ADVFN Logo ADVFN

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for discussion Register to chat with like-minded investors on our interactive forums.

DSG Dillistone Group Plc

9.50
0.50 (5.56%)
Last Updated: 10:29:47
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
  0.50 5.56% 9.50 8.00 11.00 9.50 9.00 9.00 7,000 10:29:47
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Computer Related Svcs, Nec 5.7M -183k -0.0093 -10.22 1.87M

Dillistone Group PLC Interim Results (7864Z)

23/09/2020 7:00am

UK Regulatory


Dillistone (LSE:DSG)
Historical Stock Chart


From Apr 2019 to Apr 2024

Click Here for more Dillistone Charts.

TIDMDSG

RNS Number : 7864Z

Dillistone Group PLC

23 September 2020

Dillistone Group Plc

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

Interim Results

Dillistone Group Plc, the AIM quoted supplier of software for the international recruitment industry, announces its results for the six months ended 30 June 2020.

Key points of the unaudited interim report:

-- The management of our cost base and better operational performance, has led to improved performance in H1 2020, versus the same period in 2019, despite Covid-19 having a significant negative impact on our clients and therefore our revenue

   --    Operating profit of GBP0.048m before acquisition related items (2019: loss GBP0.044m) 
   --    Group is cash generative at an operational level 
   --    Cash balances of GBP1.732m at 30 June 2020 (2019: GBP0.769m) 
   --    CBIL loan of GBP1.5m received in June 2020 
   --    Recurring revenue of GBP3.0m (2019: GBP3.5m) 
   --    Recurring revenue covers 101% of operational overheads (2019: 91%) 
   --    Recurring revenues represent 90% of total revenue (2019: 83%) 

-- NED Mike Love to retire from the Board, in line with long term plan, on the announcement of the interim results.

Commenting on the results and prospects, Giles Fearnley, Non-Executive Chairman, said:

"Any business serving the recruitment sector is going to find a global pandemic to be a difficult environment to operate through. However, despite this, the Group is delighted to report significantly improved operational performance in the period under review.

"Whilst Covid-19 will continue to impact our revenues, the steps we've taken to manage our costs while also continuing to invest in product development will benefit the business through the medium and long term.

"I would like to take this opportunity to sincerely thank Dr Mike Love for his services to the Company. Mike was our Chairman for many years, prior to stepping into the role of NED in January, with a view to retiring at the time of our Interim results announcement. Mike remains fully supportive of the Board strategy and a committed shareholder."

Enquiries:

 
 Dillistone Group Plc                                      Via Walbrook PR 
 Jason Starr               Chief Executive 
 Julie Pomeroy             Finance Director 
 
 WH Ireland Limited (Nominated adviser) 
                           Managing Director, 
 Chris Fielding             Corporate Finance                020 7220 1650 
 
 Walbrook PR 
 Tom Cooper / Nick Rome                                      020 7933 8780 
                                                 dillistone@walbrookpr.com 
 

Notes to Editors:

Dillistone Group Plc is a leader in the supply and support of software and services to the recruitment industry. Dillistone operates through the Ikiru People brand.

The Group develops, markets and supports the FileFinder, Infinity, Midoffice, ISV and GatedTalent products.

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

Recruitment Software: https://www.voyagersoftware.com/recruitment-software-blog/best-recruitment-software-agencies/

Temporary Recruitment Software: https://www.voyagersoftware.com/temporary-recruitment-agency-software/

ISV Skills Testing: https://www.isv.online

GatedTalent: https://www.talentis.global

FileFinder: https://www.dillistone.com

Chairman's Statement

2020 started well for the Group with our early months delivering results ahead of internal expectations. The Covid-19 pandemic has obviously had a significant impact on our clients (predominantly recruitment companies) and therefore our business.

Nevertheless, I am able to report a significantly improved set of results following the steps taken in 2019 to reorganise the business and the decisive action by management in the early days of the pandemic.

The business has returned to profit (before acquisition related items) and has put in place a cost base that reflects current revenues. The streamlined operating structure has allowed us to do this without negatively impacting on our service levels. Indeed, our Trustpilot scores since January 1(st) have seen us achieve an excellent rating with 4.5 stars out of a maximum of 5.

