So DSG's first adjusted operating profit since 2018 ... a year when its share price topped 100p, over eight times the current level of 11.5p.
Any views as to what a takeover value here would be?
Potentially/probably multiples of the current share price of 11.5p I would think.
And at this level, predators have probably already been sniffing around, at least.
Dillistone Group (DSG):- |
 25/04/2024 07:00 RNS Regulatory News Dillistone Group PLC Final Results & Investor Presentation LSE:DSG Dillistone Group Plc
" ... Cost savings and EBITDA Margin step-change.
During 2023, we made significant strides in improving margins within the business, reflecting our investment in improving our internal systems and architecture. This allows us to deliver products and services more efficiently and, with the downturn in our market, we were able to reduce our personnel related and office overheads while continuing to provide what we consider to be industry leading levels of service. The majority of the financial benefit of these moves will be felt from FY2024 onwards.
Nevertheless, due in part to these measures, we were able to reduce our cost base by £0.400m in FY23 enabling the adjusted EBITDA margin to reach 23.5%.
This is a step change from the margins obtained between 2017 and 2022, when the average margin was 16.8%. Excluding the Covid-19 support received from Government, the average historical margin over the same period was 14.9%. ..."
So a step change in margins improvement, which bodes very well for future profits.
And with the majority of the financial benefit of this and cost savings to be felt from the current year onwards ... which we are already about a third of the way through. |
clocktower
can you perhaps set up another thread (if you are a premium user of advfn)
& then block this idiot ?
otherwise he has imo killed off this msg board & will just scare aware potential PI investors.
:-( |
25/04/2024 07:00 RNS Regulatory News Dillistone Group PLC Final Results & Investor Presentation LSE:DSG Dillistone Group Plc
" ... During Q1, we have delivered further enhancements to our range of contingency products, including the development and successful use of a psychometric testing service as an enhancement to our ISV platform. The first client to use this product was one of the best-known recruiting firms in the UK, operating on behalf of a globally known automotive company. ..."
From April 2024:-
"The psychometric assessment market has witnessed substantial growth in recent years, driven by the increasing adoption of assessments in various industries and sectors."
"PSYCHOMETRIC PRE-EMPLOYMENT ASSESSMENT TESTS – 2024 GUIDE FOR RECRUITERS
... Aptitude tests are a type of psychometric test that assess a candidate’s skills and abilities in specific areas such as numerical, verbal, or logical reasoning. They are often used to determine a candidate’s suitability for a certain role, particularly for roles that require technical or analytical skills, such as IT, finance, or engineering. By using psychometric tests, the risk of hiring someone who lacks the technical skills required for the job is reduced, leading to better overall job performance and productivity.
In fact, research has shown that nearly all large businesses and 70% of SMEs in Europe, India, and Australia use aptitude tests, indicating a significant rise in the use of these tests over the past 8 years. ..." |
25/04/2024 07:00 RNS Regulatory News Dillistone Group PLC Final Results & Investor Presentation LSE:DSG Dillistone Group Plc
" ... The Group capitalised £0.963m in development costs in the year (FY 2022: £1.007m) as the business continued its commitment to developing its products. Amortisation of development costs was £0.994m (FY 2022: £0.980m). ..."
DSG's R&D investment is a major bull point here.
DSG market capitalisation at the current share price of 11.5p: £2.26M.
Divided into DSG's year end 31.12.23 R&D spending of £0.963M.
= PRR (price-to-research ratio) of 2.35.
This highlights DSG's bullish growth prospects and undervaluation.
From the legendary tech stocks guru Conor McCarthy:
"Calculate annual R & D expenditure per share and compare it to the share price.
If the PRR (price-research ratio - share price divided by R and D per share) is 5 or less it is nearly always worth buying the shares. This applies particularly to recovery situations. As long as an exploration company has the wherewithal to drill holes, there is always the possibility it will strike it lucky. The same goes for an out-of-favour technology company. As long as it can continue to invest in R and D there is the chance it will come up with a blockbuster product. The lower the PRR the more development bang you get for your buck."
Conor McCarthy's tech investment approach is based on the principles set out in the classic 1984 book "Super Stocks" by Kenneth Fisher.
This is the book that McCarthy recommends to his subscribers.
(And perhaps it also inspired him to start "Techinvest" the same year?)
And a good example of a low PRR recovery-growth stock of his is mentioned in "Beyond The Zulu Principle" (1996) by Jim Slater:-
"I asked Conor McCarthy to give me a good example of Techinvest's success using Fisher's approach. He mentioned Kewill Systems which went astray a few years ago by making an unfortunate acquisition in Germany. The company began to make substantial losses and the shares fell from 318p in 1992 to a low of 49p in 1993. At this point, the PRR of 2 was astoundingly attractive. The Germany subsidiary was sold shortly afterwards and by the end of 1993 Kewill Systems had risen to 265p."
Kewill Systems (KWL):-
So PRR (price-to-research ratio) analysis can help you to see value before the crowd, which is what I did with NWT (Newmark Security) in 2022, since when the share price has more than doubled ... and in fact has more than trebled from its 2022 lows.
