Progress at bulk-email specialist dotDigital Group PLC (LON:DOTD) quickened in the second half of the financial year to the end of June.
Revenue was bang in line with market expectations at £32.0mln, up 19% from the previous year's top-line number of £26.9mln. Revenues outside of the group's home market of the UK grew by 48% and now represent 23% of total revenues.
Profit before tax rose 30% to £8.1mln from £6.2mln the year before and was ahead of market expectations of £7.86mln.
Underlying earnings, or EBITDA, rose 26% to £10.1mln from £8.0mln the previous year.
Earnings per share rose 32% to 2.42p from 1.83p the year before, and were ahead of the consensus forecast of 2.24p.
Cash generation was strong during the financial year at £8.8mln, boosting the net cash position to £20.4mln at the end of June.
The full-year dividend has been hiked to 0.55p from 0.43p in the previous year; analysts had pencilled in 0.53p.
The new financial year has started well, with a further acceleration in international sales, giving the board added confidence the group will meet its ambitious growth targets.
With a well-stocked war-chest, the board now has a bigger focus on building an acquisition pipeline.
"H2 progress has accelerated to bring substantial and commendable growth across all regions. The first few months of the new financial year have started well and in line with plan,” said Milan Patel, chief executive officer of dotDigital.
“There has been an increase in the customer numbers that are being added across all regions to the platform compared to the previous year. The market outlook remains strong which puts us in a good position to capitalise on our strategy and the board remains confident about achieving our ambitious growth plans."
House broker finnCap said dotDigital was making progress on every front.
“Strong results from text book execution derive from delivery of the three strategic routes to growth: more partners, doubling the addressable market; increasing reach of successful operational territories, delivering 48% revenue growth outside the UK; and broader product functionality – leading to +24% spend per customer, from a growing stable of c. 4,000 active customers.” the broker said.
The strength of the balance sheet gives options as regards future growth, FinnCap said, with the acquisition pipeline hinted at by management one route to acceleration of product development or to the enhancement of organic growth in new territories through acquiring local presence.
The broker lifted its 12-month target price to 92p from 80p.
Shares in dotDigital were among the best performers early Tuesday , rising 8.2% to 79p.