TIDMDSG
RNS Number : 2752J
Dillistone Group PLC
26 April 2022
Dillistone Group Plc
("Dillistone", the "Company" or the "Group")
Final Results
& Investor Presentation
Dillistone Group Plc ("Dillistone", the "Company" or the
"Group"), 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 2021.
Highlights:
-- Performance ahead of expectations
o Revenue GBP5.6m (2020: GBP6.3m)
o Incoming orders up 18% in 2021 compared to 2020
o EBITDA (1) GBP1.0m (2020: GBP1.2m)
o Group returns to breakeven for the year (2020: GBP0.7m
loss)
o Net debt GBP1.0m (2020: GBP0.9m)
o Cash at year end was GBP0.8m (2020: GBP1.3m)
-- Recurring revenues(2) represent 89% (2020: 91%) of Group revenue
-- Secured largest new Group client since the restructuring of the business in January 2020
-- Continued product development expenditure supporting strong start to 2022
-- Talentis showing strong momentum going into 2022
Definitions:
1. Amounts based on segment EBITDA figures - see note 5
2. The component elements of recurring revenue are detailed in
note 5.
Commenting on the results and prospects, Giles Fearnley,
Non-Executive Chairman, said:
"In my interim statement I highlighted that in our business,
where a large part of our revenue is contracted annually in
advance, the impact of Covid would be felt throughout the remainder
of 2021. This proved to be the case as recurring revenue decreased
by 13% to GBP5.0m (89% of Group revenue (2020: 91%)) however we saw
an uplift in orders in Q4 to pre-pandemic levels.
"The current year has begun well following on from the strong
finish to 2021. Growth in new business sales is helping us recover
recurring revenue lost during the pandemic and, while we are
conscious of the potential impact of ongoing economic turbulence,
we are confident that the Group is well on the way to recovery,
with positive signs across our entire product range and an exciting
opportunity opening up with our new Talentis product."
Investor Presentation - 1pm on Thursday 28 April 2022
Jason Starr, Chief Executive, and Joanne Curd, Chief Financial
Officer, will hold a remote presentation at 1pm on Thursday 28
April 2022 to review the results and introduce the Talentis
executive search platform, Dillistone's latest software release.
Those interested in attending should register at
https://register.gotowebinar.com/register/9054920680771381264 or
enquire at Dillistone@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 2022 for approval at the Annual General Meeting to be held on
15 June 2022.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Enquiries:
Dillistone Group
Plc
Giles Fearnley Chairman Via Walbrook PR
Jason Starr Chief Executive
Officer
Joanne Curd Chief Financial
Officer
WH Ireland Limited (Nominated adviser)
Managing Director,
Chris Fielding Corporate Finance 020 7220 1650
Walbrook PR
Tom Cooper / Paul tom.cooper@walbrookpr.com
Vann
020 7933 8780
0797 122 1972
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 ) 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/
Voyager Software: https://www.voyagersoftware.com
GatedTalent Services: https://www.talentis.global/optimization-services/
CHAIRMAN'S STATEMENT
After a challenging few years for the business, I am pleased to
report a year of progress and improvement, along with a sense that
the business is in a position to progress further in 2022.
In my interim statement I highlighted that in our business,
where a large part of our revenue is contracted annually in
advance, the impact of Covid would be felt throughout the remainder
of 2021. This proved to be the case, however we saw an uplift in
orders in Q4 2021 to pre-pandemic levels.
Total revenue for the year was down 12% to GBP5.599m, with
recurring revenue falling 13% to GBP5.009m. There was an adjusted
operating loss in 2021 of GBP0.140m (2020: loss GBP0.166m) before
acquisition related and other costs. Administration costs reduced
by 14% excluding acquisition related items and other costs,
depreciation and amortisation. The operating loss, including
reorganisation and acquisition related items, was GBP0.199m (2020:
loss GBP0.821m).
We maintained our investment in product development at GBP0.987m
(2020: GBP0.969m) which we view as key to the future growth of the
Group. January 2021 saw the launch of Talentis (
https://www.talentis.global/recruitment-software/insights/ ). After
a slow start, Talentis is now growing rapidly and the Group is
excited by the opportunity that it presents.
In June 2021 we made the final payment of the 2 year bank loan
that was secured in June 2019 and the following month we commenced
monthly payments on the Government CBIL loan that we secured in
June 2020 and which had a 12 month grace period for capital
repayments.
