Digital marketing technology supplier DotDigital (DOTD:AIM) is looking for acquisitions to bolster growth.

The last financial year’s 19% revenue growth to £32m was achieved entirely through organic means. Pre-tax profit for the 12 months to 30 June 2017 jumped 30% to £8.1m.

The UK remains DotDigital’s traditional heartland, where it earned 77% of income last year, but both the US and Asia Pacific regions offer rapid expansion promise.

Second half US sales doubled on the first six month period, assuming constant currencies.

The firm’s Asia Pacific operation, which runs out of a base in Australia, has scope to reach across the south east Asian area now that it has a dedicated sales team on the ground.

DotDigital’s core technology, dotmailer, provides marketers with a cloud-based single solution to design, create, personalise and monitor email marketing campaigns.

While sceptics talk down email as a communication tool, studies show the vast majority of consumers in the UK and US prefer it over text messaging, social media and other channels.

With net cash of £20.4m and highly-rated stock (the forward price earnings multiple stands at 31.8 based on an 86p share price) the company has the financial clout to acquire the right businesses.

Acquisitions could accelerate geographic reach, extend its multi-channel capabilities or provide relevant new functionality.

Analysts anticipate 25% revenue growth in the year to 30 June 2018 and a 16% rise in pre-tax profit. (SF)

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