TIDMDSG
RNS Number : 4304W
Dillistone Group PLC
27 April 2016
27 April 2016
Dillistone Group Plc
("Dillistone", the "Company" or the "Group")
Final Results
Dillistone Group Plc, the AIM quoted supplier of recruitment
software for the international recruitment industry through its
Dillistone Systems and Voyager Software divisions, is pleased to
announce its audited final results for the 12 months ended 31
December 2015.
Highlights for the year:
-- Revenues up 9% from 2014 to GBP9.44m
-- Record level of recurring revenues of GBP6.61m, up 11% from 2014
-- Recurring revenues, representing 70% of Group revenue,
covered 100% of administrative expenses before acquisition related
costs
-- Profit after tax for the year up 6% to GBP1.21m
-- Basic earnings per share increased to 6.20p
-- Final dividend of 2.75p per share recommended, making total
dividend for the year of 4.1p (a yield of 5% on a share price of
80.5p)
-- Cash funds of GBP1.60m (2014: GBP1.93m) after acquisition
related payments of GBP0.67m. Bank borrowings total of GBP0.33m
(2014: GBP0.49m)
-- Dillistone Systems division - further product investment
leading to increase in client retention rate, new sales and
revenues
-- Voyager Software division - launch of cloud hosted version of
Infinity; launch of integration of ISV FastPath and Infinity; and
launch of version 6 of Evolve
Post period end
-- Strong first quarter - FileFinder Anywhere new client orders
up over 70% and Voyager Software division orders up circa 50%
-- Launch of FileFinder Anywhere Essentials in March 2016 - the
only truly browser based product from a mainstream supplier to the
executive search market
-- New product launch expected in Voyager Software division in 2016
Commenting on the results and prospects, Mike Love,
Non-Executive Chairman, said:
"The Group has seen record levels of revenue and recurring
revenue in 2015. It has continued to invest strongly in its
businesses to ensure its clients remain at the forefront of
technology, paving the way for continued success in future
years.
"This represents our fourth successive year on year increase in
the dividend, in line with our progressive dividend policy,
illustrating the Board's confidence in the future prospects of the
Group, which has been reinforced by an excellent order book in the
first quarter."
(Definitions)
Adjusted operating profit is statutory operating profit before
acquisition costs, related intangible amortisation, movements in
contingent consideration and other one-off costs relating to
acquisitions.
Adjusted EBITDA is adjusted operating profit with depreciation
and amortisation added back.
Results Webinar - Jason Starr, Chief Executive, and Julie
Pomeroy, Finance Director, will be hosting a webinar to review the
results of 2015 at 3.30pm on 10 May 2016.] To register please visit
https://attendee.gotowebinar.com/register/5479016348975690499 or
contact Tom Cooper on tom.cooper@walbrookpr.com or 0797 122
1972.
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 20
May 2016 for approval at the Annual General Meeting to be held on
14 June 2016.
Enquiries:
Dillistone Group
Plc
Mike Love Chairman 020 7749 6100
Jason Starr Chief Executive 020 7749 6100
Julie Pomeroy Finance Director 020 7749 6100
WH Ireland Limited (Nominated
adviser)
Head of Corporate
Chris Fielding Finance 020 7220 1650
Walbrook PR
Tom Cooper / Paul
Vann 020 7933 8780
0797 122 1972
tom.cooper@walbrookpr.com
Notes to Editors:
Dillistone Group Plc (www.dillistonegroup.com) is a leader in
the supply and support of software and services to the recruitment
industry. It operates through two divisions: Dillistone Systems,
which targets the executive search industry (www.dillistone.com);
and Voyager Software, which targets other recruitment markets
(www.voyagersoftware.com).
Dillistone has made three acquisitions: Voyager Software in
September 2011, FCP Internet in July 2013 and ISV Software in
October 2014 and these business make up the Voyager Software
division. The Group operates under the FileFinder, Voyager, Evolve
and ISV brands.
Dillistone was admitted to AIM, a market operated by the London
Stock Exchange plc, in June 2006. The Group employs over 100 people
globally with offices in London (head office), Basingstoke,
Southampton, Frankfurt, New Jersey and Sydney.