Dividends
The Group is not recommending a final dividend in respect of the
year to 31 December 2021 (2020: nil).
Staff
I and the Board would like to pay tribute to our employees
across the Group, acknowledging their commitment and contribution
in facing the challenges of the last 12 months. They have risen to
these challenges and continued to deliver for our clients.
Corporate governance
It is the Board's duty to ensure that the Group is managed for
the long-term benefit of all stakeholders.
During the year in review, we welcomed Steve Hammond to the
Group Board in January 2021 and Joanne Curd in October. Steve
joined as the Chief Engineering Officer for the Group with
responsibility for the development of all group products. Joanne
became our Chief Financial Officer replacing Julie Pomeroy who
moved to a Non-executive Director role for 12 months, enabling us
to continue to benefit from her expertise. I would also like to
thank Alex James who stepped down from the Board in September
having contributed extensively to the business over very many
years.
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 current year has begun well following on from the strong
finish to 2021.
Compared to the same period to 31 March in 2021, Q1 2022
incoming orders are up by 41%, with all products performing broadly
in line with, or better than management expectations.
Our contingency recruiting products have enjoyed a strong start,
driven by increasingly strong performance by our Infinity product,
which is proving to be especially successful in the UK temporary
recruitment sector.
In late 2021, we announced our largest new contract win since
the Group's restructuring, and we are pleased to announce that this
implementation of Infinity is now live and performing well.
Our executive search products, Talentis, FileFinder and
GatedTalent, have also enjoyed a strong start to the year. Talentis
was launched in early 2021 and, after a slow start, started to grow
rapidly in the final weeks of 2021. While recurring revenue
reflects the slow start, we are pleased to report that recurring
revenue associated with the product is currently doubling every
three months, and is comfortably on track to maintain this into Q2
2022. Driven by Talentis sales, March 2022 was, in terms of the
number of new executive search firm contract wins, the Group's best
ever month, beating the previous best of March 2010. While the
majority of clients are small, the Group expects this to change
over time. While growing rapidly, annualised recurring Talentis
revenue is currently in mid five figures.
The Group continues to operate with a much lower cost base and
as revenues recover, the improved operational leverage, following
the efficiencies realised, will be reflected in overall
performance. The Group is trading in line with market expectations,
holding GBP0.764m in cash as at 31 December 2021 and does not
expect to raise additional funds.
Taking the above into account , the Board is optimistic for the
future and will issue a further update at the time of the AGM.
Giles Fearnley
Non-Executive Chairman
CEO's Review
Dillistone Group Plc is a global leader in the supply of
solutions and services to the recruitment sector worldwide, in both
contingency recruitment and executive search.
Contingency Recruitment Sector:
In the contingency recruitment sector, our products are
primarily, but not exclusively, used by UK recruitment agencies.
Our products serving this sector are:
-- ISV.Online is an online skills testing product used by both
recruitment agencies and corporate recruiters and has a strong
international footprint. It allows recruiters and HR professionals
to test individuals using our extensive portfolio of existing tests
or to create their own unique tests to meet their requirements.
-- MidOffice is a comprehensive pay & bill solution that
allows recruitment businesses and back office service providers to
process timesheets and bridges the gap between paying workers and
invoicing clients. It can be used standalone or integrated to other
recruitment systems including our Infinity product.
-- Infinity is an established recruitment CRM used primarily by
agencies in the UK, but also with users in Asia and Australia. It
enables recruitment businesses to manage prospects, clients,
candidates and jobs in one place and offers deep integration to
Office365 and other recruitment industry complementary solutions.
It is one of the few solutions in the UK market with extensive
functionality for permanent, contract and temporary jobs all in one
system.
During 2021
-- We continued our ongoing investment in Infinity to give users
in all recruiting sectors additional benefits including: more
comprehensive application programming interfaces (APIs), more
features to support remote recruitment, improved security and
further efficiencies in the temporary recruitment workflows.
-- December 2021 saw us win our largest new Infinity client
since the restructuring of the business in January 2020. The
implementation has been delivered successfully in 2022.
-- Mid-Office is also furthering the temporary recruitment
efficiencies we've added to Infinity by taking these all the way
through to the pay and bill system and into the back office.
-- ISV remains in its strong market position and is used by over
half of the UK's top 10 recruitment agencies. There is strong
retention among key accounts with significant multiple year
renewals and an increased number of new client wins.
