REG - Dillistone Group PLC - Final Results & Investor Presentation
08/04/2025 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250408:nRSH0004Ea&default-theme=true
RNS Number : 0004E Dillistone Group PLC 08 April 2025
08 April 2025
Dillistone Group Plc
("Dillistone", the "Company" or the "Group")
Final Results
& Investor Presentation
Dillistone Group Plc, 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 2024 ("FY2024").
Highlights:
· Profit before tax of £0.013m (2023: loss £0.104m), first profit
before tax since 2016.
· Operating cash before working capital adjustments margin at highest
point since flotation at 26.8% (FY2023: 21.6%).
· Net cash from operating activities down 10% at £0.959m (2023:
£1.065m).
· CBIL debt reduced by £0.300m in the year.
· Adjusted operating profit increased by 22% to £0.269m (2023:
£0.220m).
· EBITDA margin increased to 26.2% (2023: 23.5%) despite EBITDA
decreasing slightly by 2% to £1.286m (2023: £1.314m).
· Recurring revenues represented 90% (2023: 89%) of Group revenue. This
equates to 121% of administration + cost of sales expenses (excluding
depreciation / amortisation / exceptional costs).(2023: 116%).
· Revenue decreased by 12% to £4.903m (2023: £5.595m) reflecting
challenging market conditions.
Commenting on the results and prospects, Giles Fearnley, Non-Executive
Chairman, said:
" I am delighted to report a positive set of results in what has been, and
continues to be, a challenging period for our primary markets."
"The underlying business is primed for when the market recovers, with EBITDA
margins and operational cash margins (excluding working capital moves) at
levels not seen in its recent history."
"The Group has made a solid start to the year with Q1 performance in line with
management expectations. While new business opportunities continue to reflect
the challenging market, our improving competitiveness allowed us to achieve
our best quarter for new business contract wins since Q1 2023. With recurring
revenues forecast to cover 103% of administrative costs, we remain confident
in our ability to achieve further progress through 2025."
Investor Presentation: 15:00 BST on Tuesday 8 April 2025
Dillistone is pleased to announce that Jason Starr and Ian Mackin will provide
a live presentation relating to the Full Year Results via the Investor Meet
Company platform today at 15:00 BST.
The presentation will enable existing and prospective investors the
opportunity to listen to management discuss the Group's financial results for
the year ended 31 December 2024. Questions can be submitted pre-event via your
Investor Meet Company dashboard during the live presentation.
Investors can sign up to Investor Meet Company for free and can join the
Dillistone presentation via the following link:
https://www.investormeetcompany.com/dillistone-group-plc/register-investor
(https://urldefense.proofpoint.com/v2/url?u=https-3A__www.investormeetcompany.com_dillistone-2Dgroup-2Dplc_register-2Dinvestor&d=DwMGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=w0eRsxUu2UsBq3ls_LxRof2qWu3awsg_DX4QZ6SGwrQ&m=rxZo_5B3-Ch1dO13DViwnkBh16uQeiJYgAM3EwPKyzdGlESFGAowhe7IvFv0ox80&s=W1lzv3bvoOgPfpG-hXA7dZ0UeCDsNmqh5vGE-YFkrxM&e=)
Enquiries:
Dillistone Group Plc
Giles Fearnley Chairman 01256 297 000
Jason Starr Chief Executive Officer
Ian Mackin Finance Director
Zeus (Nominated adviser and Broker)
Mike Coe Director, Investment Banking 020 3829 5000
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 (https://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/
(https://www.talentis.global/recruitment-software/)
Voyager Software:
https://www.voyagersoftware.com (https://www.voyagersoftware.com)
Online
Timesheets: https://www.voyagersoftware.com/online-timesheets/
(https://www.voyagersoftware.com/online-timesheets/)
CHAIRMAN'S STATEMENT
I am delighted to report a positive set of results in what has been, and
continues to be, a challenging period for our primary markets.
