TIDMDSG

RNS Number : 5858N

Dillistone Group PLC

26 September 2023

26 September 2023

Dillistone Group Plc

("Dillistone", the "Company" or the "Group")

Interim Results & Investor Presentations

Dillistone Group Plc, the AIM quoted supplier of software and services to recruiters, is pleased to announce interim results for the six months ended 30 June 2023.

Financial Highlights

-- Group eliminates losses, makes first H1 adjusted operating profit since 2018 of GBP0.036m (H1 2022: loss (GBP0.129m)).

-- Rolling 12 month adjusted operating profit also turns positive at GBP0.009m for the first time since H2 2018 (12 months to June 2022: loss (GBP0.342m)).

   --    First H1 recurring revenue growth since 2017 up 4% to GBP2.564m (2022: GBP2.477m). 

-- Recurring revenues represented 91% (H1 2022: 88%) of Group revenue. Total revenue flat at GBP2.826m (2022: GBP2.823m).

   --    Net cash from operating activities broadly the same at GBP0.565m (2022: GBP0.560m). 

-- Cash at period end of GBP0.249m (2022: GBP0.608m) reflecting ongoing repayment of Government support loans (GBP0.300m annually). The Board does not expect the Group to require additional funding.

   --    Board expects to deliver full year profit results in line with market expectations. 

Operational Highlights

-- Strong start to year for all products, followed by deterioration in Q2 due to widely reported drop in UK advertised vacancies during this period leading to a downturn in demand for many of our clients.

-- Improved operational gearing ensures that business is able to react rapidly to changes in demand.

-- Post period end, major enhancements delivered for Talentis, Infinity and Mid-Office, including integrations with OpenAI (the technology behind ChatGPT) for both Talentis and Infinity.

   --    Implementation of previously announced major contract win progressing well. 

Commenting on the results and prospects, Giles Fearnley, Non-Executive Chairman, said:

"In my statement in the annual report, I said that the underlying business had improved. These results confirm that statement with the Group returning an adjusted operating profit for the first time since 2018, despite the challenging economic environment.

"Even with the current economic turbulence, we fully expect to make further progress during the remainder of the year. The Board is confident of delivering full year profit results in line with market expectations."

* Note: "Adjusted" refers to activities before acquisition, reorganisation, Government support, and one-off costs

Investor Presentation: 3pm on Tuesday 26 September 2023

Jason Starr, Chief Executive, and Ian Mackin, Finance Director, will hold an investor presentation to review the results and prospects at 3pm on Tuesday 26 September 2023.

The presentation will be hosted through the digital platform Investor Meet Company. Investors can sign up to Investor Meet Company and add to meet Dillistone Group Plc via the following link https://www.investormeetcompany.com/dillistone-group-plc/register-investor . For those investors who have already registered and added to meet the Company, they will automatically be invited.

Questions can be submitted pre-event to dillistone@walbrookpr.com or in real time during the presentation via the "Ask a Question" function.

Mello Results Special webinar: Wednesday 27 September 2023 - event starting at 12pm

Dillistone will be presenting at the Mello Results Special webinar, on Wednesday 27 September 2023 taking place via Zoom Webinar. The event starts at 12.00pm.

Jason Starr, Chief Executive, and Ian Mackin, Finance Director, will be presenting to webinar participants during the event and taking questions. Investor wishing to attend can register here for a free ticket for the event using code SHR100. The recording will be sent out to all registrants within 48 hours of the event.

Contacts:

 
 Dillistone Group Plc                                             Via Walbrook PR 
 Jason Starr               Chief Executive 
 Ian Mackin                Finance Director 
 
 WH Ireland Limited (Nominated adviser) 
 Chris Fielding            Head of Corporate Finance                020 7220 1650 
 
 Walbrook PR 
 Tom Cooper / Nick Rome                                             020 7933 8780 
                                                        dillistone@walbrookpr.com 
 

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

The person responsible for arranging the release of this announcement on behalf of the Company is Ian Mackin, Finance Director of the Company.

Notes to Editors:

Dillistone Group Plc is a leader in the supply and support of software and services to the recruitment industry. Dillistone operates through the Ikiru People ( www.IkiruPeople.com ) brand .

