4th Apr 2016 07:40
LONDON (Alliance News) - Hosting and cloud software company Daily Internet PLC on Monday said it expects its full-year earnings to show a "significant improvement" from the previous year, as it refocused the group towards managed hosting services.
Daily Internet said it expects revenue to come in at GBP4.7 million for its financial year ended March 31, up from GBP3.9 million the year earlier, whilst adjusted earnings before interest, tax, depreciation and amortisation for the year is expected to be more than 50% ahead of the previous year.
Daily Internet said the majority of that growth was organic, coming largely from sales within financial services sector, merchant and distribution sector and the payment card industry hosting marketplace.
It added its small and medium enterprises mass market division has "continued to perform well" over the year with both revenue and adjusted earnings before interest, tax, depreciation and amortisation "increasing materially" on the comparable period last year.
However, Daily Internet said its focus going forward is on its managed hosting division, which saw 30% revenue growth over the year, and said it has completed a strategic reorganisation process to slim down the cost base of its SME mass market division and put further resources into its managed hosting division.
Daily Internet repaid the remainder of its outstanding convertible loan noted during the second half of the financial year, leaving it largely debt free, save for "certain asset finance leases", it said.
"We have delivered on all of our objectives for the 2016 financial year. We are seeing our order book grow and believe we are well positioned to benefit from the increasing adoption of cloud delivered services and additional non-organic growth opportunities," said Chief Executive Chris Evans.
Shares in Daily Internet were untraded on Monday, having last traded at 1.75 pence.
By Hannah Boland; [email protected]; @Hannaheboland
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