Chairman's Statement
The Group has made significant progress in 2015. Product
development has continued to be a priority throughout the year with
a number of upgrades and new product launches successfully achieved
with more expected in 2016. The Group also delivered its best ever
revenue performance with revenue up 9% to GBP9.437m. The continued
investment in the Dillistone Systems division meant that, as
anticipated in the interim statement and despite this growth in
revenue, the Group saw a 21% fall in operating profit to GBP1.108m.
Profit after tax rose 6% to GBP1.212m, benefitting from a tax
credit in the year. Basic EPS improved to 6.20p.
ISV (www.isvgroup.com), which was acquired in October 2014, has
been successfully integrated into the Voyager Software division and
is investing in its own product development with a new product, ISV
Online, due for launch in 2016.
Dividends
The Board was pleased to increase the interim dividend payment
in September 2015 to 1.35p (2014: 1.3p) and has recommended an
increased final dividend of 2.75p per share (2014: 2.7p), subject
to shareholder approval, payable on 24 June 2016 to holders on the
register on 27 May 2016. Shares will trade ex-dividend from 26 May
2016. This takes the total dividend based on the 2015 results to
4.10p (2014: 4.00p), and gives a yield of 5.1% on a share price of
80.5p.
This represents our 4th successive 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.
Staff
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 our staff.
Outlook
At the time of our Interim Statement in 2015, the Board
explained that increased competition in the executive search
software sector in which Dillistone Systems operates necessitated
an increased investment to remain competitive. We stated that we
believed that we were experiencing early signs of improved
performance, noting a year on year upturn in orders, but warned
that the increased investment would reduce profitability in
2015.
The Dillistone Systems division has continued - and will
continue - to invest in improving products and services, and we are
delighted to report further success in the market. Dillistone
Systems' core product - FileFinder Anywhere - has seen new client
orders grow by more than 70% in the first quarter of 2016, when
compared to the same period in 2015. Pleasingly, this growth is
based on significant increases in both the number of new client
wins and the value of those contracts. This combined with
continuing demand from existing clients meant that our 12 month
order book to March 2016 is at its strongest since 2013.
Our Voyager Software division has also enjoyed a strong start to
the year. This Division offers a number of products and while
performance has varied across the range, it is pleasing to note
that the strong performance by several of its leading products has
seen orders grow in Q1 by around 50% compared to the same quarter
in 2015.
While the Group is not immune to potential economic instability,
at this stage the expectation is that this strong order growth will
continue. Both divisions are reporting that a growing proportion of
incoming business is on a recurring basis, which is good for the
longer term but is less positive in the short term. However, the
results to date, coupled with our strengthening implementation
pipeline, give us confidence that not only will the first half
results show improvement over the second half of 2015, but we will
see that trend continuing into the second half of this current
year.
The Group's continuing investment in product development across
all parts of the business gives the Board confidence in the future
and, as a result, we are delighted to propose an increase in our
final dividend of 1.9% to 2.75p (2014: 2.7p).
Dr Mike Love
Non-Executive Chairman
Chief Executive's Statement
Dillistone Group Plc is a global leader in the supply of
technology solutions and services to the recruitment industry
worldwide.
Strategy and objectives
The Group's strategy is to grow the business both organically
and through acquisition. This strategy is made possible through our
commitment to product development, which ensures that the business
continues to command a leading role in all of the markets in which
it operates.
Our acquisition strategy typically entails consideration of
businesses offering:
-- products that would further increase market share in the Group's core markets;
-- legacy applications where clients could be transferred to our modern suite of products; or
-- complementary applications which may be cross-sold to clients of the Group.
The Group's objectives are principally to:
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-- ensure our products meet the needs of the recruitment sector
through continual investment and development;
-- be a leading player in all of the markets we serve;
-- develop our staff delivering progressive career development;
-- increase our profitability and deliver increased shareholder
value year on year in conjunction with following a progressive
dividend policy.
Group review of the business
2015 saw recurring revenues grow 11% to GBP6.606m (2014:
GBP5.929m) reflecting, in part, the full year impact of the
acquisition of ISV in October 2014. Non-recurring revenues
increased 2% to GBP2.333m (2014: GBP2.285m). As a result, overall
revenues increased by 9% to GBP9.437m (2014: GBP8.625m) with
recurring revenues representing 70% of Group revenues (2014: 69%).