The Group develops, markets and supports the Talentis, 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.

Learn about our products:

   Talentis Software:                            https://www.talentis.global/recruitment-software/ 
   Voyager Software:                           https://www.voyagersoftware.com 
   GatedTalent Executive Jobs:           https://talentis.global/all-jobs 

Chairman's Statement

In my statement in the annual report, I said that the underlying business had improved. These results confirm that view with the Group achieving its first half year adjusted operating profit since H2 FY2018 and its first half year profit from operating activity since H1 FY2016.

It is perhaps though, the rolling 12-month measure of adjusted operating profit which truly shows the progress made. The table below shows the scale of recovery the company has achieved, with a small profit of GBP0.009m being achieved in the 12 months to 30 June 2023, a turnaround in operating performance of more than GBP350k, when accounting for government support.

 
    12 months to       30 June   30 June   30 June   30 June   30 June   30 June 
                         2018      2019      2020      2021      2022      2023 
 Adjusted Operating 
  Profit (GBP'000)       140       (6)      (228)     (568)     (342)       9 
                      --------  --------  --------  --------  --------  -------- 
 

In the annual report I also pointed to challenging economic conditions. These worsened during Q2, with the widely reported reduction in hiring leading to a number of recruitment agencies downsizing, subsequently reducing demand for our products.

However, as a result of the restructuring undertaken over recent years, the Group now has the ability to rapidly adjust cost in line with market fluctuations and steps have been taken in H2 to reflect the harsher sales environment we face. As a result, the Board remains confident of continuing its financial recovery in 2023.

Operational Review

We split our products into two groups - products primarily targeting contingency recruiters (largely, but not exclusively, in the United Kingdom) and products used by executive search firms and in-house executive search teams across the globe.

Contingency review:

In March, we announced that the Group had won a significant contract for our Infinity product. We stated that " The contract includes a significant amount of tailored development work which will determine the final value of the contract. The sum total of this development work and the ongoing licence revenue is expected by the Board to result in the contract being the largest won since the restructuring of the Group in January 2020."

We are pleased to report that this project is progressing well and we anticipate that the non-recurring revenue part of the project will largely be realised in H2 2023. While the final value of this work remains unconfirmed, at this stage, we are now anticipating that this will be marginally higher than originally anticipated.

While some of our development focus has been driven by the requirements of this contract, we continue to enhance our contingency products to deliver more value for all our clients.

During Q2, we completed the integration of Infinity with the "Talentis TalentGraph", allowing our contingency users to search across the huge datapool which was previously available exclusively to our Talentis clients. We believe this enhancement will create a competitive advantage for Infinity, and the primary aim is to support client retention. In addition, we are charging users a small additional fee to take advantage of this functionality and we have already started to generate new revenue as a result.

As noted above, the UK recruitment market saw a marked decline in Q2, and we saw a number of our clients reduce licence numbers or take steps to cancel contracts. We also saw a steep decline in new business orders during this period.

The recruitment software industry tends to be relatively slow in Q3 and this has proven to be the case this year. However, there are no obvious signs of further deterioration, and we anticipate the previously mentioned large contract win will ensure a positive result for this part of the business in H2, regardless of the economic environment.

Executive search review:

Our executive search platforms enjoy a far greater global client base than our contingency products, with users accessing our systems from virtually every continent. While we've seen a steep decline in the recruitment sector in the UK, other countries have been less consistent with some territories and sectors doing better than others. Nevertheless, we have more clients in the UK than in other territories and as a result our executive search products were not immune to the fluctuations referenced above and as a result, recurring revenue associated with our headhunting products dropped in Q2.

In late Q2 following an extensive review by the organisation in question, we signed a "preferred provider agreement" for Talentis with a major global recruitment business. This has already created opportunities that have generated new revenue for the Group.

As with our contingency products, the market for executive search technology is typically slow over the summer months. However, after a tough second quarter, we are pleased to report that our Talentis product has outperformed expectations over the summer.

