Final results
Dillistone Group Plc
(“Dillistone”, the “Company” or the “Group”)
Final Results
Dillistone Group Plc (“Dillistone”, the “Company” or the “Group”), the AIM quoted supplier of software for the international recruitment industry, is pleased to announce its audited final results for the 12 months ended 31 December 2020.
Highlights:
- New operating structure delivers excellent customer service from reduced cost base
- Recurring revenues1 represent 91% (2019: 82%) of Group revenue
- Recurring revenue covered 97% (2019: 89%) of administrative expenses before acquisition related and other costs2
- Improved adjusted operating loss2 of £0.166m (2019: loss £0.207m) before acquisition related and other costs
- Reduced loss for the year of £0.663m (2019: loss £0.842m) despite the impact of Covid-19 on the business in 2020
- Granted CBIL loan of £1.5m
- Cash at year end was £1.3m
- Successful launch of Talentis executive search software (https://www.talentis.global/recruitment-software/insights/) after year end. First revenue now generated.
Definitions:
1The component elements of recurring revenues are detailed in note 5.
2.Percentages and amounts based on adjusted profits figures – see note 4.
Commenting on the results and prospects, Giles Fearnley, Non-Executive Chairman, said:
“The pandemic had a significant impact on the recruitment sector from which the Group derives the vast majority of its revenue. As a result, the business enters 2021 with lower recurring revenues than it entered the preceding year. However, the Board is pleased to report that the new operating structure implemented in 2019, and the further cost reductions implemented as a result of the pandemic, means that the Group is now operating with a much lower cost base. Furthermore, the Board believes that as revenues recover, the efficiencies realised will allow for improved operational leverage.
“The Group has had a positive start to the year in terms of trading, with incoming contracts ahead of management’s expectations. Furthermore, the Board believes that Talentis (https://www.talentis.global/recruitment-software/executive-search-software), the new product we announced in January 2021, will have a significant impact on the Group’s long-term performance. While the subscription nature of its revenue model means that realised revenue in 2021 will not be material, we are pleased to report that we have now generated our first revenue from the platform, with initial user feedback being almost universally excellent. Furthermore, we are pleased to report a rapidly developing sales pipeline.
“The Group has emerged from a challenging year in a strong position. Better than expected incoming orders in Q1 2021, improved operational leverage, a robust balance sheet and an enhanced product range gives the Board optimism for the future. The Board expects to issue a further update at the time of the AGM.”
Annual Report and Accounts – The final results announcement can be downloaded from the Company’s website (www.dillistonegroup.com). Copies of the Annual Report and Accounts (in addition to the notice of the Annual General Meeting) will be sent to shareholders by 22 May 2021 for approval at the Annual General Meeting to be held on 16 June 2021.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Enquiries:
| Giles Fearley | Chairman | via Walbrook PR |
| Jason Starr | Chief Executive | via Walbrook PR |
| Julie Pomeroy | Finance Director | via Walbrook PR |
| Chris Fielding | WH Ireland Limited (Nominated Adviser) | 020 7220 1650 |
| Tom Cooper/Paul Vann | Walbrook PR | 020 7933 8780 0797 122 1972 dillistone@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. Dillistone operates through the Ikiru People brand (www.IkiruPeople.com).
The Group develops, markets and supports the FileFinder, Infinity, Mid-Office, ISV and GatedTalent products.
Dillistone was admitted to AIM, a market operated by the London Stock Exchange plc, in June 2006. The Group employs around 100 people globally with offices in Basingstoke, Southampton, Frankfurt, New Jersey and Sydney.
ISV Skills Testing: https://www.isv.online
Recruitment Software: https://www.voyagersoftware.com/recruitment-software-blog/best-recruitment-software-agencies/
Software for Temps: https://www.voyagersoftware.com/temporary-recruitment-agency-software/
GatedTalent: https://www.Talentis.global
CHAIRMAN’S STATEMENT
2020 started well for the Group with our early months delivering results ahead of internal expectations. However, the impact of the Covid-19 pandemic on our target market – the recruitment sector – is clear. We have seen many of our clients shrink, with some clients closing. We have additionally supported many clients through agreeing discounted periods, contract variations and deferred terms.
The Board reacted swiftly, taking advantage of various government schemes, including furloughing, and staff unanimously supporting a temporary pay-cut (April to September), including all executive and non-executive directors. In June 2020, the Company secured a loan of £1.5m under the UK Government’s Business Interruption Loan scheme enabling us to continue to deliver and develop products with confidence.
Development remains key to the Group’s future success and we have continued to invest in our main products as well as actively developing our first new product for a number of years – Talentis. Talentis was announced in January 2021 and has been well received by the market. It utilises AI and big data advances to deliver, what the Board believes to be, a highly competitive solution for the needs of recruiters globally.
Looking back at 2020 the pandemic had a significant impact on revenue with the total falling 21% to £6.332m, and recurring revenue falling 13% to £5.745m. There was an adjusted operating loss in 2020 of £0.166m (2019: loss £0.207m), mainly due to the fall in revenue being offset with the full benefits of the reorganisation carried out in 2019, the benefit of costs savings measures introduced in 2020 and UK Government support through the furlough scheme and Australian grants. The operating loss, including reorganisation and acquisition related items, was £0.821m (2019: loss £1.090m).
Dividends
The Group is not recommending a final dividend in respect of the year to 31 December 2020 (2019: nil).
Staff
2020 has been a challenging year for everyone and on behalf of the Board I would like to take this opportunity to sincerely thank every one of our staff for their individual and collective contributions and for the professional way they have all risen to the challenges of the pandemic, continuing to deliver for our clients.
Corporate governance
It is the Board’s duty to ensure that the Group is managed for the long-term benefit of all stakeholders.
Mike Love stepped down as a non-executive director in September 2020. I would like to sincerely thank him, for his outstanding contribution to the Group over many years. We also welcomed Steve Hammond to the Group Board in January 2021. Steve is the Chief Engineering Officer for the Group and oversees and is responsible for the development for all group products. Details of our governance processes and my role as Chairman of the Board are included in the corporate governance section that follows the Strategic Report.
Outlook
The pandemic had a significant impact on the recruitment sector from which the Group derives the vast majority of its revenue. As a result, the business enters 2021 with lower recurring revenues than it entered the preceding year. However, the Board is pleased to report that the new operating structure implemented in 2019, and the further cost reductions implemented as a result of the pandemic, means that the Group is now operating with a much lower cost base. Furthermore, the Board believes that as revenues recover, the efficiencies realised will allow for improved operational leverage.
The Group has had a positive start to the year in terms of trading, with incoming contracts ahead of management’s expectations. Furthermore, the Board believes that Talentis (https://www.talentis.global/recruitment-software/executive-search-software) the new product we announced in January 2021, will have a significant impact on the Group’s long-term performance. While the subscription nature of its revenue model means that realised revenue in 2021 will not be material, we are pleased to report that we have now generated our first revenue from the platform, with initial user feedback being almost universally excellent. Furthermore, we are pleased to report a rapidly developing sales pipeline.
The Group has emerged from a challenging year in a strong position. Better than expected incoming orders in Q1 2021, improved operational leverage, a robust balance sheet and an enhanced product range gives the Board optimism for the future. The Board expects to issue a further update at the time of the AGM.
Giles Fearnley
Non-Executive Chairman