Trading Update and Notice of Results
Dillistone Group Plc
(“Dillistone” or the “Group”)
Trading Update and Notice of Results
The Board of Dillistone Group Plc, the AIM quoted supplier of software for the international recruitment industry through its Dillistone Systems, Voyager Software and GatedTalent divisions, is pleased to provide an update on trading.
Operational performance improved in the second half relative to the first half of the year and, as a result, both Dillistone Systems and Voyager Software are expected deliver an operating profit for the full year; although, as previously anticipated, GatedTalent was in development and did not deliver revenue in 2017.
This improvement means that operating profits for 2017 will be considerably better than current market expectations of £200,000 of operating profit, prior to acquisition related items and any adjustment related to the previously announced contract termination.
GatedTalent was launched at the World Executive Search Congress in October 2017. On 7 December 2017, we revealed that this new product had become the most successful new product launch in our history, based on the volume of orders received at that point. We are pleased that the level of demand is continuing, and that client subscription levels have more than doubled over the last two months and remain ahead of expectations.
Additionally, we said that the Board expected to “very significantly surpass” internal expectations in terms of the likely volume of compliance messages that our clients would send through the platform. These compliance messages play an important part in helping our clients achieve GDPR compliance, while also acting an as invitation for executives to join the GatedTalent network. Our current expectations are that, prior to the GDPR deadline date of 25 May 2018, GatedTalent will manage the process of sending significantly more than 2,000,000 such messages. This is more than twice our initial level of expectations.
The platform is now live; with clients using it; compliance messages having been sent; and profiles having been created. However, as many of our clients are planning to delay the sending of messages until closer to the May deadline, it remains too early to say what percentage of executives contacted will create profiles on our platform. It is from such profiles that we will derive much of our long-term revenue.
We continue to anticipate that GatedTalent and our GDPR initiatives will have a positive impact on our H1 order book. The Group ended the year with £1.4m in cash.
Dillistone expects to announce its preliminary results for the year to 31 December 2017 in the week beginning 23 April 2018.
Commenting, Jason Starr, Chief Executive at Dillistone Group, said:
“We continue to believe that GatedTalent has the potential to be transformational for our Group. We’ve always tried to deliver innovative solutions to the challenges that our clients face and all the signs are that Search firms are seeing our new platform as having the potential to change the way that they engage with executives.
“We anticipate that the approaching GDPR deadline will continue to drive business activity and look forward to updating the market further at the time of our 2017 full year results announcement.”
|Mike Love (Chairman)||Dillistone Group Plc||020 7749 6100|
|Jason Starr (Chief Executive)||Dillistone Group Plc||020 7749 6100|
|Julie Pomeroy (Finance Director)||Dillistone Group Plc||020 7749 6100|
|Chris Fielding (Nominated Adviser)||WH Ireland Limited||020 7220 1650|
|Tom Cooper/Paul Vann||Walbrook PR||020 3176 4722
0797 122 1972
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 five brands operating through three divisions: Dillistone Systems, which targets the executive search industry (www.dillistone.com); Voyager Software, which targets other recruitment markets (www.voyagersoftware.com); and GatedTalent, the next generation executive recruitment database (www.GatedTalent.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, ISV and GatedTalent 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.