In a tough market, the Group has delivered profit performance in line with
expectations while improving operational cash margins, continuing to pay down
the CBILS loan and releasing innovative new products.
The underlying business is primed for when the market recovers, with EBITDA
margins and operational cash margins (excluding working capital movements at
levels not seen in its recent history. We have delivered on our strategy.
For the purposes of obtaining true comparatives, we focus on measures which
are adjusted to remove items of Government support, acquisition related or
exceptional items, to better understand the underlying business.
The expected drop in revenues meant that while EBITDA fell slightly (£1.286m
v £1,314m), adjusted EBITDA margin increased to 26.2% (FY2023: 23.5%)
reflecting the investments made by the Group in increasing efficiencies.
The adjusted operating profit before acquisition related and other items
improved by 22% to £0.269m (FY2023: (£0.220m)).
Operational cash margin (excluding working capital adjustments) reached 26.8%
(FY2023: 21.6%) which is the highest level since flotation in 2006. This
demonstrates the strides made in efficiency and how the Group is well
positioned to take advantage of a market recovery.
Net cash from operating activities dipped to £0.959m (FY2023: £1.063m) on
the reduced revenue base. However, when adjusted for the fundraising in the
year, the net change in cash and cash equivalents improved 10% to (£0.397m)
(FY2023: (£0.441m)).
During the year the Group paid down £300k of debt, whilst raising (£0.360m)
through a combination of a convertible loan (£0.300m) and the issuance of new
shares (£0.060m)
Dividends
The Group is not recommending a final dividend in respect of the year to 31
December 2024 (2023: nil).
Staff
We owe our progress to our incredible team. In a challenging year for our
markets, achieving such a strong outcome is a testament to their skill and
dedication. I want to personally thank everyone for their hard work,
commitment, and determination in delivering first-class products and services
to the industries we serve.
Corporate governance
It is the Board's duty to ensure that the Group is managed for the long-term
benefit of all stakeholders.
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 majority of our Group's revenue is generated from recruitment firms, a
sector that has faced significant challenges in recent years. In our January
trading statement, we stated that market conditions had impacted the size and
scale of our client base. These market conditions continue.
Despite this, the Group has made a solid start to the year with Q1 performance
broadly in line with management expectations. While new business opportunities
continue to reflect the challenging market, our improving competitiveness
allowed us to achieve our best quarter for new business contract wins since Q1
2023. With recurring revenues forecast to cover 103% of administrative costs,
we remain confident in our ability to achieve further progress through 2025.
Giles Fearnley
Non-Executive Chairman
CEO's Review
Dillistone Group Plc is a global leader in recruitment technology, serving
executive search firms, contingency recruiters, and in-house staffing teams
across more than 1,000 organizations worldwide.
Our product portfolio is divided into two key segments:
· Solutions for contingency recruiters, primarily serving agencies
in the United Kingdom but also used internationally.
· Solutions for executive search firms and in-house executive
search teams, with clients ranging from sole traders to boutique firms right
up to globally recognised executive search brands.
Contingency Recruitment Products
Our solutions for contingency recruiters include:
· Infinity - A powerful recruitment CRM used primarily by agencies
in the UK, but also by a number of international clients. Infinity enables
recruitment businesses to manage prospects, clients, candidates, and jobs
within a single platform and is one of the few UK solutions that support
permanent, contract, and temporary placements in one system.
· ISV.Online - A widely adopted online skills testing platform used
by recruitment agencies and corporate HR teams. ISV.Online provides an
extensive library of pre-built assessments and allows users to create custom
tests tailored to specific hiring needs. With a strong international
footprint, it helps organisations make data-driven hiring decisions.
· Mid-Office - A comprehensive pay & bill solution that
streamlines payroll processing and client invoicing for recruitment businesses
and back-office service providers. It supports timesheet management and
integrates seamlessly with Infinity and other recruitment systems, ensuring
efficient financial operations.
