TIDMDIGI
RNS Number : 6234W
Digital Marketing Group PLC
23 November 2010
Date: 23 November 2010
On behalf of: Digital Marketing Group plc ("DMG", "the Company"
or "the Group")
Embargoed: 0700hrs
Digital Marketing Group plc
Interim Results 2010/2011
Digital Marketing Group plc (AIM: DIGI), the UK's largest
digital marketing agency, today announced its interim results for
the six months ended 30 September 2010.
Performance Highlights
-- Gross profits GBP17.90m (2009: GBP17.44m)
-- EBITDA before share based payments GBP2.47m (2009:
GBP3.63m)
-- Profit before tax ("PBT") before amortisation and share based
payment charges GBP1.95m (2009: GBP2.93m)
-- Profit after tax GBP0.32m (2009: GBP0.14m)
-- Net debt GBP6.07m (GBP7.26m 31 March 2010); undrawn banking
facilities of GBP3.28 million
-- Adjusted basic earnings per share 1.57 pence (2009: 3.20
pence)
-- Basic earnings per share 0.42 pence (2009: 0.20 pence)
Commenting on the results, Stephen Davidson, Chairman of Digital
Marketing Group plc, said: "We continue to operate in a difficult
and uncertain market place however we have still produced positive
results with an increase in profit after tax and reduced debt."
Ben Langdon, Chief Executive of Digital Marketing Group plc,
added: "The results for the six months are reflective of a mixed
performance. Our ecommerce division delivered exceptional growth in
profits of 28% yr/yr. Voice marketing also delivered strong levels
of new business and achieved significant growth in both gross
profits and PBT yr/yr. Conversely, our data services division
continues to underperform."
"We have reduced the number of office locations in our marketing
agency division and this will show positive results through
efficiency and resource allocation for the benefit of clients."
"We are in a strong position to take advantage of recoveries
within our market and should also continue to see organic growth
within our ecommerce division."
Enquiries:
Digital Marketing Group plc
Ben Langdon, Chief Executive
Keith Sadler, Group Finance Director
finnCap
Tom Jenkins/Sarah Wharry 020 7600 1658
INTERIM RESULTS
Our profit before tax for the six months ended 30 September 2010
was GBP0.6 million compared to GBP0.7 million for the six months
ended 30 September 2009 and our profit after tax, as a result of a
reduced tax charge, increased from GBP0.1 million to GBP0.3
million. Gross profits increased from GBP17.4 million to GBP17.9
million.
The performance from our ecommerce division has continued to
produce excellent results. Gross profit has increased by 68% and
profit before tax has increased by 28%. This reflects a movement in
the retail sector to establish business critical systems for their
online offering. Our team are strategically placed to take
advantage of this shift. They are a Tier 1 IBM reseller for IBM's
global leading ecommerce platform, Websphere.
As I stated in the annual report and accounts, recovery in our
DMG pillar and in particular our data services division is linked
to the speed of recovery in financial services and we have still to
see any signs of improvement in this sector. In addition,
continuing delays in client decisions within our marketing agency
division has meant our new business conversion has not been as we
had anticipated.
During the period we received partial settlement on a
contractual obligation from a client who has gone into liquidation,
amounting to GBP0.9 million, which has been disclosed within other
income.
Operating expenses increased as a result of the increase in
staff costs within our ecommerce business in order to deliver the
successful increase in its revenues. We have consolidated the 20:20
agency business around our largest office based in Newbury,
Berkshire, which has resulted in the closure of the Bristol office
and the relocation of a number of staff from our Swindon office.
This will mean a more efficient process and allocation of resource
to client assignments.
Net debt has been reduced by GBP1.2 million in the six months to
30 September 2010 to GBP6.1 million. The cost of financing this
debt has fallen from GBP375,000 for the six months ended 30
September 2009 to GBP256,000 for the six months under review.
Recent client wins include Royal Bank of Scotland, Promethean,
Homeserve Weight Watchers and Informa World.