Overheads have increased across the business in part reflecting the
full year impact of ISV but also reflecting the increased
investment in Dillistone Systems as forewarned in the Interim
statement. This resulted in a 5% fall in adjusted EBITDA to
GBP2.285m (2014: GBP2.402m). Operating profits before acquisition
related items fell 22% to GBP1.424m (2014: GBP1.820m) and pre-tax
profits before acquisition related items also fell 22% to GBP1.416m
(2014: GBP1.824m).
Divisional Reviews
Dillistone Systems
The Dillistone Systems division is primarily focused on
providing technology solutions to the executive search market via
our range of "FileFinder" applications. This client group is made
up of both executive search firms and executive search teams in
major organisations.
Dillistone Systems' head office is in London and it has offices
in the US, Germany and Australia. The Division accounts for 49%
(2014: 53%) of the Group's revenue and it saw revenue grow 1% to
GBP4.620m (2014: GBP4.557m).
It was pleasing to see revenue return to growth in 2015 after
the 9% fall in 2014. However, increased competition means that the
Division has to work harder to win business and retain clients, and
this has required and continues to require ongoing investment in
our products, in our services, and in our infrastructure, which
inevitably leads to higher cost of sales and administrative
expenses, which was further aggravated by the strength of Sterling
in 2015. Depreciation and amortisation also increased by 36% in the
Division, reflecting the first full year amortisation charge of the
FileFinder browser product, for which costs were capitalised in
previous periods. This has led to segmental EBITDA decreasing by
11% to GBP1.425m (2014: GBP1.597m) and operating profit falling 24%
to GBP0.891m (2014: GBP1.168m).
In our Interim announcement released to the market in 2015, we
explained our increased investment, noted a pleasing increase in
product sales and explained our confidence that our product
investment would lead to further growth in orders and revenue. I am
pleased that this prediction has proven to be accurate as the
Division has enjoyed an extremely positive Q1 2016 in terms of
incoming contracts. I am delighted to report that the business has
enjoyed a strong order book in the first quarter, with new business
orders up by more than 70% on the same period of 2015. Pleasingly,
this growth has come about as a result of increases in both the
number of new contract wins and the value of those contracts.
Client retention continues to improve and we are seeing strong
demand for products and services from our existing clients.
The FileFinder Anywhere suite continues to be developed, and we
anticipate further product announcements within the next 12
months.
Voyager Software
Voyager Software is a provider of technology products targeted
at the entire recruitment landscape, from front office to back
office and bureaus, and includes both recruitment management
systems and pre-employment skills testing technology.
In 2015, the Voyager Software division accounted for 51% (2014:
47%) of Group revenues. The Division's revenues increased by 19% to
GBP4.831m and its segmental operating profit before amortisation
and depreciation increased by 19% to GBP0.956m (2014: GBP0.802m).
Recurring revenues increased by 25% to GBP3.430m (2014: GBP2.743m).
Depreciation and amortisation increased by 113% to GBP0.327m (2014:
GBP0.153m), having been impacted by the change in the basis of
calculation of amortisation of development costs as discussed in
the financial review as well as the continuing spend on
development.
The Division benefited from the full year impact of the ISV
acquisition made in October 2014. Excluding ISV, underlying growth
in revenue was 4%.
2015 saw some major developments in the Division including:
-- launch of the cloud hosted version of Infinity available from
multiple global regions with additional functionality for use in
the temporary staffing sector
-- launch of the integration of ISV FastPath and Infinity to
help recruitment businesses automate testing candidates,
facilitating cross selling opportunities
-- launch of version 6 of Evolve software
Product development is ongoing across the Division and a number
of product announcements are expected in 2016.
The Board is confident that both Divisions have strong
futures.
Jason Starr
Chief Executive Officer
Financial Review
Total revenues increased by 9% to GBP9.437m (2014: GBP8.625m),
with pre-tax profits down 18% to GBP1.072m (2014: GBP1.305m).
Recurring revenues increased by 11% to GBP6.606m (2014: GBP5.929m)
while non-recurring revenues saw a 2% increase to GBP2.333m from
GBP2.285m. Third party software product sales amounted to GBP0.498m
in the period (2014: GBP0.411m). These results include ISV revenues
for the full year. Underlying revenue growth excluding ISV was
3%.
Cost of sales increased by 19% to GBP1.313m (2014: GBP1.108m),
reflecting in part, the full year impact of ISV but also from the
roll out of additional hosting services.
Administrative costs, excluding acquisition related items,
depreciation and amortisation, rose 14% to GBP5.839m (2014:
GBP5.115m), again reflecting the full year of ISV costs. Excluding
ISV, administrative costs rose 8%.