Contingency review:
· Reflecting market conditions, this part of our business saw a decline
in revenues with £3.187m in FY2024, (FY2023 £3.46m). A significant part of
this loss was down to a reduction in the number and value of new business
wins.
From an operational perspective, we continued to enhance our product
offerings:
· We released the first phase of our Infinity Candidate Portal, a new
supplementary module for our Infinity product in Q4 2024. Customer feedback
and take-up exceeded our expectations and this trend has continued into the
new year. During Q1 we have released the second phase of our Candidate Portal
roadmap with a further phase due for release later in the year.
· 2024 also saw us produce our online timesheets solution which will
initially be paired with our Mid-Office application. This product entered beta
in February 2025 and is due for general release in Q2.
In addition to the aforementioned Candidate Portal, our Infinity users
received a number of significant enhancements over the year via the monthly
release cycle. These included, amongst others, our Infinity Data Services
which combine data from our TalentGraph along with other data providers, major
enhancements to our leads management functions, additional support for the
rail recruitment sector and further additions to our in-app AI tools.
Executive Search Products
Our key solutions for the executive search sector include:
· Talentis - Our latest and most advanced platform designed for
executive recruiters. Talentis serves as both a research and sourcing tool and
a full executive search CRM, leveraging AI-driven technology to enhance talent
identification and recruitment.
· FileFinder - A well-established executive search CRM with a
global user base, trusted by search professionals worldwide for managing
client and candidate relationships.
· GatedTalent - A unique service that allows executives to share
confidential information with our search firm clients, while also offering
additional career support services.
Executive search review:
Our executive search products have suffered a challenging few years. During
2024 revenue declined to £1.716m (2023: £2.135m).
However, we are encouraged by the positive momentum in the final months of
2024 for this part of our business. In November, we began actively promoting
Talentis as a competitive replacement for established executive search
software, leading to a significant increase in both the number and the value
of incoming orders. These orders included migrations from FileFinder as well
as firms switching from direct competitors.
Many of our executive search contracts are for 12 months or more and so the
impact of decisions taken by executive search firms in 2024 will directly
impact our recurring revenues realised in 2025 and so, while we believe that
this part of our business is firmly on the path to recovery, this will not be
immediately visible in our results.
Cost savings and EBITDA Margin step-change
During 2024, the benefit of the cost restructuring which took place during
2023 bore fruit. Combined cost of sales and administration costs were down by
£0.806m.
This enabled a further improvement in EBITDA margin to 26.8% (2023: 23.5%).
This consolidates the step change from the margins obtained between 2017 and
2022 when the average margin was 14.9% (Covid-19 support excluded). We have
also seen significant improvement in our operational cash margin (excluding
working capital adjustments) which reached 26.2% (FY2023: 21.6%) and is now at
the highest level since flotation in 2006.
These improvements in our financial performance give us great confidence in
our ability to return to profitable and cash generative growth as the market
recovers.
KPIs and financial performance
The Group's operational performance has improved significantly in recent
years, with FY2024 seeing an 80% increase in adjusted profit before tax. The
success measure for each of the KPIs used by management is year on year
improvement.
FY24 FY23 % Move
£'000 £'000
Total revenue 4,903 5,595 (12%)
Recurring revenue 4,394 4,974 (12%)
Adjusted EBITDA * 1,286 1,314 (2%)
Cash from operating activities 959 1,064 (10%)
Adjusted profit /(loss) before tax ** 117 65 80%
* EBITDA adjusted for exceptional items
** Adjusted profit before tax is statutory profit before acquisition
related intangible amortisation, reorganistion and other costs. See note 2 and
note 5.
Strategy
The Group's strategy is to grow the business organically. This strategy is
made possible through our commitment to product development, which generates
the future revenue of the business. In 2024, product development equated to
17.6% of revenues (2023: 17.2%) and we will continue to invest in our products
going forward.