We continue to develop Talentis aggressively and, post period end, announced our first integrations with OpenAI - the technology that underpins ChatGPT. These integrations allow users to search for candidates more efficiently, and helps users to find "similar candidates" based on a "template candidate". These enhancements have been well received by our clients.

While the market remains challenging for all our executive search products, we are pleased to see that Talentis is increasingly being considered as a viable option for medium sized firms and we are pleased to note increasing levels of engagement with search firms who are considering Talentis as a CRM alternative to an existing platform - rather than a secondary resourcing tool.

KPIs and financial performance

The Group's operational performance has improved significantly in recent years, with H1 FY2023 marking our return to operating profit. The success measure for each of the KPIs used by management is year on year improvement.

 
                               FY23 H1    FY22 H1    % Move 
                                GBP'000    GBP'000 
 Total revenue                  2,826      2,823       0% 
                              ---------  ---------  ------- 
 Recurring revenue              2,564      2,477       4% 
                              ---------  ---------  ------- 
 Adjusted EBITDA *               581        435       34% 
                              ---------  ---------  ------- 
 Adjusted Operating Cash **      519        560       (8%) 
                              ---------  ---------  ------- 
 Adjusted (loss) before tax 
  ***                           (105)      (274)      62% 
                              ---------  ---------  ------- 
 
   *      EBITDA adjusted for Government support 
   **   Operating cash adjusted for Government support received 

*** (Loss) before tax adjusted for Government support associated with Covid and exceptional costs

Revenue

Group revenue stayed broadly flat at GBP2.826m from GBP2.823m in H1 FY2022

Recurring revenues increased by 4%, the first H1 increase since 2017, to GBP2.564m over the comparable period last year (2022: 2% decline to GBP2.477m). Recurring revenues represented 91% of total revenues (2022: 88%). Non-recurring revenues were down 23% at GBP0.200m (2022: GBP0.260m).

Adjusted EBITDA*

The adjusted EBITDA* increased by 34% to GBP0.581m from GBP0.435m in H1 FY2022. This resulted in a higher EBITDA margin of 20.6%, compared to 16.7% in H1 FY2022, reflecting the Group's focus on efficiency, whilst maintaining our customer service.

Operating profit/(loss) and profit/(loss) before tax

The Group moved back into an operating profit in H1 FY2023. The operating profit, before acquisition related, reorganisation and other items, increased by 128% to stand at GBP0.036m from (GBP0.129m) in H1 FY2022.

Inclusive of acquisition related and other items, the operating profit was GBP0.027m compared to a loss of (GBP0.105m) in H1 FY2022.

The loss before tax decreased to (GBP0.046m) from (GBP0.274m) in H1 FY2022. Using a like for like measure, excluding Government support of GBP0.059m for H1 FY2023, the comparative figure for H1 FY2023 is (0.105m), a decrease in loss of 62%.

Taxation

The net tax credit for H1 is GBP0.054m (FY 2022: GBP0.091m).

Balance sheet

The Group's net assets increased slightly to GBP3.236m (H1 FY2022: GBP3.213m)

Trade and other receivables decreased to GBP0.635m (H1 FY2022: GBP0.739m).

Trade and other payables also decreased to GBP2.523m (H1 FY2022: GBP2.847m).

R&D development

The Group capitalised GBP0.460m in development costs in the period (H1 FY2022: GBP0.476m) as the business continued its commitment to developing its products. Amortisation of development costs was GBP0.496m (H1 FY2022: GBP0.490m)

Financing

The CBIL loan balance stands at GBP0.900m (31 December 2022: GBP1.050m) and, on the current payment profile, will be repaid by June 2026. The Group also has a convertible loan of GBP0.400m (31 December 2022: GBP0.400m), which is not expected to be repaid until the CBIL loan has been repaid.

Cashflow

Net cash from normalised operating activities (before government support) decreased 7% to GBP0.519m (H1 FY2022: GBP0.560m). Adjusted net change in cash before government support deteriorated by 17% to (GBP0.217m) (H1 FY2022: (GBP0.186m)).

At 30 June 2023, we had net cash reserves of GBP0.249m (2022: GBP0.608m).