As part of the implementation of FRS 101 in relation to its
subsidiaries' accounts, management also reviewed the useful
economic life of certain of its development expenditure. Such
expenditure is now written off over five years, with amortisation
commencing in the month that costs are incurred. Previously, this
was estimated to be three years, with amortisation commencing the
year following the costs being incurred. This had only a minor
impact for the Group but it did result in a higher amortisation
charge in the Voyager Software division, which was offset by a
reduction in the charge in Dillistone Systems division.
Depreciation and amortisation increased to GBP0.861m (2014:
GBP0.582m). Part of this increase reflects the first full year
amortisation charge of the FileFinder browser product for which
costs were incurred in previous periods and also the continuing
spend on development across both divisions. Acquisition related
administrative costs totalled GBP0.316m (2014: GBP0.418m), and were
in respect of the amortisation of intangibles arising on the
Voyager, FCP and ISV acquisitions and movement in the estimation of
contingent consideration. Finance cost includes GBP0.028m relating
to the unwinding of the discount in respect of the contingent
consideration.
Recurring revenues covered 100% of administrative expenses
before acquisition related costs (2014: 104%). Excluding
depreciation and amortisation of our own internal development, the
administrative costs are covered 116% (2014: 116%) by recurring
revenues.
There is a tax credit in 2015 of GBP0.140m (2014: charge
GBP0.160m). The 2015 credit reflects the significant R&D tax
credits available to both Dillistone Systems and Voyager Software,
the change in deferred tax rate from 20% to 18%, as well as the
reduction in corporation tax rates from 21.5% to 20.25% and the
release of prior year provisions partially offset by the higher
rates of corporation tax that are payable overseas. The acquisition
related items tax credit reflects the reduction in deferred tax
that arises as amortisation is charged in the profit and loss
account.
Profits for the year before acquisition related items fell 10%
to GBP1.419m (2014: GBP1.584m) and profits for the year after
acquisition related items increased 6% to GBP1.212m (2014:
GBP1.145m). Basic earnings per share (EPS) increased to 6.20p
(2014: 6.18p). Fully diluted EPS increased 1% to 6.00p (2014:
5.95p).
Capital expenditure
The Group invested GBP1.045m in property, plant and equipment
and product development during the year (2014: GBP1.073m). This
expenditure included GBP0.961m (2014: GBP0.814m) spent on
development costs.
Trade and other payables
As with previous years, the trade and other payables include
income which has been billed in advance but is not recognised as
income at that time. This principally relates to support, SaaS and
hosting renewals, which are billed in 2015 but that are in respect
of services to be delivered in 2016. Contractual income of this
type is recognised monthly over the period to which it relates. It
also includes deposits taken for work which has not yet been
completed, as such income is only recognised when the work is
substantially complete or the client software goes 'live'. Also
included in trade and other payables is GBP0.620m (2014: GBP1.173m)
in respect of contingent consideration. At the end of 2015, there
are three tranches of contingent consideration payable in respect
of ISV and these are dependent on the level of revenue achieved in
periods up until 30 September 2017.
Cash
The Group finished the year with cash funds of GBP1.595m (2014:
GBP1.929m) and bank borrowings of GBP0.325m (2014: GBP0.487m). This
is after capital expenditure of GBP1.045m, the payment to the
vendors of FCP and ISV of GBP0.666m and dividend payments of
GBP0.793m.
