Digital Globe Services jumps on strong second-half performance

23rd Jun 2015 09:08

Digital Globe Services, an online customer acquisition solutions provider, expects its full-year results to be in line with forecasts thanks to a stronger second-half.The group said a recovery in revenues and gross margin during the second half of the year compared with the first half resulted in net cash being ahead of expectations.As a result, the board plans to pay a dividend, with further information related to this payment to be unveiled in its full-year results.The company also announced the promotion of its interim chief financial officer Andrew Lear as chief financial and executive director.Chief executive Jeff Cox said: "We are encouraged by early, positive evidence that the investments we made in our infrastructure and people in the first half of the year are bearing fruit, as seen in the stronger second half performance, and we believe we are now in a better position to maximise opportunities within the evolving marketplace."N+1 Singer analysts said Digital Globe is starting to see some stability in its core cable customer base after being hurt by client merger talks during the first half. It added the trading update was a "solid first step" towards a "significant re-rating once investor confidence returns".Following the news, shares jumped 12.33% to 52.79p at 09:10.