 
 Summarised cashflow                                 H1 FY2023   H1 FY2022 
                                                      GBP'000     GBP'000 
 Adjusted net cash from normalised operating 
  activities                                            519         560 
 Investing Activities - net                            (469)       (482) 
 Financial Activities - net                            (267)       (264) 
                                                    ----------  ---------- 
 Adjusted Net change in cash and cash equivalents      (217)       (186) 
 Adjustment for Government Support                      46           - 
                                                    ----------  ---------- 
 Net change in cash and cash equivalents               (171)       (186) 
 Cash and cash equivalents at beginning of 
  year                                                  433         764 
 Effect of foreign exchange rate changes               (13)         30 
                                                    ----------  ---------- 
 Cash and cash equivalents at 30 June                   249         608 
                                                    ==========  ========== 
 

Strategy

Our long-term strategy is unchanged, concentrating on reducing the size of our product range to concentrate on the best opportunities while broadly maintaining consistent levels of product development expenditure. While the economic climate is challenging, we intend to maintain our current focus and deliver significant improvements to users of both our product groups.

Outlook

After a challenging few years for the Group, the Board is delighted to report a return to profitability in the first half of 2023.

The recruitment sector has had a turbulent time in recent months, and this has unquestionably impacted upon demand for our services. To be able to report improved performance despite these market conditions is particularly pleasing and we are confident that the Group has exciting times ahead of it, especially when we see improvement in our recruitment and search customer bases.

Despite this current economic turbulence, we fully expect to make further progress during the remainder of the year. The Board is confident of delivering full year profit results in line with market expectations.

Giles Fearnley

Non-Executive Chairman

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 
                                     Note     6 Months ended 30     Year ended 
                                                     June               31 Dec 
                                                 2023        2022         2022 
                                            Unaudited   Unaudited      Audited 
                                              GBP'000     GBP'000      GBP'000 
 
 Revenue                              4         2,826       2,823        5,699 
 Cost of sales                                  (312)       (351)        (816) 
                                           ----------  ----------  ----------- 
 Gross profit                                   2,514       2,472        4,883 
 Administrative expenses                      (2,487)     (2,683)      (5,202) 
                                           ----------  ----------  ----------- 
 
 Result from operating 
  activities                          4            27       (211)        (319) 
 
 Analysed as: 
 Result from operating 
  activities before acquisition 
  related, reorganisation 
  and other items                                  36       (129)        (156) 
 Acquisition related, 
  reorganisation and other 
  items                               5           (9)        (82)        (163) 
                                           ----------  ----------  ----------- 
 Result after acquisition 
  related items                                    27       (211)        (319) 
-----------------------------------------  ----------  ----------  ----------- 
 
 Financial cost                                  (73)        (63)        (134) 
                                           ----------  ----------  ----------- 
 (Loss) before tax                               (46)       (274)        (453) 
 
 Tax income                           6            54          91          270 
                                           ----------  ----------  ----------- 
 Profit / (Loss) for the 
  period                                            8       (183)        (183) 
 
 Other comprehensive income 
  net of tax: 
 Currency translation differences                 (6)           6            7 
                                           ----------  ----------  ----------- 
 Total comprehensive income 
  / (loss) for period net 
  of tax                                            2       (177)        (176) 
                                           ----------  ----------  ----------- 
 
 Earnings per share (pence) 
 Basic                                8          0.04      (0.93)       (0.93) 
 Diluted                                         0.04      (0.93)       (0.93) 
 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 
 
                                  As at 30 June   As at 30 June 2022   As at 31 Dec 
                                           2023                                2022 
                                      Unaudited            Unaudited        Audited 
 ASSETS                                 GBP'000              GBP'000        GBP'000 
 Non-current assets 
 Goodwill                                 3,415                3,415          3,415 
 Intangible assets                        2,886                3,030          2,990 
 Right of use assets                        455                  541            498 
 Property plant & equipment                  27                   22             25 
                                 --------------  -------------------  ------------- 
                                          6,783                7,008          6,928 
 Current assets 
 Trade and other receivables                635                  739            608 
 Current tax receivable                     134                  119             72 
 Cash and cash equivalents                  249                  608            433 
                                 --------------  -------------------  ------------- 
                                          1,018                1,466          1,113 
                                 --------------  -------------------  ------------- 
 Total assets                             7,801                8,474          8,041 
                                 --------------  -------------------  ------------- 
 
