30th Jun 2014 08:47
LONDON (Alliance News) - Daily Internet PLC expressed confidence in delivering further growth in the new year, after it posted a narrowed pretax loss for the year to end-March, boosted by its acquisition of Netplan Internet Solutions Ltd last November.
Daily Internet provides web hosting, e-mail and domain name registration services.
The company posted a pretax loss of GBP676,000, narrowed from a loss of GBP900,000 in the previous year, as revenue rose to GBP2.3 million from GBP1.6 million, although this was somewhat offset by higher cost of sales and administrative expenses, and acquisition costs of GBP276,000.
Revenue growth was driven by the company's acquisition of Netplan, which bolstered the company's managed hosting division.
The company said the acquisition had improved its average revenue per user to GBP128 from GBP87, as its two largest customers now generate revenue of GBP200,000 per year each.
Netplan has contributed GBP700,000 in revenue since acquisition, the company said. Gross margin improved to 55.2% from 50.9%, boosted by a higher proportion of revenue coming from the higher-margin managed hosting segment.
Daily Internet said it would continue to target small internet hosting business for consolidation, alongside larger acquisitions with higher revenue per customer. In January, Daily Internet acquired UK internet hosting provider NameHOG Ltd, and said the acquisition was already fully integrated.
The acquisition of NameHOG boosted the company's customer base, adding a further 5,000 small- to mid-sized corporate customers to its base. Daily Internet said its SME customer base increased by 15% during the year.
The company said that it has re-examined its products and has begun to shed the ones that are less profitable in hopes of streamlining its operations and reducing its cost base.
Shares in Daily Internet are untraded Monday; they were last quoted at 1.68 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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