Outlook
There is still uncertainty within our market sector which is
delaying our return to significant growth. We are managing our cost
base robustly to ensure it is appropriate for the business but are
mindful of the fact that we need to invest to protect the assets
that we have. We expect to produce profitable operating results
above those reported in the first six months.
Ben Langdon
Chief Executive
22 November 2010
Consolidated Interim Statement of Comprehensive Income
(unaudited)
Six months Six months Year
ended ended ended
30 Sept 30 Sept 31 March
2010 2009 2010
Note GBP'000 GBP'000 GBP'000
Revenue 4 22,494 24,701 48,464
Direct costs (4,596) (7,260) (13,004)
----------- ----------- ---------
Gross profit 17,898 17,441 35,460
Other operating income 856 1,133 1,709
Amortisation (967) (956) (1,938)
Operating expenses (16,937) (16,555) (36,108)
----------- ----------- ---------
Operating profit/(loss) 850 1,063 (877)
----------- ----------- ---------
Finance income 1 2 2
Finance costs (257) (377) (534)
----------- ----------- ---------
Net financing costs (256) (375) (532)
----------- ----------- ---------
Profit/(loss) before tax 594 688 (1,409)
Tax expense 5 (279) (552) (576)
----------- ----------- ---------
Profit/(loss) for the period
attributable to equity holders
of the parent 315 136 (1,985)
Other comprehensive income:
Cash flow hedging
Current year gains 53 57 65
----------- ----------- ---------
Total comprehensive income 368 193 (1,920)
----------- ----------- ---------
Earnings per ordinary share 6
- basic 0.42p 0.20p (2.88)p
- diluted 0.41p 0.18p (2.88)p
----------- ----------- ---------
Consolidated interim balance sheet (unaudited)
30 Sept 30 Sept 31 March
2010 2009 2010
Note GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 1,759 1,816 1,752
Goodwill 44,330 46,973 45,653
Other intangible assets 13,387 15,435 14,272
--------- --------- ---------
59,476 64,224 61,677
--------- --------- ---------
Current assets
Inventories 210 154 212
Trade and other receivables 10,693 9,226 11,832
Cash and cash equivalents 9,239 11,421 7,399
--------- --------- ---------
20,142 20,801 19,443
--------- --------- ---------
Total assets 79,618 85,025 81,120
--------- --------- ---------
Liabilities
Current liabilities
Bank overdraft 7 (8,364) (9,783) (6,443)
Other interest bearing loans
and borrowings 7 (6,673) (1,691) (1,691)
Financial derivatives 8 (363) (424) (416)
Trade and other payables (9,954) (11,929) (12,741)
Tax payable (574) (1,518) (254)
Provisions (59) (58) (187)
--------- --------- ---------
(25,987) (25,403) (21,732)
--------- --------- ---------
Non-current liabilities
Other interest bearing loans
and borrowings 7 (275) (5,966) (6,522)
Deferred tax liabilities (3,868) (4,396) (4,133)
--------- --------- ---------
(4,143) (10,362) (10,655)
--------- --------- ---------
Total liabilities (30,130) (35,765) (32,387)
--------- --------- ---------
Net assets 49,488 49,260 48,733
--------- --------- ---------
Equity
Capital and reserves attributable
to equity holders of the
company
Share capital 34,050 33,689 34,026
Share premium account 6,608 6,608 6,608
Hedging reserve (363) (424) (416)
Capital redemption reserve 125 125 125
Share option reserve 395 5,810 419
Retained earnings 8,673 3,452 7,971
--------- --------- ---------
Total equity 49,488 49,260 48,733
--------- --------- ---------
Consolidated interim cash flow statement (unaudited)
Six months Six months Year
ended ended ended
30 Sept 30 Sept 31 March
2010 2009 2010
Note GBP'000 GBP'000 GBP'000
Cash flow from operating
activities
Profit for the period 315 136 (1,985)
Adjustment for:
Depreciation, amortisation
and impairment 1,232 1,282 6,299
Loss on disposal of property,
plant and equipment - - 28
Movement in provision (128) - 40
Financial income (1) (2) (2)
Financial expenses 257 377 534
Share based payment expense 387 1,288 2,874
Tax expense 279 552 576
Decrease/(increase) in trade
and other receivables 1,114 1,509 (1,034)
Decrease/(increase) in
inventories 2 42 (16)