Government support clearly played a part in our H1 results and, with this expecting to be ending, we have now taken further steps to minimise our cost base. This will lead to some reorganisation costs being reported in H2.

Following the 2019 reorganisation, the previous divisional structure has been amalgamated under one trading name, Ikiru People, and therefore divisional results will no longer be reported.

Financial Performance

Revenue in the six months ended 30 June 2020 amounted to GBP3.359m, down GBP0.824m (20%) (2019: GBP4.183m) due to Covid-19 and loss of clients and / or reductions in users, coupled with the withdrawal of a product in December 2019. Recurring revenues decreased by 13% to GBP3.029m over the comparable period last year (2019: GBP3.469m) and represented 90% of total revenues (2019: 83%). Non-recurring revenues were down at GBP0.290m (2019: GBP0.549m).

Cost of sales reduced to GBP0.328m (2019: GBP0.419m). Excluding amortisation and depreciation, administration expenses reduced by GBP0.774m to GBP2.305m (2019: GBP3.079m) in part reflecting the 2019 reorganisation and in part the impact of Covid-19. Such administration expenses are covered 131% by recurring revenue (2019: 113%). Excluding acquisition related items, depreciation and amortisation decreased by 7% to GBP0.678m (2019: GBP0.729m). Including such operational amortisation in administrative costs they are covered 101% by recurring revenue (2019: 91%).

Administrative costs also include GBP0.106m (2019: GBP0.198m) relating to the amortisation of acquisition intangibles. In 2019, administration costs also included reorganisation costs of GBP0.115m (2020: GBPnil). The loss for the period before taxation reduced to GBP0.110m (2019: loss GBP0.397m). The Group generated a profit after tax and before acquisition related costs of GBP0.019m. The loss for the period was GBP(0.088m) (2019: GBP(0.320m)).

There is a tax credit for the period of GBP0.022m (2019: credit GBP0.077m). The 2019 and 2020 tax credits have benefited from claims in the UK for research and development tax credits reflecting the continuing development of our products. Also, the tax credit was impacted through the increase in the rate for deferred tax to 19% (2019:17%).

Cash generated from operating activities was GBP0.403m (2019: GBP0.225m). Total cash flows in the 6 months ended 30 June 2020 showed a net inflow of GBP1.043m (2019: inflow GBP0.063m). The main elements of non-operating expenditure related to investment in new product development of GBP0.499m (2019: GBP0.615m) and the receipt of GBP1.500m from the CBIL loan scheme and a loan under the US payroll protection program of GBP0.086m. At 30 June 2020, we had cash reserves of GBP1.732m (2019: GBP0.769m) and GBP2.309m in borrowings (2019: GBP0.885m).

In view of the Covid-19 pandemic and the uncertainty this has brought, the Board has decided not to pay an interim dividend this year (2019: nil).

Strategy

The Group continues to invest in its products which it sees as fundamental to the future success of the Group. Dillistone is an innovator and thought leader in the recruitment sector, designing and launching technology solutions for recruiters whose working practices are ever evolving.

The Board restructured our product portfolio in 2019, withdrawing certain products from the market, and refocussing our development expenditure on projects that, we believe, will deliver long term benefits to shareholders. We expect to begin to see the benefit of this strategy in 2021.

Outlook

Development remains high on our agenda and we are continuing to invest in both current and new products which will enable the recruiters of the future. We are excited by the opportunities that this investment will deliver and look forward to updating the market further.

While Covid-19 will continue to impact upon our revenues, with a stable core business through our long-term underlying client base, a strong balance sheet as a result of our GBP1.5m CBIL loan, administrative overheads (excluding depreciation, amortisation and other one off costs) that are covered by our recurring revenue, improved operational performance and ongoing investment in product development, we believe we are well positioned to deliver growth as we emerge from the current crisis.