Executive Search Sector:
Our primary products in the Executive Search sector are
-- FileFinder is an established CRM product with thousands of users Worldwide.
-- GatedTalent is a service that helps recruiters source
candidates and candidates find jobs and;
-- Talentis, our new product launched in January 2021.
During 2021 we maintained our commitment to development and
product enhancement.
-- FileFinder: there has been a major project to move FileFinder
to a pure Cloud environment which is now live, with the majority of
our users serviced from the new platform. User benefits include
significant speed gains, while the Group benefits from reduced
hosting cost. Costs are inflated in 2021 as the Group operated two
platforms, continuing into early 2022 but at a reduced scale with
only a small number of clients remaining on the older platform
awaiting transfer.
-- GatedTalent: extension of our service offering to include
additional B2C services including interview coaching. After a slow
start, GatedTalent is now cash generative and making a consistent
contribution.
-- Talentis is a next generation executive search / sourcing and
recruiting platform, announced in January 2021, with first revenue
in May 2021, and strong momentum going into 2022:
o The Talentis TalentGraph now contains information on almost
250 million potential candidates. For certain types of search,
Talentis delivers far superior search results through its Augmented
Keyword Search technology than current market alternatives.
o Most of Talentis' early adopters were existing group clients
paying a nominal fee or, in many cases, receiving the product for
free. As a result, while we received our first revenue in May 2021,
the product experienced a slow start.
o The slow start means that Talentis annual recurring revenue is
currently in the mid five figures. However, realised recurring
revenue has doubled every three months since launch, with
particular acceleration since late Q4 2021. This acceleration
appears on track to continue into Q2 of 2022.
o Talentis became our most popular B2B product in the executive
search space in Q4 2021, based on the number of new client wins in
the period. In Q1 2022, it became our most popular B2B product
across our entire product set based on the same definition.
o Most paying customers are relatively small and are paying a
modest subscription fee. However, customer size and subscription
value are both expected to grow as the year progresses.
o Talentis has attracted new, paying customers to the Group from
14 countries across 4 continents. The United Kingdom and United
States are currently our two largest markets for the product.
o In April 2022, we were pleased to see that the Talentis Chrome
Extension was the first executive search focussed product (and one
of very few recruitment tools) to receive a "featured"
accreditation from Google. "Featured badges" are awarded by Google
following a human review to products that "follow Google's
technical best practices and meet the company's higher standard for
user experience and design".
Strategy and Objectives
Our focus during the pandemic revolved around successfully
protecting our business while helping our clients and our staff
through challenging times. We can now concentrate on our long term
strategy which is all about returning to growth. While cost savings
were made during the pandemic, we maintained our product
development expenditure and targeted it on growth
opportunities.
This will be achieved by:
-- Focusing on development expenditures on products serving the
executive recruiter sector globally and the contingent recruiting
(permanent, temporary and contract) sector.
-- Having completed the withdrawal of Evolve from the market in
2019-20, we are in the process of withdrawing a further legacy
product from the market, which will complete be in 2022.
-- Consistently delivering "best in class" service to our
clients, as demonstrated by sector leading Trustpilot scores,
despite significant cost savings in recent years.
-- Refreshing and reducing the size of the Board.
Whilst we have seen growing confidence in the recruitment
markets around the world, the global economic challenges that 2022
may bring means that we need to remain focused and responsive to
any factors that may hamper the business from returning to growth
and profitability.
Key Performance Indicators (KPIs)
The key KPIs for 2021 were:
KPI 2021 outcome
--------------------------------------- ----------------------------
Maintain a strong and stable financial GBP0.764m cash at year end
position
Protect and prioritise our product GBP0.987m development spend
and development efforts in year
--------------------------------------- ------------------------------
Financial Review
Total revenues decreased by 12% to GBP5.599m in 2021 (2020:
GBP6.332m) with recurring revenues decreasing by 13% to GBP5.009m
(2020: GBP5.745m) and non-recurring revenues by 12% to GBP0.427m
(2020: GBP0.485m). Third party revenue amounted to GBP0.163m in the
period (2020: GBP0.102m).
Cost of sales increased to GBP0.685m (2020: GBP0.584m).
Administrative expenses reduced by 22% to GBP5.113m (2020:
GBP6.569m), and were covered 127% (2020: 125%) by recurring
revenues. This was in part due to the full year impact of the 2020
cost base reductions.
