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| 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% | 7.75 | 7.00 | 8.50 | 7.75 | 7.75 | 7.75 | 0.00 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Computer Related Svcs, Nec | 5.6M | 3k | 0.0002 | 387.50 | 1.52M |
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TIDMDSG
RNS Number : 4671J
Dillistone Group PLC
01 April 2010
1 April 2010
DILLISTONE GROUP PLC
PRELIMINARY ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2009
Dillistone Group Plc ('the Company'), the AIM quoted supplier of recruitment
software, is pleased to announce its preliminary results for the year ended 31
December 2009.
Highlights for the year:
* Market expectations met
* Second half results ahead of both H1 2009 and H2 2008
* Recurring revenues up 4.4% to GBP2.34m, representing 64% of total turnover
* Further interim dividend of 7p per share declared, making total dividend for
year of 10.5p
* Clients in 57 countries world wide
* Strong order intake in first quarter of 2010
* In the absence of major unforeseen circumstances, the board will maintain the
dividend of 10.5p per share paid in respect of 2009 through into 2010
Commenting on the results, Jason Starr, Managing Director said:
"Whilst the recruitment software industry has been badly impacted by the
economic climate, we are delighted to have been able to achieve market
expectations and maintain our dividend policy whilst also increasing our
research and development budget. This success reflects the substantial efforts
made across the year by the whole team and the robust cost controls implemented
by management. In addition, we are delighted to report that in the first three
months of 2010, we have enjoyed a significant increase in our order intake and
remain confident that our strong balance sheet, global client base and market
leading suite of products puts us in a strong position for the future."
Annual Report and Accounts
The preliminary results announcement can be downloaded from the Company's
website (www.dillistone.com). Copies of the Annual Report and Accounts (as well
as the notice of Annual General Meeting) will be sent to shareholders by 30
April 2010 for approval at the Annual General Meeting to be held on 25 May 2010.
Change of name of Nominated Adviser and Broker
The Company's nominated adviser has changed its name from Blomfield Corporate
Finance Limited to Religare Capital Markets (UK) Limited, and its broker has
changed its name from Religare Hichens, Harrison plc to Religare Capital Markets
plc; both now trade as Religare Capital Markets.
Contacts:
Mike Love Dillistone Group Plc
0207 749 6100
Chairman
Jason Starr Dillistone Group Plc
0207 749 6100
Managing Director
Emily Staples (Nomad) Religare Capital Markets 0207
444 0800
Daniel Briggs (Broker) Religare Capital Markets 0207
444 0500
Chairman and Managing Director's joint statement
Financial Performance
The Chairman's statement at the end of last year anticipated that the Group
would see the effects of the recession in its financial results for 2009, and
that has been the case.
Total revenue for the year fell by 21% to GBP3,654,883 (2008 - GBP4,608,198) and
profits before tax fell by 24% to GBP1,080,668 (2008 - GBP1,425,572). These
figures do not however reveal the real progress that the Group has made in
combating the effects of the recession. The operating profits shown in the
accounts for the second half of 2009 were better than those achieved in both the
second half of 2008, and the first half of 2009. The second half of 2008
generated operating profits of GBP439,770, and the first half of 2009
GBP465,655, whilst the second half of 2009 generated an operating profit of
GBP608,388.
Whilst total revenue in the year fell by 21%, this was attributable to
non-recurring sales, which fell by some 45% when compared with 2008. Sales to
new clients held up well, whereas sales of new licences and upgrades to
established clients showed a steep decline. Total non-recurring sales amounted
to GBP1,310,761, (2008 - GBP2,362,255), with marked differences between our
markets. Both the UK, Middle East and Africa (UKMEA) and Asia-Pacific markets
showed severe reductions of 57% and 64% respectively, whilst the European and US
markets showed less severe reductions of 20% and 21% respectively.
Recurring sales in the year increased by 4% over 2008 levels to GBP2,344,122
(2008 - GBP2,245,943), and in 2009 they comprised 64% of total sales, compared
with 49% in 2008, and 41% in 2007. Our decision to offer our product on a
"Software as a Service" (SaaS) basis in the USA in 2006 continues to reap
rewards, and in 2009 recurring revenues in the USA comprised 72% of sales in
that market, compared with 65% in 2008.
We have been successful in controlling costs in 2009, and administrative costs
reduced by 19% to GBP2,467,689 (2008 - GBP3,033,799) as a result of awarding no
staff bonuses, reductions in our general marketing and administrative
expenditure and staff reductions through natural wastage.
Understandably, given the marked differences in regional sales, the results for
each of the regional businesses differ widely. The UKMEA and Asian businesses
both recorded significant reductions in operating profits, with UKMEA falling by
66% and Asia 51%, whilst our European business recorded a 4% improvement, and
the USA a 10% improvement.
Cash and cash equivalents for the year showed an inflow of GBP614,894 for the
year before development costs, dividends and currency movements (2008 -
GBP1,357,711). We paid an interim dividend of 3.5p per share in October 2009,
and on 1 April 2010 we will be paying an additional 7p per share, retaining the
dividend at the same level as 2008. This dividend is covered 1.43 times by the
earnings of the business.
Trading Review
2009 proved to be an exceptionally tough year for the recruitment software
industry, and we have not been immune to these difficulties. Our target market
has shrunk, and the average size of the companies that make up that market has
also fallen.
Against this backdrop, we are pleased once again to report financial results
in-line with market expectations. In spite of a tough trading environment we
continue to benefit from a strong cash balance. Our increased investment in
research and development together with the retention of our highly trained staff
means we are well positioned to take advantage of any recovery.
The latest version of our FILEFINDER application - FILEFINDER 9 - was released
in April 2009. This product has been very well received, and since then has
been implemented or ordered by over 250 organisations, including both new
clients and firms upgrading from earlier versions of our software. Despite
this, we refuse to rest on our laurels as we believe that investing in the
future of our business is vital. As such we have, despite the recession,
increased our investment in research and development substantially in the year
under review.
The reduced tax charge for 2009 reflects this investment and the claim by the
company for R&D tax credits.
