Dillistone Group Plc
and delay to announcement of final results
Dillistone Group Plc ("Dillistone", the "Company" or the "Group"), the AIM quoted supplier of software for the international recruitment industry, is today updating investors on the impact of COVID-19 on the business and the announcement of results for the year ended 31 December 2019.
The Company has acted quickly to follow Government guidelines, prioritising the safety of our staff. Following on from last year's reorganisation, it had already established the ability for employees to work from home and this has been rolled out to the majority of our colleagues across the world. This is allowing the Company to continue to support its clients in their day to day working.
We are pleased to report that, prior to the impact of COVID-19, the Group had enjoyed a strong start to the year, with orders comfortably ahead of internal targets and early results suggesting that the Group was on track to return to profitability in H1.
As with other firms, the Group has seen a significant reduction in demand for our products and services over recent weeks as well as clients requesting relief on contractual terms. The Board has reacted swiftly to this, taking advantage of various government schemes, including furloughing, and it is pleased to report that all staff have given their support to the Board's plans by accepting a Group-wide temporary pay-cut, including all executive and non-executive directors.
While it is too early to quantify the impact of the pandemic on our full year results, it is clear that - despite our encouraging start to FY 2020 - the impact of COVID-19 will now have a material adverse effect on the Group.
The inherent uncertainty of the situation also means that the Company is unable to give precise guidance at this time on the likely 2020 outturn, other than that it will be significantly below any previous expectations in the market.
In addition to the significant cost reductions, the Board has taken steps to protect the Group's cash position. We have agreed postponement of bank loan repayments for 6 months and will also be seeking support through the UK Government's Business Interruption Loan scheme.
Provided such support is forthcoming, the Board does not anticipate, at this stage, seeking support from our investors.
Postponement of results
As a result of the currently challenging operating environment and the request by the Financial Reporting Council to delay the announcement of preliminary results, Dillistone will be postponing the publication of its annual results for the period ended 31 December 2019, previously due to be released w/c 27 April 2020. A further update will be made in due course regarding the revised publication dates for both the annual results and Annual General Meeting.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Dillistone Group Plc
Via Walbrook PR
WH Ireland Limited (Nominated adviser)
Head of Corporate Finance
020 7220 1650
Tom Cooper / Paul Vann
020 7933 8780
0797 122 1972
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. Dillistone operates through the Ikiru People brand (www.IkiruPeople.com).
The Group develops, markets and supports the FileFinder, Infinity, Midoffice, ISV and GatedTalent products.
Dillistone was admitted to AIM, a market operated by the London Stock Exchange plc, in June 2006. The Group employs around 100 people globally with offices in Basingstoke, Southampton, Frankfurt, New Jersey and Sydney.
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Voyager Software Australia: https://www.voyagersoftware.com/au/
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