Source - RNS
RNS Number : 3633K
Dillistone Group PLC
21 September 2016
 

 

 

Dillistone Group Plc

("Dillistone", the "Company" or the "Group")

Interim Results

 

Dillistone Group Plc, the AIM quoted supplier of software and services for the recruitment sector, is pleased to announce its interim results for the six months ended 30 June 2016.

 

Operational:

 

Dillistone Systems Division

 

·     Encouraging success with FileFinder Anywhere

New business orders in January - August already significantly ahead of the equivalent value for the whole of 2015

May 2016 saw record month for implementations of FileFinder licences

Launch of a standalone browser based app in March - a first for the mainstream executive search software sector

·     Recurring revenues recovered from poor performance in 2015 and account for 71% of divisional revenue

 

Voyager Software Division

 

·     Incoming new business order values already ahead of equivalent figure for the whole of 2015

·     Infinity SaaS delivering increased recurring revenues which were up 6% and account for 70% of divisional revenue

·     New product announcements expected in September 2016

 

Financial:

·     Revenue up 2% to £4.811m

·     Recurring revenues represent 70% of total revenue and cover 100% of administrative expenses excluding acquisition related items

·     Profit for the period up 3% to £0.489m (2015: £0.476m)

·     Adjusted EBITDA1 up 2% to £1.204m

·     Basic EPS up 1% to 2.48p

·     First half performance exceeded second half of 2015 as previously foreseen

·     Cash balances of £1.611m at 30 June 2016 (2015: £1.335m) and debt of £0.242m (2015: £0.406m)

·     2% increase in interim dividend to 1.375p (2015: 1.35p)

·     Expectation of revenue and profits growth for full year in line with expectations

 1 Adjusted EBITDA is adjusted operating profit with depreciation and amortisation added back.

 

Commenting on the results and prospects, Mike Love, Non-Executive Chairman, said:

 

"After a challenging 2015, we are very happy to deliver an encouraging set of results for the first half of the year, with the recently announced record implementations and orders expected to underpin future periods. 

 

"Despite the uncertain economic horizons, we have delivered both revenue and profit after tax growth.  Very significant increases in new business orders across the Group suggests that we are taking market share from our competitors and demonstrates the success of our ongoing product development strategy.  The recent slide in the value of sterling is having a positive impact on revenues, partially offset by a negative effect on costs.

 

"We will continue to invest in our products, services and infrastructure across the Group as this is essential to delivering long term shareholder value and to strengthening Dillistone's position in its chosen markets.

 

"Our confidence in the future has allowed us to declare a 2% increase in our interim dividend."

 

 

Investor Access Event:

The Directors will be holding an Investor Access event for Private Investors, Private Client Investment Managers and Institutional Investors to introduce the Dillistone Group, review the Interim Results and expand on opportunities at 3.15pm on Monday 26 September 2016 at the Tower of London.  Presentations will be given by the Directors of Dillistone and the Research Analyst from WH Ireland.

Investors will have access to the Directors and customers of Dillistone at a drinks reception to be held later that day at 4pm at the Tower of London in conjunction with the 2016 World Executive Search Congress, an annual event for the Executive Search industry hosted by Dillistone Systems, a division of Dillistone Group.  In addition, guests will be offered the opportunity to visit the Crown Jewels as part of the visit to the historic site.

Those wishing to attend should contact Tom Cooper on [email protected] or 020 7933 8780 or 0797 122 1972 for further details.

 

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)

 

 

Chris Fielding

Head of Corporate Finance

020 7220 1650

 

 

 

Walbrook PR

 

 

Tom Cooper / Paul Vann

 

020 7933 8780

 

 

0797 122 1972

 

 

[email protected]

 

 

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 has four 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 (www.voyagersoftware.com).

Dillistone has made three acquisitions: Voyager Software in September 2011, FCP Internet in July 2013 and ISV Software in September 2014.  The Group operates under the FileFinder, Infinity, 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 and Southampton, Frankfurt, New Jersey and Sydney.

