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DSG Dillistone Group Plc

9.00
0.00 (0.00%)
Last Updated: 00:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Dillistone Group Plc LSE:DSG London Ordinary Share GB00B13QQB40 ORD 5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 9.00 8.00 10.00 9.00 9.00 9.00 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Computer Related Svcs, Nec 5.7M -183k -0.0093 -9.68 1.77M

Dillistone Group PLC Final Results (4780X)

30/04/2019 7:01am

UK Regulatory


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RNS Number : 4780X

Dillistone Group PLC

30 April 2019

Dillistone Group Plc

("Dillistone", the "Company" or the "Group")

Final Results

Dillistone Group Plc, the AIM quoted supplier of recruitment software for the international recruitment industry through its Dillistone Systems, Voyager Software and GatedTalent divisions, is pleased to announce its audited final results for the 12 months ended 31 December 2018.

Highlights for the year:

   --    Recurring revenues(1) represent 82% (restated 2017: 82%) of Group revenue 

-- Adjusted operating profit(2) of GBP0.055m (restated 2017: GBP0.459m) before acquisition intangible writes offs, reflecting the loss of the major contract announced in 2017 which reduced revenues by GBP0.625m compared to 2017 in a ten-month period

   --    Loss for the year of GBP0.260m (restated 2017: profit GBP0.057m) 
   --    Adjusted basic EPS(3) of 0.61p (2017: 3.73p) 

-- The Group continued to generate cash from operating activities resulting in cash at 31 December 2018 of GBP0.725m (2017: GBP1.390m) with borrowings of GBP0.404m (2017: GBP0.391m).

[2017 numbers have been restated for the introduction of IFRS 15, the new revenue recognition standard.]

Commenting on the results and prospects, Mike Love, Non-Executive Chairman, said:

"2018 was clearly a challenging year for the Group. The executive team has nevertheless worked tirelessly and, despite the challenges faced during the year of GDPR, the loss of a major client, the continued investment in new products and, during 2018, the implications of re-structuring to reduce our cost base, we are now well on our way to restoring Dillistone to healthy operating profits on a sustainable footing."

Definitions:

(1) The component elements of recurring revenues are detailed in note 5.

(2) Adjusted operating profit is statutory operating profit before acquisition costs, related intangible amortisation, movements in contingent consideration and other one-off costs. See note 4.

(3.) Adjusted basic EPS is computed from statutory profits after tax adjusted to exclude the post-tax effect of acquisition costs, related intangible amortisation, movements in contingent consideration and other one-off costs. See note 10

Results Webinar - Jason Starr, Chief Executive, and Julie Pomeroy, Finance Director, will be hosting a webinar to review the results at 3.00pm on Wednesday 8 May 2019. To register please visit https://attendee.gotowebinar.com/register/8156505307777159948 or contact Tom Cooper on tom.cooper@walbrookpr.com or 0797 122 1972.

Annual Report and Accounts - The final results announcement can be downloaded from the Company's website (www.dillistonegroup.com). Copies of the Annual Report and Accounts (in addition to the notice of the Annual General Meeting) will be sent to shareholders by 31 May 2019 for approval at the Annual General Meeting to be held on 26 June 2019.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Enquiries:

 
 Dillistone Group 
  Plc 
 Mike Love            Chairman              020 7749 6100 
 Jason Starr          Chief Executive       020 7749 6100 
 Julie Pomeroy        Finance Director      020 7749 6100 
 
 WH Ireland Limited (Nominated 
  adviser) 
                      Managing Director, 
 Chris Fielding        Corporate Finance    020 7220 1650 
 
 Walbrook PR 
 Tom Cooper / Paul 
  Vann                                      020 7933 8780 
                                            0797 122 1972 
                                            tom.cooper@walbrookpr.com 
 

Notes to Editors:

Dillistone Group Plc (www.dillistonegroup.com) is a leader in the supply and support of software and services to the recruitment industry. It has five brands operating through three divisions: Dillistone Systems, which targets the executive search industry (www.dillistone.com); Voyager Software, which targets other recruitment markets (www.voyagersoftware.com); and GatedTalent, the next generation executive recruitment platform (www.GatedTalent.com).

Dillistone has made three acquisitions: Voyager Software in September 2011, FCP Internet in July 2013 and ISV Software in September 2014. The Group operates under the FileFinder, Infinity, Evolve, ISV and GatedTalent brands.

Dillistone was admitted to AIM, a market operated by the London Stock Exchange plc, in June 2006. The Group employs over 100 people globally with offices in London (head office) Basingstoke and Southampton, Frankfurt, New Jersey and Sydney.

CHAIRMAN'S STATEMENT

2018 was a challenging year for the business. The loss of a major client, announced in Summer 2017 but materialising in February 2018, had a year on year revenue impact of around GBP0.625m. Meanwhile, the new General Data Protection Regulations meant that the Group, like all technology businesses, had to invest heavily in compliance. This investment covered everything from product development and infrastructure through to staff training and reviews of our various legal documents.

2018 was also the start of a period of change. In February of 2019, we announced the closure of our London office as part of a broader restructuring. However, some of the groundwork for this project was undertaken in 2018, with the implementation of various company wide systems and procedures. The restructuring programme is expected to return the Group to a healthy level of operating profit on a sustainable basis.

While much work was undertaken behind the scenes in 2018, we also continued to develop our products. Enhancements and new functionality were delivered for each of our leading products, while the year also saw the first revenue materialise for our GatedTalent platform.

GatedTalent experienced various highs and lows during the year. In the early stages of the year, we significantly surpassed our initial expectations for recruiter take up but were disappointed by the number of executive registrations. In the second half of the year, we saw registrations begin to accelerate, and in Q4 we launched "Member Services" which is a new premium B2C revenue stream. We are pleased to report that this has proven successful and, less than 6 months since launch, we now realise more recurring revenue every month from Member Services than we do from any single executive search firm contract.

Overall, Group revenue fell 11% to GBP8.692m, of which recurring revenue fell 10% to GBP7.154m - a significant part of this loss was the previously referenced client departure. IFRS 15 Revenue from contracts with customers was introduced with effect from 1 January 2018 and has resulted in the restatement of the 2017 numbers.

Adjusted operating profit dropped significantly to GBP0.055m (2017: GBP0.459m), in part due to the continued investment in GatedTalent and in part due to the loss of the major client. The operating loss generated by GatedTalent was GBP0.612m.