(Decrease) in trade and
other payables (1,477) (3,553) (2,543)
----------- ----------- ---------
Cash generated from operations 1,980 1,631 4,771
Interest received 1 2 2
Interest paid (207) (272) (482)
Tax paid (212) (826) (2,355)
----------- ----------- ---------
Net cash flow from operating
activities 1,562 535 1,936
----------- ----------- ---------
Cash flows from investing
activities
Proceeds from the sale of
property, plant and equipment - 3 4
Acquisitions of subsidiaries,
net of cash acquired - 7 (1,632)
Payment of contingent
consideration for prior year
acquisitions - (278) (600)
Addition of intangible assets (82) (275) (694)
Acquisition of property,
plant and equipment (272) (87) (301)
----------- ----------- ---------
Net cash outflow from investing
activities (354) (630) (3,223)
----------- ----------- ---------
Cash flows from financing
activities
Proceeds from new loan and
draw down of bank facilities - - 600
Repayment of borrowings (1,289) (1,688) (1,778)
Net cash outflow from financing
activities (1,289) (1,688) (1,178)
----------- ----------- ---------
Net decrease in cash, cash
equivalents and bank overdrafts (81) (1,783) (2,465)
Cash and cash equivalents
at beginning of period 956 3,421 3,421
----------- ----------- ---------
Cash and cash equivalents
at end of period 875 1,638 956
----------- ----------- ---------
Cash and cash equivalents
comprise:
Cash at bank and in hand 9,239 11,421 7,399
Bank overdrafts 7 (8,364) (9,783) (6,443)
----------- ----------- ---------
Cash and cash equivalents
at end of period 875 1,638 956
----------- ----------- ---------
Consolidated interim statement of changes in equity
(unaudited)
Share Capital Share
Share premium Hedging redemption option Retained Total
capital account reserve reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
April 2009 33,689 6,608 (481) 125 5,810 2,028 47,779
-------- -------- -------- ----------- -------- --------- --------
Credit in
respect of
share based
payments - - - - - 1,288 1,288
Transactions
with owners - - - - - 1,288 1,288
-------- -------- -------- ----------- -------- --------- --------
Profit for the
period - - - - - 136 136
Other
comprehensive
income:
Cash flow
hedges - - 57 - - - 57
Total
comprehensive
income for
the period - - 57 - - 136 193
-------- -------- -------- ----------- -------- --------- --------
Balance at 30
September
2009 33,689 6,608 (424) 125 5,810 3,452 49,260
-------- -------- -------- ----------- -------- --------- --------
Allotment of
5p ordinary
shares 337 - - - (337) - -
Credit in
respect of
share based
payments - - - - - 1,586 1,586
Transfer to
share option
reserve - - - - (5,054) 5,054 -
Transactions
with owners 337 - - - (5,391) 6,640 1,586
-------- -------- -------- ----------- -------- --------- --------
Loss for the
period - - - - - (2,121) (2,121)
Other
comprehensive
income:
Cash flow
hedges - - 8 - - - 8
Total
comprehensive
income for
the period - - 8 - - (2,121) (2,113)
-------- -------- -------- ----------- -------- --------- --------
Balance at 31
March 2010 34,026 6,608 (416) 125 419 7,971 48,733
-------- -------- -------- ----------- -------- --------- --------
Allotment of
5p ordinary
shares 24 - - - (24) - -
Credit in
respect of
share based
payments - - - - - 387 387
Transactions
with owners 24 - - - (24) 387 387
-------- -------- -------- ----------- -------- --------- --------
Profit for the
period - - - - - 315 315
Other
comprehensive
income:
Cash flow
hedges - - 53 - - - 53
Total
comprehensive
income for
the period - - 53 - - 315 368
-------- -------- -------- ----------- -------- --------- --------
Balance at 30
September
2010 34,050 6,608 (363) 125 395 8,673 49,488
-------- -------- -------- ----------- -------- --------- --------
1. General Information
Digital Marketing Group plc (the "Company") is incorporated and
domiciled in the United Kingdom. The Company is listed on the AIM
market of the London Stock Exchange. The registered address is
30-33 Minories, Tower Hill, London, EC3N 1DD.
