6th Feb 2020 13:18
(Alliance News) - Dillistone Group PLC on Thursday said it expects to swing to a full-year loss, but added that its earnings performance was in line with market forecasts.
The recruitment industry software supplier anticipates a pretax loss, before one-off costs, of GBP300,000, swinging from a GBP20,000 profit the year prior. Dillistone said the loss in 2019 was "broadly in line with market expectations".
In December, Dillistone said it will "streamline" its corporate structure - which included closing its London office. The restructure results in five UK businesses combining into one, named Ikiru People Pty Ltd.
The company added: "A similar reorganisation has occurred in Australia combining the two companies into one, renamed as Ikiru People Pty Ltd.
"As anticipated, the costs of the reorganisation remain in line with our estimate of less than GBP600,000 and are being funded via the group's existing resources and the GBP500,000 bank loan secured in June 2019."
Dillistone said it expects to reap the rewards from the restructure from 2020 onwards.
The company added: "The company is confident that it will deliver a pretax profit prior to exceptional items in both the first half and second half of 2020. However, the strategic decisions taken mean that this will be delivered on a lower revenue base than previously anticipated, with faster growth than expected from 2021 onwards."
Dillistone shares were 1.5% lower at 33.00 pence each in London on Thursday afternoon.
By Eric Cunha; [email protected]
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