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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Sysgroup Plc | LSE:SYS | London | Ordinary Share | GB00BYT18182 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 19.50 | 19.00 | 20.00 | 0.00 | 00:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Computer Related Svcs, Nec | 22.71M | -5.9M | -0.0709 | -2.75 | 16.23M |
From Mar 2020 to Mar 2025
TIDMDAIP
RNS Number : 1926I
Daily Internet PLC
08 December 2015
8 December 2015
Daily Internet plc
("Daily Internet" or the "Company" or the "Group")
Interim Results for the six months ended 30 September 2015
Daily Internet plc (AIM:DAIP), the managed hosting and cloud integrator, is pleased to announce its unaudited interim results for the six months ended 30 September 2015.
FINANCIAL HIGHLIGHTS
-- Revenue growth of 35.2% to GBP2,414k (H1 2014: GBP1,785k) -- Adjusted EBITDA(1) profit growth of 7.8% to GBP276k (H1 2014: GBP256k) -- Loss before tax reduced 26.2% to GBP76k (H1 2014: GBP103k) -- Gross margin maintained at 61.9% (H1 2014: 61.2%) -- Cash at bank at period end increased to GBP441k (H1 2014: GBP271k) -- On track to exceed analysts' full year expectations given the current H2 outlook
OPERATIONAL HIGHLIGHTS
-- Re-aligning of cost base now largely completed which included:
o Closure of Maidenhead office
o Reduction of headcount in SME division
o Removing duplication of common functions across business units
o Legacy SME business of Netplan transferred to SME division
o SME businesses server estate consolidated into a common datacentre
-- Strategic partnership with Epicor Software -- SaaS platform developed for Epicor customers
(1) Adjusted EBITDA, which is referred to throughout the announcement, is earnings before interest, taxation, depreciation, amortisation, acquisition and integration costs, fair value adjustments and share based payments
Chris Evans, Chief Executive commented:
"Following what has been a transformational period, we have entered H2 with a leaner cost base, a simplified management structure and a renewed focus on delivering profitable growth. We are building on a solid base and believe that we are well positioned to deliver on our plan. We therefore look forward to the future with confidence."
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Daily Internet plc
Chris Evans, Chief Executive
Julie Joyce, Finance Director
Sanlam Securities UK Limited Tel: 020 7628 2200
(Nominated Adviser and Joint Broker)
Simon Clements / Max Bascombe
Loeb Aron & Company Limited (Joint Tel: 020 7628 1128
Broker)
Dr Frank Lucas / Peter Freeman
Newgate Communications Tel: 020 7653 9848
Bob Huxford / Adam Lloyd / Ed
Treadwell
About Daily Internet
Daily Internet is a leading cloud integrator. Solutions delivered comprise best of breed technologies, tailored and delivered to ensure customers benefit from the vast array of solutions and ever advancing hosting technologies. The Daily Group team keeps customers at the forefront of technology, enabling them to free up resources so they can focus on growing their core business without the distractions or complexity of the ever-changing hosting landscape.
The Group has offices in Liverpool, Nottingham and Coventry.
For more information, visit http://www.dailyplc.com
Introduction
We have achieved a good trading performance over the first half, which has seen Group revenue grow by 35.2% to GBP2,414k (H1 2014: GBP1,785k). We continued to implement the realigning of our cost base in support of our particular focus on our Managed Hosting segment and as a result of restructuring work we have exited the period leaner and in a better position from which to deliver sustained revenue and profit growth moving forward.
Operational Review
We currently report across two segments: SME Hosting, which comprises of our mass-market brands daily.co.uk, Evohosting, and NameHOG; and Managed Hosting, which comprises of the Netplan brand and the former Q4Ex business (which is now fully integrated and trades as Netplan).
The revenue generated by each segment continues to shift in ratio towards Managed Hosting, which now accounts for 53% of revenue, and SME Hosting, 47%. This is the reverse of the H1 2014 position of 47% and 53% respectively.
SME Hosting
During the period under review, the Directors continued a programme of cost-realignment to focus capital more on the Managed Hosting division, as we have seen the largest growth opportunities in this area. This cost programme is largely completed, resulting in the closure of our Maidenhead office, the consolidation of the SME server estate into a single datacentre and the restructured SME teams simplifying the management and reporting structure. Staff numbers in the SME division have decreased from 16 to 10.
Revenue for SME hosting rose 22% to GBP1,143k vs GBP939k for H1 2015. As a result of the reorganisation EBITDA increased 100% to GBP250k from GBP125k for H1 2015. Given that many of the cost savings became effective towards the end of the period under review and the one-off non-recurring costs for redundancies, relocation of staff and other items, the run rate of costs for this division is lower as we enter H2.
