Marketing agency dotDigital has announced that since final results were released on 22nd October, the firm has won more than 360 clients across its four operating areas (e-mail marketing, website design, e-commerce solutions and website search engine optimisation). By the end of 2009, the company had 2,860 active customers, up 25% from at the end of June. dotDigital said that the new clients are from a range of industries, with recent wins including the University of Hertfordshire, hmvcurzon cinemas and Bristol International Airport. The firm added that it received a lot of interest for its products at the Technology for Marketing and Advertising trade show at Earls Court in February and that interim results for the half year to 31st December will be released on 11th March.

At a mid-price of 0.875p dotDigital is capitalised at £11.31 million and valued at around 12.6 times historic net profits. While pressures on marketing spend continue, the general industry outlook is improving, with research firm eMarketer expecting online advertising spending to rise by 4.7% in 2010 £3.54 billion. Considering that dotDigital has consistently demonstrated that it can outperform the wider market, and with net cash of £1.7 million as at 30th June 2009, we continue to rate the shares as a buy.