Whilst overall revenues are down, it is worth noting that our recurring revenues
have held up well throughout the recession. The main shortfall in our income
relates to non-recurring income. In volume terms, new contract wins fell by 14%
and our typical new contract was also smaller - both in terms of project size
and value. This reflected the impact of the recession on the executive search
industry itself. With very few exceptions, search firms both downsized and
cutback on IT investments. Our average new client order value, however,
actually increased by 15% as a result of some larger but atypical contracts.
Given how few large executive search firms chose to invest in technology this
year, we are delighted by these wins which, we feel, demonstrate our continued
strength in the market.
The drop in non-recurring revenues is clearly disappointing (2009: GBP1,310,761
2008: GBP2,362,255). However, this is not fully reflective of our performance
in the year. We noted in our Interim Results for H1 2008 that our performance
had been helped by "orders taken towards the end of 2007 which were implemented
during the early part of 2008". The pipeline carried into 2009, however, was
much smaller than in 2008, reflecting the impact of the economic crisis.
Pleasing contract wins in the later weeks of 2009, on the other hand, mean that
we carry a stronger pipeline into 2010. In reality, the reduction in value of
orders (new client sales) brought in by our business development team during
2009 as opposed to 2008 was actually less than 4%, reflecting - we believe - our
continued strength in the market.
Sales to our existing client base fell by 47%. This is not unexpected. As
search firms downsize, they have less need to purchase additional licences and
services from us. However, this is cyclical and as such we would expect to see
an improvement in this figure as the world economy recovers.
We continue to see the benefit of having a global client base. During 2009, we
sold systems into 34 different countries, and this brings the total number of
countries in which we have installations up to 57. Revenues from outside our
home market reached 58% (2008: 51%) of our total revenues for the year. We
believe that our international client base will play a key role in our return to
a path of growth.
Revenue in the UKMEA dropped by 32% from GBP2,256,516 to GBP1,527,669. The
UKMEA is our longest established region and the one in which we have the largest
proportion of our clients and, as such, it is the division which felt the
falling away of sales to existing clients hardest. Largely as a result of this
revenue fall, our profit in the territory fell to GBP178,469 (2008: GBP523,611).
It should be noted that the UKMEA carried the majority of the cost overhead for
the Group worldwide. A notable contract win in the UKMEA was with Tribal
Executive Search & Selection, a division of the resourcing solutions subsidiary
of Tribal Group Plc.
The impact of the recession on our European business was less extreme, with
profits of GBP761,050 on revenue of GBP962,902. This represents a small
improvement on our 2008 figures when we reported profits of GBP729,318 on
revenue of GBP1,008,035.
Our Asia Pacific business is traditionally our smallest and has the lowest level
of recurring revenue. As a result of this it is more reliant, for its profit, on
generating new sales to cover a relatively fixed cost base. The difficult market
conditions therefore had a relatively larger impact on this territory with
revenue down from GBP511,120 to GBP354,040 and profits down to GBP149,790 from
GBP307,447 in 2008. As a result of this dip, we restructured the working
arrangements of staff in this territory so as to provide additional remote
resource to European based clients. Relative to other markets, our Asia Pacific
region seems to have endured a shorter but deeper dip, and the early signs are
that the market has now returned to its traditional growth curve.
The United States returned its best ever performance, increasing its profits by
10% to GBP358,020 (2008: GBP324,377) despite a small dip in revenue (2009:
GBP810,272; 2008: GBP832,527). In December 2009 the Group also announced a
significant sale to a major global executive search firm which is the largest
sale we have yet made to a US based firm. This should have a positive impact on
our results in 2010.
Staff and Board
This has been a difficult year for all members of staff, who performed extremely
well in achieving implementations of new systems against tight schedules. We
believe that we have an exceptional team of highly skilled individuals with
specialist knowledge of our industry and are pleased to have been able to reduce
costs without needing to resort to redundancies, which would not be in the best
long term interests of the Group. This has ensured that we are in a strong
position to take advantage of new opportunities as they arise. We would like to
place on record our appreciation for the efforts of our staff, worldwide, during
this difficult year.
During the year our staff exercised options over 265,441 new ordinary shares
resulting from the share options that were granted in May 2006. Many of these
remain on the share register, and we extend a warm welcome to them as
shareholders.
With regret, post year end Jim McLaughlin resigned as Executive Chairman and
Finance Director. His contribution over the past years is much appreciated and
we wish him well for the future. Steps are in place to recruit a new Finance
Director and Mike Love, previously Non-Executive Director, has stepped into the
role of Chairman.
Outlook
We operate in uncertain markets and as such we continue to take a continued
strong focus on cost control.
However, there are positive signs of recovery. Our operating profits in the
second half of 2009 were better than we achieved in the first half of the year
and these, in turn, were better than we achieved in the second half of 2008.
This leads to us enjoying our highest ever level of recurring revenues. We
expect to build on this with an improvement in orders, and early signs are that
sales to both new and existing clients are improving. Indeed, our order book in
the first quarter of 2010 shows a significant increase on the value of orders
received in the same period in 2009.
In the longer term, the Board continues to follow a strategy of growth. The
Group makes the bulk of its revenues from the executive recruitment market, and
this is one which benefits from beneficial demographic trends. As the "baby
boomers" retire, demand is created for the services of executive search firms,
and in turn the Board believes that this creates demand for our products and
services.
The Board has decided that, in the absence of major unforeseen circumstances, it
will maintain the dividend of 10.5p per share paid in respect of 2009 through
into 2010, as a sign of its confidence in the momentum evident in the business.