The Board remains committed to investing in and supporting the Group's core products and remains excited by the potential of GatedTalent.

Dividends

The Group is not recommending a final dividend in respect of the year to 31 December 2018 (2017: 0.5p per share).

Staff

Our staff are fundamental to our success. It is through their efforts, commitment and determination that we continue to be a leading technology provider in the sectors we serve. On behalf of the Board I would like to take this opportunity to thank all of our staff for their individual and collective contributions during 2018 and the support we have seen for the changes we are making to the Group.

Outlook

The current year has begun well in each of the three divisions. However, the Board is cognisant of the economic challenges that the year may bring.

As announced in February 2019, the Directors are taking the opportunity to reduce the number of UK offices from three to two by exercising an option to break the lease of the London office later in the year and to increase the size of our Basingstoke and Eastleigh offices.

The majority of our London based staff have been given the opportunity to relocate to Basingstoke, Eastleigh or to work from home and we are pleased to report that the vast majority of our client facing staff are likely to accept this offer. The Board anticipates that the efficiencies gained from merging the various teams across the Group into fewer locations will allow the Group to maintain current levels of client service and product development investment while delivering a significant reduction in costs from 2020 onwards. This exercise will inevitably lead to the Group incurring restructuring costs this year, which are currently estimated to be in the region of GBP500,000 to GBP900,000 and which are expected to be met without recourse to shareholders. An update on the cost of the restructuring and the anticipated savings will be provided later in the year.

The Board currently expects that the Group will deliver a profit before tax in 2019 which will be comparable with 2018 (GBP0.018m) before restructuring and acquisition related costs. Profit is expected to grow strongly in future years as the benefits of the restructuring and the investment in GatedTalent start to materialise.

Dr Mike Love

Non-Executive Chairman

CEO's Review

Dillistone Group Plc supplies products and services to facilitate recruitment. We do this through three divisions which, between them, cover everything from retained executive search technology through to tools to facilitate the hiring of temporary staff, from pre-employment skills testing through to a B2C platform that allows executives to share information with executive search firms.

Strategy and objectives

In our time as a public company, we have made three acquisitions and each of them has made a contribution to the business. However, as our markets have become increasingly competitive, it has become apparent that it is necessary to streamline our operating structure and this is a major focus for us in 2019.

In the longer term, our strategy remains to grow the business both organically and through acquisition.

This requires ongoing investment in product development which ensures that the business continues to command a leading role in the markets in which it operates.

Our acquisition strategy typically entails consideration of businesses offering:

   --    products that would further increase market share in the Group's core markets; 
   --    legacy applications, where clients could be transferred to our modern suite of products; or 
   --    complementary applications, which may be cross-sold to clients of the Group. 

The Group's objectives are principally to:

-- ensure our products meet the needs of the recruitment sector through continual investment and development;

   --    be a leading player in all of the markets we serve; 
   --    develop our staff, delivering progressive career development; and 

-- increase our profitability and deliver increased shareholder value year on year in conjunction with a progressive dividend policy.

Key Performance Indicators (KPIs)

The Board and management use absolute figures to monitor the performance of the business using the financial KPIs set out below. As discussed above the Board is undertaking a major restructuring exercise to address the longer term performance of the business:

 
                             FY 2017   FY 2018 
                              GBP000    GBP000   Measure used by management   Met /Not met 
 Total revenues                9,732     8,692   year on year growth          not met 
 Recurring revenues            7,942     7,154   year on year growth          not met 
 Non recurring 
  revenues                     1,326     1,169   year on year growth          not met 
 Adjusted profit before 
  tax                            453        18   year on year growth          not met 
                                                 sufficient cash resources 
 Cash                          1,390       725    maintained                  met 
--------------------------  --------  --------  ---------------------------  ------------- 
 

Adjusted profit before tax is statutory profit before acquisition costs, related intangible amortisation, movements in contingent consideration and other one-off costs. See note 4.

Restructuring Plan

Results in 2018 have clearly been disappointing and the Board has embarked on a plan which, it believes, will deliver significantly improved performance from 2020 onwards. We are now well progressed on our plan to streamline our operating procedures while maintaining our excellent reputation for client service. As stated previously we expect the costs of the restructuring to be in the region of GBP500,000 to GBP900,000. These costs are expected to be met without recourse to shareholders.

We have:

-- Completed the implementation of a Group wide CRM system, allowing team members to operate more easily on Group wide projects.

-- Begun the process of implementing a Group wide financial system and expect this to be complete prior to the year end.

-- Merged certain back office teams and are in the process of merging the product development and other teams.

-- Terminated the lease of our London office while expanding our Basingstoke office. We expect to vacate London before the end of the year.

-- While conversations with staff are ongoing, we are pleased that the vast majority of our client facing staff have agreed to remain with the Group, ensuring that client service is not negatively impacted by these changes.

-- Informed clients that certain products are being withdrawn from the market, while maintaining overall product development expenditure. We will continue to invest in product development for each of our flagship products and believe that our new development structure will lead to more efficient development going forward.

Our business model

The business is currently split into three Divisions. Dillistone Systems and Voyager Software are our established businesses, with GatedTalent launched in the second half of 2017 with first revenue seen in 2018. The statutory and operational structure of the Group is being reviewed as part of the restructuring exercise with an aim to simplify this and reduce the costs of reporting.

Dillistone Systems specialises in the supply of software and services into executive-level recruitment teams. Voyager Software's clientele are primarily involved in contingent recruitment, including permanent placement, contract placement and the provision of temporary staff. GatedTalent is a private network of executives, accessed by executive recruiters. There is a close relationship between GatedTalent and Dillistone Systems.

The majority of our products are commercialised through one or more of the following:

   1.   an upfront licence fee plus a recurring support fee; 
   2.   Software as a Service (SaaS) subscription basis; or 
   3.   a hybrid model incorporating an upfront payment and recurring support and cloud hosting fees. 

There is a continuing move away from the upfront licence model towards our cloud delivery (SaaS) services.

The GatedTalent Division generates revenue from a combination of recruiter subscription fees and premium fees direct from executives. The business operates out of four countries: the UK, Germany, the US and Australia. As well as supplying and supporting our software we also host the software for a proportion of our clients. This is done through data centres in Europe, the Americas, Singapore and Australia.