Giles Fearnley

Non-Executive Chairman

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 
                                     Note      6 Months ended       Year ended 
                                                   30 June              31 Dec 
                                                 2020        2019         2019 
                                            Unaudited   Unaudited      Audited 
                                              GBP'000     GBP'000      GBP'000 
 Revenue                              4         3,359       4,183        8,027 
 Cost of sales                                  (328)       (419)        (849) 
                                           ----------  ----------  ----------- 
 Gross profit                                   3,031       3,764        7,178 
 Administrative expenses                      (3,089)     (4,121)      (8,268) 
                                           ----------  ----------  ----------- 
 
 Result from operating activities     4          (58)       (357)      (1,090) 
 
 Analysed as: 
 Result from operating activities 
  before acquisition related 
  items                                            48        (44)        (207) 
 
 Acquisition and reorganisation 
  related items                       5         (106)       (313)        (883) 
                                           ----------  ----------  ----------- 
 Result after acquisition related 
  items                                          (58)       (357)       (1090) 
-----------------------------------------  ----------  ----------  ----------- 
 
 Financial cost                                  (52)        (40)         (91) 
                                           ----------  ----------  ----------- 
 (Loss) before tax                              (110)       (397)      (1,181) 
 
 Tax income                           6            22          77          339 
                                           ----------  ----------  ----------- 
 (Loss) for the period                           (88)       (320)        (842) 
 
 Other comprehensive income net 
  of tax: 
 Currency translation differences                (15)        (26)         (16) 
                                           ----------  ----------  ----------- 
 Total comprehensive (loss) 
  for period net of tax                         (103)       (346)        (858) 
                                           ----------  ----------  ----------- 
 
 Earnings per share (pence) 
 Basic                                8        (0.45)      (1.63)       (4.28) 
 Diluted                                       (0.45)      (1.63)       (4.28) 
 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 
 
                                  As at 30 June   As at 30 June 2019   As at 31 Dec 
                                           2020                                2019 
                                      Unaudited            unaudited        Audited 
 ASSETS                                 GBP'000              GBP'000        GBP'000 
 Non-current assets 
 Goodwill                                 3,415                3,415          3,415 
 Intangible assets                        4,022                4,542          4,234 
 Right of use assets                        735                  763            754 
 Property plant & equipment                  38                   69             54 
                                 --------------  -------------------  ------------- 
                                          8,210                8,789          8,457 
 Current assets 
 Inventories                                  -                    2              - 
 Trade and other receivables              1,159                1,750          1,222 
 Current tax receivable                       -                  112            293 
 Cash and cash equivalents                1,732                  769            690 
                                 --------------  -------------------  ------------- 
                                          2,891                2,633          2,205 
                                 --------------  -------------------  ------------- 
 Total assets                            11,101               11,422         10,662 
                                 --------------  -------------------  ------------- 
 
 EQUITY AND LIABILITIES 
 Equity 
 Share capital                              983                  983            983 
 Share premium                            1,631                1,631          1,631 
 Merger reserve                             365                  365            365 
 Convertible loan reserve                    14                   14             14 
 Retained earnings                          783                1,367            871 
 Share option reserve                       106                  112             94 
 Translation reserve                         32                   37             47 
                                 --------------  -------------------  ------------- 
 Total equity                             3,914                4,509          4,005 
 
 Liabilities 
 Non current liabilities 
 Trade and other payables                   341                  559            443 
 Lease liabilities                          690                  772            741 
 Borrowings                               1,995                  645            523 
 Deferred tax                               323                  393            340 
                                 --------------  -------------------  ------------- 
 Total non-current liabilities            3,349                2,369          2,047 
                                 --------------  -------------------  ------------- 
 Current liabilities 
 Trade and other payables                 3,410                4,265          3,977 
 Lease liabilities                          100                   39             82 
 Borrowings                                 314                  240            551 
 Current tax payable                         14                    -              - 
                                 --------------  -------------------  ------------- 
 Total non-current liabilities            3,838                4,544          4,610 
                                 --------------  -------------------  ------------- 
 Total liabilities                        7,187                6,913          6,657 
 
 Total liabilities and 
  equity                                 11,101               11,422         10,662 
                                 --------------  -------------------  ------------- 
 