Signed
Chairman Managing
Director
31 March 2010 31 March 2010
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
+---------------------------------+------+-------------+--+-------------+
| | | Year Ended 31 |
| | | December |
+---------------------------------+------+------------------------------+
| |Note | 2009 | | 2008 |
+---------------------------------+------+-------------+--+-------------+
| | | GBP | | GBP |
+---------------------------------+------+-------------+--+-------------+
| | | | | |
+---------------------------------+------+-------------+--+-------------+
| Revenue | 2 | 3,654,883 | | 4,608,198 |
+---------------------------------+------+-------------+--+-------------+
| Cost of sales | | (113,151) | | (202,998) |
+---------------------------------+------+-------------+--+-------------+
| | | | | |
+---------------------------------+------+-------------+--+-------------+
| Gross profit | | 3,541,732 | | 4,405,200 |
+---------------------------------+------+-------------+--+-------------+
| Administrative expenses | | (2,467,689) | | (3,033,799) |
+---------------------------------+------+-------------+--+-------------+
| | | | | |
+---------------------------------+------+-------------+--+-------------+
| Results from operating | 3 | 1,074,043 | | 1,371,401 |
| activities | | | | |
+---------------------------------+------+-------------+--+-------------+
| Financial income | 4 | 6,625 | | 54,171 |
+---------------------------------+------+-------------+--+-------------+
| Profit before tax | | 1,080,668 | | 1,425,572 |
+---------------------------------+------+-------------+--+-------------+
| | | | | |
+---------------------------------+------+-------------+--+-------------+
| Tax expense | 5 | (243,799) | | (427,672) |
+---------------------------------+------+-------------+--+-------------+
| Profit for the year | | 836,869 | | 997,900 |
+---------------------------------+------+-------------+--+-------------+
| | | | | |
+---------------------------------+------+-------------+--+-------------+
| Other comprehensive income: | | | | |
+---------------------------------+------+-------------+--+-------------+
| Currency translation | | (17,302) | | 106,013 |
| differences | | | | |
+---------------------------------+------+-------------+--+-------------+
| Total comprehensive income for | | 819,567 | | 1,103,913 |
| the year | | | | |
+---------------------------------+------+-------------+--+-------------+
| | | | | |
+---------------------------------+------+-------------+--+-------------+
| | | | | |
+---------------------------------+------+-------------+--+-------------+
| Earnings per share - basic | 6 | 15.02 | | 18.48 |
| (pence) | | | | |
+---------------------------------+------+-------------+--+-------------+
| Earnings per share - fully | 6 | 14.68 | | 17.50 |
| diluted (pence) | | | | |
+---------------------------------+------+-------------+--+-------------+
| | | | | |
+---------------------------------+------+-------------+--+-------------+
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| | | Share | | Share | | Retained | | Share | | Foreign | | Total |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| | | capital | | premium | | earnings | | option | | exchange | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| | | GBP | | GBP | | GBP | | GBP | | GBP | | GBP |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| Balance at | 270,000 | | | | 1,149,023 | | 26,778 | | 17,736 | | 1,463,537 |
| 31 December 2007 | | | - | | | | | | | | |
+---------------------------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| Comprehensive income | | | | | | | | | | |
+-------------------------------------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| Profit for the year ended | - | | | | 997,900 | | | | | | 997,900 |
| 31 December 2008 | | | - | | | | - | | - | | |
+---------------------------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| Other comprehensive income | | | | | | | | | | |
+-------------------------------------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| Exchange differences on | | | | | | | | | | |
+-------------------------------------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| translation of | | | | | | | | | | | | |
| overseas | | | | | | | | | | | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| operations | | - | | - | | - | | - | | 106,013 | | 106,013 |
| | | | | | | | | | | | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| Transactions with owners | | | | | | | | | | |
+-------------------------------------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| Fair value of | | | | | | | | 13,649 | | | | 13,649 |
| equity settled | | - | | - | | - | | | | - | | |
| share option | | | | | | | | | | | | |
| expense | | | | | | | | | | | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| Dividends paid | | | | | | (513,000) | | - | | - | | (513,000) |
| | | - | | - | | | | | | | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | |
+---------------------------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| | | 270,000 | | | | 1,633,923 | | | | 123,749 | | 2,068,099 |
| Balance at | | | | - | | | | 40,427 | | | | |
| 31 December | | | | | | | | | | | | |
| 2008 | | | | | | | | | | | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| Comprehensive income | | | | | | | | | | |
+-------------------------------------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| Profit for the year ended | | | | | | | | | | | |
+---------------------------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| 31 December | | - | | - | | 836,869 | | - | | - | | 836,869 |
| 2009 | | | | | | | | | | | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| Other comprehensive income | | | | | | | | | | |
+-------------------------------------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| Exchange differences on | | | | | | | | | | |
+-------------------------------------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| translation of | | - | | | | | | | | (17,302) | | (17,302) |
| overseas | | | | - | | - | | - | | | | |
| operations | | | | | | | | | | | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| Transactions with owners | | | | | | | | | | |
+-------------------------------------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| Issue of share | | 13,272 | | 29,607 | | - | | - | | - | | 42,879 |
| capital | | | | | | | | | | | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| Transfer share | | | | | | 30,153 | | (30,153) | | | | |
| option reserve | | - | | - | | | | | | - | | - |
| on exercised | | | | | | | | | | | | |
| options | | | | | | | | | | | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| Dividends paid | | | | | | (594,353) | | | | | | (594,353) |
| | | - | | - | | | | | | - | | |
| | | | | | | | | - | | | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
| Balance at | 283,272 | | 29,607 | | 1,906,592 | | 10,274 | | 106,447 | | 2,336,192 |
| 31 December 2009 | | | | | | | | | | | |
+----------------+----------+---------+----------+---------+----------+-----------+----------+----------+----------+----------+----------+-----------+
CONSOLIDATED BALANCE SHEETS
+-----------------------------+------+------------+-+------------+
| | | As at 31 December |
+-----------------------------+------+---------------------------+
| |Note | 2009 | | 2008 |
+-----------------------------+------+------------+-+------------+
| | | GBP | | GBP |
+-----------------------------+------+------------+-+------------+
| ASSETS | | | | |
+-----------------------------+------+------------+-+------------+
| Non-current assets | | | | |