Group review of the business

2018 saw recurring revenues fall 10% to GBP7.154m (restated 2017: GBP7.942m) reflecting principally the loss of the major client in 2018. Non-recurring revenues decreased to GBP1.169m (restated 2017: GBP1.326m). As a result, overall revenues decreased by 11% to GBP8.692m (restated 2017: GBP9.732m) with recurring revenues representing 82% of Group revenues (restated 2017: 82%). Costs have reduced despite continuing investment in GatedTalent which made, as expected, an operating loss of GBP0.612m (2017: loss GBP0.439m).

Adjusted EBITDA(1) fell to GBP1.301m (restated 2017: GBP1.559m). Adjusted operating profit fell to GBP0.055m (restated 2017: GBP0.459m) and pre-tax profits before acquisition related items and one-off adjustments reduced to GBP0.018m (restated 2017: GBP0.453m). There was an operating loss for the year of GBP0.414m (restated 2017: loss GBP0.364m) and loss for the year of GBP0.260m (restated 2017: profit GBP0.057m). Cash at the year end was GBP0.725m (2017: GBP1.390m).

(1) Adjusted EBITDA is adjusted operating profit with depreciation and amortisation added back. See note 4.

Divisional Reviews

Dillistone Systems

The Dillistone Systems division is primarily focused on providing technology solutions to the executive search market via our range of "FileFinder" applications. This client group is made up of both executive search firms and executive search teams in major organisations.

Dillistone Systems' head office is currently in London and it has offices in the US, Germany and Australia. The Division accounts for 48% (restated 2017: 47%) of the Group's revenue and it saw revenue fall 7% to GBP4.195m (restated 2017: GBP4.531m).

Product development focus in 2018 included GDPR and integration with GatedTalent, along with a significant number of user experience improvements. As part of our restructuring, we have brought development resources from other parts of the Group in to support FileFinder product development, and are already seeing the benefits of this. We continue to invest in FileFinder and expect new releases later in the year.

Earnings before interest, tax, depreciation and amortisation ('EBITDA') fell to GBP0.723m (restated 2017: GBP0.761m) as sales fell and costs improved. The total amortisation and depreciation charge was GBP0.644m (2017: GBP0.589m). Operating profit for 2018 was GBP0.079m (restated 2017: GBP0.172m).

Voyager Software

Voyager Software is a provider of technology products targeted at the entire recruitment landscape, from front office to back office and bureaus, and includes both recruitment management systems and pre-employment skills testing technology.

In 2018, the Voyager Software division accounted for 51% (2017: 53%) of Group revenues. The Division's revenues decreased by 15% to GBP4.429m (restated 2017: GBP5.201m) mainly due to the loss of a major client in 2018. EBITDA decreased to GBP1.003m (restated 2017: GBP1.367m). Amortisation and depreciation decreased to GBP0.475m (2017: GBP0.511m). Divisional operating profit decreased to GBP0.528m (restated 2017: GBP0.856m).

2018 saw some major developments in the Division including:

   --    The addition of global addressing and location searching in Infinity 
   --    A new fast-paced temporary recruitment Planner system in Infinity 
   --    The extension of ISV.online to include psychometric as well as skills testing 
   --    Market leading support for enabling clients to work under the GDPR 

We are in the process of removing certain legacy Voyager products from the market. However we continue to invest in the core products of the Division.

GatedTalent

GatedTalent was established in 2017 to provide a network allowing executives to share information with selected executive recruiters in a GDPR compliant manner. The GatedTalent product was launched in late 2017 with first revenues occurring in 2018 of GBP0.068m.

The basic platform has over 50,000 profiles and is free to executives. New profiles are being added at around 1,000 per week. Revenue is being generated from executive recruiters through subscriptions to the platform. In Q4 2018, we launched "Member Services" generating a new premium B2C revenue stream for the Division. This has been successful and has accelerated rapidly. We would anticipate that member revenues will be larger than recruiter revenues in 2019. After less than six months, we realise more recurring revenue every month from Member Services than we do from any single executive search contract.

The Division is effectively a start-up business within the Group and made an operating loss of GBP0.612m (2017 loss: 0.439m) after depreciation and amortisation charges of GBP0.127m (2017: GBPnil). The business is expected to remain loss making in 2019. The total investment in Gated Talent (including capitalised development) to 31 December 2018 was over GBP1.700m.

The Board is confident that all three Divisions have strong futures.

Financial Review

Total revenues decreased by 11% to GBP8.692m (restated 2017: GBP9.732m) with recurring revenues decreasing by 10% to GBP7.154m (restated 2017: GBP7.942m) while non-recurring revenues decreased to GBP1.169m (restated 2017: GBP1.326m). Third party resell revenue amounted to GBP0.369m in the period (2017: GBP0.464m).

Contractor and internal development costs were reclassified as administrative expenses from costs of sales and the 2017 comparatives have also been restated on this basis. Cost of sales decreased to GBP1.054m (2017: GBP1.247m).

Administrative costs, excluding acquisition related items, depreciation and amortisation, fell 8% to GBP6.337m (2017: GBP 6.926m) as measures were taken to reduce costs following the loss of the major contract in 2018. Depreciation and amortisation (excluding acquisition related amortisation) increased to GBP1.246m (2017: GBP1.100m).

Acquisition related administrative costs totalled GBP0.469m (2017: GBP0.823m) and were in respect of the amortisation of intangibles arising on the Voyager, FCP and ISV acquisitions. The prior year figure included an acceleration of the acquisition intangibles amortisation as a result of the loss of the major contract in that business.

Recurring revenues covered 94% of administrative expenses before acquisition related and one-off costs (restated 2017: 99%). Excluding depreciation and amortisation of our own internal development, the administrative costs are covered 112% (restated 2017: 115%) by recurring revenues.

The Group benefitted from a tax credit in 2018 of GBP0.191m (restated 2017: credit GBP0.432m). The 2018 credit reflects the significant R&D tax credits available to all three divisions and the assumption that any tax losses will be surrendered for the R&D tax credit payment. It also benefits from a deduction for the IFRS 15 adjustment put through the accounts although this is largely offset by the release of the deferred tax asset created in the opening balance position at 1 January 2017. The acquisition related items tax credit reflects the reduction in deferred tax that arises as amortisation is charged in the profit and loss account.

Profit for the year before acquisition related and other one-off items amounted to GBP0.120m (restated 2017: GBP0.734m). The 2018 adjusted profits benefitted from a tax credit of GBP0.102m (restated 2017: tax credit of GBP0.281m). The loss for the year after acquisition related items and other one-off items was GBP0.260m (2017: profit GBP0.057m). Basic loss per share (EPS) fell to (1.32)p (restated 2017: EPS of 0.29p). Fully diluted EPS fell to (1.32)p (restated 2017: EPS of 0.29p). Adjusted basic EPS fell to 0.61p (restated 2017: EPS of 3.73p).

