 13,698,630 ordinary shares in the issued share capital of the Company ("Ordinary Shares"), equivalent to 3.36 per cent. of its voting share capital, from Hawkstone Capital Limited. The transaction was effected at a price of 1.825p per share.

Following the purchase, Mr Edelson now holds a total of 21,265,296 Ordinary Shares, equivalent to 5.21 per cent. of the voting share capital of the Company.

Following the sale, Hawkstone Capital Limited now holds a total of 19,878,703 Ordinary Shares, equivalent to 4.88 per cent. of the voting share of the Company.

[fenseal3] 29/8/2014 14:09

Thought about topping up @ 1.72p two days ago, looked in and saw the 65k buy today @ 1.75 and thought maybe wait but the last trade 40k pushed it up, now it's 1.945p to buy...this does shift on little volume.

[nw99] 14/8/2014 09:18

Early stages this will be a very big company buy and hold come back in 5 years time

[tiltonboy] 14/8/2014 07:49

Excellent news. Looks like a nice little acquisition.

[fenseal3] 14/8/2014 07:48

Great news, it's all coming together now....i like the progress they are making, not long before investors see this as a solid investment and jump on board, from last results upto March 2014.



Financial Highlights

Revenue increased by 49% to GBP2.33 million (FY 2013: GBP1.56 million) including GBP0.68 million revenue from Netplan for the 4.5 months to 31 March 2014

Gross profit increased by 62% to GBP1.29 million (FY 2013: GBP0.79 million)
Adjusted EBITDA loss reduced to GBP0.05 million (FY 2013: loss GBP0.17 million)
Cash and cash equivalents GBP1.00 million (FY 2013: GBP0.37 million)
Operational Highlights

Acquisition of Netplan Internet Solutions Limited ("Netplan") in November 2013 for a total consideration of GBP3.7 million (Note 8)
Netplan performing ahead of expectations and earn-out paid early with full integration now underway

Netplan moving Daily Internet up value chain with Group ARPU increasing to GBP128 (FY 2013: GBP87) and two largest customers now generating revenue of up to GBP200,000 per annum each
Acquisition of NameHOG in January 2014 for a cash consideration of GBP150,000
NameHOG already fully integrated into the Group Two fundraisings completed amounting to GBP3.625 million before expenses

Abby Hardoon, CEO of Daily Internet, commented: "I am delighted with the progress made by the Group during the year to 31 March 2014, a period in which we experienced solid growth and successfully executed a number of acquisitions. These have increased our customer base, improved our product set and resulted in higher ARPU. Looking forward we expect to benefit through extracting further synergies from these acquisitions, particularly as we are now able to fully integrate Netplan following the early payment of the earn-out.

"We will continue to target small internet hosting businesses for consolidation as well as larger acquisitions with higher revenues per customer to enhance our high-end product range and extend our reach into new markets with new brands. We hope to be able to provide further updates in this regard in due course and we are confident of delivering further growth in the year ahead.

From todays RNS which i like

Abby Hardoon, Managing Director of Daily Internet plc, commented: "We are delighted to announce the acquisition of Evohosting which will be immediately earnings enhancing to the Group and offers a range of cross-sell and upsell opportunities once integrated. We are also pleased that the Company's existing shareholders continue to support our acquisition strategy as demonstrated by their participation in the subscription. We continue to seek earnings enhancing acquisitions in order to add critical mass to the Company's operations.

[nw99] 14/8/2014 07:32

Placing at a premium ...

[tiltonboy] 24/7/2014 20:19

No chance at this stage. DAIP is far too small and is more likely to consolidate the sector by making small bolt-on acquisitions.

[opodio] 24/7/2014 13:31

second that view

[druinsky] 24/7/2014 10:38

IOM bid approach

maybe DAIP is next

[fenseal3] 08/7/2014 16:09

Small buy today....i'm in a lot here, this is my safest bet on AIM, long term i can see this being in the 8p to 10p range...GLA!!

[liquid millionaire] 30/6/2014 19:30

Chairman's Statement

I am pleased to present the financial results for the year ended 31 March 2014. The year under review has been one of significant advancement for the Group made possible by the hard work and determination of its management and employees.

Acquisitions

We acquired Netplan Internet Solutions Limited ("Netplan") in November 2013. Netplan provides dedicated servers to SMEs and PCI Level One hosting, enabling customers to securely manage financial transactions over the internet. The customer base of Netplan compliments that of Daily's and provides a higher average revenue and contribution per customer. Following the acquisition, Daily has focused its activities on the development of managed hosting and dedicated servers through the Netplan business.