 

 

 

 

 

Chairman's Statement

 

Our financial results show that the Group has made good progress in the first half.  As expected, we have returned to revenue growth as our continued investment in product development is progressively delivering positive results.  Investment in our products remains key to the future success of the business.  We are increasingly selling SaaS based products which have less short term revenue impact but favour longer term recurring revenue.  The advantage to this style of contract is recurring revenue visibility, albeit that it often appears that there is a delay in these new contracts reflecting in the Group's results.

 

We also continue to pursue growth through targeting complementary acquisitions.  This is a strategy that has served us well in the past and which remains part of our core strategy at this time.

 

Revenues increased by 2% over the 6 months to June 2015 with recurring revenues up 4% and now representing 70% of total revenues.  The growth in new business orders across both divisions in H1 has been very pleasing to see.

 

Profit after tax was up 3% to £0.489m (2015: £0.476m).

 

Divisional review

 

We are pleased to report a turnaround in the performance of our Dillistone Systems division.  After a challenging 2015, we had stated that we faced a more competitive market than in previous years and, as a result, we felt it necessary to increase investment in the Division.  It was our expectation that we would return to both revenue and profit growth in 2016.  The performance in 2015 meant that we began the period with recurring revenues at a lower level that those seen at the same stage in the previous year, but over the reporting period we have wiped out this deficit.  Despite economic turbulence, it remains our expectation that the Division will deliver growth in the full year.

 

Dillistone Systems (www.dillistone.com) reported revenues of £2.265m (2015: £2.306m) with recurring revenues up 2% to £1.614m and non recurring revenues down £0.072m in part due to the move in timing of the World Executive Search Congress which is being held in H2 2016 (in H1 2015).

 

The latest release of the FileFinder Anywhere platform has been extremely well received by both existing and new clients.  Evidence of this can be seen in our record month of licence implementations in May and the contract that we announced post the period end with the global search firm Alexander Hughes International headquartered out of Paris for circa 200 new licences.  By the end of August, we had won new business contracts worth significantly more than our total new business order book for the whole of 2015.  Our challenge now is to implement the increased demand for our services while maintaining our performance standards. 

 

As anticipated, Divisional profits are down by £0.063m in the period.

 

Voyager Software (www.voyagersoftware.com) has also enjoyed a good trading period with revenue 6% ahead of 2015 at £2.546m (2015: £2.400m). We are particularly pleased with the performance of our Infinity SaaS platform, launched a year ago, and the continued growth in our FCP Evolve Platform.  The performance of both of these products gives us improved visibility over future revenues.

 

The Division continues to invest in product development and a series of product enhancements will be announced later this month.  Divisional profits increased 5% to £0.412m in the period.

 

Financial Performance

 

Revenue in the six months ended 30 June 2016 increased by 2% to £4.811m (2015: £4.706m).  Recurring revenues increased by 4% to £3.384m over the comparable period last year (2015: £3.257m) and represented 70% of total revenues (2015: 69%).  Non recurring revenues were down at £1.129m (2015: £1.202m). 

 

Cost of sales increased by 5% in H1 2016 mainly due to the continued roll out of third party data centres for hosting our cloud products.  Administration expenses rose 3% in H1 2016, in part due to increased depreciation and amortisation charges, relating primarily to investment in product development.  Excluding depreciation and amortisation, administrative expenses rose 2% over H1 2015.  Administrative costs also include £0.189m (2015: £0.189m) relating to the amortisation of acquisition intangibles.

 

EBITDA grew 2% to £1.204m (2015: £1.185m).  Total depreciation and amortisation, including amortisation of acquisition intangibles, increased to £0.656m (2015: £0.599m) resulting in profit before tax being down 5% to £0.538m (2015: £0.566m). 

 

The tax charge fell to £0.049m in the period to 30 June 2016 (2015: £0.90m). This gave an effective global tax rate of 9.2% (2015: 15.9%).  Excluding acquisition related items the tax rate was 11.34%.  The 2015 and 2016 rates have been reduced by claims in the UK for research and development tax credits reflecting the continuing development of our products.  The falling UK tax rates have also had a positive impact on the charge, which is offset by the higher rates of corporation tax payable in the US and Australia.

 

Basic EPS increased by 1% to 2.48p (2015: 2.45p).