 EQUITY AND LIABILITIES 
 Equity 
 Share capital                              983                  983            983 
 Share premium                            1,631                1,631          1,631 
 Merger reserve                             365                  365            365 
 Convertible loan reserve                    14                   14             14 
 Retained earnings                          103                   79             93 
 Share option reserve                        76                   72             67 
 Translation reserve                         64                   69             70 
                                 --------------  -------------------  ------------- 
 Total equity                             3,236                3,213          3,223 
 
 Liabilities 
 Non current liabilities 
 Trade and other payables                   206                  252            241 
 Lease liabilities                          448                  516            483 
 Borrowings                                1000                 1300          1,150 
 Deferred tax                               226                  210            226 
                                 --------------  -------------------  ------------- 
 Total non-current liabilities            1,880                2,278          2,100 
                                 --------------  -------------------  ------------- 
 Current liabilities 
 Trade and other payables                 2,317                2,595          2,341 
 Lease liabilities                           68                   88             77 
 Borrowings                                 300                  300            300 
 Current tax payable                          -                    -              - 
                                 --------------  -------------------  ------------- 
 Total non-current liabilities            2,685                2,983          2,718 
                                 --------------  -------------------  ------------- 
 Total liabilities                        4,565                5,261          4,818 
                                 --------------  -------------------  ------------- 
 Total liabilities and 
  equity                                  7,801                8,474          8,041 
                                 --------------  -------------------  ------------- 
 

The interim report was approved by the Board of directors and authorised for issue on 25 September 2023. They were signed on its behalf by:

   JS Starr                                                IJ Mackin 

CONSOLIDATED STATEMENT OF CASH FLOWS

 
 
                                                      As at 30 June               As at 
                                                                            31 December 
                                                       2023         2022           2022 
                                                  Unaudited    Unaudited        Audited 
 
                                                    GBP'000      GBP'000        GBP'000 
 Operating Activities 
 (Loss) before tax                                     (46)        (274)          (453) 
 Adjustment for 
  Financial cost                                         73           63            134 
  Depreciation and amortisation                         614          648          1,268 
  Share option expense                                   11            8             17 
  Other including foreign exchange adjustments 
   arising from operations                                7         (24)           (24) 
 Operating cash flows before movements 
  in working capital                                    659          421            942 
 
 (Increase) / Decrease in receivables                  (27)        (124)             20 
 Increase / (Decrease) in payables                     (59)          263           (16) 
 Net taxation (Paid) / repaid                           (8)            -            243 
 
 Net cash generated from operating 
  activities                                            565          560          1,189 
                                                 ----------  -----------  ------------- 
 
 Investing Activities 
 Purchases of property plant and equipment              (9)          (5)           (15) 
 Investment in development costs                      (460)        (477)        (1,007) 
 Net cash used in investing activities                (469)        (482)        (1,022) 
                                                 ----------  -----------  ------------- 
 
 Financing Activities 
 Finance cost                                          (73)         (63)          (134) 
 Lease payments made                                   (44)         (51)           (95) 
 Bank loan repayments                                 (150)        (150)          (300) 
 Net cash generated from financing 
  activities                                          (267)        (264)          (529) 
                                                 ----------  -----------  ------------- 
 
 Net change in cash and cash equivalents              (171)        (186)          (362) 
 Cash and cash equivalents at beginning 
  of the period                                         433          764            764 
 Effect of foreign exchange rate changes               (13)           30             31 
 
 Cash and cash equivalents at end of 
  period                                                249          608            433 
                                                 ----------  -----------  ------------- 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 
                               Share      Share     Merger   Retained   Convertible      Share    Foreign     Total 
                             capital    premium    Reserve   earnings          loan     option   exchange 
                                                                            reserve 
                             GBP'000    GBP'000    GBP'000    GBP'000       GBP'000    GBP'000    GBP'000   GBP'000 
 
