The Board of Dillistone Group Plc, the AIM quoted supplier of software for the international recruitment industry, is pleased to announce its Interim Results for the six months ended 30 June 2019.
Key points of the unaudited interim report for the six months ended 30 June 2019
· Reorganisation progressing well
· Recurring revenue of £3.5m (2018: £3.6m)
· Recurring revenues represent 83% of total revenue (2018: 81%)
· Both Dillistone Systems and Voyager Software divisions profitable
· Reduced loss in https://www.GatedTalent.com division of £(0.257m) (2018: loss of £0.315m) based on significant revenue growth to £0.134m (2018: £0.014m). Division now approximately at EBITDA breakeven (before Group charges) on a monthly basis.
· Operating loss of £0.044m before acquisition and reorganisation related items (2018 profit: £0.17m)
· Group is cash generative at an operational level
· Reorganisation costs incurred in period totalled £0.115m
· Cash balances of £0.769m at 30 June 2019 (30 June 2018: £1.065m)
· Bank loan of £0.5m received in June 2019 to finance reorganisation
Commenting on the results and prospects, Mike Love, Non-Executive Chairman, said:
“The reorganisation and transfer of operations to Basingstoke is progressing to plan and we are on track with delivering the anticipated cost savings and improved efficiencies within the business. We anticipate that our two largest divisions, Dillistone Systems and Voyager Software, will both be profitable in 2019. GatedTalent is now enjoying month on month revenue growth and while – as expected – it will be loss making in the full year, we anticipate that it will make a profit at EBITDA level (before Group charges) in the fourth quarter. We are confident that the Group will move back into sustained profitable trading with positive cashflows next year. However, with the continuing uncertainty over Brexit in the UK, and ongoing economic uncertainty in the wider world, the Group does expect revenue to be down on its previous expectations and this will result in a loss in the year to 31 December 2019.”
dillistone