The Group's objectives are principally to:
· Ensure our products meets the needs of the recruitment sector through
continual investment and development;
· Be a leading player in all the markets we serve;
· Develop our staff; and
· Increase our profitability and deliver increased shareholder value
year on year.
Financial Review
Summary
The Group saw a return to operating profitability in the year. Highlights
included:
· First profit before tax since 2016
· Improvement of 22% in operating profit before acquisition,
reorganisation and other items results taking it to £0.269m from £0.220m in
FY2023
· Adjusted EBITDA margin increased to 26.2% from 23.5% in FY2023
This was achieved whilst maintaining the level of investment in our products.
Revenue
Group revenue decreased by 12% to £4.903m from £5.595m in FY2023.
Revenue by type FY 2024 FY 2023 % Change
£'000 £'000
Recurring revenue 4,394 4,974 (11.7%)
Non-recurring revenue 395 497 (20.5%)
Third party revenue 114 124 (8.1%)
4,903 5,595 (12.4%)
Recurring revenue % 90% 89% -
Gross profit margin
The gross margin increased to 90% from 89%. Going forward, the management team
is focused on maintaining gross margin levels, particularly during challenging
economic conditions.
Adjusted EBITDA*
The adjusted EBITDA* decreased by 2% to £1.286m from £1.314m in FY2023 but
pleasingly EBITDA margin was higher at 26.2%, compared to 23.5% in FY2023.
This was a result of the Group's agility in responding to market conditions,
agility made possible as a result the investment we've made in systems over
recent years.
* Refers to segment EBITDA in note 3
Operating profit/(loss) and profit/(loss) before tax
The operating position, before acquisition related, reorganisation and other
items (Adjusted operating profit) continued the recent trend by improving 22%
to stand at £0.269m from £0.220m in FY2023.
Inclusive of acquisition related, reorganisation and other items, the Group
made an operating profit of £0.165m compared to an operating profit of
£0.051m in FY2023.
The profit before tax moved to £0.013m from a loss of (£0.104m) in FY2023
representing the first such profit since 2016. This led to a profit after tax
of £0.04m (FY2023: 0.003m), with the EPS moving to 0.2p from 0.01p
This set of profit figures consolidates the progress made in recent years.
Taxation
The net tax credit for the year £0.027m (FY2023: £0.107m).
Balance sheet
The Group's net assets increased to £3.315m (FY2023: £3.217m).
Trade and other receivables decreased to £0.430m (FY2023: £0.559m). Trade
and other payables also decreased to £1.712m (FY2023: £2.189m).
R&D development
The Group capitalised £0.881m in development costs in the year (FY2023:
£0.963m) as the business continued its commitment to developing its products.
Amortisation of development costs was £0.968m (FY2023: £0.994m).
Financing
The Group continues to pay down its bank debt. Repayment of the Government
CBIL loan received in June 2020 is now well underway. This loan of £1.5m is
repayable over six years, with monthly repayments having commenced in July
2021.
As a result, bank borrowings at 31 December 2024 were £0.450m (FY2023:
£0.750m).
During the year, the Group raised £0.300m in the form of convertible loans to
current and former Directors. This lifts the level of convertible loans to
£0.700m (FY2023: £0.400m), which will not be repaid until the CBIL loan has
been repaid.
In addition, the Group also issued new shares to the value of £0.060m
(FY2023: nil) to a new investor to the Group.
Cashflow
Net cash from normalised operating activities decreased 10% to £0.959m
(FY2023: £1.063m).
Net change in cash decreased to (£0.37m) (FY2023: (£0.441m)). Factoring in
the fundraising in year of £0.360m, the operational comparison is more fairly
reflected with a figure of (£0.397m) for FY2024. This still represents a 10%
improvement from FY2023.
The Group finished the year with a utilisation of the bank facility (£0.074m)
(2023: utilisation of the bank facility (£0.019m)).