+-----------------------------+------+------------+-+------------+
| Intangible assets | 8 | 1,167,060 | | 707,396 |
+-----------------------------+------+------------+-+------------+
| Property plant & equipment | 9 | 95,532 | | 158,443 |
+-----------------------------+------+------------+-+------------+
| | | 1,262,592 | | 865,839 |
+-----------------------------+------+------------+-+------------+
| Current assets | | | | |
+-----------------------------+------+------------+-+------------+
| Inventories | 10 | 55,989 | | 50,628 |
+-----------------------------+------+------------+-+------------+
| Trade and other receivables | 11 | 1,260,494 | | 1,306,748 |
+-----------------------------+------+------------+-+------------+
| Cash and cash equivalents | | 1,819,503 | | 2,352,794 |
+-----------------------------+------+------------+-+------------+
| | | 3,135,986 | | 3,710,170 |
+-----------------------------+------+------------+-+------------+
| Total assets | | 4,398,578 | | 4,576,009 |
+-----------------------------+------+------------+-+------------+
| | | | | |
+-----------------------------+------+------------+-+------------+
| | | | | |
+-----------------------------+------+------------+-+------------+
| EQUITY AND LIABILITIES | | | | |
+-----------------------------+------+------------+-+------------+
| Equity | | | | |
+-----------------------------+------+------------+-+------------+
| Share capital | 13 | 283,272 | | 270,000 |
+-----------------------------+------+------------+-+------------+
| Share premium | | 29,607 | | - |
+-----------------------------+------+------------+-+------------+
| Retained earnings | | 1,906,592 | | 1,633,923 |
+-----------------------------+------+------------+-+------------+
| Share option reserve | 15 | 10,274 | | 40,427 |
+-----------------------------+------+------------+-+------------+
| Translation reserve | | 106,447 | | 123,749 |
+-----------------------------+------+------------+-+------------+
| Total equity | | 2,336,192 | | 2,068,099 |
+-----------------------------+------+------------+-+------------+
| | | | | |
+-----------------------------+------+------------+-+------------+
| Liabilities | | | | |
+-----------------------------+------+------------+-+------------+
| Non current liabilities | | | | |
+-----------------------------+------+------------+-+------------+
| Deferred tax | 5 | 93,654 | | 3,000 |
+-----------------------------+------+------------+-+------------+
| Current liabilities | | | | |
+-----------------------------+------+------------+-+------------+
| Trade and other payables | 12 | 1,925,075 | | 2,328,489 |
+-----------------------------+------+------------+-+------------+
| Current tax payable | | 43,657 | | 176,421 |
+-----------------------------+------+------------+-+------------+
| Total liabilities | | 2,062,386 | | 2,507,910 |
+-----------------------------+------+------------+-+------------+
| | | | | |
+-----------------------------+------+------------+-+------------+
| Total liabilities and | | 4,398,578 | | 4,576,009 |
| equity | | | | |
+-----------------------------+------+------------+-+------------+
| | | | | |
+-----------------------------+------+------------+-+------------+
The financial statements were approved by the board on 31 March 2010. They were
signed on its behalf by J S Starr, Managing Director.
CONSOLIDATED CASH
FLOW STATEMENT
+---------------------------------+------------+-+------------+
| | Year Ended 31 |
| | December |
+---------------------------------+---------------------------+
| | 2009 | | 2008 |
+---------------------------------+------------+-+------------+
| | GBP | | GBP |
+---------------------------------+------------+-+------------+
| Operating activities | | | |
+---------------------------------+------------+-+------------+
| Profit for the year | 1,074,043 | | 1,371,401 |
+---------------------------------+------------+-+------------+
| Less taxation paid | (285,909) | | (552,074) |
+---------------------------------+------------+-+------------+
| Adjustment for | | | |
+---------------------------------+------------+-+------------+
| depreciation | 160,208 | | 132,712 |
+---------------------------------+------------+-+------------+
| share option charge/(release) | - | | 13,649 |
+---------------------------------+------------+-+------------+
| Operating cash flows before | | | |
+---------------------------------+------------+-+------------+
| movements in working capital | 948,342 | | 965,688 |
+---------------------------------+------------+-+------------+
| Decrease/(Increase) in | 46,254 | | (22,558) |
| receivables | | | |
+---------------------------------+------------+-+------------+
| (Increase) in inventories | (5,361) | | (48,294) |
+---------------------------------+------------+-+------------+
| (Decrease) / Increase in | (403,414) | | 480,451 |
| payables | | | |
+---------------------------------+------------+-+------------+
| Net cash generated from | 585,821 | | 1,375,287 |
| operating activities | | | |
+---------------------------------+------------+-+------------+
| | | | |
+---------------------------------+------------+-+------------+
| Investing activities | | | |
+---------------------------------+------------+-+------------+
| Interest received | 6,625 | | 54,171 |
+---------------------------------+------------+-+------------+
| Purchases of property plant and | | | |
+---------------------------------+------------+-+------------+
| equipment | (20,431) | | (71,747) |
+---------------------------------+------------+-+------------+
| Investment in development costs | (536,530) | | (131,579) |
+---------------------------------+------------+-+------------+
| Net cash used in investing | (550,336) | | (149,155) |
| activities | | | |
+---------------------------------+------------+-+------------+
| | | | |
+---------------------------------+------------+-+------------+
| Financing activities | | | |
+---------------------------------+------------+-+------------+
| Proceeds of issue of shares | 42,879 | | - |
+---------------------------------+------------+-+------------+
| Dividends paid | (594,353) | | (513,000) |
+---------------------------------+------------+-+------------+
| Net cash provided by | | | |
+---------------------------------+------------+-+------------+
| financing activities | (551,474) | | (513,000) |
+---------------------------------+------------+-+------------+
| Net increase/(decrease) | | | |
+---------------------------------+------------+-+------------+
| in cash and cash equivalents | (515,989) | | 713,132 |
+---------------------------------+------------+-+------------+
| Cash and cash equivalents at | | | |
+---------------------------------+------------+-+------------+
| beginning of year | 2,352,794 | | 1,533,649 |
+---------------------------------+------------+-+------------+
| | | | |
+---------------------------------+------------+-+------------+
| Effect of foreign exchange rate | (17,302) | | 106,013 |
| changes | | | |
+---------------------------------+------------+-+------------+
| Cash and cash equivalents at | | | |
+---------------------------------+------------+-+------------+
| end of year | 1,819,503 | | 2,352,794 |
+---------------------------------+------------+-+------------+
| | | | |
+---------------------------------+------------+-+------------+
NOTES TO THE PRELIMINARY ANNOUNCEMENT
1. Basis of accounting
The financial information set out above does not constitute Dillistone Group
Plc's statutory accounts for the years ended 31 December 2009 or 2008 but is
derived from those accounts. Statutory accounts for 2008 have been delivered to
the registrar of companies, and those for 2009 will be delivered in due course.