Julie Pomeroy
Finance Director
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
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FOR THE YEAR ENDED 31 DECEMBER 2015
2015 2014
Note GBP'000 GBP'000
Revenue 5 9,437 8,625
Cost of sales (1,313) (1,108)
--------- ---------
Gross profit 8,124 7,517
Administrative
expenses (7,016) (6,115)
Profits from
operating activities 6 1,108 1,402
----------------------- ----- --------- ---------
Adjusted operating
profit before
acquisition related
items 4 1,424 1,820
Acquisition related
items 7 (316) (418)
--------- ---------
Operating profit 1,108 1,402
----------------------- ----- --------- ---------
Financial income 5 6
Finance cost (41) (103)
Profit before
tax 1,072 1,305
Tax income /
(expense) 8 140 (160)
Profit for the
year 1,212 1,145
Other comprehensive
income net of
tax:
Items that will
be reclassified
subsequently
to profit and
loss
Currency translation
differences (27) (8)
Total comprehensive
income for the
year net of tax 1,185 1,137
========= =========
Earnings per share - from continuing activities
Basic 9 6.20p 6.18p
Diluted 9 6.00p 5.95p
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2015
Share Share Merger Retained Share Foreign Total
capital premium Reserve earnings option exchange
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance
at 31
December
2013 914 498 365 3,076 121 136 5,110
Comprehensive
income
Profit for
the year
ended 31
Dec 2014 - - - 1,145 - - 1,145
Other
comprehensive
income
Exchange
differences
on
translation
of overseas
operations - - - - - (8) (8)
Total
comprehensive
income - - - 1,145 - (8) 1,137
--------- ---------------------- ----------------------- ------------------------- -------------------- ------------------------- ---------------
Transactions
with owners
Issue of
share capital 55 934 - - - - 989
Share option
charge - - - 16 (3) - 13
Dividends
paid - - - (723) - - (723)
Total
transactions
with owners 55 934 - (707) (3) - 279
Balance
at 31
December
2014 969 1,432 365 3,514 118 128 6,526
========= ====================== ======================= ========================= ==================== ========================= ===============
Comprehensive
income
Profit for
the year
ended 31
Dec 2015 - - - 1,212 - - 1,212
Other
comprehensive
income
Exchange
differences
on
translation
of overseas
operations - - - - - (27) (27)
Total
comprehensive
income - - - 1,212 - (27) 1,185
--------- ---------------------- ----------------------- ------------------------- -------------------- ------------------------- ---------------
Transactions
with owners
Issue of
share capital 14 199 - - - - 213
Share option
charges - - - 75 (47) - 28
Dividends
paid - - - (793) - - (793)
Total
transactions
with owners 14 199 - (718) (47) - (552)
Balance
at 31
December
2015 983 1,631 365 4,008 71 101 7,159
========= ====================== ======================= ========================= ==================== ========================= ===============
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2015
Group
Notes 2015 2014
ASSETS GBP'000 GBP'000
Non-current assets
Goodwill 3,415 3,415
Other intangible
assets 6,163 6,317
Property, plant
and equipment 257 299
Investments - -
9,835 10,031
Current assets
Inventories 16 41
Trade and other
receivables 1,736 1,784
Cash and cash
equivalents 1,595 1,929
3,347 3,754
Total assets 13,182 13,785
EQUITY AND LIABILITIES
Equity attributable
to owners of the
parent
Share capital 983 969
Share premium 1,631 1,432
Merger reserve 365 365
Retained earnings 4,008 3,514
Share option reserve 71 118
Translation reserve 101 128
--------- ---------
Total equity 7,159 6,526
--------- ---------
Liabilities
Non-current liabilities
Trade and other
payables 428 666
Borrowings 158 325
Deferred tax liability 1,006 1,152
Current liabilities
Trade and other
payables 4,193 4,669
Borrowings 167 162
Current tax payable 71 285
--------- ---------
Total liabilities 6,023 7,259
Total liabilities
and equity 13,182 13,785
========= =========
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2015
2015 2015 2014 2014
Operating activities GBP'000 GBP'000 GBP'000 GBP'000
Profit before tax 1,072 1,305
Less taxation paid (219) (122)
Adjustment for
Financial income (5) (6)
Financial cost 41 103
Depreciation and amortisation 1,240 868
Share option expense 28 13
Foreign exchange adjustments
arising from operations (16) (3)
Operating cash flows before 2,141 2,158
movement in working capital
Decrease/ (increase) in
receivables 278 (81)
Decrease in inventories 25 37
(Decrease)/ increase in
payables (307) 4
Net cash generated from
operating activities 2,137 2,118
Investing activities
Interest received 5 6
Finance cost (13) (2)
Purchases of property,
plant and
equipment (84) (259)
Investment in development
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costs (961) (814)
Acquisition of subsidiaries
net of cash acquired - (718)
Contingent and deferred
consideration paid (666) (550)
Net cash used in investing
activities (1,719) (2,337)
Financing activities
Net proceeds from issue
of share capital 213 989
Bank loan received - 500
Bank loan repayments made (162) (13)
Dividends paid (793) (723)
-------- --------
Net cash (used in)/ generated
from financing activities (742) 753
Net (decrease)/ increase in
cash and cash equivalents (324) 534
Cash and cash equivalents
at 1,929 1,399
beginning of year
Effect of foreign exchange
rate changes (10) (4)
Cash and cash equivalents
at end of year 1,595 1,929
======== ========
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
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 2015 or 2014, but is
derived from these financial statements. The financial statements
for the year ended 31 December 2014 have been delivered to the
Registrar of Companies. The financial statements for the year ended
31 December 2015 have been prepared in accordance with
International Financial Reporting Standards as adopted by the
European Union. The financial statements for the year ended 31
December 2015 will be forwarded to the Registrar of Companies
following the Company's Annual General Meeting. The Auditors have
reported on these financial statements; their reports were
unqualified and did not contain statements under Section 498(2) or
(3) of the Companies Act 2006.