The interim report was approved by the Board of directors and authorised for issue on 22 September 2020. They were signed on its behalf by:

   JS Starr                                                J P Pomeroy 

CONSOLIDATED STATEMENT OF CASH FLOWS

 
 
                                                      As at 30 June 
                                                       2020        2019       2019 
                                                  Unaudited   Unaudited    Audited 
 
                                                    GBP'000     GBP'000    GBP'000 
 Operating Activities 
 (Loss) before tax                                    (110)       (397)    (1,181) 
 Adjustment for 
  Financial cost                                         51          40         91 
  Depreciation and amortisation                         784         918      1,794 
  Share option expense                                   12           6         14 
  Other including foreign exchange adjustments 
   arising from operations                               16        (20)       (33) 
 Operating cash flows before movements 
  in working capital                                    753         547        685 
 
 increase / (decrease) in receivables                    65       (234)        282 
 Decrease in inventories                                  -           1          3 
 (decrease) in payables                               (730)       (229)      (603) 
 Taxation repaid                                        315         140        167 
 
 Net cash generated from operating activities           403         225        534 
                                                 ----------  ----------  --------- 
 
 Investing Activities 
 Purchases of property plant and equipment              (2)         (7)       (29) 
 Proceeds from sale of assets                             -          10          2 
 Investment in development costs                      (499)       (615)    (1,070) 
 Net cash used in investing activities                (501)       (612)    (1,097) 
                                                 ----------  ----------  --------- 
 
 Financing Activities 
 Finance cost                                          (49)        (23)       (83) 
 Lease payments made                                   (68)        (20)       (49) 
 New loan                                             1,586         500        500 
 Bank loan repayments                                  (40)         (7)      (126) 
 Utilisation of banking facility                      (288)           -        288 
                                                 ----------  ----------  --------- 
 Net cash generated from financing activities         1,141         450        530 
                                                 ----------  ----------  --------- 
 
 Net change in cash and cash equivalents              1,043          63       (33) 
 Cash and cash equivalents at beginning 
  of the period                                         690         725        725 
 Effect of foreign exchange rate changes                (1)        (19)        (2) 
 
 Cash and cash equivalents at end of 
  period                                              1,732         769        690 
                                                 ----------  ----------  --------- 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 
                               Share      Share     Merger   Retained    Convertible      Share    Foreign     Total 
                             capital    premium    Reserve   earnings   loan reserve     option   exchange 
                             GBP'000    GBP'000    GBP'000    GBP'000        GBP'000    GBP'000    GBP'000   GBP'000 
 
 Balance at 31 December 
  2019                           983      1,631        365        871             14         94         47     4,005 
 Comprehensive income 
 Loss for the 6 
  months ended 30 
  June 2020                        -          -          -       (88)              -          -          -      (88) 
 Other comprehensive                                                                                               - 
  income 
 Exchange differences 
  on translation 
  of overseas operations           -          -          -          -              -          -       (15)      (15) 
 Total comprehensive 
  (loss)                           -          -          -       (88)              -          -       (15)     (103) 
                           ---------  ---------  ---------  ---------  -------------  ---------  ---------  -------- 
 Transactions with 
  owners 
 Share option charge               -          -          -          -              -         12          -        12 
 
 Balance at 30 June 
  2020                           983      1,631        365        783             14        106         32     3,914 
                           ---------  ---------  ---------  ---------  -------------  ---------  ---------  -------- 
 
 Balance at 31 December 
  2018                           983      1,631        365      1,687             14        106         63     4,849 
 Comprehensive income 
 Loss for the 6 
  months ended 30 
  June 2019                        -          -          -      (320)              -          -          -     (320) 
 Other comprehensive                                                                                               - 
  income 
 Exchange differences 
  on translation 
  of overseas operations           -          -          -          -              -          -       (26)      (26) 
 Total comprehensive 
  (loss)                           -          -          -      (320)              -          -       (26)     (346) 
                           ---------  ---------  ---------  ---------  -------------  ---------  ---------  -------- 
 Transactions with 
  owners 
 Share option charge               -          -          -          -              -          6          -         6 
 
 Balance at 30 June 
  2019                           983      1,631        365      1,367             14        112         37     4,509 
                           ---------  ---------  ---------  ---------  -------------  ---------  ---------  -------- 
 

NOTES TO THE INTERIM

 
  NOTES TO THE UNAUDITED INTERIM REPORT 
 

CONSOLIDATED STATEMENT OF

   1.         Basis of Preparation 

The financial information for the six months ended 30 June 2020 included in this condensed interim report comprises the consolidated statement of comprehensive income, the consolidated statement of financial position, the consolidated statement of cash flows, the consolidated statement of changes in equity and the related notes.

