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Dillistone recurring revenue up 10%

Thursday, 28th September 2017
Dillistone's revenue rose by 0.4% to £4.829m in the six months to the end of June with recurring revenue up 10% at £3.711m.

The group also announced that its new product 'GatedTalent' would be formally launched at the World Executive Search Congress in London on 9-10 Oct.

the group said cost of sales increased by 13% in H1 2017 mainly due to the continued roll out of third party data centres for hosting our cloud products.

Administration expenses rose 16% in H1 2017, mainly due to increased salary costs and £0.182 million of expenditure associated with the development of GatedTalent.

Depreciation and amortisation increased 18% to £0.551m (2016: £0.467m). Administrative costs also included £0.189m (2016: £0.189m) relating to the amortisation of acquisition intangibles.

EBITDA fell 44% to £0.670m (2016: £1.204m).

Total depreciation and amortisation, including amortisation of acquisition intangibles, increased to £0.740m (2016: £0.656m) resulting in a loss before tax of £0.075m (2016: profit £0.538m).

Non-executive chairman Mike Love said: 'As previously announced, trading in the first few months of the year was challenging, although we have seen some improvement in incoming orders since then.

'We are pleased that recurring revenues in both divisions are at record levels providing good forward visibility of cash flows and largely covering the Group's administrative and product development cost base.

'The early response to our new product GatedTalent is extremely positive and we are excited at its potential. This new product is essentially a start up being developed within the auspices of an established business.

'We believe that it has the potential to transform the nature of our business and to deliver significant shareholder value.

'As clear evidence of our belief in the opportunity, I am pleased to report that the Directors and PDMRs have entered into an agreement to subscribe for convertible loan notes of £400,000.

'The Group received several indicative offers of funding from both existing and new investors. These offers included both debt and equity options.

'The Directors and PDMRs' loan is in financial terms equivalent to the best offer received but without any of the constraints on the business.

'This money will be used to help fund the development and rollout of GatedTalent. No Interim dividend will be paid at this time and future dividends will depend on the performance of the Group.'

At 9:32am: (LON:DSG) Dillistone Group PLC share price was +2.5p at 54.5p

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