Depreciation and amortisation (excluding acquisition related
amortisation and one-off write-offs) decreased to GBP1.122m (2020:
GBP1.334m).
Acquisition related and other costs totalled GBP0.059m (2020:
GBP0.655m) and were in respect of:
-- the amortisation of intangibles arising from acquisitions GBP0.213m (2020: GBP0.213m).
-- grants received from overseas GBP0.160m (2020: GBP0.071m)
-- other costs of GBP0.006m (2020: GBP0.513m)
The Group benefitted from an income tax credit in 2021 of
GBP0.302m (2020: credit GBP0.251m). The 2021 credit reflects the
Research and Development (R&D) tax credits available in the UK
with the assumption that tax losses will be surrendered for the
R&D tax credit payment where possible. It also reflects a prior
year adjustment of a credit of GBP0.181m as the tax computations in
respect of prior years were finalised and agreed.
Loss for the year before acquisition related and reorganisation
and other costs amounted to GBP0.140m (2020: loss GBP0.166m). The
2021 adjusted loss benefitted from tax income of GBP0.287m (2020:
tax income of GBP0.143m). The statutory profit for the year was
GBP0.004m (2020: loss GBP0.663m). Basic profit/(loss) per share
(EPS) was 0.02p (2020: (3.37)p). Fully diluted EPS was to 0.02p
(2020: (3.37)p). Adjusted basic EPS increased to 0.24p (2020:
(0.59)p).
Capital expenditure
The Group invested GBP1.008m in property, plant and equipment
and product development in 2021 (2020: GBP0.971m) of which
GBP0.987m (2020: GBP0.969m) related to capitalised development
costs.
Trade and other payables
As with previous years, the trade and other payables includes
deferred income of GBP1.639m (2020: GBP2.029m), i.e. income which
has been billed in advance but is not recognised as income at that
time. This principally relates to support, SaaS, cloud hosting
renewals and other subscriptions, which are billed in 2021 in
respect of services to be delivered in 2022. It also includes
licence revenue for which a support contract is required, and which
is spread over 5 years under IFRS15. Contractual income 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".
Cash and debt
The Group finished the year with cash funds of GBP0.764m (2020:
GBP1.291m). The Group completed repayment of the June 2019 loan in
June 2021. The Group obtained a loan of GBP1.5m in June 2020 under
the Government CBIL scheme, which is repayable over 6 years with no
repayment in the first year, monthly repayments commenced in July
2021.
Bank borrowings at 31 December 2021 were therefore GBP1.350m
(2020: GBP1.804m). The Group also had a convertible loan of
GBP0.400m (2020: GBP0.408m) which will not be repaid until the CBIL
loan has been repaid.
Jason Starr
Chief Executive Officer
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 DECEMBER 2021
2021 2020
Note GBP'000 GBP'000
Revenue 5 5,599 6,332
Cost of sales (685) (584)
------------------------------------- ----- --------- ---------
Gross profit 4,914 5,748
Administrative expenses (5,113) (6,569)
------------------------------------- ----- --------- ---------
Operating loss (199) (821)
------------------------------------- ----- --------- ---------
Adjusted operating (loss)
before acquisition related,
reorganisation and other
items 4 (140) (166)
Acquisition related, reorganisation
and other items 7 (59) (655)
------------------------------------- ----- --------- ---------
Operating (loss) (199) (821)
------------------------------------- ----- --------- ---------
Financial cost (99) (93)
(Loss) before tax (298) (914)
Tax income 8 302 251
Profit/(loss) for the year 4 (663)
Other comprehensive income/(loss)
Items that will be reclassified
subsequently to profit and
loss:
Currency translation differences 4 12
Total comprehensive profit/(loss)
for the year 8 (651)
------------------------------------- ----- --------- ---------
Earnings per share
Basic 9 0.02p (3.37)p
Diluted 9 0.02p (3.37)p
--------- ------ ---------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 DECEMBER 2021
Convertible
Share Share Merger loan Retained Share Foreign
capital premium reserve reserve earnings options exchange Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------- ---------- ---------- --------- ------------ ---------- --------- ----------- --------
Balance at 1 January
2020 983 1,631 365 14 871 94 47 4,005
Comprehensive income
Loss for the year - - - - (663) - - (663)
Other comprehensive
income
Exchange differences
on translation
of overseas
operations - - - - - - 12 12
--------------------- ---------- ---------- --------- ------------ ---------- --------- ----------- --------
Total comprehensive
loss - - (663) - 12 (651)
Transactions with
owners
Share option charge - - - - - 16 - 16
--------------------- ---------- ---------- --------- ------------ ---------- --------- ----------- --------
Total transactions
with owners - - - - - 16 - 16
Balance at 31
December
2020 983 1,631 365 14 208 110 59 3,370