The financial information in these interim results is that of the holding company and all of its subsidiaries (the Group). It has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards as adopted for use in the EU (IFRSs) but does not include all of the disclosures that would be required under IFRSs. The accounting policies applied by the Group in this financial information are the same as those applied by the Group in its financial statements for the year ended 31 December 2019 and are those which will form the basis of the 2020 financial statements.

The comparative financial information presented herein for the year ended 31 December 2019 does not constitute full statutory accounts for that period. The Group's annual report and accounts for the year ended 31 December 2019 have been delivered to the Registrar of Companies. The Group's independent auditor's report on those statutory accounts was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

Going concern and the impact of COVID-19.

The uncertainty as to the future impact on the Group of the recent COVID-19 outbreak has been considered as part of the Group's adoption of the going concern basis. The Group has seen many of its clients shrink and with some clients closing. It has additionally supported many clients through agreeing discounted periods and deferred terms. Accordingly, the Group will see a reduction in revenue in 2020. However, the Group has acted quickly, taking advantage of various government schemes, including furloughing, and staff unanimously supporting a temporary pay-cut, including all executive and non-executive directors. The Group also agreed a 6 month payment holiday on its existing bank loan. The Company has also secured a loan of GBP1.5m under the UK Government's Business Interruption Loan (CBIL) scheme.

The Board has considered various downside scenarios on the Group's results as a result of the COVID-19 outbreak. In preparing this analysis the following assumptions were made for the base case: a reduction in recurring revenue and non recurring revenue in 2020 with some recovery in the second half of 2020 but with revenue not returning to full pre Covid-19 levels in 2020 or 2021. A further scenario was modelled ("stress test scenario") that reduced revenue further by GBP0.275m. On this basis, the Group's cash reserves would be reduced to

GBP0.293m in September 2021.   The Group also has an overdraft facility of GBP0.200m. 

Based on current trading, the stress test scenario is considered unlikely. However, it is difficult to predict the overall impact and outcome of COVID-19 at this stage, particularly with the concerns of a second wave this autumn. Nevertheless, after making enquiries, and considering the uncertainties described above and after receiving a CBIL loan of GBP1.5m, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the annual report and accounts.

Dillistone Group Plc is the Group's ultimate parent company. It is a public listed company and is domiciled in the United Kingdom. The address of its registered office and principal place of business is 12 Cedarwood, Crockford Lane, Chineham Business Park, Basingstoke, RG24 8WD. Dillistone Group Plc's shares are listed on the Alternative Investment Market (AIM).

   2.         Share Based Payments 

The Company operates two share option schemes. The fair value of the options granted under these schemes is recognised as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period at the end of which the option holder may exercise the option. The fair value of the options granted is measured using the Black-Scholes model.

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

30 June 2020 and 30 June 2019

 
                               Adjusted   Acquisition                 Adjusted           Acquisition 
                              operating       related                operating    and reorganisation 
                                profits         items                  profits               related 
                                                                                               items 
                              30-Jun-20         2020*   30-Jun-20    30-Jun-19                 2019*   30-Jun-19 
 
                                GBP'000       GBP'000     GBP'000      GBP'000               GBP'000     GBP'000 
 
 Revenue                          3,359             -       3,359        4,183                     -       4,183 
 
 Cost of sales                    (328)             -       (328)        (419)                     -       (419) 
 
 Gross profit                     3,031             -       3,031        3,764                     -       3,764 
 
 Administrative expenses        (2,983)         (106)     (3,089)      (3,808)                 (313)     (4,121) 
 