A couple of caveats to check for are the possibility of massive dilution or worse in a loss-making stock, and that the products-services being developed are likely to sell well - which is more likely if they're updating existing products-services already being sold.
But DSG looks to measure up on both of these, as did NWT. |
% Gainers % Losers Most Active
Ticker Name Price Change Change % Volume Trades
CAR CAR Carclo Plc 13.00 5.58 75.10% 2,174,625 348
ORCP ORCP Oracle Power Plc 0.032 0.0068 27.00% 51,652,030 76
MAST MAST Mast Energy Developments Plc 0.475 0.10 26.70% 25,054,706 142
DSG DSG Dillistone Group Plc 11.50 2.00 21.10% 48,710 6
HUM HUM Hummingbird Resources Plc 8.10 1.10 15.70% 1,941,226 43
DSG closed yesterday for the weekend at the fourth top riser.
From Investing.com:-
"Dillistone Group (DSG)"
"11.50 +2.00 (+21.05%)"
"DSG Technical Analysis"
"Summary: Strong Buy
Moving Averages: Strong Buy Buy (10) Sell (2)
Technical Indicators: Strong Buy Buy (7) Sell (1)"
From TradingView.com:-
"DILLISTONE GROUP ORD GBP0.05"
"11.5GBXD +2.00 +21.05%"
"DSG technical analysis"
"Oscillators Summary Moving Averages"
"Buy Buy Strong buy"
From SwingTradeBot.com:-
"Technical Analysis for DSG - Dillistone Group Plc"
"DSG closed up 21.05 percent on Friday, April 26, 2024, on 3.02 times normal volume. The stock rose above its 50 day moving average, improving its intermediate-term outlook by crossing above that important trendline."
"ADX Long Term Intermediate Term Short Term
Very Strong Down Up Up" |
free stock charts from uk.advfn.com
DSG 5 year log chart. It's still Strongly Bearish. |
free stock charts from uk.advfn.com
Well the share price is up against resistance. It was oversold for most of the last 6 months (probably for longer). Now it's overbought! |
LOL - you can't wim them all S - still you have gained a tax loss that you can offset, if your a UK tax payer. |
...sometimes it feels like
'it is always the way'
I halved my small position at the lowest part on the chart, a few days ago. duhh.
:-( |
It was oversold anyway imo. |
..my goodness, there is hope after all... |
Shows how little it now takes to send this rocketing, which surprises me at this point in time. There must be big things going on behind the scenes. |
Looks interesting at hopefully close to the low of the cycle, I will be looking to top up........ |
Revenue downCash down But they made and "adjusted" profit which really means they made an actual loss. Seems that the gerbils aren't rising into the pedestrian push after all huh |
Well nobody is going to convert while earning 8.15% but they might be able to re-finance the loan on better terms but I doubt that as the loan was from a close source I seem to recall.
The three trades that moved it up were all on AQSE so over the past two days that looks like around 100k of buys, which for this company is a large number of late. |
"NAME NO. OF SHARES % OF ISSUED ORDINARY SHARES
Jason Starr 3,577,591 18.19
Giles Fearnley 483,435 2.46
Simon Warburton 77,290 0.39
Paul Mather 82,177 0.42
Julie Pomeroy 78,416 0.40
Ian Mackin 14,071 0.07"
Note that DSG's directors alone do not own the required 25% to block a takeover.
However, they would only need a further 3.07% to do so, so that is perhaps an ideal situation: as a fair offer is unlikely to be blocked, but a rip-off offer could well be - which could well help to flush out a higher offer, or indeed force a better offer in the first place.
The CLNs are unlikely be converted by the directors because of the high conversion price relative to the current s.p.:-
28/09/2017 07:02 UK Regulatory Dillistone Group PLC Issue of Loan Notes LSE:DSG Dillistone Group Plc
" ... The Loan Notes carry an interest coupon of 8.15 per cent pa over their maximum term of 36 months, with a conversion price of 71.6 pence per new Dillistone ordinary share. The interest payments will be payable quarterly in arrears and will be satisfied through the issue of further new ordinary shares or in cash at the individual Noteholders' election. Various rights are built into the agreement for early repayment or conversion. ..." |
Nobody could take it over without the insiders approval, as they hold to many shares, so the price would be high but that might put off any buyer. |
The directors already have a very good number of shares and if they did start and serious buying I am sure it would send the share price a lot higher, as there are so few shares in free float.
In addition if they convertered that £400k loan into shares it would realy bring the debt down in a flash. They will have already paid off another £120k off the covid loan that was at £750k at end of 2023, so that is rapidly reducing now as well.
They are going to make big office savings in 2024 of around £200k because of the break in lease and taking a smaller area of office space on better terms.
Still, unless they do buy more shares or there is bid, I can only see the shares sitting around at this mark until the intrims. |
So DSG's first adjusted operating profit since 2018 ... a year when its share price topped 100p, i.e. over ten times the current level of 9.5p.
Any views as to what a takeover value here would be?
Potentially/probably multiples of the current share price of 9.5p I would think.
And at this level, predators have probably already been sniffing around, at least.
Dillistone Group (DSG):- |
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