A new livery was launched for the "Daily" brand of the SME division, to give a more 'upmarket' image ahead of a renewed focus on reducing churn and refreshing the product offering. The brand is being repositioned to provide a higher quality product away from competing for volume. This move is designed to attract higher value customers with lower churn, producing more profitable contracts.
Managed Hosting
The Managed Hosting segment continues to perform well. Revenue for the period increased by 50.2% to GBP1,271k up from GBP846k in H1 2014. EBITDA rose 17.1% to GBP376k up from GBP321k for H1 2014. The board expects EBITDA growth to exceed revenue growth in the longer term as the segment builds economies of scale.
A crucial part of the Group's strategy is the clear focus on creating long-standing and loyal client relationships that lead to high renewal rates and the provision of additional services from across the Group. We enjoy low levels of churn in our Managed Hosting division and, in addition, our five largest clients by revenue are under contracts (and in some case multiple contracts) that have more than 2 years to run under their current term.
The partnership with Epicor Software, as announced on 26 August 2015, is developing and the activity levels with them are increasing. We now provide services in some shape or form from hosting to consultancy to 17 Epicor customers. We have created a new cloud platform hosted by us to service a subset of Epicor Bistrack ERP customers which allows them to pay a per user per month fee under a Software as a Service (SaaS) model. A pipeline for this product has been building from September and three clients have converted to the service after the period end.
We also worked with Epicor to host their new product, Epicor Commerce Connect, which has begun to gain some traction.
We continue to deepen our partnerships with Microsoft Azure and Amazon Web Services to ensure we offer the most appropriate solution to our customers, Private Cloud, Public or a Hybrid. Having all of these offerings available ensures we can advise customers of their best choice for addressing performance, cost, reliability, scalability, data sovereignty and regulatory issues.
Our revenues from consulting services are increasing as our clients continue to seek our advice and support.
M&A Activity
We evaluated a number of opportunities in the period but these did not fit with the Boards strategic objectives. We remain committed to our M&A strategy and expect to grow through further acquisitions in the future.
Financial Performance
Group revenues grew 35.2% to GBP2,414k from GBP1,785k in H1 2014.
Our SME Hosting segment grew 22% to GBP1,143k (H1 2014: GBP939k). EBITDA was strengthened by 100% to GBP250k (H1 2014: GBP125k). This was largely as a result of a full period contribution from Evohosting, which was acquired and announced in August 2014, and a reorganisation of the cost base.
The Managed Hosting segment grew revenues by 50.2% to GBP1,271k (H1 2014: GBP846k) and EBITDA grew 17.1% to GBP376k (H1 2014: GBP321k). The growth came about as the result of a part period contribution from the Q4Ex acquisition as announced in December 2014 and strong organic growth in the combined entity of Q4Ex and Netplan.
Costs associated with the Group and not assigned to a segment (these include the cost of the board, head office, accounts, marketing and development plus costs associated with being quoted on AIM) increased to GBP350k in the period from GBP191k in H1 2014. The increase resulted from the creation of a number of Group roles for common functions to remove duplication across business units.
Adjusted EBITDA grew by 7.8% in the period to GBP276k from GBP256k in H1 2015. Cash at the period end was GBP441k (H1 2015: GBP271k). Net cash of the Group was GBP336k after allowing for convertible loan notes of GBP105k which are due to be redeemed in January 2016.
The Group incurred some one-off non-recurring costs relating to the redundancy of staff, closure of an office, moving of a server estate, staff relocation costs and some duplicated roles. These have been expensed through the P&L and have not been adjusted for.
Current trading and outlook
The market and opportunity is growing and continuously evolving and we are well placed for continued growth. In light of the Group's reorganisation process, particularly with regard to SME Hosting and coupled with the developments in our Managed Hosting division, we expect the result for the full year to be ahead of current market expectations. We look forward to the remainder of this year and beyond with confidence.
