Dillistone Group PLC Trading Update & Notice of Results (2221W)
08 February 2017 - 6:00PM
UK Regulatory
TIDMDSG
RNS Number : 2221W
Dillistone Group PLC
08 February 2017
Dillistone Group Plc
Trading Update & Notice of Results
Dillistone Group Plc ("Dillistone", the "Company" or the
"Group"), the AIM quoted supplier of software for the international
recruitment industry through its Dillistone Systems and Voyager
Software divisions, is pleased to provide a trading update for the
12 months ended 31 December 2016.
The Board is pleased to confirm that pre-tax profits before
acquisition related items and one off adjustments are expected to
be broadly in line with market expectations, with year on year
growth in revenue, EBITDa and pre-tax profits. Currency gains have
impacted both our revenues and costs, however the net impact of
this currency fluctuation has been positive.
Both divisions will be reporting good revenue growth for the
period. Economic turbulence in 2016, as noted in our Interim Report
in September, has resulted in a lower than normal level of sales of
new licences and subscriptions to existing clients, however licence
sales to new clients and upgrades for existing clients remain
strong. The Board is particularly pleased to note that our
Dillistone Systems division has seen a notable improvement in its
market performance after a challenging 2015, with significant
growth in both the number and total value of new contract wins in
the year. We believe this validates our decision to increase
investment in the division. Product development has continued to be
a priority throughout 2016 and this will continue into 2017.
The Company is reviewing its amortisation policy for capitalised
development costs with a view to bringing it more into line with
industry practice by writing off all such costs over five years
rather than a range of five to ten years. If implemented, the
impact of the policy change would result in a significant one-off
negative adjustment on profit before tax for 2016, a minimal
benefit in 2017, but would have a positive impact in 2018 and
subsequent years. This is, of course, not related to trading and
will not have a cash impact on the business.
The Board remains optimistic about making further progress in
2017, although it is mindful of the wider economic influences and
their potential to impact on the performance of the business. The
Group remains profitable and cash generative and continues to
follow a progressive dividend policy, subject to the needs of the
business.
Dillistone expects to announce its preliminary results for the
year to 31 December 2016 in the week beginning 24 April 2017.
Enquiries:
Dillistone Group
Plc
Mike Love Chairman 020 7749 6100
Jason Starr Chief Executive 020 7749 6100
Julie Pomeroy Finance Director 020 7749 6100
WH Ireland Limited (Nominated
adviser)
Head of Corporate
Chris Fielding Finance 020 7220 1650
Walbrook PR
Tom Cooper /
Paul Vann 020 7933 8780
0797 122 1972
tom.cooper@walbrookpr.com
Notes to Editors:
Dillistone Group Plc (www.dillistonegroup.com) is a leader in
the supply and support of software and services to the recruitment
industry. It has four trading businesses operating through two
divisions: Dillistone Systems, which targets the executive search
industry (www.dillistone.com); and Voyager Software, which targets
other recruitment markets (www.voyagersoftware.com).
Dillistone has made three acquisitions: Voyager Software in
September 2011, FCP Internet in July 2013 and ISV Software in
September 2014. The Group operates under the FileFinder, Infinity,
Evolve and ISV brands.
Dillistone was admitted to AIM, a market operated by the London
Stock Exchange plc, in June 2006. The Group employs over 100 people
globally with offices in London (head office) Basingstoke and
Southampton, Frankfurt, New Jersey and Sydney.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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