 Balance at 31 
  December 2022                  983      1,631        365         93            14         67         70     3,223 
 Comprehensive 
  income 
 Loss for the 6 
  months ended 30 
  June 2023                        -          -          -          8             -          -          -         8 
 Other comprehensive                                                                                              - 
  income 
 Exchange differences 
  on translation 
  of overseas operations           -          -          -          -             -          -        (6)       (6) 
 Total comprehensive 
  profit                           -          -          -          8             -          -        (6)         2 
                           ---------  ---------  ---------  ---------  ------------  ---------  ---------  -------- 
 Transactions with 
  owners 
 Share option charge               -          -          -          2             -          9          -        11 
 
 Balance at 30 
  June 2023                      983      1,631        365        103            14         76         64     3,236 
                           ---------  ---------  ---------  ---------  ------------  ---------  ---------  -------- 
 
 Balance at 31 
  December 2021                  983      1,631        365        262            14         64         63     3,382 
 Comprehensive 
  income 
 Loss for the 6 
  months ended 30 
  June 2022                        -          -          -      (183)             -          -          -     (183) 
 Other comprehensive                                                                                              - 
  income 
 Exchange differences 
  on translation 
  of overseas operations           -          -          -          -             -          -          6         6 
 Total comprehensive 
  (loss)                           -          -          -      (183)             -          -          6     (177) 
                           ---------  ---------  ---------  ---------  ------------  ---------  ---------  -------- 
 Transactions with 
  owners 
 Share option charge               -          -          -          -             -          8          -         8 
 
 Balance at 30 
  June 2022                      983      1,631        365         79            14         72         69     3,213 
                           ---------  ---------  ---------  ---------  ------------  ---------  ---------  -------- 
 

NOTES TO THE INTERIM

 
  NOTES TO THE UNAUDITED INTERIM REPORT 
 

CONSOLIDATED STATEMENT OF

   1.         Basis of Preparation 

The financial information for the six months ended 30 June 2023 included in this condensed interim report comprises the consolidated statement of comprehensive income, the consolidated statement of financial position, the consolidated statement of cash flows, the consolidated statement of changes in equity and the related notes.

The financial information in these interim results is that of the holding company and all of its subsidiaries (the Group). It has been prepared in accordance with UK adopted international accounting standards but does not include all of the disclosures that would be required under International Financial Reporting Standards (IFRSs). The accounting policies applied by the Group in this financial information are the same as those applied by the Group in its financial statements for the year ended 31 December 2022 and are those which will form the basis of the 2023 financial statements.

The comparative financial information presented herein for the year ended 31 December 2022 does not constitute full statutory accounts for that period. The Group's annual report and accounts for the year ended 31 December 2022 have been delivered to the Registrar of Companies. The Group's independent auditor's report on those statutory accounts was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

Going concern

The directors have continued to perform detailed forecasting on a regular basis taking into account current trading and expectations and cash balances and, having reflected upon these forecasts, the directors of the Company continue to adopt the going concern basis of accounting in preparing the financial statements.

Dillistone Group Plc is the Group's ultimate parent company. It is a public listed company and is domiciled in the United Kingdom. The address of its registered office and principal place of business is 12 Cedarwood, Crockford Lane, Chineham Business Park, Basingstoke, RG24 8WD. Dillistone Group Plc's shares are listed on the Alternative Investment Market (AIM).

   2.         Share Based Payments 

The Company operates two share option schemes. The fair value of the options granted under these schemes is recognised as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period at the end of which the option holder may exercise the option. The fair value of the options granted is measured using the Black-Scholes model.