 Results from operating 
  activities                         48         (106)        (58)         (44)                 (313)       (357) 
 
 
 Financial cost                    (52)             -        (52)         (38)                   (2)        (40) 
 
 Profit/(loss) before 
  tax                               (4)         (106)       (110)         (82)                 (315)       (397) 
 
 Tax expense/(income)                23           (1)          22           40                    37          77 
 
 Profit/(loss) for 
  the year                           19         (107)        (88)         (42)                 (278)       (320) 
 
 Other comprehensive 
  income net of tax: 
 Currency translation 
  differences                      (15)             -        (15)         (26)                     -        (26) 
 
 Total comprehensive 
  income/ (loss) for 
  the year net of tax                 4         (107)       (103)         (68)                 (278)       (346) 
                            -----------  ------------  ----------  -----------  --------------------  ---------- 
 

Earnings per share - from continuing activities

 
 Basic        0.10p             (0.45)p           (0.21)p      (1.63)p 
 Diluted      0.10p           (0.45)p             (0.21)p    (1.63)p 
 
 

* see accounts note 5

31 December 2019

 
                                          Adjusted           Acquisition 
                                         operating    and reorganisation 
                                           profits               related 
                                                                   items 
                                       31 December                 2019*     31 December 
                                              2019                                  2019 
 
                                           GBP'000               GBP'000         GBP'000 
 
 Revenue                                     8,027                     -         8,027 
 
 Cost of sales                               (849)                     -         (849) 
                                      ------------  --------------------  ------------ 
 
 Gross profit                                7,178                     -         7,178 
 
 Administrative expenses                   (7,385)                 (883)       (8,268) 
 
 Results from operating activities           (207)                 (883)       (1,090) 
 
 
 Financial cost                               (91)                     -            (91) 
 
 Profit/(loss) before tax                    (298)                 (883)         (1,181) 
 
 Tax income                                    268                    71             339 
 
 Profit for the year                          (30)                 (812)           (842) 
 
 Other comprehensive income 
  net of tax: 
 Currency translation differences             (16)                     -            (16) 
 
 Total comprehensive loss for 
  the year net of tax                         (46)                 (812)           (858) 
                                      ============  ====================  ============== 
 

Earnings per share - from continuing activities

 
 Basic      (0.15)p   (4.28)p 
 Diluted    (0.15)p   (4.28)p 
 

* see accounts note 5

   4.         Segment reporting 

Following the group reorganisation in 2019, there is only one trading segment in 2020, Ikiru People.

 
 Results 
                                                           Year ended 
                                     6 months ended 30 June    31 Dec 
                                2020                   2019      2019 
                             GBP'000                GBP'000   GBP'000 
 
 Results from operating activities 
 Ikiru People                               70           82      (72) 
 
 Central                                  (22)        (126)     (135) 
 
 Reorganisation costs                                           (578) 
 Amortisation of acquisition 
 intangibles and reorganisation 
 costs                                   (106)        (313)     (305) 
 Result from operating 
  activities                              (58)        (357)   (1,090) 
                                      ========  ===========  ======== 
 
 
 
 Geographical segments 
 The following table provides an analysis of the Group's revenues 
  by geographical market. 
                                                                                            Year ended 
                                                         6 months ended 30 June                 31 Dec 
                                                                           2020      2019         2019 
                                                                        GBP'000   GBP'000      GBP'000 
 UK                                                                       2,286     2,888        5,700 
 Europe                                                                     529       480          928 
 US                                                                         394       624        1,034 
 Australia                                                                  150       191          365 
                                                                          3,359     4,183        8,027 
                                                        =======================  ========  =========== 
 
 
 
 
 Business Segment 
 The following table provides an analysis of the Group's revenues 
  by products and services. 
                                                                                                    Year ended 
                                                                           6 months ended 30 June       31 Dec 
                                                                                   2020      2019         2019 
                                                                                GBP'000   GBP'000      GBP'000 
 Recurring                                                                        3,029     3,469        6,593 
 Non recurring                                                                      290       549        1,160 
 Third party revenues                                                                40       165          274 
                                                                                  3,359     4,183        8,027 
                                                                =======================  ========  =========== 
 
 
   'Recurring income' represents all income recognised over time, 
   whereas 'Non-recurring income' represents all income recognised 
   at a point in time. Recurring income includes all support services, 
   software as a service income (SaaS) and hosting income. Non-recurring 
   income includes sales of new licenses, and income derived from 
   installing those licenses including training, installation, and 
   data translation. Third party revenues arise from the sale of 
   third party software. 
 
