1st Jun 2016 08:05
LONDON (Alliance News) - Hosting and cloud software company Daily Internet PLC on Wednesday said it performed in line with management expectations in its recent financial year, seeing growth in both revenue and profit.
Daily Internet said revenue for the year ended March 31 was GBP4.8 million, up 22% from the GBP3.9 million posted a year earlier, whilst the company swung to a pretax profit of GBP248,000 from a loss of GBP138,000 a year earlier.
Daily Internet said its gross profit margin grew to 63% from 62.2%, and noted that the year was one in which it continued to transition into a business focused on Managed Hosting, from its traditional Small and Medium Enterprise Mass Market roots. This was largely driven by the acquisition of software-as-a-service provider Q4Ex Ltd, along with the appointment of Chris Evans as chief executive officer in December 2014, Daily Internet said. Evans was a founder and a director of Q4Ex.
Revenue increased 36% in the Managed Hosting division, Daily Internet said, whilst the Small and Medium Enterprise Mass Market division grew 10%. Daily Internet added that it has focused on cost reductions in its Small and Medium Enterprise Mass Market division to drive up profitability.
During the year, Daily Internet repaid the balance of its outstanding convertible loan notes and at year end had a net cash position of GBP21,000.
No dividend was offered for either this year or a year earlier.
"Trading since the financial year-end has been in line with management expectations. With the continued growth in our Managed Hosting business, our cash generation and the slimming down of cost base in our SME Mass Market segment, we are well placed going into the 2016/2017 financial year with a strong foundation for future growth," said Evans said.
Shares in Daily Internet were up 0.3% at 1.65 pence on Wednesday.
By Hannah Boland; [email protected]; @Hannaheboland
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