Digital Globe Services Limited Trading Update (1419P)
February 16 2016 - 2:01AM
UK Regulatory
TIDMDGS
RNS Number : 1419P
Digital Globe Services Limited
16 February 2016
16 February 2016
Digital Globe Services, Ltd.
(the "Company", the "Group" and together with its subsidiaries
"DGS")
Trading Update
-- Strongest H1 revenue and EBITDA performance to date
-- H1 to show year-over-year revenue growth of at least 13%,
gross margin in excess of 30% and double digit Adjusted EBITDA
margin percentage
-- The Board is confident in meeting full year market expectations
Digital Globe Services, Ltd. (AIM: DGS), a leading provider of
online customer acquisition solutions for large, consumer-facing
organisations, today provides an update on trading for the six
months to 31 December 2015.
The Board is pleased to report that the strong trading in the
second half of last year has continued into the first half of the
current financial year, with the Company delivering year-over-year,
double-digit revenue growth, gross margin in excess of 30%, and an
Adjusted EBITDA* margin in the double digits. Group revenue is
expected to be in the range of US$22M - US$24M, an increase of at
least 13% over the same period last year (H1 2015: US$19.5M).
EBITDA is expected to be between US$2.2M - US$2.4M, an increase of
at least 400% (H1 2015: US$0.5M). The revenue and EBITDA
achievement represents the Company's strongest H1 performance to
date as the Company heads into its typically stronger second
half.
As a result, the Board is confident in meeting full year market
expectations. The Company ended the half-year with a cash balance
of approximately US$0.6M with US$0.07M drawn down under its US$3M
credit facility.
Jeff Cox, CEO of DGS, commented:
"We are delighted with the Group's performance in the first half
with our second consecutive, record half year period. Our revenue
for the 12 months to December 2015 of c.$44M - 46M will mark the
strongest 12 month period in the Group's history.
We continue to reap the benefits of the investments made in our
business in 2015 through a broadening of our customer base and
substantial growth in new verticals. With our strong balance sheet
and continued profit generation we are confident in our strategy
and ability to execute on our growth plans."
*EBITDA is a non GAAP earnings metric which is earnings before
interest, taxation, depreciation and amortization. "Adjusted
EBITDA" additionally excludes bank facility and other charges,
foreign exchange gains or losses, extraordinary items, non-cash
Employee Stock Option Plan Charges, warrants, legal costs
associated with acquisitions, restructuring costs, non-recurring
severance and other employee termination costs.
For further information please contact:
Digital Globe Services, www.dgsworld.com
Ltd.
Jeff Cox, CEO +1 303 736 2105
Panmure Gordon (UK)
Limited
Fred Walsh / Karri Vuori
/ James Greenwood +44 207 886 2500
Alma PR +44 7780 901 979
Josh Royston/ /
Hilary Buchanan +44 7515 805 218
Overview of DGS
Founded in 2008 with offices in London, Bermuda, Netherlands,
USA and Ireland, DGS is a specialist provider of outsourced online
customer, lead, and inquiry acquisition and digital media solutions
for large, consumer-facing corporations. DGS delivers customers to
its clients through optimised paid search, search engine
optimization, mobile, integrated websites, e-mail, social media and
contact centre support, receiving a fee for each customer acquired
for its clients.
DGS is seeking to establish itself as the leading international
provider of outsourced online customer, lead and inquiry
acquisition, services, through its focus on having the premier
technology platform in the industry. By using its optimising
technology platform, dgSMART, and its experience of website
management and digital media customer acquisition, efficient
contact centre operations and other process expertise, DGS is able
to acquire customers and achieve conversion rates that deliver
profitable, high quality customers and valuable leads and inquiries
to its clients.
DGS employs over 700 staff in Europe, North America and Asia.
The Company currently has over 100 direct and indirect client
relationships globally, many of which are with companies in the US
Fortune 500.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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February 16, 2016 02:01 ET (07:01 GMT)
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