The interim financial information was approved for issue on 22
November 2010.
2. Basis of preparation
The consolidated interim financial statements for the six months
ended 30 September 2010 have been prepared in accordance with
applicable accounting standards and under the historical cost
convention except for certain financial instruments that are
carried at fair value.
The financial information for the year ended 31 March 2010 set
out in this interim report does not constitute statutory accounts
as defined in Section 434 of the Companies Act 2006. The Group's
statutory financial statements for the year ended 31 March 2010
have been filed with the Registrar of Companies. The auditor's
report on those financial statements was unqualified and did not
contain statements under Section 498 (2) or Section 498 (3) of the
Companies Act 2006.
The consolidated interim financial information should be read in
conjunction with the annual financial statements for the year ended
31 March 2010, which have been prepared in accordance with
International Financial Reporting Standards (IFRSs) as adopted by
the European Union.
3. Accounting policies
Except as described below, the principal accounting policies of
Digital Marketing Group plc and its subsidiaries ("the Group") are
consistent with those set out in the Group's 2010 annual report and
financial statements.
Taxes on income in the interim periods are accrued using the tax
rate that would be applicable to expected total annual
earnings.
The following new standards and amendments to standards are
mandatory for the first time for the financial year beginning 1
April 2010.
-- IAS 27 Consolidated and Separate Financial Statements
(Revised 2008) (effective 1 July 2009).
-- Amendment to IAS 39 Financial Instruments: Recognition and
Measurement - Eligible Hedged Items (effective 1 July 2009).
-- Group Cash-settled Share-based Payment Transactions -
Amendment to IFRS 2 (effective 1 January 2010).
-- IFRIC 17 Distributions of Non-cash Assets to Owners
(effective 1 July 2009).
-- IFRIC 18 Transfers of Assets from Customers (effective
prospectively for transfers on or after 1 July 2009).
-- Amendment to IAS 32 Classification of Rights Issues
(effective 1 February 2010).
4. Segment information (unaudited)
The chief operating decision-maker has been identified as the
Group Chief Executive. The Group Chief Executive reviews the
Group's internal reporting in order to assess performance and
allocate resources. Management has determined the operating
segments based on these reports. 20:20 provide full agency services
for clients on digital platforms together with ecommerce services.
DMG provide digital direct marketing, data and data related
services and voice services to clients.
The Group Chief Executive assesses the performance of the
operating segments based on gross profit and operating profit
before interest and tax.
Total assets exclude intangible assets, cash and external
borrowings which have not been allocated to operating segments.
No single client accounts for more than 10% of Group revenue.
All the Group's activities are carried out within the UK.
