Political publisher Dods, whose publications include The House Magazine and PoliticsHome saw their shares plummet 33% yesterday, knocking some £7 million off their valuation. In the last 12 months the shares have halved in value. New CEO Simon Presswell is blaming Brexit for an expected profits collapse because of the ‘unprecedented’ political uncertainty. Insiders blame the losses on a lack of customer interest in new products.
Dods bought into Social360 – a social media monitoring service – which has not sold to clients as well as hoped. Many potential clients manage with a combination of Google alerts and Tweetdeck, both of which are free products. The social media crisis solution seems a bit unnecessary, because when you are in social media crisis, you know it without the need for expensive software. Making their database of “Dods People” acessible via a Salesforce CRM plugin seems like a smart idea until you realise public affairs professionals don’t use Salesforce, sales people do. “DODS Signals”, which “enables the tracking of social media profiles and interactions for over 5,000 political influencers”, is essentially a social media list with bells and whistles, which can pretty much be functionally replicated, for free, in Tweetdeck. Unless you don’t know how to search for a hashtag.
None of this appears to have put Dods off expanding, their new CEO telling CEO Today that when it come to prospective mergers and acquisitions:
“we’ve done an extensive study that identifies tens of thousands of organisations that might possess an interest for us. We have defined the criteria of attributes that we look for in businesses that would benefit under our ownership, and we have applied this as a filter across those organisations and have a very specific target list.
If you imagine a 2×2 chart that has two axis [sic] on it, one is complexity, and the other is value. We are able to place our prospects into the appropriate quadrants: those that are high value and relatively low complexity take our priority, those that are high value and more complex take our second priority, and our third priority is on the opportunities that are not yet at high value and are relatively uncomplex. For those prospects, we will be seeking to partner with a select minority of incubators and innovators to bring on board those businesses and technologies in order to amplify them across our network.”
Shareholders, of which Lord Ashcroft is the biggest, might prefer an uncomplex focus on the bottom line…