Summarised cashflow FY 2024 FY 2023
£'000 £'000
Adjusted net cash from normalised operating activities 959 1,063
Investing activities - net (888) (972)
Financial activities - net (excl fundraising) (468) (532)
Adjusted net change in cash and cash equivalents (397) (441)
Fundraising 360 -
Net change in cash and cash equivalents (37) (441)
Cash and cash equivalents at beginning of year (19) 433
Effect of foreign exchange rate changes (18) (11)
Cash and cash equivalents at 31(st) December (74) (19)
Going forward, the Board and management teams are focused on generating
revenue streams whilst balancing the Group's profitability and cash
generation.
Jason Starr
Chief Executive Officer
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
2024 2023
Note £'000 £'000
Revenue 5 4,903 5,595
Cost of sales (503) (601)
Gross profit 4,400 4,994
Administrative expenses (4,235) (4,943)
Operating profit 4 165 51
Adjusted operating profit before acquisition related, reorganisation and other 4 269 220
items
Acquisition related, reorganisation and other items 4 (104) (169)
Operating profit 165 51
Financial cost (152) (155)
Profit / (loss) before tax 13 (104)
Tax income 8 27 107
Profit for the year 40 3
Other comprehensive income/(loss)
Items that will be reclassified subsequently to profit and loss:
Currency translation differences (4) (3)
Total comprehensive profit for the year 36 -
Earnings per share
Basic 9 0.20p 0.01p
Diluted 9 0.20p 0.01p
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
Share capital Share Merger Convertible Retained Share options Foreign exchange Total
premium reserve loan reserve earnings
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2023 983 1,631 365 14 93 67 70 3,223
Comprehensive income
Loss for the year - - - - 3 - - 3
Other comprehensive income
Exchange differences on translation of overseas operations - - - - - - (3) (3)
Total comprehensive profit - - - - 3 - (3) -
Transactions with owners
Share option charge - - - - 4 (10) - (6)
Total transactions with owners - - - - 4 (10) - (6)
Balance at 31 December 2024 983 1,631 365 14 100 57 67 3,217
Comprehensive income
Profit for the year - - - - 40 - - 40
Other comprehensive income
Exchange differences on translation of overseas operations - - - - - - (4) (4)
Total comprehensive profit - - - - 40 - (4) 36
Transactions with owners
Share option charge - - - - 30 (28) - 2
Share issue 38 22 - - - - - 60
Total transactions with owners 38 22 - - 30 (28) - 62
Balance at 31 December 2024 1,021 1,653 365 14 170 29 63 3,315
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
Group
Notes 2024 2023
£'000 £'000
ASSETS
Non-current assets
Goodwill 3,415 3,415
Other intangible assets 2,618 2,822
Property, plant and equipment 14 20
Right of use assets 206 15
Investments - -
Total non-current assets 6,253 6,272
Current assets
Trade and other receivables 430 559
Current tax receivable 1 -
Cash and cash equivalents - -
Total current assets 431 559
Total assets 6,684 6,831
EQUITY AND LIABILITIES
Equity attributable to owners of the parent
Share capital 1,021 983
Share premium 1,653 1,631
Merger reserve 365 365
Convertible loan reserve 14 14
Retained earnings 170 100
Share option reserve 29 57
Foreign exchange reserve 63 67
Total equity 3,315 3,217
Liabilities
Non-current liabilities
Trade and other payables 148 170
Lease liabilities 182 3
Borrowings 850 850
Deferred tax liability 223 244
Total non-current liabilities 1,403 1,267
Current liabilities
Trade and other payables 1,564 2,019
Lease liabilities 28 5
Borrowings 374 319
Current tax payable - 4
Total current liabilities 1,966 2,347
Total liabilities 3,369 3,614
Total liabilities and equity 6,684 6,831
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
For the year ended 31 December 2024 For the year ended 31 December 2024 For the year ended 31 December 2023 For the year ended 31 December 2023
Operating activities £'000 £'000 £'000 £'000
Profit / (Loss) before tax 13 (104)
Adjustment for
financial cost 152 155
Depreciation and amortisation 1,131 1,230
Share option expense 2 (6)
Lease termination - (77)
Foreign exchange adjustments arising from operations 14 8
Operating cash flows before movement in working capital 1,312 1,206
Decrease in receivables 129 49
Decrease in payables (483) (393)
Taxation refunded 1 201
