Trading Statement

4 April 2016

Daily Internet plc

("Daily Internet" or the "Company" or the "Group")

Trading Update

Daily Internet (AIM: DAIP), the managed hosting and cloud integrator, is pleased to provide its trading statement for the year ending 31 March 2016 ahead of the announcement of its full year results.

Group Trading Performance

The board is pleased to report that financial results for the year ended 31 March 2016 are expected to show significant improvement on the comparative period last year. The Group expects to report total revenues of approximately £4.7 million (FY2015: £3.9 million), with adjusted EBITDA1 more than 50% ahead of the previous financial year.

Operations

The core Managed Hosting segment has delivered a robust performance generating revenue growth of approximately 30% over FY2015. The majority of this growth is organic in nature, as the Group continues to benefit from clients seeking our advice and support in their move to a cloud delivered solution. This growth has been driven in particular through the financial services sector, merchant and distribution sector and the payment card industry (PCI) hosting marketplace. We also continue to enjoy very low levels of client churn and an overall trend of increasing spend amongst our clients as they seek to outsource more elements of their IT service.

Our SME Mass Market segment has continued to perform well with both revenue and adjusted EBITDA1 increasing materially on the comparable period last year. However, as we have previously stated, our focus going forward is on our Managed Hosting division where we see greater opportunities for growth.

Reorganisation

Our strategic reorganisation process was completed early in the second half of our financial year. This has allowed the Company to increase focus on its Managed Hosting division while slimming down the cost base of the SME Mass Market division. Together these developments have contributed to the positive trading performance we expect to report for full year 2016.

We also repaid the remainder of our outstanding convertible loan notes during the second half of our financial year, leaving the Group largely debt free save for certain asset finance leases.

Chris Evans, Chief Executive commented: "The Group has delivered a robust performance as a result of our successful acquisition strategy, underpinned by strong organic growth in our Managed Hosting division. 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."

(1) Adjusted EBITDA, which is referred to throughout the announcement, is earnings before interest, taxation, depreciation, amortisation, acquisition and integration costs, fair value adjustments and share based payments

About Daily Internet

Daily Internet is a leading cloud integrator. Solutions delivered comprise best of breed technologies, tailored and delivered to ensure customers benefit from the vast array of solutions and ever advancing hosting technologies. The Daily Group team keeps customers at the forefront of technology, enabling them to free up resources so they can focus on growing their core business without the distractions or complexity of the ever-changing hosting landscape.

The Group has offices in Liverpool, Nottingham and Coventry.

For more information, visit http://www.dailyplc.com