The auditors have reported on those accounts; their reports were (i)
unqualified, (ii) did not include a reference to any matters to which the
auditors drew attention by way of emphasis without qualifying their report and
(iii) did not contain a statement under section 237 (2) or (3) of the Companies
Act 1985 in respect of the accounts for 2008 nor a statement under section 498
(2) or (3) of the Companies Act 2006 in respect of the accounts for 2009.
The financial information in this announcement has been prepared on the basis of
the accounting policies set out in the last published set of annual financial
statements.
The announcement was approved by the board of directors on 31 March 2010.
2. Segment reporting
Management principally monitors the Group's operations in terms of geographical
areas and accordingly the segment reporting is presented below by geographical
area.
The following tables provide an analysis of the Group's revenue, assets,
liabilities and additions of non-current assets by geographical market.
+---------------------------+------------+----------+----------+----------+------------+
| For the year ended 31 December | | | | |
| 2009 | | | | |
+----------------------------------------+----------+----------+----------+------------+
| | | | | Asia- | |
+---------------------------+------------+----------+----------+----------+------------+
| | UKMEA | Europe | USA | Pacific | Total |
+---------------------------+------------+----------+----------+----------+------------+
| | GBP | GBP | GBP | GBP | GBP |
+---------------------------+------------+----------+----------+----------+------------+
| Segment revenue | 1,527,669 | 962,902 | 810,272 | 354,040 | 3,654,883 |
+---------------------------+------------+----------+----------+----------+------------+
| Depreciation and | 157,350 | - | 1,970 | 887 | 160,207 |
| amortisation expense | | | | | |
+---------------------------+------------+----------+----------+----------+------------+
| Segment result | 178,469 | 761,050 | 358,020 | 149,790 | 1,447,329 |
+---------------------------+------------+----------+----------+----------+------------+
| Central costs | | | | | (373,286) |
+---------------------------+------------+----------+----------+----------+------------+
| Operating profit | | | | | 1,074,043 |
+---------------------------+------------+----------+----------+----------+------------+
| Income tax expense | 147,859 | - | 48,968 | 46,972 | 243,799 |
+---------------------------+------------+----------+----------+----------+------------+
| | | | | | |
+---------------------------+------------+----------+----------+----------+------------+
| Additions of non-current | 556,961 | - | - | - | 556,961 |
| assets | | | | | |
+---------------------------+------------+----------+----------+----------+------------+
| Segment assets | 2,486,667 | 678,252 | 625,879 | 113,387 | 3,904,185 |
+---------------------------+------------+----------+----------+----------+------------+
| Central assets - goodwill | | | | | 494,393 |
+---------------------------+------------+----------+----------+----------+------------+
| Total assets | | | | | 4,398,578 |
+---------------------------+------------+----------+----------+----------+------------+
| | | | | | |
+---------------------------+------------+----------+----------+----------+------------+
| Segment liabilities | 1,081,713 | 455,908 | 505,688 | 19,077 | 2,062,386 |
+---------------------------+------------+----------+----------+----------+------------+
| | | | | | |
+---------------------------+------------+----------+----------+----------+------------+
2. Segment reporting (continued)
+---------------------------+------------+------------+----------+----------+------------+
| | | | | |
+----------------------------------------+------------+----------+----------+------------+
| For the year ended 31 December | | | | |
| 2008 | | | | |
+----------------------------------------+------------+----------+----------+------------+
| | | | | Asia- | |
+---------------------------+------------+------------+----------+----------+------------+
| | UKMEA | Europe | USA | Pacific | Total |
+---------------------------+------------+------------+----------+----------+------------+
| | GBP | GBP | GBP | GBP | GBP |
+---------------------------+------------+------------+----------+----------+------------+
| Segment revenue | 2,256,516 | 1,008,035 | 832,527 | 511,120 | 4,608,198 |
+---------------------------+------------+------------+----------+----------+------------+
| Depreciation and | 131,395 | - | - | 1,317 | 132,712 |
| amortisation expense | | | | | |
+---------------------------+------------+------------+----------+----------+------------+
| Segment result | 523,611 | 729,318 | 324,377 | 307,447 | 1,884,753 |
+---------------------------+------------+------------+----------+----------+------------+
| Central costs | | | | | (513,352) |
+---------------------------+------------+------------+----------+----------+------------+
| Operating profit | | | | | 1,371,401 |
+---------------------------+------------+------------+----------+----------+------------+
| Income tax expense | 275,487 | - | 45,060 | 107,123 | 427,670 |
+---------------------------+------------+------------+----------+----------+------------+
| | | | | | |
+---------------------------+------------+------------+----------+----------+------------+
| Additions of non-current | 203,326 | - | - | - | 203,326 |
| assets | | | | | |
+---------------------------+------------+------------+----------+----------+------------+
| Segment assets | 2,953,757 | 329,468 | 583,553 | 214,838 | 4,081,616 |
+---------------------------+------------+------------+----------+----------+------------+
| Central assets - goodwill | | | | | 494,393 |
+---------------------------+------------+------------+----------+----------+------------+
| Total assets | | | | | 4,576,009 |
+---------------------------+------------+------------+----------+----------+------------+
| | | | | | |
+---------------------------+------------+------------+----------+----------+------------+
| Segment liabilities | 1,254,021 | 566,874 | 623,139 | 63,876 | 2,507,910 |
+---------------------------+------------+------------+----------+----------+------------+
| | | | | | |
+---------------------------+------------+------------+----------+----------+------------+
+---------------------------+------------+------+------------+------+--------+
| Business Segment | | | | | |
+---------------------------+------------+------+------------+------+--------+
| | | |
+------------------------------------------------------------+------+--------+
| The following table provides an analysis of the Group's sales by |
| business segment |
+----------------------------------------------------------------------------+
| | | | | | |
+---------------------------+------------+------+------------+------+--------+
| | | | | | |
+---------------------------+------------+------+------------+------+--------+
| | Year Ended 31 | | |
| | December | | |
+---------------------------+--------------------------------+------+--------+
| | 2009 | | 2008 | | |
+---------------------------+------------+------+------------+------+--------+
| | GBP | | GBP | | |
+---------------------------+------------+------+------------+------+--------+
| Recurring | 2,344,122 | | 2,245,943 | | |
+---------------------------+------------+------+------------+------+--------+
| Non-recurring | 1,310,761 | | 2,362,255 | | |
+---------------------------+------------+------+------------+------+--------+
| | 3,654,883 | | 4,608,198 | | |
+---------------------------+------------+------+------------+------+--------+
Recurring income includes all support services, ASP and hosting income.