Six months ended 30
September 2010
20:20 DMG Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 15,113 7,845 (464) 22,494
Direct costs (4,192) (868) 464 (4,596)
----------- --------- ------------ ---------
Gross profit 10,921 6,977 - 17,898
Other operating income 3 853 - 856
Operating expenses excluding
depreciation, amortisation
and charges for share
based payments (9,055) (6,729) (501) (16,285)
----------- --------- ------------ ---------
Operating profit before
depreciation, amortisation
and charges for share
based payments 1,869 1,101 (501) 2,469
Depreciation (126) (138) (1) (265)
Amortisation (521) (446) - (967)
Charges for share based
payments (102) (70) (215) (387)
----------- --------- ------------ ---------
Operating profit 1,120 447 (717) 850
----------- --------- ------------
Finance income 1
Finance costs (257)
---------
Profit before tax 594
Tax expense (279)
---------
Profit for the period 315
---------
Six months ended 30
September 2009
20:20 DMG Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 14,377 10,594 (270) 24,701
Direct costs (6,463) (1,034) 237 (7,260)
-------- -------- ------------ ---------
Gross profit 7,914 9,560 (33) 17,441
Other operating income 5 1,128 - 1,133
Operating expenses excluding
depreciation, amortisation
and charges for share
based payments (6,557) (7,798) (586) (14,941)
-------- -------- ------------ ---------
Operating profit before
depreciation, amortisation
and charges for share
based payments 1,362 2,890 (619) 3,633
Depreciation (108) (206) (12) (326)
Amortisation (505) (451) - (956)
Charges for share based
payments 30 (274) (1,044) (1,288)
-------- -------- ------------ ---------
Operating profit 779 1,959 (1,675) 1,063
-------- -------- ------------
Finance income 2
Finance costs (377)
---------
Profit before tax 688
Tax expense (552)
---------
Profit for the period 136
---------
Year ended 31 March
2010
20:20 DMG Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 27,832 21,322 (690) 48,464
Direct costs (11,382) (2,160) 538 (13,004)
--------- --------- ------------ ---------
Gross profit 16,450 19,162 (152) 35,460
Other operating income 7 1,702 - 1,709
Operating expenses excluding
depreciation, amortisation
and charges for share
based payments (12,572) (15,511) (739) (28,822)
--------- --------- ------------ ---------
Operating profit before
depreciation, amortisation
and charges for share
based payments 3,885 5,353 (891) 8,347
Depreciation (204) (345) (25) (574)
Amortisation (1,010) (928) - (1,938)
Impairment (2,519) (1,254) (14) (3,787)
Charges for share based
payments (22) (1,381) (1,522) (2,925)
--------- --------- ------------ ---------
Operating profit 130 1,445 (2,452) (877)
--------- --------- ------------
Finance income 2
Finance costs (534)
---------
Loss before tax (1,409)
Tax expense (576)
---------
Loss for the period (1,985)
---------
Total assets 20:20 DMG Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000
30 September 2010 35,810 26,800 17,008 79,618
31 March 2010 35,175 27,707 18,238 81,120
30 September 2009 31,535 32,759 20,731 85,025
-------- -------- ------------ --------
5. Tax expense (unaudited)
A reconciliation of the charge that would result from applying
the standard UK corporation tax rate to profit before tax to the
tax charge is given below.
Year
Six months ended Six months ended ended
30 Sept 2010 30 Sept 2009 31 March 2010
GBP'000 GBP'000 GBP'000
Recognised in the
consolidated statement
of comprehensive
income:
Current year tax 544 870 1,134
Origination and
reversal of temporary
differences (265) (318) (558)
----------------- ----------------- --------------
Total tax charge 279 552 576
----------------- ----------------- --------------
Profit /(loss) before
tax 594 688 (1,409)
----------------- ----------------- --------------
Tax charge thereon at
UK corporation tax
rate of 28% (2009:
28%) 166 193 (395)
Effects of:
Non-deductible expenses - - 94
Impairment of goodwill - - 892
Share based payment
charges 108 361 804
Schedule 23 deductions - - (805)
Depreciation for period
in excess of capital
allowances - 28 -