Dillistone Group Plc company results show a profit of GBP1.338m (2017: GBP1.311m after an impairment of GBP0.451m (2017: GBPnil) to its investment in Voyager/FCP due to the loss of a major contract.

Capital expenditure

The Group invested GBP1.536m in property, plant and equipment and product development during the year (2017: GBP1.506m). This expenditure included GBP1.446m (2017: GBP1.358m) spent on capitalised development related costs.

Trade and other payables

As with previous years, the trade and other payables includes deferred income of GBP3.575m (2017 restated: GBP3.811m), i.e. income which has been billed in advance but is not recognised as income at that time. This principally relates to support, SaaS and cloud hosting renewals, which are billed in 2018 but are in respect of services to be delivered in 2019. It also includes licence revenue for which a support contract is required, and which is spread over 5 years under IFRS15. Contractual income is recognised monthly over the period to which it relates. It also includes deposits taken for work which has not yet been completed; as such income is only recognised when the work is substantially complete, or the client software goes "live". At the end of 2018, there was no contingent consideration payable (2017: GBP0.146m).

Cash

The Group finished the year with cash funds of GBP0.725m (2017: GBP1.390m); and a convertible loan of GBP0.404m (2017: GBP0.391m after taking into account the equity adjustment). This is after capital expenditure of GBP1.536m, the final payment to the vendors of ISV of GBP0.146m and dividend payments of GBP0.098m.

Jason Starr

Chief Executive Officer

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEARED 31 DECEMBER 2018

 
                                                 2018       2017 
                                                        restated 
                                      Note    GBP'000    GBP'000 
 
 Revenue                               5        8,692      9,732 
 
 Cost of sales                                (1,054)    (1,247) 
                                            ---------  --------- 
 
 Gross profit                                   7,638      8,485 
 
 Administrative expenses                      (8,052)    (8,849) 
 
 Operating loss                                 (414)      (364) 
-----------------------------------  -----  ---------  --------- 
 Adjusted operating profit 
  before acquisition related 
  and one-off items                    4           55        459 
 Acquisition related and one-off 
  items                                7        (469)      (823) 
                                            ---------  --------- 
 Operating (loss)/profit                        (414)      (364) 
-----------------------------------  -----  ---------  --------- 
 
 Financial income                                   1          1 
 Financial cost                                  (38)       (12) 
 
 Loss before tax                                (451)      (375) 
 
 Tax income                            8          191        432 
 
 (Loss)/profit for the year                     (260)         57 
 
 Other comprehensive income/(loss) 
 Items that will be reclassified 
  subsequently to profit and 
  loss: 
 
 Currency translation differences                (30)       (24) 
 
 Total comprehensive (loss)/income 
  for the year                                  (290)         33 
                                            =========  ========= 
 

Earnings per share

 
 Basic      9       (1.32)p   0.29p 
 Diluted    9       (1.32)p   0.29p 
 
 

See note 10 for details of restatement of 2017 numbers as a result of a change in accounting policy.

Cost of sales have been reduced by GBP0.289m in 2017 and administrative costs increased by the same amount due to the reclassification of contractors and internal development costs.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEARED 31 DECEMBER 2018

 
                      Share        Share     Merger    Retained   Convertible      Share    Foreign      Total 
                    capital      premium    reserve    earnings          loan     option   exchange 
                                                                      reserve 
                    GBP'000      GBP'000    GBP'000    GBP'000        GBP'000    GBP'000    GBP'000    GBP'000 
 
 Balance at 1 
  January 
  2017 (as 
  previously 
  stated)               983        1,631    365           3,725                     85          117      6,906 
 Prior year 
  adjustment 
  IFRS 15 (see 
  Note 
  26)                                                   (1,190)                                        (1,190) 
 Balance at 1 
  January 
  2017 
  (restated)            983        1,631        365       2,535             -         85        117      5,716 
 Comprehensive 
 income 
 Profit for the 
  year (as 
  restated)         -          -            -                57             -          -          -         57 
 
 Other 
 comprehensive 
 income 
 Exchange 
  differences 
  on translation 
  of overseas 
  operations              -            -          -           -             -          -       (24)       (24) 
 
 Total 
  comprehensive 
  income (as 
  restated)               -            -          -          57             -          -       (24)         33 
                  ---------  -----------  ---------  ----------  ------------  ---------  ---------  --------- 
 
 Transactions 
 with 
 owners 
 Share option 
  charge                  -            -          -           4             -         16          -         20 
 Issue of 
  convertible 
  loan note               -            -          -           -            14          -          -         14 
 Dividends paid           -            -          -       (551)             -          -          -      (551) 
                  ---------  -----------  ---------  ----------  ------------  ---------  ---------  --------- 
 Total 
  transactions 
  with owners             -            -          -       (547)            14         16          -      (517) 
 
 Balance at 31 
  December 
  2017 (as 
  restated)             983        1,631        365       2,045            14        101         93      5,232 
                  =========  ===========  =========  ==========  ============  =========  =========  ========= 
 
 Comprehensive 
 income 
 (Loss) for the 
  year ended 31 
  December 
  2018                    -            -          -       (260)             -          -          -      (260) 
 
 Other 
 comprehensive 
 income/(loss) 
 Exchange 
  differences 
  on translation 
  of overseas 
  operations              -            -          -           -             -          -       (30)       (30) 
 
 Total 
  comprehensive 
  income                  -            -          -       (260)             -          -       (30)      (290) 
                  ---------  -----------  ---------  ----------  ------------  ---------  ---------  --------- 
 
 Transactions 
 with 
 owners 
 Share option 
  charges                 -            -          -           -             -          5          -          5 
 Dividends paid           -            -          -        (98)                        -          -       (98) 
                  ---------  -----------  ---------  ----------  ------------  ---------  ---------  --------- 
 Total 
  transactions 
  with owners             -            -          -        (98)             -          5          -       (93) 
 
 Balance at 31 
  December 
  2018                  983        1,631        365       1,687            14        106         63      4,849 
                  =========  ===========  =========  ==========  ============  =========  =========  ========= 
 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2018