Non-recurring income includes sales of new licenses, and income derived from
installing those licenses including training, installation, and data
translation.
3. Results from operating activities
+----------------+--------+-----------------+-----------+--+-----------+
| | | | 2009 | | 2008 |
+----------------+--------+-----------------+-----------+--+-----------+
| | | | GBP | | GBP |
+----------------+--------+-----------------+-----------+--+-----------+
| Result from operating activities is | | | |
| stated after charging: | | | |
+-------------------------------------------+-----------+--+-----------+
| Depreciation | | | 83,342 | | 68,694 |
+----------------+--------+-----------------+-----------+--+-----------+
| Amortisation | | | 76,866 | | 64,018 |
+----------------+--------+-----------------+-----------+--+-----------+
| Gain on foreign | | (37,989) | | (11,711) |
| exchange transactions | | | | |
+-------------------------+-----------------+-----------+--+-----------+
| Operating lease rentals - land and | 103,698 | | 97,620 |
| buildings | | | |
+-------------------------------------------+-----------+--+-----------+
| Money purchase pension | | 26,199 | | 32,285 |
| contributions | | | | |
+----------------+--------+-----------------+-----------+--+-----------+
+------------------+-----+--------------------+-------------+--+---------------+
| Fees receivable by the | | | | |
| group auditors: | | | | |
+------------------------+--------------------+-------------+--+---------------+
| | | | | | |
+------------------+-----+--------------------+-------------+--+---------------+
| Audit of financial | | 25,450 | | 19,860 |
| statements | | | | |
+------------------------+--------------------+-------------+--+---------------+
| Other services: | | | | | |
+------------------+-----+--------------------+-------------+--+---------------+
| Audit of accounts of subsidiary of the | 12,000 | | 12,140 |
| company | | | |
+---------------------------------------------+-------------+--+---------------+
| Other services | | 13,100 | | 5,720 |
| relating to taxation | | | | |
+------------------------+--------------------+-------------+--+---------------+
| All other | | | 4,000 | | 6,800 |
| services | | | | | |
+------------------+-----+--------------------+-------------+--+---------------+
| | | | | | |
+------------------+-----+--------------------+-------------+--+---------------+
4. Financial income
+----------------+--------+-----------------+---------+--+---------+
| | | | 2009 | | 2008 |
+----------------+--------+-----------------+---------+--+---------+
| | | | GBP | | GBP |
+----------------+--------+-----------------+---------+--+---------+
| | | | | | |
+----------------+--------+-----------------+---------+--+---------+
| Interest | | | 6,625 | | 54,171 |
| receivable | | | | | |
+----------------+--------+-----------------+---------+--+---------+
5. Tax expense
+---------------------------------+----+----+-----------+--+-----------+
| | | | 2009 | | 2008 |
+---------------------------------+----+----+-----------+--+-----------+
| | | | GBP | | GBP |
+---------------------------------+----+----+-----------+--+-----------+
| | | | | | |
+---------------------------------+----+----+-----------+--+-----------+
| Current tax | | | 150,145 | | 427,672 |
+---------------------------------+----+----+-----------+--+-----------+
| Deferred tax | | | 93,654 | | - |
+---------------------------------+----+----+-----------+--+-----------+
| | | | | | |
+---------------------------------+----+----+-----------+--+-----------+
| Income tax expense for the year | | 243,799 | | 427,672 |
+--------------------------------------+----+-----------+--+-----------+
| | | | | | |
+---------------------------------+----+----+-----------+--+-----------+
| Factors affecting the tax charge for the | | | |
| year | | | |
+-------------------------------------------+-----------+--+-----------+
| Profit before tax | | | 1,080,668 | | 1,425,572 |
+---------------------------------+----+----+-----------+--+-----------+
| | | | | | |
+---------------------------------+----+----+-----------+--+-----------+
| Effective rate of taxation | | | 27.90% | | 30.00% |
+---------------------------------+----+----+-----------+--+-----------+
| | | | | | |
+---------------------------------+----+----+-----------+--+-----------+
| Profit before tax multiplied by the | 301,506 | | 427,672 |
| effective rate of tax | | | |
+-------------------------------------------+-----------+--+-----------+
| | | | | | |
+---------------------------------+----+----+-----------+--+-----------+
| Effects of : | | | | | |
+---------------------------------+----+----+-----------+--+-----------+
| Change in tax rate | | | (570) | | (25,301) |
+---------------------------------+----+----+-----------+--+-----------+
| Qualifying R&D relief | | | (163,896) | | - |
+---------------------------------+----+----+-----------+--+-----------+
| Non deductible expenses | | | 11 | | (40,067) |
+---------------------------------+----+----+-----------+--+-----------+
| Adjustments for overseas tax paid | | - | | 57,829 |
+--------------------------------------+----+-----------+--+-----------+
| Depreciation and amortisation disallowed | 22,515 | | 26,538 |
+-------------------------------------------+-----------+--+-----------+
| Capital allowances | | | (9,421) | | (18,999) |
+---------------------------------+----+----+-----------+--+-----------+
| Deferred tax charge | | | 93,654 | | - |
+---------------------------------+----+----+-----------+--+-----------+
| Tax expense | | | 243,799 | | 427,672 |
+---------------------------------+----+----+-----------+--+-----------+
5. Tax expense (continued)
Deferred tax provided in the financial statements is as follows:
+------------------------+------------------+---------+--+---------+
| | | 2009 | | 2008 |
+------------------------+------------------+---------+--+---------+
| | | GBP | | GBP |
+------------------------+------------------+---------+--+---------+
| | | | | |
+------------------------+------------------+---------+--+---------+
| Accelerated capital | | 93,654 | | 3,000 |
| allowances | | | | |
+------------------------+------------------+---------+--+---------+
6. Earnings per share
+--------------------------------------+----------+--+------------+--+------------+
| | | | 2009 | | 2008 |
+--------------------------------------+----------+--+------------+--+------------+
| | | | | | |
+--------------------------------------+----------+--+------------+--+------------+
| Profit attributable to ordinary shareholders | GBP836,869 | | GBP997,900 |
+----------------------------------------------------+------------+--+------------+
| | | | | | |
+--------------------------------------+----------+--+------------+--+------------+
| Weighted average number of shares | | 5,572,440 | | 5,400,000 |
+-------------------------------------------------+--+------------+--+------------+
| | | | | | |
+--------------------------------------+----------+--+------------+--+------------+
| Basic earnings per share | | | 15.02 | | 18.48 |
| | | | pence | | pence |
+--------------------------------------+----------+--+------------+--+------------+
| | | | | | |
+--------------------------------------+----------+--+------------+--+------------+
| Weighted average number of shares after dilution | 5,701,325 | | 5,702,087 |
+----------------------------------------------------+------------+--+------------+
| | | | | | |
+--------------------------------------+----------+--+------------+--+------------+
| Fully diluted earnings per share | | 14.68 | | 17.50 |
| | | pence | | pence |
+--------------------------------------+----------+--+------------+--+------------+
7. Profit for the financial year
As permitted by section 408 of the Companies Act 2006, the holding company's
profit and loss account has not been included in these financial statements.