 
   5.         Acquisition related items and other one off costs 
 
                                                           Year ended 
                                  6 months ended 30 June       31 Dec 
                                       2020         2019         2019 
                                    GBP'000      GBP'000      GBP'000 
 Reorganisation costs                     -          115          578 
 Amortisation of acquisition 
  intangibles                           106          198          305 
 
 
                                        106          313          883 
 Interest on bank loan to 
  finance reorganisation                  -            2            - 
 
 Total                                  106          315          883 
                               ============  ===========  =========== 
 
   6.         Tax 
 
                                                                Year ended 
                                       6 months ended 30 June       31 Dec 
                                            2020         2019         2019 
                                         GBP'000      GBP'000      GBP'000 
 
 Current tax                                 (5)           18         (50) 
 Prior year adjustment - current 
  tax                                          -            -        (140) 
 Deferred tax release                       (18)         (58)         (67) 
 Prior year adjustment - deferred 
  tax                                          -            -         (24) 
 Deferred tax re acquisition 
  intangibles                                  1         (37)         (58) 
 Tax (income) for the period                (22)         (77)        (339) 
                                    ============  ===========  =========== 
 

The tax charge is impacted by the higher rates of corporation tax payable in the US offset by the R&D tax credits available in the UK. Deferred tax has been provided at the rate of 19% (2019: rates between 17% and 19%).

   7.         Dividends 

The Board has decided not to pay an interim dividend (2019: nil per share).

   8.         Earnings per Share 
 
                                                                    Year ended 
                                         6 months ended 30 June         31 Dec 
                                            2020           2019           2019 
 
 Basic earnings per share 
 (Loss) attributable to ordinary 
  shareholders                       GBP(88,000)   GBP(320,000)   GBP(842,000) 
 
 Weighted average number of 
  shares                              19,668,021     19,668,021     19,668,021 
 
 Basic (loss) per share (pence)           (0.45)         (1.63)         (4.28) 
                                    ============  =============  ============= 
 
 Diluted earnings per share 
 (Loss) attributable to ordinary     GBP(88,000)   GBP(320,000)   GBP(842,000) 
  shareholders 
 
 Diluted weighted average number 
  of shares                           19,668,021     19,668,021     19,668,021 
 
 Diluted (loss) per share (pence)         (0.45)         (1.63)         (4.28) 
                                    ============  =============  ============= 
 
   9.         Related party transactions 

The Company has a related party relationship with its subsidiaries, its directors, and other employees of the Company with management responsibility. There were no transactions with these parties during the period outside the usual course of business.

The Directors participated in the issue of convertible loan notes in 2017 which carry interest at 8.15% per annum payable quarterly in arrears.

There were no transactions with any other related parties.

   10.       Cautionary statement 

This Interim Report has been prepared solely to provide additional information to shareholders to assess the Company's strategies and the potential for these strategies to succeed. The Interim Report should not be relied on by any other party or for any other purpose. The Interim Report contains certain forward-looking statements with respect to the financial condition, results of operations and businesses of the Company. These statements are made in good faith based on the information available to them up to the time of their approval of this report. However, such statements should be treated with caution as they involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. The continuing uncertainty in global economic outlook inevitably increases the economic and business risks to which the Company is exposed. Nothing in this announcement should be construed as a profit forecast.

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.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR QLLFLBKLXBBK

(END) Dow Jones Newswires

September 23, 2020 02:00 ET (06:00 GMT)

1 Year Dillistone Chart

1 Year Dillistone Chart

1 Month Dillistone Chart

1 Month Dillistone Chart

Your Recent History

Delayed Upgrade Clock