Net cash generated from operating activities 959 1,063
Investing activities
Purchases of property, plant and
equipment (8) (9)
Sale of fixed assets 1 -
Investment in development costs (881) (963)
Net cash used in investing activities (888) (972)
Financing activities
Interest paid (152) (155)
Proceeds from loan notes 300 -
Issue of shares 60 -
Bank loan repayments made (300) (300)
Lease payments made (16) (77)
Net cash (used in)/generated from financing activities (108) (532)
Net (decrease)/increase in cash and cash equivalents (37) (441)
Cash and cash equivalents at beginning of the year (19) 433
Effect of foreign exchange rate changes (18) (11)
Cash and cash equivalents at end of year (74) (19)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
1. Publication of non-statutory accounts
In accordance with section 435 of the Companies Act 2006, the Directors advise
that the financial information set out in this announcement does not
constitute the Group's statutory financial statements for the year ended 31
December 20234 or 2023, but is derived from these financial statements. The
financial statements for the year ended 31 December 2023 have been audited and
filed with the Registrar of Companies. The financial statements for the year
ended 31 December 2024 have been prepared in accordance with UK-adopted
international accounting standards, IFRIC Interpretations and the Companies
Act 2006. The financial statements for the year ended 31 December 2023 have
been audited and will be filed with the Registrar of Companies following the
Company's Annual General Meeting. The Independent Auditors Report on the
Group's statutory financial statements for the years ended 31 December 2024
and 2023 were unqualified and did not draw attention to any matters by way of
emphasis and did not contain statements under Section 498(2) or (3) of the
Companies Act 2006.
2. Basis of preparation
The preliminary announcement is extracted from the consolidated financial
statements of the Group. The financial statements of the subsidiaries are
prepared for the same reporting date as the parent company. Consistent
accounting policies are applied for like transactions and events in similar
circumstances.
All intra-group balances, transactions, income and expenses and profits and
losses resulting from intra-group transactions that are recognised in assets
or liabilities are eliminated in full.
The Group's business activities and financial position, together with the
factors likely to affect its future development, performance and position, are
set out in the CEO's Review and Financial Review on pages 7 to 12. Together
with the financial statements and notes which detail the results for the year,
net current liability position and cash flows for the year ended 31 December
2024. The Group prepares 3 year budgets and cash flow forecasts to ensure that
the Group can meet its liabilities as they fall due.
The company has experienced a decline in turnover over a number of with years
with a 12% drop in 2024 primarily as a result of the macro-economic
environment in the recruitment industry.
This challenging environment has coincided with the launch of the firms new
executive search platform, Talentis. The Group has invested - and continues to
invest heavily in this platform. Market research have indicated that the
potential for this product is significant, and this can be seen in the sales
pipeline which increased markedly in November 2024.
In addition to ongoing investment in Talentis, the Company has continued to
invest in existing products and the combination of a challenging market and
ongoing levels of development has placed stress on the group's cash flows.
To address these conditions, management implemented cost reduction plans which
have been enacted since 2023 and resulted in annualised savings of over
£1.3m.
The Group meets its day to day working capital requirements through its cash
balance and overdraft. It has in place a £1.5m CBIL loan, secured in June
2020, repayable over 6 years with capital repayments commencing from July
2021. This loan will be fully repaid by June 2026, which will result in
additional cash flow of £300,000 per year from capital payments plus
associated interest before the repayment of any other debt.
