Dillistone Share Discussion Threads

[woodcutter] 28/4/2013 21:53

this came up on my search criteria filter over the weekend so i decided to take a closer look. Have to agree with general comments from other contributors. However, it's interesting that £803K was capitalised over the year for software development etc.

If this had been written off to the P&L rather than capitalised and amortised over it's life then the eps would have been just under 4p (3.8p) so i figure it's probably reasonable value with the divi thrown in.

Always difficult with software companies evaluating the eps and the capitalised software R&D costs.

I like the business it seesm to be very solid and the chart pattern is beginning to show some positive indicators (not yet confirmed imv) so i'll leave for now but it's on my watch list.




Woody

[valhamos] 24/4/2013 14:16

A lot of good comments.

Sammy - thanks for the link

Adam - YoY revenue growth rates can be difficult to track/predict. This is because historically DSG has released a new version of FileFinder every other year. The latest release FileFinder10 was a major re-write and was launched in March 2011 which explains the 12% revenue growth in that year. (In this regard the comment in the announcement today that Q1 2013 was the best in terms of order intake since Q2 2011 is interesting). I don't know if there will be a new release this year, clearly the major focus is on Voyager which has the greater growth propects.

As Voyager orders in Q1 2013 is ahead of Q1 last year and the benefit of the new release in September has only just started to come through, I would be looking for a decent increase in turnover for FY13. Also worth bearing in mind, in terms of downside protectio, the significant proportion of recurring revenue.

[adamb1978] 24/4/2013 13:10

Just having a look at these for the first time. At first glance it looks like your getting a fast growing business for not much more than 10x historic however if you strip out the acquisition which took place in H2 FY11 then organic revenue growth was 12% in Fy11 and -2% in FY12

What are poster's expectations for turnover in FY13?
Thanks

[sammy_smith] 24/4/2013 08:56

Final results interview with Jason Starr, Group Chief Executive & Julie Pomeroy, Finance Director, Dillistone Group.

Click the link to listen.

[saucepan] 24/4/2013 08:22

I have to acknowledge, too, cfro: it looks quite a nice buying point on the chart. Good luck holders.

[cfro] 24/4/2013 08:18

Think thats a fair enough POV saucy. Nice medium term hold describes DSG right imo. This company's got a wonderfull earnings track record and does come through the zulu criteria.

[saucepan] 24/4/2013 08:14

I did look at results today. "Solid" seems a fair assessment - but not enough to tempt me back in, when I think there are better opportunities elsewhere.

[valhamos] 24/4/2013 08:04

"Yes, ahead but but not by 10% - possibly 6.8 eps? " - #53

Post exceptionals eps comes in at 6.79p so in line with my understanding of the last update. DSG is a solid zulu with a good dividend yield; with the Voyager acquisition making a valuable contribution to the results. A long-term hold for me.

[puku] 14/3/2013 14:53

saucepan got his timing right. Now down to 76p and looking cheap. holding but topping up- awaiting results in late April.

[valhamos] 07/2/2013 23:00

Yes, ahead but but not by 10% - possibly 6.8 eps? (2jamdog, why "trying unsuccessfully to say"? You got it and I'm sure others did as well) After a great run had to be really special to avoid the impulse to "sell on news", though volume today no more than the recent averaqe. Encouraging about prospects for 2013 with a "strong start" and client orders "well up" on 2012.

The existing current year forecast of 7.65p gives a P/E of 11.2 and a PEG of 0.7 so I happy to sit tight.

As regards the comment on dividends, last year the update merely said that "The board of Dillistone intends to maintain its current dividend policy". Perhaps the use of the word "progressive" is giving a hint that the dividend after being 3.5p for a number of years will increase to more than the forecast 3.6p?

[2jamdog] 07/2/2013 11:42

It's a stupid announcement. It's either in line, or ahead
What they are trying unsuccessfully to say is that it's ahead but by
Less than 10%
Also the part about progressive dividend growth omits
The usual phrase "in line with earnings". Whoever advised
Them on the statement needs to think more clearly
About reaction to what's not there

[saucepan] 07/2/2013 10:42

I am out today. I had hoped for more than "in line", with Voyager software just taking off.

[hastings] 30/1/2013 13:16

Another little nudge up today.

[cambium] 29/1/2013 15:34

@equity_research: DSG.L impressive presentation at investor do by CEO Jason Starr. Co looking for more acquisitions...meanwhile 4 per cent yield.

[saucepan] 29/1/2013 07:20

Yes, looking good.

2012 projected P/E only 9.6 and PEG 0.5, so plenty of value still on offer it would seem.

[2jamdog] 10/1/2013 15:01

Directors Sale & Purchase announced today. Rather scuppers the idea that there will be a trading update in January, or they would have waited/been barred from trading while they had unpublished price sensitive information.

[puku] 04/1/2013 16:02

timed my buy nicely at 71.5 p - liked the quiet board, thought it was slipping under the radar,very happy with the recent rise. Interim eps was 3.3p without Voyager so a lot more to come. And a yield of 6% meanwhile. IMHO.

[valhamos] 03/1/2013 18:37

Hi Saucepan, - yes, it's been nicely building up momentum these past few weeks ahead of the trading update later this month.

[saucepan] 03/1/2013 13:38

Breakout :-)

[saucepan] 21/11/2012 13:31

The DSG chart seems to be coming back to life this past couple of days. Some buyers nibbling away. I fancy the stock for a run to retest 80p resistance at the very least.

[valhamos] 12/10/2012 21:55

Saucepan

Thanks for posting the details from Sharescope.

There doesn't seem to be a lot of interest in DSG at the moment. But I'm happy to wait for the re-rating. Some stocks I catch when there is a nice momentum building, but others look so good in terms of value and growth prospects, like DSG, I'm happy to tuck away and more or less forget about them.

DSG has a really solid business and user base:

[saucepan] 07/10/2012 18:56

There has been a lot of good discussion on DSG on the ZULU thread (and to which Valhamos has contributed) to be found, for anyone interested, among posts #1224 to #1256.

The following are some of the attractive ShareScope data that caught my eye when researching DSG: