10th Jun 2013 07:00
Embargoed for release at 7am
10 June 2013
Digital Globe Services, Ltd.
(the "Company" and together with its subsidiaries "DGS")
Trading Update & Interim Dividend
Digital Globe Services, Ltd. (AIM: DGS), a leading provider of online customer acquisition solutions for large, consumer-facing organisations, is pleased to provide an update on trading.
The Board is pleased to confirm that, ahead of its year end of 30 June, trading for the full year is expected to be in line with market expectations.
The Board remains confident of the outlook for trading next year, as the Company continues to implement its growth strategy to good effect. This includes core business, sector expansion and geographic expansion. Furthermore, DGS is seeking to commercialise its dgSmart platform, including by way of agency service or licence arrangements. Any additional announcement will be made as appropriate should a contract of this nature arise in the coming weeks or months.
Given the highly cash generative nature of the business and a period of stronger than expected cash generation in the early part of the second half, the Board is pleased to announce that it has approved an interim dividend payment of 5.18 cents per share*, totalling approximately $1.4m (c. £920k). This dividend will be paid on 28 June 2013 to shareholders /holders of depositary interests on the register as of 21 June 2013. Dividend payments of less than a whole cent will be rounded down to the next whole cent. This payment reflects the generation of cash surplus to the Group's requirements, having applied the IPO proceeds in accordance with stated objectives, namely to the pay-down of historic debt facilities and the execution of the Group's strategy.
The Company will endeavour to pay dividends twice annually, subject to the Company bye-laws, business requirements and appropriate reserves accounting for investment in the Company's growth. This dividend should therefore be viewed as the half yearly dividend. A further dividend will be considered following the year end.
Jeff Cox, CEO of Digital Globe Services, commented,
"We are pleased to announce that our results are expected to be in line with expectations. We are also delighted to announce this first dividend as a public company, which underlines the strong cash generation in the business and our confidence in the future for DGS."
* Dividend per share calculation based on 27,021,388 issued shares as the date of this announcement. Shares under option are all existing shares held by the ESOP Trust and do not rank for dividend until options are exercised.
For further information please contact:
N+1 Singer | |
Shaun Dobson / Aubrey Powell / Matt Thomas | +44 20 7496 3000 |
Newgate Threadneedle | +44 20 7653 9850 |
Hilary Millar / Caroline Evans-Jones / Josh Royston | |
Overview of DGS
Founded in 2008 with offices in London, England, Frankfurt, Germany and Castle Rock, Colorado, USA, DGS is a specialist provider of outsourced online customer acquisition solutions for large, consumer-facing corporations. DGS delivers customers to its clients through optimised paid search, integrated websites and contact centre support, receiving a fee for each customer acquired for its clients.
DGS is seeking to establish itself as the leading international provider of outsourced online customer acquisition services, through its focus on having the premier technology platform for pricing and procuring paid search advertising on a cost effective basis. Paid search refers to the auction process for key search terms that search providers run and in which prospective advertisers, or their agents, compete in order to have their advertising or search results displayed.
By using its optimizing technology platform, dgSmart, and its experience of website management, efficient contact centre operations and other process expertise, DGS is able to bid appropriately and cost effectively for search terms in order to achieve conversion rates that deliver profitable, high quality customers to its clients.
DGS employs approximately 430 staff in Europe, North America and Asia. The Company currently has over 30 direct and indirect client relationships globally, many of which are with companies in the US Fortune 500. In 2012, DGS commenced operations in Canada and Mexico, and is pursuing further growth opportunities in Latin America, Europe, and Asia Pacific. DGS has also recently started providing its customer acquisition services to the electric utility industry and renewable energy sector, and is examining additional opportunities in the insurance, retail banking, and consumer technology sectors.
Related Shares:
DGS.L