The profit for the financial year for the holding company was GBP363,688 (2008 -
GBP628,469).
8. Intangible assets
+----------------------+----------+---+-----------+-+----------+-+-----------+
| | | Development | | Goodwill | | Total |
| | | costs | | | | |
+----------------------+----------+---------------+-+----------+-+-----------+
| | | | GBP | | GBP | | GBP |
+----------------------+----------+---+-----------+-+----------+-+-----------+
| Cost | | | | | | | |
+----------------------+----------+---+-----------+-+----------+-+-----------+
| At 1 January 2008 | | | 378,395 | | 494,393 | | 872,788 |
+----------------------+----------+---+-----------+-+----------+-+-----------+
| Additions | | | 131,579 | | - | | 131,579 |
+----------------------+----------+---+-----------+-+----------+-+-----------+
| At 31 December 2008 | | | 509,974 | | 494,393 | | 1,004,367 |
+----------------------+----------+---+-----------+-+----------+-+-----------+
| | | | | | | | |
+----------------------+----------+---+-----------+-+----------+-+-----------+
| Additions | | | 536,530 | | - | | 536,530 |
+----------------------+----------+---+-----------+-+----------+-+-----------+
| At 31 December 2009 | | | 1,046,504 | | 494,393 | | 1,540,897 |
+----------------------+----------+---+-----------+-+----------+-+-----------+
| | | | | | | | |
+----------------------+----------+---+-----------+-+----------+-+-----------+
| Amortisation | | | | | | | |
+----------------------+----------+---+-----------+-+----------+-+-----------+
| At 1 January 2008 | | | 232,953 | | - | | 232,953 |
+----------------------+----------+---+-----------+-+----------+-+-----------+
| Charge for the year | | | 64,018 | | - | | 64,018 |
+----------------------+----------+---+-----------+-+----------+-+-----------+
| At 31 December 2008 | | | 296,971 | | - | | 296,971 |
+----------------------+----------+---+-----------+-+----------+-+-----------+
| | | | | | | | |
+----------------------+----------+---+-----------+-+----------+-+-----------+
| Charge for the year | | | 76,866 | | - | | 76,866 |
+----------------------+----------+---+-----------+-+----------+-+-----------+
| At 31 December 2009 | | | 373,837 | | - | | 373,837 |
+----------------------+----------+---+-----------+-+----------+-+-----------+
| | | | | | | | |
+----------------------+----------+---+-----------+-+----------+-+-----------+
| Carrying amount | | | | | | | |
+----------------------+----------+---+-----------+-+----------+-+-----------+
| At 31 December 2009 | | | 672,667 | | 494,393 | | 1,167,060 |
+----------------------+----------+---+-----------+-+----------+-+-----------+
| At 31 December 2008 | | | 213,003 | | 494,393 | | 707,396 |
+----------------------+----------+---+-----------+-+----------+-+-----------+
| At 31 December 2007 | | | 145,442 | | 494,393 | | 639,835 |
+----------------------+----------+---+-----------+-+----------+-+-----------+
9. Property, plant and equipment
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| | | Land | | Office | | Fixtures | | Total |
| | | and | | & | | and | | |
| | | buildings | | computer | | fittings | | |
| | | | | equipment | | | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| | | GBP | | GBP | | GBP | | GBP |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| Cost | | | | | | | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| At 1 January | | 163,073 | | 178,011 | | 25,274 | | 366,358 |
| 2008 | | | | | | | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| Additions | | - | | 71,747 | | | | 71,747 |
| | | | | | | - | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| At 31 December | | 163,073 | | 249,758 | | 25,274 | | 438,105 |
| 2008 | | | | | | | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| | | | | | | | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| Additions | | | | 20,431 | | - | | 20,431 |
| | | - | | | | | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| At 31 December | | 163,073 | | 270,189 | | 25,274 | | 458,536 |
| 2009 | | | | | | | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| | | | | | | | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| Depreciation | | | | | | | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| At 1 January | | 44,819 | | 144,747 | | 21,402 | | 210,968 |
| 2008 | | | | | | | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| Charge for the | | 32,692 | | 33,922 | | 2,080 | | 68,694 |
| year | | | | | | | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| At 31 December | | 77,511 | | 178,669 | | 23,482 | | 279,662 |
| 2008 | | | | | | | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| | | | | | | | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| Charge for the | | 32,693 | | 49,609 | | 1,040 | | 83,342 |
| year | | | | | | | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| At 31 December | | 110,204 | | 228,278 | | 24,522 | | 363,004 |
| 2009 | | | | | | | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| | | | | | | | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| Carrying | | | | | | | | |
| Amount | | | | | | | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| At 31 December | | 52,869 | | 41,911 | | 752 | | 95,532 |
| 2009 | | | | | | | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| At 31 December | | 85,562 | | 71,089 | | 1,792 | | 158,443 |
| 2008 | | | | | | | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| At 31 December | | 118,254 | | 33,264 | | 3,872 | | 155,390 |
| 2007 | | | | | | | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
| | | | | | | | | |
+----------------+----------+---------------+----------+----------------+----------+----------------+-+---------------+
10. Inventories
+-----------------+---------------------+---------+-+-----------+
| | | 2009 | | 2008 |
+-----------------+---------------------+---------+-+-----------+
| | | GBP | | GBP |
+-----------------+---------------------+---------+-+-----------+
