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16/3/2018
06:57 | gonzela: The share price has almost doubled already to show the progress but that market cap has gone ahead of itself. You said ride the wave; we could be at the top of the wave and a correction. I reckon people won't like the financial numbers next month.
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15/3/2018
22:14 | gonzela: See for yourself: the figures are prior to acquisition related items and any adjustment related to the previously announced contract termination. Wonder how much these amount to.
If GatedTalent were that great, why are they not providing financial figures for it? Even they don't expect profitability from it until two years down the line.
The share price went ahead of itself too eartly.
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27/4/2016
15:09 | valhamos: "Yeah quoting the yield based on a certain share price isn't really the done thing in results RNS's."
Well then it is good to see someone daring to be different for once in a while rather than being a slave to convention.
The obvious question in the light of today's statement is if the outlook is so good (Dillistone's Filefinder Anywhere orders up 70%, Voyager up 50% in Q1) why isn't the dividend being increased by more? I think re-affirming the progressive dividend policy whilst quoting the existing good dividend yield answers that question. In other words increasing the dividend isn't an end in itself; personally I think DSG would want to build up cash ready for a further acquisition later this year.
"You'd want them to be championing the products, the people, the satisfied customers, their strong competitive position, etc.
That he didn't mention any of those only the dividend made me think that return on incremental capital was likely to be very low going forward and the results will pretty much go up and down based on the markets they operate in."
Although ROIC has declined over the last couple of years at 20% it is still a reasonably good return and I am expecting it to be higher this year.
By the way if the Chairman and CEO are only talking about the dividend you would have to wonder what most of their reports were about. Doesn't "increase in client retention rate" indicate 'satisfied customers' or "Pleasingly, this growth is based on significant increases in both the number of new client wins and the value of those contracts" suggest strong competitive position? Isn't "the only truly browser based product from a mainstream supplier to the executive search market" 'championing the product'?
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27/4/2016
13:37 | dangersimpson2: Yeah quoting the yield based on a certain share price isn't really the done thing in results RNS's.
I remember seeing the CEO giving an interview on proactive investors a few months ago and when asked why should one invest in Dillistone his main response was that it paid a good dividend.
While the dividend isn't bad, and if you have run out of ideas to re-invest capital it is the best use of that capital, I would expect a different answer from a company CEO. You'd want them to be championing the products, the people, the satisfied customers, their strong competitive position, etc.
That he didn't mention any of those only the dividend made me think that return on incremental capital was likely to be very low going forward and the results will pretty much go up and down based on the markets they operate in.
That may be enough for some people in today's interest environment to collect the 5% yield while the business generally keeps up with inflation & the business cycle. I held in the past but 5% is just not a high enough return to interest me. So unless I see evidence that the management are capable of generating higher ROIIC ideas not just focused on paying a dividend I am unlikely to invest again in the near future.
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27/4/2016
09:37 | valhamos: I always thought the share price fall after the interims was overdone. As it happens despite the expected profit reduction at the Dillistone Systems division because of increased investment overall profit after tax was actually slightly up because of a tax adjustment. But the strong outlook on the back of Q1 orders suggests we will get the benefit from that investment this year.
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21/10/2013
00:19 | 2jamdog: Interestingly, the main thread here http://uk.advfn.com/exchanges/LSE/dillistone-DSG/share-price
has a link called "dillistone takeover rumours". There's no content, but is this really a possibility? What sort of price would tempt them?
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13/4/2007
13:03 | peach: http://www.advfn.com/p.php?pid=nmona&cb=1176464142&article=20155897&symbol=L%5EDSG
The final results appear very strong. The particularly interesting points for me are:
- despite just less that half the revenues coming from outside the UK, and so currency movement being against them, they have managed very strong growth. So underlying growth is even higher
- cash flow continues to be very strong and they have no long term debt
- strong profit growth, despite the development costs of Filefinder 8
- given the guidence for a 2 times div cover - this should put them on a 4% yield
- they are expanding outside of the executive search market into general corporate sales
- they see considerable growth from emerging markets
- order intake in Jan and Feb is 32% ahead of the same period last year
The main issue is how robust the business model/quality of product is versus peers (Bonds International is the main UK competitor and there is also an unlisted US competitor) and the fact that 2/3rd of current revenue is from one-off projects.
But the results put them:
- on a historic PE of around 12 (less if you adjust for the net cash position).
- prospective PE of less than 10 is you think they can manage more than 20% growth this year
- historic growth is over 40% and they are upbeat going forward
- a very high ROE
- profit margins of around 20%
(based on current 140p offer price)
Bond International is on a historic PE of 18 and prospective 13 - for similar levels of growth - actually higher prospective growth according to the 20% growth assumption I make for DSG).
Eagle-eyed readers of the final results will note the discrepancy between the 61:39 ratio between recurring: non-recurring revenues and the notes in segment reporting. I called Jim McLaughlin (Chairman and FD) to clarify this (the ratio should be 39:61 - ie the other way round) and managed to get the following interesting points:
- they are doing a roadshow from 27 April - which could raise interest
- they are looking to appoint a new market maker to help reduce the bid offer spread - which they accept is something they are trying to resolve with the market
Long term I expect the share price to take into account: a re-rating of the PE multiple to be more in line with peers (Bond has a 50% higher PE), a re rating due to the greater marketability of the shares (as the bid-offer narrows) and a participation in the growth rate of earnings.
Personally I think there's a lot of upside here.
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