 

Cash generated from operating activities remained strong at £1.347m (2015: £1.111m).  Total cash flow in the 6 months ended 30 June 2016 showed a net cash outflow of £0.070m (2015: outflow £0.560m).  The main elements of non-operating expenditure related to dividends paid in the period of £0.541m (2015: £0.528m) and investment in new product development of £0.539m (2015: £0.464m) and deferred and contingent consideration payments in respect of acquisitions £0.212m (2015: £0.666m).  At 30 June 2016 we had cash reserves of £1.611m (2015: £1.335m) and £0.242m in borrowings (2015: £0.406m).

 

We continue to follow a progressive dividend policy and, reflecting this, the Board has declared an increase in the interim dividend for 2016 of 2%.  Accordingly, a dividend of 1.375p per share (2015: 1.35p) will be paid on 17 November 2016 to holders on the register on 14 October 2016.  Shares will trade ex-dividend from 13 October 2016. 

 

Strategy

 

The Group remains committed to the continued investment in our core products as a means of delivering organic growth.  It will also continue to target appropriate acquisitions in its current or related sectors. 

 

Outlook

 

The Board is pleased to see that the Group's investment in the FileFinder Anywhere platform is starting to show real signs of success.  Although economic turbulence has had some impact on the number and size of the opportunities available to us, our improved market position has seen an increase in both conversion rates and in average order values.  The Dillistone Systems division plans to announce further improvements to the product suite in September 2016 and as a result expects to maintain its improved market performance.

 

Our Voyager Software division has shown growth at both the revenue and the pre-tax profit level, and we expect this to continue.  Our Infinity SaaS product, launched in 2015, has proved increasingly popular, though this model does mean that revenue is not recognised as quickly as in the traditional licence sale but has longer term benefits.  The Division also plans various product launches and upgrades in the remainder of 2016.

 

The last few months have seen some volatility in the recruitment market.  This has led to a reduction in additional licence purchases amongst some of our existing client firms.  This has been more than offset by growth in our new business sales and upgrades for existing clients and we expect this trend to continue.  However, we would not be immune to a more significant economic slowdown.  Nevertheless, with our recurring revenues covering our administrative expenses (excluding acquisition related items), the Group remains in a very solid position.  As a result, in H2 of 2016 the Board expects the Group to make further progress and results are anticipated to be in line with market expectations with the Group delivering both revenue and operational profit growth in the full year.

 

The Board therefore remains confident in the future prospects of the Group and has declared an increase in the interim dividend to 1.375p per share.

 

Mike Love

Chairman

 

 


 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

 

Note

6 Months ended 30 June

Year ended 31 Dec

 

 

2016

2015

2015

 

 

Unaudited

Unaudited

Audited

 

 

£'000

£'000

£'000

Revenue

4

 4,811

  4,706

  9,437

Cost of sales

 

(694)

(661)

(1,313)

Gross profit

 

 4,117

  4,045

  8,124

Administrative expenses

 

(3,569)

(3,459)

(7,016)

 

 

 

 

 

Result from operating activities

4

 548

  586

1,108

 

 

 

 

 

Analysed as:

 

 

 

 

Result from operating activities before acquisition related items

 

737

 775

 1,424

 

 

 

 

 

Acquisition related items

5

(189)

(189)

(316)

Result after acquisition related items

548

 586

 1,108

 

 

 

 

 

Financial income

 

3

4

5

Financial cost

 

(13)

(24)

(41)

Profit before tax

 

 538

  566

1,072

 

 

 

 

 

Tax (expense)/income

6

(49)

(90)

140

Profit for the period

 

 489

  476

1,212

 

 

 

 

 

Other comprehensive income net of tax:

 

 

Currency translation differences

 

(4)

(14)

(27)

Total comprehensive income for period net of tax

 

 485

  462

1,185

 

 

 

 

 

Earnings per share (pence)

 

 

 

 

Basic

8

2.48

2.45

6.20

Diluted

 

2.46

2.34

6.00

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

 

 

As at

 

As at 30 June

31 Dec

 

2016

2015

2015

 

Unaudited

Unaudited

Audited

ASSETS

£'000

£'000

£'000

Non-current assets

 

 

 

Goodwill

3,415

3,415

3,415

Intangible assets

6,084

6,245

6,163

Property plant & equipment

259

295

257

 

9,758

9,955

 9,835

Current assets

 

 

 

Inventories

9

27

16

Trade and other receivables

  1,961

  1,839

 1,736

Cash and cash equivalents

  1,611

  1,335

 1,595

 

  3,581

  3,201

 3,347

Total assets

13,339

13,156

  13,182

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

Equity

 

 

 

Share capital

  983

  978

 983

Share premium

  1,631

  1,553

 1,631

Merger reserve

  365

  365

 365

Retained earnings

  3,956

  3,462

 4,008

Share option reserve

 70

  130

71

Translation reserve

 97

  114

 101

Total equity

  7,102

  6,602

 7,159

 

 

 

 

Liabilities

 

 

 

Non current liabilities

 

 

 

Trade and other payables

  178

  428

 428

Borrowings

 72

  242

 158

Deferred tax

  980

  1,139

 1,006

Current liabilities

 

 

 

Trade and other payables

  4,599

  4,281

 4,193

Borrowings

  170

  164

 167

Current tax payable

  238

  300

71

Total liabilities

  6,237

  6,554

 6,023

 

 

 

 

Total liabilities and equity

13,339

13,156

13,182

 

The interim report was approved by the Board of directors and authorised for issue on 20 September 2016.  They were signed on its behalf by:

 

JS Starr                                              J P Pomeroy
 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

 

 

As at

 

As at 30 June

31 Dec

 

2016

2015

2015

 

 Unaudited

 Unaudited

 Audited

 

 £'000

 £'000

 £'000

Operating Activities

 

 

 

Profit before tax

538

 566

 1,072

Add taxation repaid/(paid)

 96

(92)

(219)

Adjustment for

 

 

 

  Financial income

(3)

(4)

(5)

  Financial cost

 13

24

  41

  Depreciation and amortisation

656

 600

 1,240

  Share option expense

(1)

22

  28

  Other including foreign exchange

  adjustments arising from operations

(16)

(10)

(16)

Operating cash flows before movements in working capital

1,283

  1,106

 2,141

 

 

 

 

Increase in receivables

(155)

(83)

278

Decrease / (Increase) in inventories

8

14

  25

Increase in payables

211

74

(307)

Net cash generated from operating activities

1,347

  1,111

 2,137

 

 

 

 

Investing Activities

 

 

 

Interest received

3

 4

5

Finance cost

(5)

(7)

(13)

Purchases of property plant and equipment

(40)

(60)

(84)

Investment in development costs

(539)

(464)

(961)

Contingent consideration paid

(212)

(666)

(666)

Net cash used in investing activities

(793)

(1,193)

(1,719)

 

 

 

 

Financing Activities

 

 

 

Proceeds from issue of share capital

-

 130

213

Bank loan repayments made

(83)

(80)

(162)

Dividends paid

(541)

(528)

(793)

Net cash used by financing activities

(624)

(478)

(742)

 

 

 

 

Net change in cash and cash equivalents

(70)

(560)

(324)

 

 

 

 

Cash and cash equivalents at beginning of the period

1,595

  1,929

 1,929

 

 

 

 

Effect of foreign exchange rate changes

 86

(34)

(10)

 

 

 

 

Cash and cash equivalents at end of period

1,611

  1,335

 1,595

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

 

 Share

 Share

 Merger

 Retained

 Share

 Foreign

 

 Total

 

capital

premium

Reserve

 earnings

option

exchange

 

 

 

 £'000

 £'000

 £'000

 £'000

 £'000

 £'000

 

£'000

 

 

 

 

 

 

 

 

 

 Balance at 31 December 2014

969

1,432

365

3,514

  118

 128

 

6,526

 

 

 

 

 

 

 

 

 

 Comprehensive income

 

 

 

 

 

 

 

 

 Profit for the 6 months ended 30 June 2015

 -

 -

 -

476

 -

 -

 

  476

 

 

 

 

 

 

 

 

 

 Other comprehensive income

 

 

 

 

 

 

 

 

 Exchange differences on translation of overseas operations

 -

 -

 -

 -

 -

(14)

 

(14)

 Total comprehensive income

 -

 -

 -

476

-

(14)

 

  462

 

 

 

 

 

 

 

 

 

 Transactions with owners

 

 

 

 

 

 

 

 

 Issue of share capital

 9

121

 -

 -

 -

 -

 

  130

 Share option charge

 -

 -

 -

 -

 12

 -

 

 12

 Dividends paid

 -

 -

 -

(528)

 -

 -

 

(528)

 

 

 

 

 

 

 

 

 

 Balance at 30 June 2015

978

1,553

365

3,462

  130

 114

 

6,602

 

 

 

 

 

 

 

 

 

 Comprehensive income

 

 

 

 

 

 

 

 

 Profit for the 6 months ended 31 Dec 2015

 -

 -

 -

736

 -

 -

 

  736

 

 

 

 

 

 

 

 

-

 Other comprehensive income

 

 

 

 

 

 

 

-

 Exchange differences on translation of overseas operations

 -

 -

 -

 -

 -

(13)

 

(13)

 Total comprehensive income

 -

 -

 -

736

-

(13)

 

  723

 

 

 

 

 

 

 

 

 

 Transactions with owners

 

 

 

 

 

 

 

 

 Issue of share capital

 5

  78

 

 

 

 

 

 83

 Share option charge

 -

 -

 -

 75

(59)

 -

 

 16

 Dividends paid

 -

 -

 -

(265)

 -

 -

 

(265)

 

 

 

 

 

 

 

 

 

 Balance at 31 December 2015

983

1,631

365

4,008

 71

 101

 

7,159

 

 

 

 

 

 

 

 

 

 Comprehensive income

 

 

 

 

 

 

 

 

 Profit for the 6 months ended 30 June 2016

 -

 -

 -

489

 -

 -

 

  489

 

 

 

 

 

 

 

 

-

 Other comprehensive income

 

 

 

 

 

 

 

-

 Exchange differences on translation of overseas operations

 -

 -

 -

 -

 -

(4)

 

(4)

 Total comprehensive income

 -

 -

 -

489

-

(4)

 

  485

 

 

 

 

 

 

 

 

 

 Transactions with owners

 

 

 

 

 

 

 

 

 Issue of share capital

 -

 -

 -

 -

 -

 -

 

-

 Share option charge

 -

 -

 -

 -

(1)

 -

 

(1)

 Dividends paid

 -

 -

 -

(541)

 -

 -

 

(541)

 

 

 

 

 

 

 

 

 

 Balance at 30 June 2016

983

1,631

365

3,956

 70

97

 

7,102

 

 

 

 

NOTES TO THE INTERIM

 NOTES TO THE UNAUDITED INTERIM REPORT

CONSOLIDATED STATEMENT OF

1.         Basis of Preparation

 

The financial information for the six months ended 30 June 2016 included in this condensed interim report comprises the consolidated statement of comprehensive income, the consolidated statement of financial position, the consolidated statement of cash flows, the consolidated statement of changes in equity and the related notes on pages 12 - 18. 

 

These interim financial statements have not been audited nor have they been reviewed by the auditors under ISRE 2410 of the Auditing Practices Board.  The financial information set out in this report does not constitute statutory accounts as defined by the Companies Act 2006.  The comparative figures for the year ended 31 December 2015 were derived from the statutory accounts for that year which have been delivered to the Registrar of Companies. Those accounts received an unqualified audit report which did not contain statements under sections 498(2) or (3) (accounting records or returns inadequate, accounts not agreeing with records and returns or failure to obtain necessary information and explanations) of the Companies Act 2006.

 

The interim financial statements have been prepared on the basis of the accounting policies set out in the December 2015 financial statements of Dillistone Group Plc and on a going concern basis.  They are presented in sterling which is also the functional currency of the parent company.  They do not include all of the information required in annual financial statements in accordance with IFRS and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2015.

 

Dillistone Group Plc is the Group's ultimate parent company.  It is a public listed company and is domiciled in the United Kingdom.  The address of its registered office and principal place of business is 50 Leman St, London, E1 8HQ.  Dillistone Group Plc's shares are listed on the Alternative Investment Market (AIM).

 

2.         Share Based Payments

 

The Company operates two share option schemes.  The fair value of the options granted under these schemes is recognised as an employee expense with a corresponding increase in equity.  The fair value is measured at grant date and spread over the period at the end of which the option holder may exercise the option.  The fair value of the options granted is measured using the Black-Scholes model.

  

3          Reconciliation of adjusted operating profits to consolidated statement of comprehensive income 

 

 

30 June 2016 and 30 June 2015

 

 

 

Adjusted operating profits

Acquisition related items

 

 

Adjusted operating profits

Acquisition related items

 

 

 

30 June 2016

 2016*

30 June 2016

 

30 June 2015

 2015*

30 June 2015

 

 

 

 

 

 

 

 

 

 

 

£'000

£'000

 £'000

 

£'000

£'000

 £'000

 

 

 

 

 

 

 

 

 

Revenue

 

4,811

-

4,811

 

4,706

-

4,706

 

 

 

 

 

 

 

 

 

Cost of sales

 

(694)

-

(694)

 

(661)

-

(661)

 

 

 

 

 

 

 

 

 

Gross profit

 

4,117

0

4,117

 

4,045

-

4,045

 

 

 

 

 

 

 

 

 

Administrative expenses

 

(3,380)

(189)

(3,569)

 

(3,270)

(189)

(3,459)

 

 

 

 

 

 

 

 

 

Results from operating activities

 

737

(189)

548

 

775

(189)

586

 

 

 

 

 

 

 

Financial income

 

3

 -

3

 

4

 -

4

Financial cost

 

(5)

(8)

(13)

 

(7)

(17)

(24)

 

 

 

 

 

 

 

 

 

Profit before tax

 

735

(197)

538

 

772

(206)

566

 

 

 

 

 

 

 

 

 

Tax expense/(income)

 

(83)

  34

(49)

 

(128)

 38

(90)

 

 

 

 

 

 

 

 

 

Profit for the year

 

652

(163)

489

 

644

(168)

476

 

 

 

 

 

 

 

Other comprehensive income net of tax:

 

 

 

 

 

 

 

 

Currency translation differences

 

(4)

-

(4)

 

(14)

 -

(14)

 

 

 

 

 

 

 

 

 

Total comprehensive income for the year net of tax

 

648

(163)

485

 

630

(168)

462

 

 

Earnings per share - from continuing activities

 

Basic

 

 

3.31p

 

2.48p

3.31p

2.45p

Diluted

 

 

3.28p

 

2.46p

3.16p

2.34p

 

                       

 

*  see accounts note 5

 

 

31 December 2015

 

 

 

Adjusted operating profits

Acquisition related items

 

 

 

 

31 December 2015

 2015*

 

31 December 2015

 

 

 

 

 

 

 

 

£'000

£'000

 

 £'000

 

 

 

 

 

 

Revenue

 

 9,437

 -

 

 9,437

 

 

 

 

 

 

Cost of sales

 

(1,313)

 -

 

(1,313)

 

 

 

 

 

 

Gross profit

 

 8,124

 -

 

 8,124

 

 

 

 

 

 

Administrative expenses

 

(6,700)

(316)

 

(7,016)

 

 

 

 

 

 

Results from operating activities

 

 1,424

(316)

 

 1,108

 

 

 

 

 

 

Financial income

 

  5

  -

 

  5

Financial cost

 

(13)

(28)

 

(41)

 

 

 

 

 

 

Profit before tax

 

 1,416

(344)

 

 1,072

 

 

 

 

 

 

Tax income

 

  3

  137

 

 140

 

 

 

 

 

 

Profit for the year

 

 1,419

(207)

 

 1,212

 

 

 

 

 

 

Other comprehensive income net of tax:

 

 

 

 

 

Currency translation differences

 

(27)

 -

 

(27)

 

 

 

 

 

 

Total comprehensive income for the year net of tax

 

 1,392

(207)

 

 1,185

 

 

Earnings per share - from continuing activities

 

Basic

7.26p

6.20p

Diluted

7.02p

6.00p

 

 

*  see accounts note 5

 

 

4.         Segment reporting

 

 

 

 

Year ended

 

6 months ended 30 June

31 Dec

 

 

2016

2015

2015

 

 

£'000

£'000

£'000

 

Revenue

 

 

 

 

Dillistone Systems

2,265

2,306

4,620

 

Voyager Software

2,546

2,400

4,831

 

Inter-divisional

-

-

(14)

 

Total revenue

4,811

4,706

9,437

 

           

 

 

Results by division

 

 

 

 

 

 

Year ended

 

 

6 months ended 30 June

31 Dec

 

 

2016

2015

2015

 

 

£'000

£'000

£'000

 

 

 

 

 

Results from operating activities

 

 

 

Dillistone Systems

417

480

891

 

Voyager Software

412

392

629

 

 

829

872

1,520

 

 

 

 

 

 

Central

(92)

(97)

(96)

 

 

 

 

 

 

Amortisation of acquisition intangibles and other items

(189)

(189)

(316)

 

Result from operating activities

548

586

1,108

 

                   

 

Geographical segments

 

 

 

The following table provides an analysis of the Group's revenues by geographical market.

 

 

 

 

Year ended

 

 

6 months ended 30 June

31 Dec

 

 

2016

2015

2015

 

 

£'000

£'000

£'000

 

UK

3,938

3,805

7,642

 

US

679

676

1,381

 

Australia

194

225

414

 

 

4,811

4,706

9,437

 

 

 

 

 

                     
 

 

4.         Segment reporting (continued)

 

Business Segment

 

 

 

The following table provides an analysis of the Group's revenues by products and services.

 

 

 

Year ended

 

 

6 months ended 30 June

31 Dec

 

 

2016

2015

2015

 

 

£'000

£'000

£'000

 

Recurring

3,384

3,257

6,606

 

Non recurring

1,129

1,202

2,333

 

Third party revenues

298

247

498

 

 

4,811

4,706

9,437

 

 

 

 

 

Recurring income includes all support services, software as a service income (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.

               

 

5          Acquisition related items

 

 

 

Year ended

 

6 months ended 30 June

31 Dec

 

2016

2015

2015

 

£'000

£'000

£'000

Estimated change in fair value of contingent consideration

-

-

(63)

Amortisation of acquisition intangibles

189

189

379

 

 

 

 

 

189

189

316

Unwinding of discount on contingent consideration

8

17

28

 

 

 

 

Total

197

206

344

  

 

6          Tax

 

 

 

Year ended

 

6 months ended 30 June

31 Dec

 

2016

2015

2015

 

£'000

£'000

£'000

Current tax charge

73

103

191

Prior year adjustment - current tax

-

-

(185)

Deferred tax charge

10

25

(25)

Prior year adjustment - deferred tax

-

-

16

Deferred tax re acquisition intangibles

(34)

(38)

(137)

Total

49

90

(140)

 

The tax charge 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 and Voyager Software.  Deferred tax has been provided at 18%.

 

7.         Dividends

 

The Board has decided to pay an interim dividend of 1.375p per share (2015: 1.35p) on 17 November 2016 to holders on the register on 14 October 2016.  Shares will trade ex-dividend from 13 October 2016.

 

8.         Earnings per Share

 

 

 

Year ended

 

6 months ended 30 June

31 Dec

 

2016

2015

2015

Basic earnings per share

 

 

 

Profit attributable to ordinary shareholders

£489,000

£476,000

£1,212,000

 

 

 

 

Weighted average number of shares

19,668,021

19,434,115

19,547,754

 

 

 

 

Basic earnings per share (pence)

2.48

2.45

6.20

 

 

 

 

Diluted earnings per share

 

 

 

Profit attributable to ordinary shareholders

£489,000

£476,000

£1,212,000

 

 

 

 

Diluted weighted average number of shares

19,857,686

20,337,715

20,209,339

 

 

 

 

Diluted earnings per share (pence)

2.46

2.34

6.00

 

9.         Related party transactions

 

The Company has a related party relationship with its subsidiaries, its directors, and other employees of the Company with management responsibility.  There were no transactions with these parties during the period outside the usual course of business. 

 

There were no transactions with any other related parties.

 

 

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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