Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
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Director buy (real money not an award!!) of £100K against mkt cap of £12M, generally a good sign :)
Well my first little purchase has gone through (1918 @ 69.50p) - hopefully will be another nice little earner from the IT sector after getting into Kewill @ around the same price and exiting at 96p. Mulledwine - we seem to crop up in the same shares - are you going to say hello and swop thoughts?
WH Ireland initiated coverage of Dillstone (DSG) with a "buy" recommendation and 85p target price. The broker believes that the business software developer's acquisition of Voyager Software has greatly diversified its product offering and target client base, with 1,800 customers across 60 countries. WH Ireland was impressed by the firm's high level of recurring revenues, accounting for 60% of total sales at 3.2 million pounds, and expects the company to finish with a next cash position of 1.8 million pounds for the year ending 31st December 2012.
One for the watch pile
Commenting on the results, Mike Love, Non-Executive Chairman, said: "2011 has been an excellent year for Dillistone. The Group has delivered a strong set of results, completed its first acquisition and launched its next generation executive search software." "The Group's strategy is to continue to grow the business both organically and through acquisition. Our organic growth is supported by our commitment to product development which ensures that the business continues to command a leading role in all of the market sectors in which it operates."
Dillistone, the AIM quoted supplier of recruitment software, is pleased to announce its audited results for the year ended 31 December 2011. Highlights for the year: § Revenues up 28% to £5.4m with non recurring revenues up 24% § Record level of recurring revenues of £3.2m up 28% from 2010 § Underlying organic growth in revenues of 12% § Operating profits before exceptional items up 17% to £1.4m and up 4% to £1.2m after exceptional items § Final dividend of 2.3333p per share recommended, making total dividend for year of 3.5p § Cash funds of £1.6m (2010: £2.1m) and the Group remains debt free § EPS* pre exceptional items up 22% to 6.26p and up 4% to 5.34p post exceptional items § Acquisition of Voyager Software successfully completed § Results of Voyager Software included from 21 September 2011 § Healthy growth in new clients: clients in more than 60 countries § FileFinder 10 launched on 31 March 2011
http://www.investegate.co.uk/Article.aspx?id=201204250700159949B
Dillistone is buying Voyager, which aims its software at the broader recruitment agency market. Dillistone is paying £1.89m up front, comprising £1.5m in cash and £390,000 of Dillistone shares. But it has also agreed to a further deferred payment of up to £2.1m, which is dependent upon Voyager’s revenues over the next two years. Basing such a deferred payment on future revenues may not sound anything special. But structuring acquisitions is always a tricky matter for any company, large or small, and I think that Dillistone has hit just the right formula. Consider the problem of acquiring a small company that’s heavily reliant upon key staff. You have three options. You can either pay cash lock, stock and barrel up front. That puts you in control from day one. But on the other hand you have spent all that cash without knowing exactly what you are buying. Staff in the acquired firm, especially if they have pocketed a chunk of this cash, have little incentive to stay with the newly merged business. Deals are often structured to include deferred payment in order to avoid this problem. Sellers are promised more money if the business performs well in the year or two following the deal. This keeps the sellers onside, ensuring that they work hard to get the extra money. It also ensures that they stay with the business in the transitional phase, making their experience available to the buyer. These deferred payments are often contingent upon profits made by the acquired business after the deal. But that can create problems. The sellers could, for example, cut right back on marketing and research spending, ensuring that they meet the profit earn-out target but weaken the business in the process. The deferred amount that Dillistone will pay to the seller of Voyager depends upon revenues achieved by the end of 2013. As Dillistone’s finance director Julie Pomeroy put it, “without revenue there cannot be any profit”. Although theoretically Voyager could find ways of boosting revenue at the expense of profit – by slashing prices for example – I don’t think that this would happen, or that Dillistone would allow it to happen. This takeover could transform Dillistone So the structure of this deal looks good – but what does it do for Dillistone? Dillistone is the global leader in the supply of software for executive search operations. Its core FileFinder product is used by over 1,100 clients in 60 countries. It added 177 new customers in 2010, mainly executive search agencies but also, increasingly, amongst big corporates that duck hefty agency fees by recruiting in-house. The business is profitable and cash generative, so Dillistone pays a generous dividend. Voyager is based in Basingstoke, but has an office in Sydney. Its acquisition broadens Dillistone’s customer base and offers possibilities for the sharing of back office functions, new product developm
David Hunter, Director of executive search for Penna Plc commented: "Early adoption of FileFinder 10 puts Penna at the forefront of the industry, and provides us with a platform to deliver exceptional outcomes for our clients now and in the future." Jason Starr, Managing Director of the Company added: "We are delighted that, after an extensive review process, the executive search team at Penna Plc will be replacing its current system with FileFinder 10 and by the new relationship between our firms."
