Technology investor John Porter has been named executive chairman of troubled online advertising group Deal Group Media (DGM). The news coincides with the company’s admission that full-year profits are unlikely to be more than &£800,000, compared with last year’s &£1.3m.
Founder and chief executive Adrian Moss stays in his post, but Porter will take a “hands-on role”, a spokesman confirms. He adds: “Porter will be very closely involved in the business working with Adrian. They have had a relationship for some time. There will be a slight refocusing of roles in the management team.” Porter will also handle relationships with the City and investors.
DGM says profits will be hit by &£100,000, owing to delays with the roll-out of its new proprietary ad-tracking software, Ad Pro; and by &£225,000 because two major customers are unable to implement technology changes on their websites, which means major pre-Christmas campaigns have had to be cancelled.
This is DGM’s second profits warning in two months. In September, it said pre-tax profits would be the same as last year, mainly because a major client changed the way it accounts for sales introduced through DGM’s affiliate network. DGM admitted that “this particular client accounted for some 30 per cent of high-margin gross profit.”
Porter’s investment vehicle, I-spire, has a 22.41 per cent stake in the group. He is the son of former Westminster Council leader Dame Shirley Porter, and featured in the news recently because of his involvement in a bitter boardroom battle over control of Redbus Interhouse with Demon Internet founder Cliff Stanford.