 
                                   Group 
                                      2018       2017 
                                             Restated 
 ASSETS                            GBP'000    GBP'000 
 Non-current assets 
 Goodwill                            3,415      3,415 
 Other intangible assets             4,754      4,881 
 Property, plant and equipment         113        164 
 Investments                             -          - 
                                 ---------  --------- 
 Total non-current assets            8,282      8,460 
                                 ---------  --------- 
 Current assets 
 Inventories                             3          3 
 Trade and other receivables         1,522      1,677 
 Cash and cash equivalents             725      1,390 
                                 ---------  --------- 
 Total current assets                2,250      3,070 
                                 ---------  --------- 
 Total assets                       10,532     11,530 
 
 EQUITY AND LIABILITIES 
 Equity attributable to owners 
  of the parent 
 Share capital                         983        983 
 Share premium                       1,631      1,631 
 Merger reserve                        365        365 
 Convertible loan reserve               14         14 
 Retained earnings                   1,687      2,045 
 Share option reserve                  106        101 
 Translation reserve                    63         93 
                                 ---------  --------- 
 Total equity                        4,849      5,232 
                                 ---------  --------- 
 
 Liabilities 
 Non-current liabilities 
 Trade and other payables              690        794 
 Borrowings                            390        386 
 Deferred tax liability                489        508 
 
 Current liabilities 
 Trade and other payables            4,370      4,775 
 Borrowings                             14          5 
 Current tax payable                 (270)      (170) 
                                 ---------  --------- 
 Total liabilities                   5,683      6,298 
 
 Total liabilities and equity       10,532     11,530 
                                 =========  ========= 
 
 

CONSOLIDATED CASH FLOW STATEMENT

AS AT 31 DECEMBER 2018

 
                                                                   2017        2017 
                                             2018      2018    restated    restated 
 Operating activities                     GBP'000   GBP'000     GBP'000     GBP'000 
 
 (Loss) before tax                          (451)                 (375) 
 Adjustment for 
 Financial income                             (1)                   (1) 
 Financial cost                                38                    12 
 Depreciation and amortisation              1,714                 1,938 
 Share option expense                           5                    20 
 Foreign exchange adjustments arising 
  from operations                              70                  (12) 
 
 
 Operating cash flows before                1,375                 1,582 
 movement in working capital: 
 (Increase) in receivables                    171                   573 
 Decrease in inventories                        -                     2 
 (decrease) in payables                     (471)                 (273) 
 
 Taxation refunded/(paid)                      65                  (12) 
                                         --------            ---------- 
 
 Net cash generated from operating 
  activities                                          1,140                   1,872 
 
 Investing activities 
 
 Interest received                              1                     1 
 Purchases of property, plant and 
 equipment                                   (55)                  (55) 
 Investment in development costs          (1,481)               (1,439) 
 Contingent and deferred consideration 
  paid                                      (146)                 (219) 
 
 Net cash used in investing activities              (1,681)                 (1,712) 
 
 Financing activities 
 
 Financial cost                              (33)                   (7) 
 Net proceeds from convertible 
  loan note                                     -                   400 
 Bank loan repayments made                      -                 (158) 
 Dividends paid                              (98)                 (551) 
                                         --------            ---------- 
 
 Net cash used in financing activities                (131)                   (316) 
 
 Net decrease in cash and cash equivalents            (672)                   (156) 
 
 Cash and cash equivalents at                         1,390                   1,537 
 beginning of year 
 
 Effect of foreign exchange rate 
  changes                                                 7                       9 
 
 Cash and cash equivalents at end 
  of year                                               725                   1,390 
                                                   --------              ---------- 
 

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEARED 31 DECEMBER 2018

   1.         Publication of non-statutory accounts 

In accordance with section 435 of the Companies Act 2006, the Directors advise that the financial information set out in this announcement does not constitute the Group's statutory financial statements for the year ended 31 December 2018 or 2017, but is derived from these financial statements. The financial statements for the year ended 31 December 2017 have been audited and filed with the Registrar of Companies. The financial statements for the year ended 31 December 2018 have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union. The financial statements for the year ended 31 December 2018 have been audited and will be filed with the Registrar of Companies following the Company's Annual General Meeting. The Independent Auditors Report on the Group's statutory financial statements for the years ended 31 December 2018 and 2017 were unqualified and did not draw attention to any matters by way of emphasis and did not contain statements under Section 498(2) or (3) of the Companies Act 2006.

   2.         Basis of preparation 

The preliminary announcement is extracted from the consolidated financial statements of the Group. The financial statements of the subsidiaries are prepared for the same reporting date as the parent company. Consistent accounting policies are applied for like transactions and events in similar circumstances.

All intra-group balances, transactions, income and expenses and profits and losses resulting from intra-group transactions that are recognised in assets or liabilities are eliminated in full.

   3.         Accounting policies and changes thereto 

This preliminary announcement has been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year to 31 December 2018.

IFRS 9 and IFRS 15 are effective for the first time for the financial year beginning on or after 1 January 2018. Details of the impact of IFRS 15 are seen in note 10. The impact of moving to the expected credit loss model on receivables under IFRS9 required no adjustment to 1 Jan 2017 or 2018 balances.

The following standards have been issued by the IASB and have been adopted by the EU but not adopted early by the Group:

 
Standard  Key requirements  Effective date as adopted 
                             by the EU 
 
IFRS 16   Leases            01-Jan-19 
 

IFRS 16 requires almost all leases to be recorded in the statement of financial position. This requires recognition of a right-of-use asset and lease liability. The lease liability is measured as the present value of the future lease payments, discounted at the interest rate implicit in the lease if determinable, or otherwise at the lessee's incremental borrowing rate. The asset is measured as equivalent to the lease liability, adjusted for other costs including initial direct costs or obligations under the lease such as restoration costs. The asset is subsequently depreciated on a straight line basis to the expected maturity date of the lease. The liability is increased by interest and reduced by the lease payments made.

The Group expects to apply the modified retrospective approach in adopting IFRS 16. This recognises the right-of-use asset at the date of initial application (1 January 2019). The lease liability is measured based on remaining payments. There is no effect on prior year figures and no need to re-state comparatives.

The Group has undertaken a review of its lease arrangements and concluded that the most significant leases the Group has are its offices. Following the contracted closure of the Group's London offices, it is expected that the impact of this standard for the year ending 31 December 2019 will be reduced.

These calculations assume no changes to the contracted leases anticipated in the reporting period to end 31 December 2019, although it is possible additional leases will be entered into or existing lease contracts amended during the forthcoming period.

