DM continues growth in challenging period

HEREFORDSHIRE direct marketing firm DM has continued growth in turnover, gross profit and profit after tax for the half-year to end-June and slashed net debt by 60%.

The group said it saw a consolidation of its market position with turnover up 15.9% to £13.45m (2009: £11.6m).

Gross profit was £7.06m, up 8.3% (2009: £6.52m).

Consolidated group EBITDA was £3.18m, up 20.9% (2009: £2.63m) and profit after tax was up 25.7% to £2.2m (2009: £1.75m).

Earnings per share were up 15.8% to 1.32p (2009: 1.14p).

DM saw a continued reduction in net debt from operating cash generated and careful cash flow management, resulting in net debt down 60% to £2.54m from £6.41m as at June 30, 2009.

Ross-on-Wye based DM said there was a robust performance of all business activities in challenging market conditions.

Chairman, Adrian Williams said: “This has been a challenging period for the group which we have dealt with in a robust manner. In subdued market conditions and through a period of integration the strength of the group’s multi channel activities and careful cash management has been demonstrated yet again.

“The group now has the structure and resources from which to benefit when market conditions improve and with careful investment we look forward to the future with cautious optimism.”