Apr 2014 - Annual Results Announced for 2013
Date: 29th April 2014
The parent company of Voyager Software & Dillistone Systems, (Dillistone Group Plc) announces Final Results for 2013
Dillistone Group Plc, the AIM quoted supplier of recruitment software, is pleased to announce its audited results for the 12 months ended 31 December 2013.
Highlights for the year:
- Revenues up 15% to £8.1m
- Record level of recurring revenues of £5.3m up 16% from 2012
- Adjusted operating profits1 up 7% to £1.8m
- Adjusted EBITDA2 increased 12% to £2.2m
- Adjusted pre-tax profits3 up 7% to £1.8m
- Adjusted earnings per share4 up 11% to 7.99p
- Final dividend of 2.6p per share recommended, making total dividend for the year of 3.85p (a yield of 3.5% on a share price of 111p)
- Cash funds of £1.4m (2012: £1.6m) after acquisition related payments of £0.9m. The Group remains debt free
- FCP Internet acquired in July 2013
Commenting on the results, Mike Love, Non-Executive Chairman, said:
“These are another strong set of results with each of our divisions delivering both top line and bottom line growth, while integrating the FCP Internet business and continuing to invest in our future. We are also, once again, pleased to be increasing our dividend.”
1 Adjusted operating profit is statutory operating profit before acquisition costs, related intangible amortisation, movements in deferred consideration and other one-off costs relating to acquisitions.
2 Adjusted EBITDA is adjusted operating profit with depreciation and amortisation added back.
3 Adjusted pre-tax profits is statutory pre-tax profits before acquisition costs, related intangible amortisation, movements in deferred consideration and other one-off costs relating to acquisitions.
4 Adjusted earnings per share is computed from statutory profits after tax adjusted to exclude the post-tax effect of acquisition costs, related intangible amortisation, movements in deferred consideration and other one-off costs relating to acquisitions.
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 16 May 2014 for approval at the Annual General Meeting to be held on 11 June 2014.
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, Winningtons Financial 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 recruitment software. It has three trading businesses operating through two divisions: Dillistone Systems, which targets the executive search industry (www.dillistone.com); and Voyager Software, which targets other recruitment markets via its Voyager and Infinity products (www.voyagersoftware.com) and its recently acquired FCP Internet business (www.evolvedb.co.uk). Dillistone was admitted to AIM, a market operated by the London Stock Exchange plc, in June 2006.
The Group has again enjoyed another successful year in 2013, delivering its best ever performance in terms of both revenue and operating profit. Revenue was up 15% to £8.1m and adjusted operating profits up 7% to £1.8m. We have two divisions - Dillistone Systems and Voyager Software – and both delivered top line and bottom line growth.
The acquisition of FCP Internet (FCP) in July 2013 has once again proven our ability to acquire and integrate businesses successfully. The FCP team is now settled into our wider Group, client retention has been good and the evolveTM SaaS product is continuing to perform well in the market. FCP contributed £472,000 to revenue and £55,000 to profit before taxation in 2013.
It is the view of the Board that product development is fundamental to the long term success of the business and as a result 2014 will see us continue to invest in the development of software within both of our divisions.
The Board was pleased to increase the interim dividend payment in September 2013 to 1.25p (2012: 1.2p). The Board has recommended a final dividend of 2.6p per share (2012: 2.5p), subject to shareholder approval, payable on 25 June 2014 to holders on the register on 16 May 2014. Shares will trade ex-dividend from 14 May 2014. This takes the total dividend based on the 2013 results to 3.85p, and gives a yield of 3.5% on a share price of 111p.
This represents another year on year increase in the dividend, in line with our progressive dividend policy, which illustrates the Board’s confidence in the future prospects of the Group. The business is committed to maintaining its policy of investing in its products and services whilst rewarding its shareholders.
Our staff are fundamentally important to the success of the business. It is through their efforts, commitment and determination that we continue to be a leading technology provider in the sectors we serve. On behalf of the Board I would like to take this opportunity to thank all of them.
The Board retains a confident outlook on prospects for the Group.
At this stage, while first half revenues are expected to be ahead of the equivalent period for 2013, it is anticipated that first half pre-tax profit will be below that delivered in 2013. We announced in summer 2013 that we were strengthening our management team and this, along with the increased amortisation of our product development, are two of the key reasons behind the increase in expected costs. However, taking the year as a whole, the Group expects to make positive progress in 2014, the scale of which will become clearer as the year evolves.
Within our Dillistone Systems division, we have sold more new systems in the first quarter of 2014 than we did in the same period of 2013, however, income from new systems sales in 2014 is lagging that seen in 2013, in part due to an increase in the proportion of purchases delivered on the cloud subscription model, which has an impact on near term revenues.
Our Voyager division delivers products into a range of recruiting markets. Performance has varied across these, with a number of products delivering a strong performance.
With a strong profile of recurrent revenues, the Group continues to generate cash allowing us to continue to invest in improving our products and services whilst maintaining our dividend policy.
Both the Dillistone Systems and Voyager Software divisions anticipate making significant product related announcements later in the year.
Dr Mike Love
28 April 2014