Dillistone Group Plc Pre-Close Trading Update

Dillistone Group Plc Pre-Close Trading Update

The board of Dillistone, the AIM quoted supplier of software for the international recruitment industry, through its subsidiary companies Dillistone Systems and Voyager Software, is pleased to announce that, for the year ended 31 December 2011, it expects pre-tax profits (prior to one off deal costs and amortisation of acquisition goodwill) to be in line with market expectations. The Group noticed a softening in market conditions towards the end of the financial year although a series of larger than average order wins, including one with a FTSE 100 firm, have helped to ensure that the Group will enter 2012 with a record level of recurring revenues.

Voyager Software, acquired in September 2011, made a positive contribution to the Group's performance in the year and should add to the Group's recurring revenues in 2012.  The enlarged organisation is already benefiting from a number of synergies identified prior to the acquisition and these savings should also support the performance of the Group in 2012.

During the year, the Group financed over £1m of the monies paid for Voyager Software and the associated deal costs from its own cash resources.  The Group continues to have no debt and at 31 December 2011 unaudited management accounts show that it had cash balances of approximately £1.6m (2010: £2.1m), which is higher than forecast at the time of the acquisition.  The board of Dillistone intends to maintain its current dividend policy.

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