Under the existing standard (IAS 17) GBP130,000 would be expected as an expense in 2019. The adjustment to 'Current liabilities - Trade and other receivables' arises on the reversal of an accrual in respect of rent-free periods and other cash timing differences that would be made under that standard.

4. Reconciliation of adjusted operating profits to consolidated statement of comprehensive income

 
                            Note     Adjusted     Acquisition       2018     Adjusted   Acquisition        2017 
                                     operating        related               operating       related    restated 
                                      profits     and one-off                 profits         items 
                                                        items                restated 
                                       2018             2018*                    2017         2017* 
 
                                                      GBP'000    GBP'000      GBP'000       GBP'000     GBP'000 
 
 Revenue                                 8,692              -      8,692        9,732             -       9,732 
 
 Cost of sales                         (1,054)              -    (1,054)      (1,247)             -     (1,247) 
                                   -----------  -------------  ---------  -----------  ------------  ---------- 
 
 Gross profit                            7,638              -      7,638        8,485             -       8,485 
 
 Administrative 
  expenses                             (7,583)          (469)    (8,052)      (8,026)         (823)     (8,849) 
 
 Operating profit/(loss)                    55          (469)      (414)          459         (823)       (364) 
 
 Financial income                            1              -          1            1             -           1 
 Financial cost                           (38)              -       (38)          (7)           (5)        (12) 
 
 Profit/(loss) 
  before tax                                18          (469)      (451)          453         (828)       (375) 
 
 Tax income                                102             89        191          281           151         432 
 
 Profit/(loss) 
  for the year                             120          (380)      (260)          734         (677)          57 
 Other comprehensive 
  loss net of tax: 
 Currency translation 
  differences                             (30)              -       (30)         (24)             -        (24) 
 
 Total comprehensive 
  income/(loss) 
  for the year net 
  of tax                                    90          (380)      (290)          710         (677)          33 
                                   ===========  =============  =========  ===========  ============  ========== 
 

Earnings per share

 
 Basic      9   0.61p   (1.32)p   3.73p   0.29p 
 Diluted    9   0.61p   (1.32)p   3.73p   0.29p 
 

* See note 7

   5.         Segment reporting 

The Board principally monitors the Group's operations in terms of results of the three divisions, Dillistone Systems, Voyager Software and GatedTalent. Segment results reflect management charges made or received.

Divisional segments

 
 For the year ended 31 December 
  2018 
 
 
                                     Dillistone   Voyager   GatedTalent   Central     Total 
                                        GBP'000   GBP'000       GBP'000   GBP'000   GBP'000 
 Segment revenue                          4,195     4,429            68         -     8,692 
                                    -----------  --------  ------------  --------  -------- 
 Segment EBITDA                             723     1,003         (485)        60     1,301 
 Depreciation and amortisation 
  expense                                 (644)     (475)         (127)             (1,246) 
                                                                                - 
                                    -----------  --------  ------------  --------  -------- 
 Segment result                              79       528         (612)        60        55 
 
 Acquisition related amortisation             -         -             -     (469)     (469) 
 
 Operating profit/(loss)                     79       528         (612)     (409)     (414) 
 
 Financial income                             -         1             -         -         1 
 Loan interest                                -         -             -      (38)      (38) 
 
 Loss before tax                                                                      (451) 
 Income tax income                                                                      191 
                                                                                   -------- 
 Loss for the year                                                                    (260) 
                                                                                   ======== 
 
 
 Additions of non-current 
  assets                                    567       536           434         -     1,537 
 

Divisional segments

 
 For the year ended 31 December 
  2017 
                                  Dillistone     Voyager   GatedTalent   Central           Total 
                                    restated    restated                                restated 
                                     GBP'000     GBP'000       GBP'000   GBP'000         GBP'000 
 Segment revenue                       4,531       5,201             -         -           9,732 
                                 -----------  ----------  ------------  --------      ---------- 
 Segment EBITDA                          761       1,367         (439)     (130)           1,559 
 Depreciation and amortisation 
  expense                              (589)       (511)             -                   (1,100) 
                                                                               - 
                                 -----------  ----------  ------------  --------      ---------- 
 Segment result                          172         856         (439)     (130)             459 
 
 Acquisition related 
  amortisation                             -           -             -     (838)           (838) 
 Acquisition related 
  income                                   -           -             -        15              15 
                                 -----------  ----------  ------------  --------      ---------- 
 Operating profit/(loss)                 172         856         (439)     (953)           (364) 
 
 Financial income                          1           -                                       1 
 Loan interest                             -           -                     (7)             (7) 
 Acquisition related 
  interest expenses                        -           -                     (5)             (5) 
 Loss before tax                                                                           (375) 
 Income tax income                                                                           432 
                                                                                      ---------- 
 Profit for the year                                                                          57 
                                                                                      ========== 
 
 
 Additions of non-current 
  assets                                 608         502           396         -           1,506 
 
 

Products and services

The following table provides an analysis of the Group's revenue by products and services:

Revenue

 
                                           2017 
                               2018    restated 
                            GBP'000     GBP'000 
 Recurring income             7,154       7,942 
 Non-recurring income         1,169       1,326 
 Third party revenues           369         464 
                              8,692       9,732 
                          =========  ========== 
 

In the analysis above 'Recurring income' represents all income recognised over time, whereas 'Non-recurring income' and 'Third party revenues' represent all income recognised at a point in time.

Recurring income includes all support services, SaaS and hosting income and revenue on perpetual licenses with mandatory support contracts deferred under IFRS 15. Non-recurring income includes

sales of new licenses which do not require a support contract, and income derived from installing licences including training, installation and data translation. Third party revenues arise from the sale of third party software.

It is not possible to allocate assets and additions between recurring, non-recurring income and third party revenue. No customer represented more than 10% of revenue of the Group in 2018 or 2017.

   6.         Geographical analysis 

The following table provides an analysis of the Group's revenue by geographic market. The Board does not review the business from a geographical performance viewpoint and this analysis is provided for information only.