3. Reconciliation of adjusted operating profits to consolidated statement of comprehensive income

6 months ended 30 June 2023 and 30 June 2022

 
                            Adjusted   Acquisition                    Adjusted           Acquisition 
                           operating       related                   operating    and reorganisation 
                             profits         items                     profits               related 
                                                                                               items 
                         30-Jun-2023         2023*   30-Jun-2023   30-Jun-2022                 2022*   30-Jun-2022 
 
                             GBP'000       GBP'000       GBP'000       GBP'000               GBP'000       GBP'000 
 
 Revenue                       2,826             -         2,826         2,823                     -         2,823 
 
 Cost of sales                 (312)             -         (312)         (351)                     -         (351) 
 
 Gross profit                  2,514             -         2,514         2,472                     -         2,472 
 
 Administrative 
  expenses                   (2,478)           (9)       (2,487)       (2,601)                  (82)       (2,683) 
 
 Results from 
  operating 
  activities                      36           (9)            27         (129)                  (82)         (211) 
 
 Financial cost                 (73)             -          (73)          (63)                     -          (63) 
 
 (Loss) before tax              (37)           (9)          (46)         (192)                  (82)         (274) 
 
 Tax income                       41            13            54            76                    15            91 
 
 Profit / (loss) 
  for the period                   4             4             8         (116)                  (67)         (183) 
 
 Other comprehensive 
  income net of tax: 
 Currency translation 
  differences                    (6)             -           (6)             6                     -             6 
 
 Total comprehensive 
  (loss) / profit for 
  the year net of tax            (2)             4             2         (110)                  (67)         (177) 
                        ------------  ------------  ------------  ------------  --------------------  ------------ 
 

* see accounts note 5

Earnings per share - from continuing activities

 
 Basic                        0.02p                0.04p             (0.59)p                (0.93)p 
 Diluted                      0.02p                  0.04p           (0.59)p             (0.93)p 
 
 

Year Ended 31 December 2022

 
                                          Adjusted           Acquisition 
                                         operating    and reorganisation 
                                           profits               related 
                                                                   items 
                                       31 December                 2022*   31 December 
                                              2022                                2022 
 
                                           GBP'000               GBP'000       GBP'000 
 
 Revenue                                     5,699                     -         5,699 
 
 Cost of sales                               (816)                     -         (816) 
                                      ------------  --------------------  ------------ 
 
 Gross profit                                4,883                     -         4,883 
 
 Administrative expenses                   (5,039)                 (163)       (5,202) 
 
 Results from operating activities 
  (inc furlough)                             (156)                 (163)         (319) 
 
 Financial cost                              (134)                     -         (134) 
 
 (Loss) before tax                           (290)                 (163)         (453) 
 
 Tax income                                    239                    31           270 
 
 (Loss) for the year                          (51)                 (132)         (183) 
 
 Other comprehensive income 
  net of tax: 
 Currency translation differences                7                     -             7 
 
 Total comprehensive (Loss) 
  for the year net of tax                     (44)                 (132)         (176) 
                                      ============  ====================  ============ 
 

* see accounts note 5

Earnings per share - from continuing activities

 
 Basic      (0.26p)   (0.93p) 
 Diluted    (0.26p)   (0.93p) 
 
   4.         Segment reporting 
 
 Results 
                                                                Year ended 
                                      6 months ended 30 June        31 Dec 
                                    2023                2022          2022 
                                 GBP'000             GBP'000       GBP'000 
 
 Results from operating activities 
 Ikiru People                          15         (128)              (200) 
 
 Central                               21           (1)                 44 
 
 Reorganisation and other 
  costs                                 -             -                  - 
 Amortisation of acquisition 
  intangibles and other 
  one off costs or income             (9)          (82)              (163) 
 Result from operating 
  activities                           27         (211)              (319) 
                               ==========  ============  ================= 
 
 
 
 Geographical segments 
 The following table provides an analysis of the Group's revenues 
  by geographical market. 
                                                                    Year ended 
                                    6 months ended 30 
                                           June                         31 Dec 
                                          2023         2022               2022 
                                       GBP'000      GBP'000        GBP'000 
 UK                                      2,068        1,942              4,148 
 Europe                                    293          350                663 
 Americas                                  242          309                518 
 Australia                                 127          117                147 
 ROW                                        96          105                223 
                                         2,826        2,823              5,699 
                              ================  ===========  ================= 
 
 
 