--------------------- ---------- ---------- --------- ------------ ---------- --------- ----------- --------
Comprehensive income
Profit for the
year - - - - 4 - - 4
Other comprehensive
income
Exchange differences
on translation
of overseas
operations - - - - - - 4 4
Total comprehensive
loss - - - - 4 - 4 8
Transactions with
owners
Share option charge - - - 50 (46) - 4
Total transactions
with owners - - - - 50 (46) - 4
Balance at 31
December
2021 983 1,631 365 14 262 64 63 3,382
--------------------- ---------- ---------- --------- ------------ ---------- --------- ----------- --------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021
Group
2021 2020
GBP'000 GBP'000
----------------------------------- --------- ---------
ASSETS
Non-current assets
Goodwill 3,415 3,415
Other intangible assets 3,142 3,362
Property, plant and equipment 25 24
Right of use assets 592 680
Investments - -
----------------------------------- --------- ---------
Total non-current assets 7,174 7,481
----------------------------------- --------- ---------
Current assets
Trade and other receivables 615 883
Current tax receivable 29 186
Cash and cash equivalents 764 1,291
----------------------------------- --------- ---------
Total current assets 1,408 2,360
----------------------------------- --------- ---------
Total assets 8,582 9,841
----------------------------------- --------- ---------
EQUITY AND LIABILITIES
Equity attributable to owners of
the parent
Share capital 983 983
Share premium 1,631 1,631
Merger reserve 365 365
Convertible loan reserve 14 14
Retained earnings 262 208
Share option reserve 64 110
Foreign exchange reserve 63 59
----------------------------------- --------- ---------
Total equity 3,382 3,370
----------------------------------- --------- ---------
Liabilities
Non-current liabilities
Trade and other payables 238 271
Lease liabilities 560 638
Borrowings 1,450 1,749
Deferred tax liability 210 296
----------------------------------- --------- ---------
Total non-current liabilities 2,458 2,954
----------------------------------- --------- ---------
Current liabilities
Trade and other payables 2,347 2,953
Lease liabilities 95 103
Borrowings 300 461
----------------------------------- --------- ---------
Total current liabilities 2,742 3,517
----------------------------------- --------- ---------
Total liabilities 5,200 6,471
----------------------------------- --------- ---------
Total liabilities and equity 8,582 9,841
----------------------------------- --------- ---------
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEARED 31 DECEMBER 2021
For the For the For the For the
year year year year
ended ended ended ended
31 December 31 December 31 December 31 December
2021 2021 2020 2020
Operating activities GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------------- ------------- ------------- ------------- -------------
Loss before tax (298) (914)
Adjustment for
Financial cost 99 93
Depreciation and amortisation 1,335 1,984
Share option expense 3 16
Foreign exchange adjustments arising
from operations 10 (28)
Operating cash flows before movement
in working capital 1,149 1,151
Decrease in receivables 268 360
Decrease in payables (639) (1,120)
Taxation refunded 373 314
---------------------------------------- ------------- ------------- ------------- -------------
Net cash generated from operating
activities 1,151 705
Investing activities
Purchases of property, plant and
equipment (21) (2)
Investment in development costs (987) (969)
Net cash used in investing activities (1,008) (971)
Financing activities
Interest paid (99) (84)
Proceeds from bank loan - 1,500
Bank loan repayments made (461) (166)
Lease payments made (104) (114)
Repayment of banking facility - (288)
Net cash (used in)/generated from
financing activities (664) 848
---------------------------------------- ------------- ------------- ------------- -------------
Net (decrease)/increase in cash and cash
equivalents (521) 582
Cash and cash equivalents at beginning
of the year 1,291 690
Effect of foreign exchange rate
changes (6) 19
---------------------------------------- ------------- ------------- ------------- -------------
Cash and cash equivalents at end
of year 764 1,291
---------------------------------------- ------------- ------------- ------------- -------------
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARED 31 DECEMBER 2021
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 2021 or 2020, but is
derived from these financial statements. The financial statements
for the year ended 31 December 2020 have been audited and filed
with the Registrar of Companies. The financial statements for the
year ended 31 December 2021 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 2021 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 2021 and 2020 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 have been taken into account in
considering the Group's adoption of the going concern basis.
Together with the financial statements, notes, net current
liability position and cash flows for the year ended 31 December
2021. The Group prepare 3 year budgets and cash flow forecasts to
ensure that the Group can meet its liabilities as they fall
due.
The Group meets its day to day working capital requirements
through its cash balance. It has in place a GBP1.5m CBIL loan,
secured in June 2020, repayable over 6 years with capital
repayments commencing from July 2021. The Group did not have an
overdraft at the year-end and paid-off a two year bank loan in June
2021. The Group's forecasts, taking into account the Board's future
expectations of the Group's performance, indicate that there is
sufficient headroom within its CBIL loan facility. Compliance with
the CBIL covenant has been considered and based on management
expectations and actions, that could practically be taken, the
directors do not consider any reasonable risk to arise from
this.
The cash flow forecasts have been stress tested reviewing
assumptions around new and existing business with growth and
renewal rates being reduced. A reverse stress test was also
prepared to review what reduction in revenue would be necessary to
breach overdraft limits in 2022.
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 2020.
4. Reconciliation of adjusted profits to consolidated statement of comprehensive income
Note Acquisition Acquisition
related, related
reorganisation reorganisation
Adjusted and other Adjusted and other
profits costs profits costs
2021 2021* 2021 2020 2020* 2020
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- ------ --------- ---------------- --------- --------- ---------------- ---------
Revenue 5,599 - 5,599 6,332 - 6,332
Cost of sales (685) - (685) (584) - (584)
------------------------------ --------- ---------------- --------- --------- ---------------- ---------
Gross profit 4,914 - 4,914 5,748 - 5,748
Administrative
expenses (5,054) (59) (5,113) (5,914) (655) (6,569)
------------------------------ --------- ---------------- --------- --------- ---------------- ---------
Operating (loss) (140) (59) (199) (166) (655) (821)
Financial income - - - - - -
Financial cost (99) - (99) (93) - (93)
(Loss) before
tax (239) (59) (298) (259) (655) (914)
Tax income 287 15 302 143 108 251
------------------------------ --------- ---------------- --------- --------- ---------------- ---------
Profit/(loss)
for the year 48 (44) 4 (116) (547) (663)
Other comprehensive
loss net of tax:
Currency translation
differences 4 - 4 12 - 12
Total comprehensive
profit/(loss)
for the year net
of tax 52 (44) 8 (104) (547) (651)
------------------------------ --------- ---------------- --------- --------- ---------------- ---------
Earnings per share
Basic 10 0.24p - 0.02p (0.59)p - (3.37)p
Diluted 10 0.24p - 0.02p (0.59)p - (3.37)p
--------- --- ------ ------ -------- --------
* See note 7
5. Segment reporting
Divisional segments Ikiru Ikiru
People Central Total People Central Total
2021 2021 2021 2020 2020 2020
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------------- -------- -------- -------- -------- -------- --------
Segment revenue 5,599 - 5,599 6,332 - 6,332
-------------------------------------- -------- -------- -------- -------- -------- --------
Segment EBITDA 953 29 982 1,211 (43) 1,168
Depreciation and amortisation
expense (1,122) - (1,122) (1,334) - (1,334)
-------------------------------------- -------- -------- -------- -------- -------- --------
Segment result before reorganisation
and other costs (169) 29 (140) (123) (43) (166)
Reorganisation and other
costs 154 - 154 (442) - (442)
-------------------------------------- -------- -------- -------- -------- -------- --------
Segment result (15) 29 14 (565) (43) (608)
Acquisition related amortisation - (213) (213) - (213) (213)
-------------------------------------- -------- -------- -------- -------- -------- --------
Operating (loss) (15) (184) (199) (565) (256) (821)
Loan interest/ lease interest (35) (64) (99) (39) (54) (93)
-------------------------------------- -------- -------- -------- -------- -------- --------
Loss before tax (298) (914)
Income tax income 302 251
-------------------------------------- -------- -------- -------- -------- -------- --------
Profit/(loss) for the year 4 (663)
-------------------------------------- -------- -------- -------- -------- -------- --------
Additions of non-current
assets 1,028 1,028 1,006 1,006
-------------------------------------- -------- -------- -------- -------- -------- --------
Products and services
The following table provides an analysis of the Group's revenue
by products and services:
Revenue
2021 2020
GBP'000 GBP'000
----------------------- --- --------- ---------
Recurring income 5,009 5,745
Non-recurring income 427 485
Third party revenues 163 102
5,599 6,332
----------------------- --- --------- ---------
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 licenses 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 2021
or 2020.