Revenue

 
                                2017 
                    2018    restated 
                 GBP'000     GBP'000 
 UK                6,188       6,782 
 Europe            1,007       1,041 
 US                1,118       1,341 
 Australia           379         418 
                   8,692       9,732 
               =========  ========== 
 

Non-current assets by geographical location

 
                                2017 
                    2018    restated 
                 GBP'000     GBP'000 
 UK                8,274       8,453 
 US                    4           5 
 Australia             4           2 
               ---------  ---------- 
                   8,282       8,460 
               =========  ========== 
 
   7.         Acquisition related and other one-off items 
 
                                                      2018       2017 
                                                   GBP'000    GBP'000 
 Included within administrative expenses: 
 Estimated change in fair value of 
  contingent consideration                               -       (15) 
 Amortisation of acquisition intangibles               469        379 
 Acceleration of amortisation of acquisition 
  intangibles                                            -        459 
                                                       469        823 
 Included within financial cost: 
 Unwinding of discount on contingent 
  consideration                                          -          5 
 
                                                       469        828 
                                                 =========  ========= 
 
 
   8.         Tax income 
 
                                                              2017 
                                                  2018    restated 
                                               GBP'000     GBP'000 
 
 Current tax                                     (165)       (100) 
 Prior year adjustment - current 
  tax                                              (7)       (238) 
                                             ---------  ---------- 
 Total current tax                               (172)       (338) 
 
 Deferred tax                                       64          58 
 Prior year adjustment - deferred 
  tax                                                6         (1) 
 Deferred tax re acquisition intangibles          (89)       (151) 
                                             ---------  ---------- 
 Total deferred tax                               (19)        (94) 
                                             ---------  ---------- 
 Tax (income) for the year                       (191)       (432) 
                                             =========  ========== 
 
 
 Factors affecting the tax credit for 
  the year 
 Loss before tax                                 (451)       (375) 
                                             =========  ========== 
 
 UK rate of taxation                            19.00%      19.25% 
 
 Loss before tax multiplied by the UK 
  rate of taxation                                (86)        (72) 
 
 Effects of: 
 Overseas tax rates                                (3)           1 
 Impact of deferred tax not provided                10          18 
 Enhanced R&D relief                             (148)       (209) 
 Disallowed expenses                                14          32 
 IFRS15 impact                                    (25) 
 Rate differences re current tax 
  and deferred tax                                 (7)         (1) 
 Rate difference between CT rate 
  and rate of R&D repayment                         55          38 
 Prior year adjustments                            (1)       (239) 
 Tax (income)                                    (191)       (432) 
                                             =========  ========== 
 

Deferred tax liability provided in the financial statements is as follows:

 
                                          Group 
                                                        2017 
                                 2018   Movement    restated 
                              GBP'000    GBP'000     GBP'000 
 Internally generated 
  intangible and fixed 
  assets                          251       (90)         341 
 IFRS 15                            -        160       (160) 
 Provisions                         -                      - 
 Acquisition intangibles          238       (89)         327 
                                       --------- 
                                  489       (19)         508 
                            =========  =========  ========== 
 
 
                                           Group 
                                  2017   Movement         2016 
                              Restated    restated    Restated 
                               GBP'000     GBP'000     GBP'000 
 Internally generated 
  intangible and 
  fixed assets                     341          26         315 
 IFRS 15                         (160)          22       (182) 
 Provisions                          -           9         (9) 
 Acquisition intangibles           327       (151)         478 
                                        ---------- 
                                   508        (94)         602 
                            ==========  ==========  ========== 
 

The UK corporation tax rate for the year is 19.00%. Deferred tax is provided in relation to the UK at rates of between 17% to 19% depending on when reversals are expected to occur. The tax credit is impacted by the R&D tax credits available to Dillistone Systems division, Voyager Software division and GatedTalent division. It has also been assumed that where there are tax losses arising as a result of R&D tax credits they will be surrendered for a tax repayment at the HMRC stated rate of 14.5%. The Group has gross tax losses of GBP154,000 (2017: GBP205,000) for which no deferred tax asset has been recognised as the timing of their utilisation is uncertain.

   9.         Earnings per share 
 
                                            2018           2018             2017         2017 
                                  Using adjusted                  Using adjusted     restated 
                                       operating                       operating 
                                          profit                          profit 
                                                                        restated 
 
 Profit/(loss) attributable           GBP120,000   GBP(260,000)       GBP734,000      GBP57,000 
  to ordinary shareholders 
  (note 2) 
 Weighted average number 
  of shares                           19,668,021     19,668,021       19,668,021     19,668,021 
 Basic earnings/(loss) per            0.61 pence   (1.32) pence       3.73 pence     0.29 pence 
  share 
                                 ===============  =============  ===============  ============= 
 
 Weighted average number 
  of shares after dilution            19,797,067     19,668,021       19,676,018   19,676,018 
 Fully diluted earnings/(loss)        0.61 pence   (1.32) pence       3.73 pence   0.29 pence 
  per share 
                                 ===============  =============  ===============  =========== 
 

Reconciliation of basic to diluted average number of shares:

 
                                                  2018         2017 
 
 Weighted average number of shares 
  (basic)                                   19,668,021   19,668,021 
 Effect of dilutive potential ordinary 
  shares - employee share plans                129,046        7,997 
 Weighted average number of shares 
  after dilution                            19,797,067   19,676,018 
                                           ===========  =========== 
 

There are 919,848 (2017: 1,270,732) share options not included in the above calculations, as they are underwater or have not yet vested.

The impact of the convertible loan notes in the period is not dilutive and therefore does not impact the calculation of the fully diluted earnings per share.

   10.       IFRS 15 impact on 2017 and 2018 results 

The material change to the Group's reported revenue following adoption of IFRS 15 arose on the timing of recognising revenue on perpetual licences sold with mandatory support contracts. Previously, these licences were deemed separate from the support contract, whereas under IFRS 15 they represent one performance obligation. Revenue on such licence sales was thus recognised at a point in time, on the customer's practical acceptance of the software. Under IFRS 15, this revenue is recognised over time.

As the actual life of the support contract is unknown at inception, an estimate of 5 years has been made following analysis of the historic turnover rates of support contracts. If this period was shorter, revenue would be recognised more quickly and vice versa.

Revenue from previous periods is thus deferred and recognised later. Adjustments are required to:

- Revenue in the period, being revenue released as deferred from prior periods and current period revenue deferred;

   -     Retained earnings, being revenue deferred from prior periods and cumulative tax effects; 
   -     Trade and other liabilities both current and non-current, being deferred revenue; and 

- Deferred and current tax, arising on revenue already subject to tax that will be recognised in future periods.

The results for 2018 fully incorporate these changes. As IFRS 15 has been adopted retrospectively, the reported results for 2017 must also be adjusted as if that standard applied in full to that period.