There are two tranches of convertible loan debt, £400,000 and £300,000 for
which repayment has been deferred by the holders of the convertible loans
until the company attains a more favourable cash position. The debt is with
current and former Directors all of whom remain supportive of the business.
To enhance the cash flow position, the Group secured an overdraft facility in
February 2025 to ensure it has enough liquidity for the business needs and can
continue with development of software.
The cash flow forecasts have been stress tested from the date of signing the
accounts reviewing assumptions around new business with an appropriate stress
test being applied. A reverse stress test was also prepared to review what
reduction in revenue would be necessary to breach the overdraft limits in 2025
and 2026. Various mitigations can be put in place should the need arise to
implement this.
As at the date of this report, the Directors have a reasonable expectation
that the Company and the Group have adequate resources to continue in
operational existence for the foreseeable future. For this reason, they
continue to adopt the going concern basis in preparing the financial
statements.
3. Accounting policies
This preliminary announcement has been prepared in accordance with the
accounting policies adopted in the last annual financial statements for the
year to 31 December 2023.
4. Reconciliation of adjusted profits to consolidated
statement of comprehensive income
Note Adjusted profits Acquisition related, reorganisation and other costs Adjusted profits Acquisition related reorganisation and other costs
2024 2024* 2024 2023 2023* 2023
£'000 £'000 £'000 £'000 £'000 £'000
Revenue 4,903 - 4,903 5,595 - 5,595
Cost of sales (503) - (503) (601) - (601)
Gross profit 4,400 - 4,400 4,994 - 4,994
Administrative expenses (4,131) (104) (4,235) (4,774) (169) (4,943)
Operating profit / (loss) 269 (104) 165 220 (169) 51
Financial income - - - - - -
Financial cost (152) - (152) (155) - (155)
Profit / (loss) before tax 117 (104) 13 65 (169) (104)
Tax income 5 22 27 81 26 107
Profit/(loss) for the year 122 (82) 40 146 (143) 3
Other comprehensive loss net of tax:
Currency translation differences (4) - (4) (3) - (3)
Total comprehensive (loss)/profit for the year net of tax 118 (82) 36 143 (143) -
Earnings per share
Basic 10 0.61p - 0.20p 0.74p - 0.01p
Diluted 10 0.61p - 0.20p 0.74p - 0.01p
* See note 9
5. Segment reporting
Divisional segments Ikiru People Central Total Ikiru People Central Total
2024 2024 2024 2023 2023 2023
£'000 £'000 £'000 £'000 £'000 £'000
Segment revenue 4,903 - 4,903 5,595 - 5,595
Segment EBITDA 1,254 32 1,286 1,250 64 1,314
Depreciation and amortisation expense (1,017) - (1,017) (1,094) - (1,094)
Segment result before reorganisation and other costs 237 32 269 156 64 220
Reorganisation and other costs 12 - 12 (32) - (32)
Segment result 249 32 281 124 64 188
Acquisition related amortisation - (116) (116) - (137) (137)
Operating profit / (loss) 249 (84) 165 124 (73) 51
Loan interest/ lease interest (24) (128) (152) (26) (129) (155)
Profit / (Loss) before tax 13 (104)
Income tax income 27 107
Profit for the year 40 3
Additions of non-current assets 1,113 1,113 972 972 972
Revenue by business segment
The following table provides an analysis of the Group's revenue by product
area for the 12 months of the financial year.
2024 2023
£'000 £'000
Recurring income 4,394 4,974
Non-recurring income 395 497
Third party revenues 114 124
4,903 5,595
In the table above 'Recurring income' represents all income recognised over
time, whereas 'Non-recurring income' and 'Third party revenues' represent all
income recognised at a point in time.
Recurring income includes all support services, SaaS and hosting income and
revenue on perpetual licenses with mandatory support contracts deferred under
IFRS 15. Non-recurring income includes sales of new licences which do not
require a support contract, and income derived from installing licences
including training, installation and data translation. Third party revenues
arise from the sale of third party software.