The consolidated statement of financial position at 31 December
2015 and the consolidated statement of comprehensive income,
consolidated statement of changes in equity and consolidated
statement of cash flows for the year then ended have been extracted
from the Group's financial statements. Those financial statements
have not yet been delivered to the Registrar.
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.
The preliminary announcement has been prepared under the
historical cost convention, except for revaluation of certain
financial instruments.
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.
3. Accounting policies and changes thereto
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 2014.
4. Reconciliation of adjusted operating profits to consolidated
statement of comprehensive income
Adjusted Acquisition Adjusted Acquisition
operating related operating related
profits items profits items
Note 2015 2015* 2015 2014 2014* 2014
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 9,437 - 9,437 8,625 - 8,625
Cost of sales (1,313) - (1,313) (1,108) - (1,108)
------------------ -------------- --------- ----------- -------------- ---------
Gross profit 8,124 - 8,124 7,517 - 7,517
Administrative
expenses (6,700) (316) (7,016) (5,697) (418) (6,115)
Results from
operating
activities 1,424 (316) 1,108 1,820 (418) 1,402
Financial
income 5 - 5 6 - 6
Financial
cost (13) (28) (41) (2) (101) (103)
Profit before
tax 1,416 (344) 1,072 1,824 (519) 1,305
Tax income
/ (expense) 3 137 140 (240) 80 (160)
Profit for
the year 1,419 (207) 1,212 1,584 (439) 1,145
Other comprehensive
income net
of tax:
Currency translation
differences (27) - (27) (8) - (8)
Total comprehensive
income for
the year net
of tax 1,392 (207) 1,185 1,576 (439) 1,137
================== ============== ========= =========== ============== =========
Earnings per share - from continuing activities
Basic 9 7.26p 6.20p 8.56p 6.18p
Diluted 9 7.02p 6.00p 8.23p 5.95p
* see accounts note 7
5. Segment reporting
The Board principally monitors the Group's operations in terms
of results of the two divisions, Dillistone Systems and Voyager
Software. Segment results reflect management charges made or
received.
Divisional segments
For the year ended 31 December
2015
Inter-divisional
Dillistone Voyager Central Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Segment revenue 4,620 4,831 (14) - 9,437
----------- -------- ----------------- ---------- --------
Segment EBITDA 1,425 956 (96) 2,285
Depreciation and
amortisation expense (534) (327) - (861)
----------
Segment result 891 629 (96) 1,424
Acquisition related
amortisation (note
7) - - (379) (379)
Acquisition related
income (note 7) - - 63 63
----------- -------- ---------- --------
Operating profit/(loss) 891 629 (412) 1,108
Financial income 4 1 - 5
Loan interest (13) (13)
Acquisition related
interest expenses
(note 7) (28) (28)
--------
Profit before tax 1,072
Income tax expense 140
--------
Profit after tax 1,212
========
Additions of non-current
assets 556 489 - 1,045
For the year ended 31 December
2014
Inter-divisional
Revenue
Dillistone Voyager Central Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Segment revenue 4,557 4,068 - - 8,625
----------- -------- ----------------- ---------- --------
Segment EBITDA 1,597 802 3 2,402
Depreciation and
amortisation expense (429) (153) - (582)
----------
Segment result 1,168 649 3 1,820
Acquisition related
amortisation - - (286) (286)
Acquisition related
charges - - (132) (132)
----------- -------- ---------- --------
(MORE TO FOLLOW) Dow Jones Newswires
April 27, 2016 02:00 ET (06:00 GMT)
Operating profit/(loss) 1,168 649 (415) 1,402
Financial income 5 1 - 6
Loan interest (2) (2)
Acquisition related
interest expenses (101) (101)
Profit before tax 1,305
Income tax expense (160)
--------
Profit after tax 1,145
========
Additions of non-current
assets 720 353 - 1,073
Products and services
The following table provides an analysis of the Group's revenue
by products and services:
Revenue
2015 2014
GBP'000 GBP'000
Recurring income 6,606 5,929
Non-recurring income 2,333 2,285
Third party revenues 498 411
9,437 8,625
========= =========
Recurring income includes all support services, 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.