 
 4. Segment reporting (continued) 
 
  Business Segment 
 The following table provides an analysis of the Group's revenues 
  by products and services. 
                                                                       Year ended 
                                                 6 months ended 30 
                                                              June         31 Dec 
                                                2023          2022           2022 
                                             GBP'000       GBP'000        GBP'000 
 Recurring                                     2,564         2,477          5,051 
 Non recurring                                   200           261            488 
 Third party revenues                             62            85            160 
                                               2,826         2,823          5,699 
                                        ============  ============  ============= 
 
 
   'Recurring income' represents all income recognised over time, 
   whereas 'Non-recurring income' represents all income recognised 
   at a point in time. Recurring income includes all support services, 
   software as a service income (SaaS) and hosting income. Non-recurring 
   income includes sales of new licenses, and income derived from 
   installing those licenses including training, installation, and 
   data translation. Third party revenues arise from the sale of 
   third party software. 
 
   Business Sector 
 
   The following table provides an analysis of the Group's revenues 
   by market sector. 
                                                                       Year ended 
                                                 6 months ended 30 
                                                              June         31 Dec 
                                                2023          2022           2022 
                                             GBP'000       GBP'000        GBP'000 
 Contingent                                    1,703         1,712          3,441 
 Executive Search                              1,123         1,111          2,258 
                                               2,826         2,823          5,699 
                                        ============  ============  ============= 
 
 
   5.         Acquisition related items and other one off costs 
 
                                                        Year ended 
                                    6 months ended 30 
                                                 June       31 Dec 
                                      2023       2022         2022 
                                   GBP'000    GBP'000      GBP'000 
 Grants received from overseas 
  jurisdictions                       (59)          -            - 
 Amortisation of acquisition 
  intangibles                           68         82          163 
 
 
 Total                                   9         82          163 
                                 =========  =========  =========== 
 
   6.         Tax 
 
                                                           Year ended 
                                       6 months ended 30 
                                                    June       31 Dec 
                                         2023       2022         2022 
                                      GBP'000    GBP'000      GBP'000 
 
 Current tax                             (13)       (56)        (139) 
 Prior year adjustment - current 
  tax                                       -          -        (146) 
 Deferred tax release                    (28)       (20)         (23) 
 Prior year adjustment - deferred 
  tax                                       -          -           69 
 Deferred tax re acquisition 
  intangibles                            (13)       (15)         (31) 
 Tax credit for the period               (54)       (91)        (270) 
                                    =========  =========  =========== 
 

The tax charge is calculated for each jurisdiction based on the estimated position for the year. Deferred tax has been provided at a rate of 25% (2022: 25%).

   7.         Dividends 

The Board has decided not to pay an interim dividend (2022: nil per share).

   8.         Earnings per Share 
 
                                                               Year ended 
                                         6 months ended 30 
                                                      June         31 Dec 
                                       2023           2022           2022 
 
 Basic earnings per share 
 Profit / (Loss) attributable 
  to ordinary shareholders         GBP4,000   GBP(183,000)   GBP(183,000) 
 
 Weighted average number of 
  shares                         19,668,021     19,668,021     19,668,021 
 
 Basic earnings / (loss) per 
  share (pence)                        0.02         (0.93)         (0.93) 
                                ===========  =============  ============= 
 
 
     9.        Related party transactions 

The Company has related party relationships with its subsidiaries, its directors, and other employees of the Company with management responsibility. There were no transactions with these parties during the period outside the usual course of business.

The Directors participated in the issue of convertible loan notes in 2017 which carry interest at 8.15% per annum payable quarterly in arrears.

There were no transactions with any other related parties.

   10.       Cautionary statement 

This Interim Report has been prepared solely to provide additional information to shareholders to assess the Company's strategies and the potential for these strategies to succeed. The Interim Report should not be relied on by any other party or for any other purpose. The Interim Report contains certain forward-looking statements with respect to the financial condition, results of operations and businesses of the Company. These statements are made in good faith based on the information available to them up to the time of their approval of this report. However, such statements should be treated with caution as they involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. The continuing uncertainty in global economic outlook inevitably increases the economic and business risks to which the Company is exposed. Nothing in this announcement should be construed as a profit forecast.

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END

IR LAMFTMTITBMJ

(END) Dow Jones Newswires

September 26, 2023 02:00 ET (06:00 GMT)

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