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 Ikiru People, is pleased to provide a trading update for the 12 months ended 31 December 2019.
The Board currently expects pre-tax losses before acquisition related items and one off adjustments to be broadly in line with market expectations of a loss of £0.30m (2018: profit £0.02m).
As announced earlier in December 2019, Dillistone undertook a reorganisation to streamline its corporate structures and operations to achieve efficiencies across the business. This resulted in the five UK businesses being combined into one trading entity and renamed Ikiru People Limited. A similar reorganisation has occurred in Australia combining the two companies into one, renamed as Ikiru People Pty Limited. These changes came into effect on 31 December 2019 and support the restructuring of the various teams within the business.
As anticipated, the costs of the reorganisation remain in line with our estimate of less than £600k and are being funded via the Group’s existing resources and the £500k bank loan secured in June 2019. The benefits of the Group’s reduced cost base will be seen from 2020 onwards.
As part of the reorganisation, a review was made of the company product strategy. As a result of this review, one of the Group’s six core products, Evolve, was withdrawn from the market. Product development investment has refocussed with a view to prioritising development which will lead to significant long term growth, rather than short term product enhancements. This has led the Company to restructure its product development team and increase investment in areas such as user experience and quality assurance.
The Company is confident that it will deliver a pre-tax profit prior to exceptional items in both H1 and H2 of 2020. However, the strategic decisions taken mean that this will be delivered on a lower revenue base than previously anticipated, with faster growth than expected from 2021 onwards.
Dillistone expects to announce its preliminary results for the year to 31 December 2019 in the week beginning 27 April 2020.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
||via Walbrook PR
||via Walbrook PR
||via Walbrook PR
||WH Ireland Limited (Nominated Adviser)
||020 7220 1650
|Tom Cooper/Paul Vann
||020 7933 8780
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. Dillistone operates through the Ikiru People brand (www.IkiruPeople.com).
The Group develops, markets and supports the FileFinder (https://www.Dillistone.com), Infinity and MidOffice (https://www.VoyagerSoftware.com), ISV (https://www.ISV.online) and GatedTalent (https://www.GatedTalent.com) products.
Dillistone was admitted to AIM, a market operated by the London Stock Exchange plc, in June 2006. The Group employs more than 100 people globally with offices in Basingstoke, Southampton, New Jersey and Sydney.
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