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.
6. Geographical analysis
The following table provides an analysis of the Group's revenue
by geographic market.
The Board does not review the business from a geographical
performance viewpoint and this analysis is provided for information
only.
Revenue
2015 2014
GBP'000 GBP'000
UK 7,642 6,859
US 1,381 1,198
Australia 414 568
9,437 8,625
========= =========
Non-current assets by geographical location
2015 2014
GBP'000 GBP'000
UK 9,829 10,025
US 4 4
Australia 2 2
9,835 10,031
========= =========
7. Acquisition related items
2015 2014
GBP'000 GBP'000
Included within administrative
expenses:
Estimated change in fair
value of contingent consideration (63) (9)
Amortisation of acquisition
intangibles 379 286
Fees relating to acquisitions - 141
--------- ---------
316 418
Included within finance cost:
Unwinding of discount on
contingent consideration 28 101
344 519
========= =========
8. Tax (income) / expense
2015 2014
GBP'000 GBP'000
Current tax 191 353
Prior year adjustment -
Current tax (185) (153)
Deferred tax (25) 31
Prior year adjustment -
deferred tax 16 9
Deferred tax re acquisition
intangibles (137) (80)
Tax (income) / expense for
the year (140) 160
========= =========
Factors affecting the tax charge
for the year
Profit before tax 1,072 1,305
========= =========
UK rate of taxation 20.25% 21.5%
Profit before tax multiplied
by the UK rate of taxation 217 281
Effects of:
Overseas tax rates 46 84
Impact of deferred tax not
provided (7) -
Enhanced R&D relief (131) (99)
Disallowed expenses 14 75
Rate change impact on deferred
tax (110) (37)
Prior year adjustments (169) (144)
Tax (income) / expense (140) 160
========= =========
Deferred tax provided in the financial statements is as
follows:
Group
2015 Movement 2014
GBP'000 GBP'000 GBP'000
Accelerated
intangible amortisation 467 (6) 473
Provisions (10) (3) (7)
Acquisition
intangibles 549 (137) 686
---------
1,006 146 1,152
========= ========= =========
The UK corporation tax rate in the year fell from 21% to 20%
giving an effective rate for the year of 20.25%. Deferred tax is
provided in relation to the UK at 18%. The tax credit is impacted
by the higher rates of corporation tax payable in the US and
Australia offset by the R&D tax credits available to both
Dillistone Systems division and Voyager Software division and the
reduction in the long term rate of corporation tax to 18% which has
been used in the calculation of deferred tax. The release of prior
year provisions relate in part to the agreement of the prior years'
tax positions of UK companies. The Group has gross tax losses and
temporary timing differences of GBP492,000 (2014: GBP292,000) for
which no deferred tax asset has been recognised.
9. Earnings per share
2015 2015 2014 2014
Using Using
adjusted adjusted
operating operating
profit profit
GBP'000 GBP'000 GBP'000 GBP'000
Profit attributable
to ordinary shareholders 1,419,000 1,212,000 1,584,000 1,145,000
Weighted average
number of shares 19,547,754 19,547,754 18,512,594 18,512,594
Basic earnings per 7.26 6.20 pence 8.56 pence 6.18 pence
share pence
=========== =========== =========== ===========
Weighted average
number of shares
after dilution 20,209,339 20,209,339 19,243,357 19,243,357
Fully diluted earnings 7.02 6.00 pence 8.23 pence 5.95 pence
per share pence
=========== =========== =========== ===========
Reconciliation of basic to diluted average number of shares
2015 2014
Weighted average number
of shares (basic) 19,547,754 18,512,594
Effect of dilutive potential
ordinary shares - employee
share plans 661,585 730,763
Weighted average number of
shares after dilution 20,209,339 19,243,357
=========== ===========
This information is provided by RNS
The company news service from the London Stock Exchange
END
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