Chris Evans
Chief Executive Officer
08 December 2015
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(MORE TO FOLLOW) Dow Jones Newswires
December 08, 2015 02:00 ET (07:00 GMT)
SIX MONTHS ENDED 30 SEPTEMBER 2015
Unaudited Unaudited Audited
six months six months year
to to to
30 Sep 30 Sep 31 Mar
2015 2014 2015
Notes GBP'000 GBP'000 GBP'000
=============================== ======= ============ ============ ==========
Revenue 2,414 1,785 3,891
Cost of sales (920) (693) (1,469)
Gross profit 1,494 1,092 2,422
Operating expenses
before depreciation,
amortisation, acquisition
and integration costs,
fair value adjustment
and share based payments (1,218) (836) (2,011)
======================================== ============ ============ ==========
Operating profit before
depreciation, amortisation,
acquisition and integration
costs, fair value adjustment
and share based payments 276 256 411
======================================== ============ ============ ==========
Depreciation (153) (119) (263)
Amortisation of intangibles (150) (122) (276)
Acquisition and integration
costs (29) (102) (148)
Fair value adjustment (11) (3) 83
Share based payments 14 18 118
======================================== ============ ============ ==========
Administrative expenses (1,547) (1,164) (2,497)
Loss from operations (53) (72) (75)
======================================== ============ ============ ==========
Finance costs (23) (31) (63)
Loss before taxation (76) (103) (138)
Taxation 30 24 54
======================================== ============ ============ ==========
Total comprehensive
loss attributable to
the equity holders
of the company (46) (79) (84)
======================================== ============ ============ ==========
Basic and fully diluted 3 GBP0.0001 GBP0.0002 GBP0.0002
loss per share
=============================== ======= ============ ============ ==========
The Group's results are derived from continuing operations.
The accompanying notes form an integral part of this consolidated statement of comprehensive income.
CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2015
Unaudited Unaudited Audited
30 Sep 30 Sep 31 Mar
2015 2014 2015
GBP'000 GBP'000 GBP'000
============================== ========== ========== ========
Assets
Non-current assets
Goodwill 4,454 2,794 4,454
Intangible assets 1,450 1,710 1,594
Plant, property and
equipment 575 572 592
=============================== ========== ========== ========
6,479 5,076 6,640
============================== ========== ========== ========
Current assets
Trade and other receivables 494 369 594
Cash and cash equivalents 441 271 426
=============================== ========== ========== ========
935 640 1,020
============================== ========== ========== ========
Total Assets 7,414 5,716 7,660
=============================== ========== ========== ========
Equity and Liabilities
Equity attributable to the equity shareholders
of the parent
======================================================= ========
Called up share capital 2,399 2,246 2,399
Share premium reserve 7,061 6,782 7,061
Share based payment
reserve 74 188 88
Retained losses (5,466) (5,415) (5,420)
=============================== ========== ========== ========
4,068 3,801 4,128
============================== ========== ========== ========
Non-current liabilities
Obligations under finance
leases 113 154 126
Convertible loan notes - 101 -
Deferred taxation 297 357 327
Contingent consideration
due on acquisitions 618 - 1,225
=============================== ========== ========== ========
1,028 612 1,678
============================== ========== ========== ========
Current liabilities
Trade and other payables 1,332 1,056 1,468
Contingent consideration 618 - -
due on acquisitions
Other loans 150 - 175
Convertible loan notes 103 163 103
Obligations under finance
leases 115 84 108
=============================== ========== ========== ========
2,318 1,303 1,854
============================== ========== ========== ========
Total Equity and Liabilities 7,414 5,716 7,660
CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
SIX MONTHS ENDED 30 SEPTEMBER 2015
Attributable to equity holders
of the parent
Share Share Other Accumulated Total
capital premium reserve losses
account
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
=================== ========= ========= ========= ============ ========
At 1 April 2014 2,038 6,185 206 (5,336) 3,093
Loss and total
comprehensive
income for the
period - - - (79) (79)
Issue of share
capital 208 623 - - 831
Expenses of share
issue - (26) - - (26)
Movement in share
option reserve - - (18) - (18)
=================== ========= ========= ========= ============ ========
At 30 September
2014 2,246 6,782 188 (5,415) 3,801
Loss and total
comprehensive
income for the
period - - - (5) (5)
Issue of share
capital 153 280 - - 433
Expenses of share
issue - (1) - - (1)
Movement in share
option reserve - - (100) - (100)
=================== ========= ========= ========= ============ ========
At 31 March 2015 2,399 7,061 88 (5,420) 4,128
Loss and total
comprehensive
income for the
period - - - (46) (46)
Movement in share
option reserve - - (14) - (14)
=================== ========= ========= ========= ============ ========
At 30 September
2015 2,399 7,061 74 (5,466) 4,068
=================== ========= ========= ========= ============ ========
The following describes the nature and purpose of each reserve within equity:
Reserve Description and
purpose
Share Premium Amount subscribed for share capital
in excess of nominal values.
Other Reserve Amount reserved for share based
payments to be released over
the life of the instruments.
Accumulated All other net gains and losses
losses and transactions with owners
(e.g. dividends) not recognised
elsewhere.
============== ============================================
CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
(MORE TO FOLLOW) Dow Jones Newswires
December 08, 2015 02:00 ET (07:00 GMT)
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