Other 5 (67) (68)
Prior year adjustment - 37 54
----------------- ----------------- --------------
Total tax charge 279 552 576
6. Earnings per share (unaudited)
Six months Six months Year
ended ended ended
30 Sept 30 Sept 31 March
2010 2009 2010
Pence per Pence per Pence per
share share share
Basic 0.42p 0.20p (2.88)p
Diluted 0.41p 0.18p (2.88)p
------------ ------------ ----------
Earnings per share have been calculated by dividing the profit
attributable to shareholders by the weighted average number of
ordinary shares in issue during the period. The calculations of
basic and diluted earnings per share are:
Six months Six months Year
ended ended ended
30 Sept 30 Sept 31 March
2010 2009 2010
GBP'000 GBP'000 GBP'000
Profit/(loss) for the period
attributable to shareholders 315 136 (1,985)
----------- ----------- ----------
Weighted average number of Number Number Number
ordinary shares in issue: '000 '000 '000
Basic 74,237 67,378 69,010
Adjustment for share options,
warrants and contingent shares 3,149 7,001 6,935
----------- ----------- ----------
Diluted 77,386 74,379 75,945
----------- ----------- ----------
Adjusted earnings per share
Six months Six months Year
ended ended ended
30 Sept 30 Sept 31 March
2010 2009 2010
Pence per Pence per Pence per
share share share
Basic adjusted earnings per 1.57 3.20p 8.77p
share
Diluted adjusted earnings 1.50 2.90p 7.97p
per share
----------- ----------- ----------
Adjusted earnings per share have been calculated by dividing the
profit attributable to shareholders before amortisation, impairment
and charges for share based payments by the weighted average number
of ordinary shares in issue during the period. The numbers used in
calculating the basic and diluted adjusted earnings per share are
reconciled below:
Six months Six months Year
ended ended ended
30 Sept 30 Sept 31 March
2010 2009 2010
GBP'000 GBP'000 GBP'000
Profit/(loss) before tax 315 688 (1,409)
Amortisation 967 956 1,938
Impairment of carrying value
of goodwill and intangibles - - 3,787
Charges for share based payments 425 1,383 2,874
----------- ----------- ---------
Adjusted profit attributable
to shareholders 1,707 3,027 7,190
Current period tax charge (544) (870) (1,134)
----------- ----------- ---------
1,163 2,157 6,056
----------- ----------- ---------
7. Bank overdraft, borrowings and loans (unaudited)
30 Sept 30 Sept 31 March
2010 2009 2010
Summary GBP'000 GBP'000 GBP'000
Bank overdraft 8,364 9,783 6,443
Borrowings, undiscounted
cash flows 6,948 7,657 8,213
-------- -------- ---------
15,312 17,440 14,656
-------- -------- ---------
Borrowings are repayable
as follows:
Within 1 year
Bank overdraft 8,364 9,783 6,443
Borrowings 6,822 1,848 1,865
-------- -------- ---------
Total due within 1 year 15,186 11,631 8,308
Less future interest (149) (157) (174)
-------- -------- ---------
Total due within 1 year 15,037 11,474 8,134
-------- -------- ---------
In more than 1 year but not
more than 2 years 276 1,812 6,596
In more than 2 years but
not more than 3 years - 4,284 -
Total due in more than 1
year 276 6,096 6,596
Less future interest (1) (130) (74)
-------- -------- ---------
Total due in more than 1
year 275 5,966 6,522
-------- -------- ---------
Average interest rates at
the balance sheet date were: % % %
Overdraft 2.75 5.00 2.75
Term loan 2.04 1.85 1.96
Term loan 2.54 3.35 2.46
Revolving credit facility 2.35 2.32 2.33
-------- -------- ---------
As the loans are at variable market rates their carrying amount
is equivalent to their fair value.
In 2007 the Group purchased an interest rate swap of 6.19% for
the period 2007 to 2012 for GBP4.0 million of its borrowings.
The borrowing facilities available to the Group at 30 September
2010 was GBP10.36 million (2009: GBP11.13 million) and, taking into
account cash balances within the Group, there was GBP3.28 million
(2009: GBP3.28 million) of available borrowing facilities.
A composite accounting system is set up with the Group's
bankers, which allows debit balances on overdraft to be offset
across the Group with credit balances.