As announced on 31 March 2014, in connection with an existing UK customer, Netplan concluded a six-figure agreement to provide Cloud offerings to the customer's parent company in New York. As a result, Netplan has established cloud and disaster recovery infrastructure in two New York data centres enabling us to offer our product portfolio to more companies within this customer's group as well as to other potential customers within the USA.

Netplan was acquired for a net cash consideration of GBP2.5 million plus an earn-out of a further GBP750,000, payable as to two-thirds in cash. The earn-out was subject to Netplan's EBIT achieving a minimum level of GBP500,000 for the year ended September 2014; and in addition it was agreed that if Netplan's EBIT for that year exceeded GBP525,000, then the earn-out consideration would increase by GBP3 for every GBP1 of the increase over this threshold.

Subsequent to the financial year end, and after Netplan's performance surpassed management's internal expectations, agreement was reached with the vendors to complete the payment of the earn-out consideration early through a final payment of GBP550,000 in cash and GBP300,000 in the form of 19,326,241 new ordinary shares in Daily. The early earn-out payment enabled Daily to pursue additional growth strategies within Netplan's business more quickly.

In January 2014, NameHOG was acquired for a cash consideration of GBP150,000. NameHOG is an established UK internet hosting provider supplying domain name registration, shared web hosting and dedicated server products to a diverse range of over 5,000 SME customers, including approximately 2,200 active customers. NameHOG now operates entirely out of Daily's existing Nottingham premises.

Placing

The Company completed two fundraisings during the year amounting to GBP3,625,000 before expenses, with the majority of the funds utilised in the acquisitions of Netplan and NameHOG. GBP3,000,000 was raised at a price of 1.5p per share in October 2013 and GBP625,000 was subsequently raised at 1.65p per share in January 2014. The current share price is 1.88p.

Performance Summary

The Group continued to make significant progress during the financial year under review, particularly following the two acquisitions detailed above. In the second half of the financial year, the SME hosting division reversed a GBP120,000 loss in the first half into a GBP57,000 profit, with Netplan contributing GBP301,000 to EBITDA during the period since its acquisition.

The Group now provides a broad portfolio of hosting products, email and domain name registration services to large and small business users as well as consumers to satisfy all their hosting requirements. Our customer base has been enhanced by the acquisition of both NameHOG and Netplan and has continued to grow.

The contribution of Netplan is reflected in an improved Average Revenue per Customer (ARPU) during the year, rising from some GBP87 to GBP128. In addition our larger customers spent at the rate of c. GBP140,000 with us last year, an increase of around GBP35,000 from the year before.

Outlook

We are now growing as a Group with synergies to be extracted through the development of our three trading brands: Daily Internet, NameHOG and Netplan. We possess a comprehensive range of products, a much larger customer base, and a robust platform to allow us to grow both organically and through acquisition. ARPU continues to grow and our larger customers are now expected to contract at over GBP200,000 per year with us.

We have re-examined all of our products and have started to prune those that are less profitable. This is expected to streamline Daily's operations and reduce the cost base.

Our stated buy and build strategy continues to target for consolidation small internet hosting businesses and also larger acquisitions with higher revenues per customer to enhance our high-end product range and significantly increase profitability.

Our management team continues to work hard with enthusiasm and energy, seeking out new technologies to capture further market share, increase revenue and consolidate our position. At the same time they endeavour to target and execute accretive acquisitions to enable us to extend our reach into new markets with new brands at a much faster rate than is possible through organic growth.

Conclusion

I take this opportunity to thank all our shareholders for their continued support, the Daily Group staff for their passion, dedication and commitment and of course, our customers.

Michael Edelson

Chairman

[liquid millionaire] 30/6/2014 19:26

Abby Hardoon, CEO of Daily Internet, commented: "I am delighted with the progress made by the Group during the year to 31 March 2014, a period in which we experienced solid growth and successfully executed a number of acquisitions. These have increased our customer base, improved our product set and resulted in higher ARPU. Looking forward we expect to benefit through extracting further synergies from these acquisitions, particularly as we are now able to fully integrate Netplan following the early payment of the earn-out.

"We will continue to target small internet hosting businesses for consolidation as well as larger acquisitions with higher revenues per customer to enhance our high-end product range and extend our reach into new markets with new brands. We hope to be able to provide further updates in this regard in due course and we are confident of delivering further growth in the year ahead."

[tiltonboy] 30/6/2014 15:10

Let's not get carried away. On Sanlam's target, they are trading on 25x earnings, three years hence.

A decent earnings enhancing acquisition might change that, but, as mentioned before, still fully valued at the current offer.

[opodio] 30/6/2014 13:52

could be 10p imgo

[aishah] 30/6/2014 13:51

Sanlam Reiterate Buy and a 3p target today

[opodio] 30/6/2014 13:47

anyone have a target