The impact of adopting IFRS 15 therefore had the following effect on the Group's primary financial statements:

Impact on the Consolidated Statement of Comprehensive income for the year ended 31 December 2017

 
                                     As reported    Effect      As reported 
                                      previously              under IFRS 15 
 
                                         GBP'000   GBP'000          GBP'000 
 Revenue                                   9,582       150            9,732 
 Cost of sales                           (1,536)         -          (1,536) 
                                    ------------  --------  --------------- 
 Gross profit                              8,046       150            8,196 
 Administrative expenses                 (8,560)         -          (8,560) 
                                    ------------  --------  --------------- 
 
 Result from operating activities          (514)       150            (364) 
 
 Financial income                              1         -                1 
 Financial cost                             (12)         -             (12) 
                                    ------------  --------  --------------- 
 Loss before tax                           (525)       150            (375) 
 
 Tax income                                  454      (22)              432 
                                    ------------  --------  --------------- 
 (Loss) /profit for the period              (71)       128               57 
                                    ------------  --------  --------------- 
 

Impact on Consolidated statement of financial position as at 31 December 2017

 
                                       As reported     Effect    As reported 
                                        previously                under IFRS 
                                                                          15 
                                           GBP'000    GBP'000        GBP'000 
  ASSETS 
  Non-current assets                         8,460          -          8,460 
  Current assets                             3,070          -          3,070 
                                     -------------  ---------  ------------- 
  Total assets                              11,530          -         11,530 
                                     -------------  ---------  ------------- 
 
  EQUITY AND LIABILITIES 
  Equity 
  Share capital                                983          -            983 
  Share premium                              1,631          -          1,631 
  Merger reserve                               365          -            365 
  Convertible loan reserve                      14          -             14 
  Retained earnings                          3,107    (1,062)          2,045 
  Share option reserve                         101          -            101 
  Translation reserve                           93          -             93 
                                     -------------  ---------  ------------- 
  Total equity                               6,294    (1,062)          5,232 
 
  Liabilities 
  Non current liabilities 
  Trade and other payables                      12        782            794 
  Borrowings                                   386          -            386 
  Deferred tax                                 668      (160)            508 
  Current liabilities 
  Trade and other payables                   4,335        440          4,775 
  Borrowings                                     5          -              5 
  Current tax (receivable)/payable           (170)          -          (170) 
                                     -------------  ---------  ------------- 
  Total liabilities                          5,236      1,062          6,298 
 
  Total liabilities and equity              11,530          -         11,530 
                                     -------------  ---------  ------------- 
 

Impact on Consolidated statement of cash flows for year ended 31 December 2017

 
                                      As reported     Effect    As reported 
                                       previously                under IFRS 
                                                                         15 
                                          GBP'000    GBP'000        GBP'000 
 
 Operating activities 
 Loss before taxation                       (525)        150          (375) 
 Operating cash flows before 
  movements in working capital              1,432        150          1,582 
 
 Decrease in receivables                      573          -            573 
 Decrease in inventories                        2          -              2 
 Decrease in payables                       (123)      (150)          (273) 
 Taxation Paid                               (12)          -           (12) 
 
  Net Cash generated by operating 
   activities                               1,872          -          1,872 
                                    -------------  ---------  ------------- 
 

Impact on Consolidated Statement of Comprehensive Income for year ended 31 December 2018.

.

 
                                     Under previous     Effect    As reported 
                                         accounting    of IFRS     under IFRS 
                                             policy         15             15 
 
                                            GBP'000    GBP'000        GBP'000 
 Revenue                                      8,588        104          8,692 
 Cost of sales                              (1,054)          -        (1,054) 
                                    ---------------  ---------  ------------- 
 Gross profit                                 7,534        104          7,638 
 Administrative expenses                    (8,052)          -        (8,052) 
                                    ---------------  ---------  ------------- 
 
 Result from operating activities             (518)        104          (414) 
 
 Financial income                                 1          -              1 
 Financial cost                                (38)          -           (38) 
                                    ---------------  ---------  ------------- 
 Loss before tax                              (555)        104          (451) 
 
 Tax income                                     206       (15)            191 
                                    ---------------  ---------  ------------- 
 (Loss) /profit for the period                (349)         89          (260) 
                                    ---------------  ---------  ------------- 
 

Impact on Consolidated Statement of Financial Position for year ended 31 December 2018

 
                                      Under previous     Effect    As reported 
                                          accounting    of IFRS     under IFRS 
                                              policy         15             15 
 
                                             GBP'000    GBP'000        GBP'000 
  ASSETS 
  Non-current assets                           8,282          -          8,282 
  Current assets                               2,250          -          2,250 
                                     ---------------  ---------  ------------- 
  Total assets                                10,532          -         10,532 
                                     ---------------  ---------  ------------- 
 
  EQUITY AND LIABILITIES 
  Equity 
  Share capital                                  983          -            983 
  Share premium                                1,631          -          1,631 
  Merger reserve                                 365          -            365 
  Convertible loan reserve                        14          -             14 
  Retained earnings                            2,659      (972)          1,687 
  Share option reserve                           106          -            106 
  Translation reserve                             73       (10)             63 
                                     ---------------  ---------  ------------- 
  Total equity                                 5,831      (982)          4,849 
 
  Liabilities 
  Non current liabilities 
  Trade and other payables                         2        688            690 
  Borrowings                                     390          -            390 
  Deferred tax                                   518       (29)            489 
  Current liabilities 
  Trade and other payables                     3,931        439          4,370 
  Borrowings                                      14          -             14 
  Current tax (receivable)/payable             (154)      (116)          (270) 
                                     ---------------  ---------  ------------- 
  Total liabilities                            4,701        982          5,683 
 
  Total liabilities and equity                10,532          -         10,532 
                                     ---------------  ---------  ------------- 
 

Impact on Consolidated Statement of Cash flows for year ended 31 December 2018

 
                                               Under previous     Effect    As reported 
                                                   accounting    of IFRS     under IFRS 
                                                       policy         15             15 
 
                                                      GBP'000    GBP'000        GBP'000 
 
 Operating activities 
 Loss before taxation                                   (555)        104          (451) 
 Operating cash flows before movements in 
  working capital                                       1,271        104          1,375 
 
 Decrease in receivables                                  171          -            171 
 Decrease in inventories                                    -          -              - 
 Decrease in payables                                   (367)      (104)          (471) 
 Taxation Paid                                             65          -             65 
 
 Net Cash generated by operating activities             1,140          -          1,140 
                                              ---------------  ---------  ------------- 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

FR SESEFUFUSELL

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