Dillistone Group Plc ("Dillistone" or the "Company") New Contract Dillistone Systems, the executive search software subsidiary of the Company, is pleased to announce a new contract win with human resource consultancy firm, Penna Plc. Under the terms of the contract, the executive search division of Penna Plc will implement FileFinder 10 software for use in its offices in the United Kingdom, Ireland, Spain and Sweden. Hosting, implementation and support services will also be provided.
http://www.investegate.co.uk/Article.aspx?id=201109280700240362P
Jason Starr, Managing Director of Dillistone commented: "Voyager and Voyager (Australia) are long standing and well regarded suppliers to the UK and Australian recruitment markets respectively. The two companies have a significant client base and a high proportion of recurring revenues with strong management teams and hard working and professional staff. We believe that this Acquisition will have a transformational impact on the Company. Historically, we have operated globally in what is very much a niche market - Executive Search. This Acquisition takes us into a substantially larger market."
Acquisition and Placing 21 September 2011 Dillistone, the AIM quoted supplier of software for the international recruitment industry, is pleased to announce that it has today entered into an agreement to acquire Woodcote Software Limited ("Woodcote") ("Acquisition") and that Religare Capital Markets Plc has completed a placing on behalf of Dillistone of 694,445 new ordinary shares of 5p each in the share capital of Dillistone ("Placing Shares") to raise £500,000 (before expenses) at a price of 72p per Placing Share ("Placing"). Completion of the Acquisition and the Placing are subject only to admission of the Placing Shares and the Consideration Shares (as defined below) to trading on AIM. The Company has also announced its interim results today and these are included in a separate announcement. Woodcote Woodcote is a non-trading holding company. Voyager Software Limited ("Voyager") (http://www.voyage.co.uk/), a wholly owned subsidiary of Woodcote, sells a number of software products to its target market of recruitment agencies. The products are designed to facilitate the filling of temporary or permanent vacancies. Voyager Software (Australia) Pty Ltd. ("Voyager (Australia)"), a wholly owned subsidiary of Voyager, markets a similar product range. Between them, Voyager and Voyager (Australia) have over 700 active unique clients and nearly 5,000 active licenced users. ExpressHR Services Limited, a subsidiary of Woodcote, is also being acquired by Dillistone as part of the Acquisition and on completion of the Acquisition ("Completion") will be immediately sold to Geoffrey Warburton, who holds shares in Woodcote through his pension scheme, for a consideration of £1. For the year ended 30 June 2011 the unaudited consolidated management accounts of Woodcote (excluding ExpressHR Services Limited and excluding accounting for goodwill) showed profit before tax and profit after tax of £139,000 and £107,000 respectively on revenues of £2.2m. These accounts also showed net assets of £167,000 as at 30 June 2011.
http://www.investegate.co.uk/Article.aspx?id=201109210701086069O
2 for 1 bonus issue caused it, hence 66% drop.
http://www.stockopedia.co.uk/research/search-party-57303/ That's the link to the report,
Cause of drop - Edison Research have today published a report called 'search party' Can anyone access.
Evaluation For the current year a pre-tax profit of GBP1.3 million is anticipated, meaning GBP0.96 million post-tax on a 26% tax rate. A 10.5p per share dividend equates to a GBP0.595 million payout, meaning there should be significant ‘free cash’ generated. In recent years much of this has been invested in the development of FileFinder 10 - which Dillistone sees as providing it with a platform for the next 10 years. Thus whilst investment in the company’s offering will continue going forward in order to underpin further organic growth, much of the previously needed investment now looks set to be realised. The cash generation, net cash position and enhanced software platform (bringing the company’s underlying technology into line with other companies') offer the potential of scaleable, earnings-enhancing acquisitions (the company has stated it is “actively pursuing an acquisition strategy”) and we also believe there is scope for organic outperformance. Dillistone notes “it is important for the reputation of the company that we manage the roll out of the product (FileFinder 10) cautiously. Our budget for the first half of the year reflects this... we expect revenues to increase more strongly once clients and potential clients have had the opportunity to see the benefits of the new product”. The true benefits of the company's investment in FileFinder 10 are however unlikely to be seen until 2012 and beyond but even given this and ignoring potential augmentations to current year earnings forecasts, ex the stated GBP2.15 million (almost 38p per share) of net cash, the shares trade on a p/e of around 9.8x. There is then the dividend yield – which in the current low interest, high inflation, environment looks particularly appealing. The prospective share issue will hopefully help liquidity and, as a growth and income play, the shares are a buy. Buy Dillistone Group (DSG) at 205p Say the experts at UKMicrocap.com
Commenting on the contract, Jason Starr, Managing Director of Dillistone, said: "We are delighted to announce this contract win. FileFinder has been used successfully by one of Asap's affiliated companies for a number of years now, and so we are proud that this commitment rewards our ongoing efforts to be a leading supplier to executive recruitment firms in South America".
Dillistone Group Plc Contract in Brazil Dillistone Group Plc ("Dillistone"), the AIM listed supplier of recruitment software, is pleased to announce that it has entered into a new contract with Asap of Brazil. Asap is based in Sao Paulo but has offices in 7 Brazilian cities. The contract will see implementation of Dillistone Systems' FileFinder software system throughout the firm with implementation expected later this year. The contract incorporates the purchase of around 100 FileFinder software licences, various services and a support contract. The contract win is the largest yet achieved by Dillistone in South America.
http://investegate.co.uk/Article.aspx?id=201105160700126195G