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
2021 2020
GBP'000 GBP'000
------------ --- --------- -----------
UK 3,933 3,717
Europe 762 877
Americas 526 1,074
Australia 140 295
ROW 238 369
------------ ---- --------- ---------
5,599 6,332
------------ ---- --------- ---------
Non-current assets by geographical location
2021 2020
GBP'000 GBP'000
------------ --- --------- -------------
UK 7,169 7,460
US 1 1
Australia 4 20
--------- ---------
7,174 7,481
------------ --- --------- -------------
7. Acquisition related, reorganisation and other costs
2021 2020
GBP'000 GBP'000
------------------------------------------ --------- ---------
Included within administrative expenses:
Reorganisation and other costs 6 78
US government loan (Payment Protection
Program) (154) -
Australian government grant (6) (71)
Amortisation of acquisition intangibles 213 213
Write-off of capitalised development - 435
-------------------------------------------- --------- ---------
59 655
------------------------------------------ --------- ---------
Reorganisation and other costs include severance payments and
loss of office payments. The write-off of capitalised development
relates to a product that is no longer actively sold.
8. Tax income
2021 2020
GBP'000 GBP'000
Current tax (96) (99)
Prior year adjustment - current
tax (121) (108)
Total current tax (217) (207)
Deferred tax (35) (123)
Prior year adjustment - deferred
tax (60) 80
Deferred tax rate change to 25%
(2020: 19.0%) 50 40
Deferred tax re acquisition intangibles (40) (41)
Total deferred tax (85) (44)
------------------------------------------- ------- --------- ---------
Tax (income) for the year (302) (251)
------------------------------------------- ------- --------- ---------
Factors affecting the tax credit for
the year
Loss before tax (298) (914)
UK rate of taxation 19.0% 19.0%
Loss before tax multiplied by the UK
rate of taxation (57) (174)
Effects of:
Overseas tax rates (6) 1
Impact of deferred tax not provided (1) 8
Enhanced R&D relief (146) (143)
Disallowed expenses 18 14
Deferred tax rate change to 25%
(2020: 19.0%) 41 40
Rate difference between CT rate
and rate of R&D repayment 30 31
Prior year adjustments (181) (28)
------------------------------------------ ------- --------- ---------
Tax (income) (302) (251)
------------------------------------------ ------- --------- ---------
9. Earnings per share
2021 2020
Using adjusted Using adjusted
profit 2021 profit 2020
Profit/(loss) attributable GBP48,000 GBP4,000 GBP(116,000) GBP(663,000)
to ordinary shareholders
(note 2)
Weighted average number
of shares 19,668,021 19,668,021 19,668,021 19,668,021
Basic profit/(loss) per
share 0.24 p 0.02 p (0.59) p (3.37) p
----------------------------- --------------- ----------- --------------- -------------
Weighted average number
of shares after dilution 19,668,021 19,668,021 19,670,013 19,670,013
Fully diluted profit/(loss)
per share 0.24 p 0.02 p (0.59) p (3.37) p
----------------------------- --------------- ----------- --------------- -------------
Reconciliation of basic to diluted average number of shares:
2021 2020
---------------------------------------- --- ----------- -----------
Weighted average number of shares
(basic) 19,668,021 19,668,021
Effect of dilutive potential ordinary
shares - employee share plans - 1,992
---------------------------------------- ---- ----------- -----------
Weighted average number of shares
after dilution 19,668,021 19,670,013
---------------------------------------------- ----------- -----------
There are 493,337 (2020: 953,337) 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 and therefore does not impact the calculation of the fully
diluted earnings per share.
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END
FR FZGZDNKLGZZM
(END) Dow Jones Newswires
April 26, 2022 02:00 ET (06:00 GMT)
Dillistone (AQSE:DSG.GB)
過去 株価チャート
から 11 2024 まで 12 2024
Dillistone (AQSE:DSG.GB)
過去 株価チャート
から 12 2023 まで 12 2024