It is not possible to allocate assets and additions between recurring,
non-recurring income and third party revenue. No customer represented more
than 10% of revenue of the Group in 2024 or 2023.
Revenue by business sector
The following table provides an analysis of the Group's revenue by market
sector.
2024 2023
£'000 £'000
Contingent 3,187 3,460
Executive search 1,716 2,135
4,903 5,595
6. Geographical analysis
The following table provides an estimated of the Group's revenue by geographic
market based on the Customers' country. This is provided for information
only as the Board does not review the performance of the business from a
geographical viewpoint.
Revenue
2024 2023
£'000 £'000
UK 3,750 4,175
Europe 464 583
Americas 382 496
Australia 131 147
ROW 176 194
4,903 5,595
Non-current assets by geographical location
2024 2023
£'000 £'000
UK 6,253 6,271
US - -
Australia - 1
6,253 6,272
7. Acquisition related, reorganisation and other costs
2024 2023
£'000 £'000
Included within administrative expenses:
Reorganisation and other costs - 168
Lease termination - (77)
US government grant (Employee Retention Program) (12) (59)
Amortisation of acquisition intangibles 116 137
104 169
Reorganisation and other costs include severance payments and loss of office
payments.
8. Tax income
2024 2023
£'000 £'000
Current tax (1) (53)
Prior year adjustment - current tax (5) (72)
Total current tax (6) (125)
Deferred tax (9) (6)
Prior year adjustment - deferred tax 17 56
Deferred tax rate change (7) (6)
Deferred tax re acquisition intangibles (22) (26)
Total deferred tax (21) 18
Tax (income) for the year (27) (107)
Factors affecting the tax credit for the year
Loss before tax 13 (104)
UK rate of taxation 19.0% 19.0%
Loss before tax multiplied by the UK rate of taxation 3 (20)
Effects of:
Overseas tax rates 9 -
Impact of deferred tax not provided 18 (8)
Enhanced R&D relief (72) (110)
Disallowed expenses 3 6
Rate difference between CT rate and deferred tax rate (1) (8)
Rate difference between CT rate and rate of R&D repayment 1 49
Prior year adjustments 12 (16)
Tax (income) (27) (107)
9. Earnings per share
2024 2023
Using adjusted profit 2024 Using adjusted profit 2023
Profit attributable to ordinary shareholders (note 2) £122,000 £40,000 £146,000 £3,000
Weighted average number of shares 19,992,119 19,992,119 19,668,021 19,668,021
Basic profit/(loss) per share 0.61 p 0.20 p 0.74 p 0.01 p
Weighted average number of shares after dilution 19,992,119 19,992,119 19,668,021 19,668,021
Fully diluted profit/(loss) per share 0.61 p 0.20 p 0.74 p 0.01 p
Reconciliation of basic to diluted average number of shares:
2024 2023
Weighted average number of shares (basic) 19,992,119 19,668,021
Effect of dilutive potential ordinary shares - employee share plans - -
Weighted average number of shares after dilution 19,992,119 19,668,021
There are 593,825 (2023: 1,646,500) share options not included in the above
calculations, as they are underwater or have been forfeited.
The impact of the convertible loan notes in the period is not dilutive, as the
EPS of the convertible loan notes is greater than the basic EPS, and therefore
does not impact the calculation of the fully diluted earnings per share.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR KZGGDVNDGKZMRecent news on Dillistone
See all newsREG - Dillistone Group PLC - Final Results & Investor Presentation
AnnouncementREG - Dillistone Group PLC - Notice of Results & Investor Presentation
AnnouncementREG - Dillistone Group PLC - Trading Update & Notice of Results
AnnouncementRCS - Dillistone Group PLC - OpenAI powered Interview Simulation Platform
AnnouncementREG - Dillistone Group PLC - Interim Results & Investor Presentation
Announcement