27th Feb 2019 17:42
LONDON (Alliance News) - Dillistone Group PLC, a software supplier to the recruitment industry, said Wednesday that it will close its London office, as it predicted a small adjusted operating profit for 2018.
"In line with market expectations, the group expects to announce a small operating profit for the year to December 31, 2018, prior to acquisition related items, despite the previously announced loss of a major client and the continuing significant investment in the GatedTalent division," the UK listed company said.
The company in 2017 reported adjusted operating profit of GBP309,000.
For 2019, the company said trading in each of the three division has begun well and pretax profit for the current year will be at least comparable with 2018, before restructuring and acquisition related costs.
Profit is expected to grow strongly in 2020 but will be below current market expectations due to economic challenges, the company added.
Dillistone plans to close its London office due to increased space at its offices in both Basingstoke and Eastleigh, reducing the number of UK offices to two from three. The London office closure is anticipated to result in a restructuring cost of between GBP500,000 to GBP900,000.
"We've enjoyed a positive start to trading this year across each of our business units. The changes we are making to our operating structure allow us to continue to invest in and support our traditional markets with a far leaner cost base," said Chief Executive Jason Starr.
The company is slated to release its 2018 results by April 30. Shares in the company closed at 47.00 pence each, down 16%.
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