Data players DLG and PDV 'back in profit' after cost-cutting by parent DM plc

LONDON - DM plc, the parent of data vendors DLG and PDV, has reported that pre-tax profits in the first six months of 2009...

...declined to £2.28 million from £2.67 million the previous year due to "the severity of the recession".

However in a statement to the Stock Exchange this morning, DM plc said a reduction in the overheads of PDV and DLG meant "both businesses [are] now profitable and considerably ahead of the timetable set out in the initial turnaround plans".

Turnover was for the first half of 2009 grew to £11.60 million from £7.48 million in the first six months of 2008, fuelled by the acquisition of DLG in November 2008 and PDV in April this year.

Gross profit was up 66 per cent to £6.52 million, including acquisitions.

The company said the recession and a decline in consumer spend had affected its newly established Customer Recruitment division, which houses recent acquisitions DLG and PDV, and its gamecards business.

Adrian Williams, DM plc's chairman, said: "With the acquisitions of DLG and PDV we have now diversified the Group into the influential online direct marketing and customer lifestyle sector which will provide the Group with new growth opportunities and will allow us to offer an integrated service to a wide range of customers."

The restructure of DM plc's operations to integrate the profitable areas of business from DLG and PDV meant the group was "well placed to benefit from any upturn in marketing activity when it occurs," Williams said.

Following DM plc's purchase of DLG out of administration last year, CEO Jeremy Whitaker left the company and Hugh Villiers, founder and previous managing director of data players CMT, Consumer Access and Consodata UK, was appointed vice chairman.

DLG, which had grown rapidly through acquisitions since 2005, was directly affected by the credit crunch when its equity partner, Icelandic private investor Kaupthing Singer & Friedlander (KSF), went into administration last October.

 

 

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