Cash at
Reconciliation of net bank and
debt in hand Overdraft Borrowings Net debt
GBP'000 GBP'000 GBP'000 GBP'000
30 September 2010 9,239 (8,364) (6,948) (6,073)
31 March 2010 7,399 (6,443) (8,213) (7,257)
30 September 2009 11,421 (9,783) (7,657) (6,019)
---------- ---------- ----------- ---------
8. Financial derivatives (unaudited)
30 Sept 30 Sept 31 March
2010 2009 2010
GBP'000 GBP'000 GBP'000
Interest rate swap 363 424 416
-------- -------- ---------
In 2007 the Group purchased an interest rate swap of 6.19% for
the period 2007 to 2012 for GBP4.0 million of its borrowings. This
swap is designated a hedge of the interest expense relating to the
Group loans. The contract was marked to market at 30 September 2010
and was a net liability of GBP363,000 (2009: GBP424,000).
9. Provisions (unaudited)
30 Sept 30 Sept 31 March
2010 2009 2010
GBP'000 GBP'000 GBP'000
At the beginning of the period 187 147 147
Additional provisions for
restructuring - - 187
Utilised during the year (128) (89) (147)
-------- -------- ---------
At the end of the period 59 58 187
-------- -------- ---------
Provisions relate to leases in the Group where the commercial
benefit has either ceased or will cease before the normal expiry
period.
10. Share capital (unaudited)
Authorised:
45p deferred shares 5p ordinary shares
GBP'000 GBP'000
Authorised share capital
at 31 March 2010 and
30 September 2010 45,000 10,000
Allotted, issued and fully paid
45p deferred 5p ordinary
shares shares
Number Number GBP'000
Issued share capital
at 31 March 2010 67,378,520 74,121,505 34,026
Allotment of 5p ordinary
shares - 483,494 24
--------------- -------------- ----------
At 30 September 2010 67,378,520 74,604,999 34,050
--------------- -------------- ----------
The shares issued in the period were as a result of the exercise
of share options by employees and directors.
11. Related party transactions (unaudited)
There were no significant changes in the nature and size of
related party transactions for the period from those disclosed in
the Annual Report for the year ended 31 March 2010.
INDEPENDENT REVIEW REPORT TO DIGITAL MARKETING GROUP PLC
Introduction
We have been engaged by the company to review the interim
financial information in the interim report for the six months
ended 30 September 2010 which comprises the consolidated interim
statement of comprehensive income, the consolidated interim balance
sheet, the consolidated interim cash flow statement and the
consolidated interim statement of changes in equity and the related
notes 1 to 11. We have read the other information contained in the
interim financial report and considered whether it contains any
apparent misstatements or material inconsistencies with the interim
financial information.
This report is made solely to the company in accordance with
guidance contained in ISRE (UK and Ireland) 2410, "Review of
Interim Financial Information performed by the Independent Auditor
of the Entity". Our review work has been undertaken so that we
might state to the company those matters we are required to state
to them in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the company, for our review work, for this
report, or for the conclusion we have formed.
Directors' responsibilities
The interim report is the responsibility of, and has been
approved by, the directors. The AIM rules of the London Stock
Exchange require that the accounting policies and presentation
applied to the interim financial information are consistent with
those which will be adopted in the annual accounts having regard to
the accounting standards applicable for such accounts.
As disclosed in note 2, the annual financial statements of the
Group are prepared in accordance with IFRSs as adopted by the
European Union. The interim financial information in the interim
report has been prepared in accordance with the basis of
preparation in note 2.
Our responsibility
Our responsibility is to express to the company a conclusion on
the interim financial information in the interim report based on
our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Based on our review, nothing has come to our attention that
causes us to believe that the interim financial information in the
interim report for the six months ended 30 September 2010 is not
prepared, in all material respects, in accordance with the basis of
accounting described in note 2.
Grant Thornton UK LLP
Chartered Accountants
Sheffield
22 November 2010
This information is provided by RNS
The company news service from the London Stock Exchange
END
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