Trading Update

RNS Number : 2358Q

Digital Marketing Group PLC

07 April 2009

 



Date:                   7 April 2009

On behalf of:       Digital Marketing Group plc ('DMG', 'the Group' or 'the Company')

Embargoed for:   0700hrs

Digital Marketing Group plc

Trading Update

Digital Marketing Group plc (AIM: DIGI), the digital marketing specialist, is pleased to announce that despite challenging market conditions profit before tax (before charges for share options and amortisation) for the year ended 31 March 2009 is expected to be in line with market forecasts  at approximately £8m. This would represent an increase of over 25% on the previous year.

The Group has begun to see some clients' spend levels tighten and has experienced delays in a number of projects, particularly over the last few months. However, the Group believes it will continue to benefit from the overriding trend towards digital media and digital channels which appears to be accelerating as a result of the recession.  Furthermore the Company maintains a flexible cost base and has made the necessary internal adjustments required to deal with current market conditions. 

The business continues to be cash generative and continues to enjoy a strong financial position, having generated over £8m of cash flow from operating activities enabling the Company to reduce its net debt to £6.5m at the year end.

The Group will announce Preliminary Results for the year ended 31 March 2009 on 6 July 2009.

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Enquiries:

Digital Marketing Group plc	www.digitalmarketinggroup.co.uk
Ben Langdon, Chief Executive	via Redleaf Communications
Redleaf Communications	[e-mail]
Paul Dulieu/Kathryn Hurford	Tel: [phone]
Cenkos Securities
Ivonne Cantu/Julian Morse	Tel: [phone]

Notes to Editors:

• Digital Marketing Group (AIM: DIGI) listed on AIM in October 2006, and employs over 650 people. 

• Digital Marketing Group is the biggest digital marketing agency in the UK (Campaign Magazine January 2009).

• DMG is a specialist digital communications business which underpins its expertise with some of the best data marketing people in the UK. This alignment of specialist skills results in more effective digital marketing, with Digital Brain at its pinnacle. 

• Digital Marketing Group comprises AgencyDMG and specialist agencies CheezeDMG (search marketing and online media), CyberDMG (e-commerce), GraphicoDMG (web design and build, online marketing, mobile), HyperlaunchDMG (online PR, social media), InboxDMG (viral & ECRM), JaywingDMG (data & analytics), DigforFireDMG (digital and direct), GasboxDMG (voice). 

• Digital Marketing Group's development strategy consists of three key elements: 

  • 'organic growth' - driven by the inherent growth within the acquired businesses and the application of a group business development programme

  • 'buy and build' - through the acquisition of a number of well run and profitable businesses with complementary skills in digital direct marketing; and

  • the creation of new revenue streams from within the existing talents and resources of the group.

Publication quality photographs are available via Redleaf Communications.

 

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