27th Apr 2018 09:09
LONDON (Alliance News) - Dillistone Group PLC retained, but slashed, its final dividend Friday as its sunk to a 2017 loss on higher costs and lower revenue but reported a well-received new product launch and "record" recurring revenue.
In 2017, the recruitment software firm sank to a GBP525,000 pretax loss after reporting a GBP392,000 profit the year prior. This was after revenue fell to GBP9.6 million from GBP10.0 million the year before.
Profit performance also was hurt by a rise in cost of sales and administrative costs in the year. Cost of sales rose modestly to GBP1.54 million from GBP1.48 million the year prior despite revenue falling. Administrative costs also grew, to GBP8.6 million from GBP8.1 million the year before.
"The current trading performance of the group is positive with orders for both Dillistone Systems and Voyager Software ahead of the same period in 2017 - with the former more than 25% up on the same period in 2017 and the latter having one of the best quarters for new business orders in its history," Dillistone Chairman Mike Love said.
"Our GatedTalent product, launched in October 2017, has been very well received with a growth trajectory that, we believe, will lead to it becoming the dominant product in its market space within a year," Love added.
"Recurring revenues for 2017 were at record levels and, despite the ongoing investment in product development, cash reserves have held up well," Love continued. "Overall, despite the evident pressure on new licence sales in 2017 and the loss for the year, going into 2018 the group believes that it is now in a stronger position in its core markets than in recent years."
At the end of 2017, Dillistone had GBP1.4 million in cash, down from GBP1.5 million the year prior. Its debt doubled to GBP391,000 from GBP158,000 the year before.
"This confidence in the future allows us to recommend a final dividend of 0.5p and we anticipate reporting further positive progress as the year progresses", Love explained.
The 0.5 pence per share final dividend was markedly lower than the 2.75p final dividend declared in 2016. As Dillistone cancelled its interim dividend in 2017, its 0.5p full year payment was also lower than the 4.1p paid in 2016.
Shares in Dillistone were down 7.7% at 88.14p on Friday.
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