| Licences for | | 55,989 | | 50,628 |
| resale | | | | |
+-----------------+---------------------+---------+-+-----------+
11. Trade and other receivables
+-------------------------------------+-+-------------+-+-------------+
| | | 2009 | | 2008 |
+-------------------------------------+-+-------------+-+-------------+
| | | GBP | | GBP |
+-------------------------------------+-+-------------+-+-------------+
| Trade and other receivables | 1,164,611 | | 1,165,385 |
+---------------------------------------+-------------+-+-------------+
| Prepayments and accrued income | 95,883 | | 141,363 |
+---------------------------------------+-------------+-+-------------+
| | | 1,260,494 | | 1,306,748 |
+-------------------------------------+-+-------------+-+-------------+
12. Trade and other payables
+--------------------------------+------+------------+-+------------+
| | | 2009 | | 2008 |
+--------------------------------+------+------------+-+------------+
| | | GBP | | GBP |
+--------------------------------+------+------------+-+------------+
| Trade and other payables | | 294,361 | | 467,146 |
+--------------------------------+------+------------+-+------------+
| Deferred income | | 1,522,665 | | 1,614,836 |
+--------------------------------+------+------------+-+------------+
| Accruals | | 108,049 | | 246,507 |
+--------------------------------+------+------------+-+------------+
| | | 1,925,075 | | 2,328,489 |
+--------------------------------+------+------------+-+------------+
13. Share capital
+--------------------------------+----------+----------+----------+----------+---------+-+---------+
| | | | | | 2009 | | 2008 |
+--------------------------------+----------+----------+----------+----------+---------+-+---------+
| | | | | | GBP | | GBP |
+--------------------------------+----------+----------+----------+----------+---------+-+---------+
| | | | | | | | |
+--------------------------------+----------+----------+----------+----------+---------+-+---------+
| Authorised | | | | | | | |
+--------------------------------+----------+----------+----------+----------+---------+-+---------+
| 10,000,000 ordinary shares of 5 pence each | | | 500,000 | | 500,000 |
+------------------------------------------------------+----------+----------+---------+-+---------+
| | | | | | | | |
+--------------------------------+----------+----------+----------+----------+---------+-+---------+
| Allotted, called up and fully paid | | | | | |
+------------------------------------------------------+----------+----------+---------+-+---------+
| 5,665,441 ordinary shares of 5 pence each | | | | | |
+------------------------------------------------------+----------+----------+---------+-+---------+
| (2008: 5,400,000 ordinary shares of 5 pence each) | 283,272 | | 270,000 |
+--------------------------------+----------+----------+----------+----------+---------+-+---------+
During the year 265,441 ordinary shares of 5 pence each were issued for a
consideration of GBP42,879.
14. Operating lease arrangements
The Group leases offices under non-cancellable operating lease agreements.
At 31 December 2009 the Group had future total commitments under non-cancellable
operating leases as follows:
+------------------------+----------+----------+----------+--+----+---------+-+--------+
| | | | | | | 2009 | | 2008 |
+------------------------+----------+----------+----------+--+----+---------+-+--------+
| | | | | | | GBP | | GBP |
+------------------------+----------+----------+----------+--+----+---------+-+--------+
| Commitments payable: | | | | | | | | |
+------------------------+----------+----------+----------+--+----+---------+-+--------+
| | | | | | | | | |
+------------------------+----------+----------+----------+--+----+---------+-+--------+
| Within one year | | | | | | 83,736 | | 67,504 |
+------------------------+----------+----------+----------+--+----+---------+-+--------+
| Between two and five years | | | | | 244,406 | | 23,106 |
+------------------------+----------+----------+----------+--+----+---------+-+--------+
15. Share options
As at 31 December 2009, 5 employees including directors (2008: 32 employees
including directors) held options (granted on 3 May 2006 and 14 September 2007)
over a total of 35,884 (2008 - 301,325) ordinary shares at an average exercise
price of 204.44p (2008 - 36.86p), as follows:
+-------------+---+----------+-----------+------------+----------+--------------+
| Date of | Number of | Exercised | Number of | Exercise | Earliest |
| grant | shares | during | shares | price | exercise |
| | under | the year | under | | date |
| | option at | | option at | | |
| | 31 | | 31 | | |
| | December | | December | | |
| | 2008 | | 2009 | | |
+-------------+--------------+-----------+------------+----------+--------------+
| | | | | | |
+-------------+--------------+-----------+------------+----------+--------------+
| 3 May 2006 | 277,325 | (265,441) | 11,884 | 16.15p | 3 May 2009 |
| | | | | | |
+-------------+--------------+-----------+------------+----------+--------------+
| | | | | | |
+-------------+--------------+-----------+------------+----------+--------------+
| 14 September | 24,000 | - | 24,000 | 297.5p | 14 September |
| 2007 | | | | | 2010 |
+-----------------+----------+-----------+------------+----------+--------------+
| | | | | | |
+-------------+--------------+-----------+------------+----------+--------------+
| | 301,325 | (265,441) | 35,884 | | |
+-------------+--------------+-----------+------------+----------+--------------+
| | | | | | | |
+-------------+---+----------+-----------+------------+----------+--------------+
265,441 share options were exercised during the year. The weighted average
share price at the date of exercise was GBP1.12 per share.
Dillistone Group Plc's share price on 31 December 2009 was 117.50p.
The weighted average time to expiry of the share options outstanding at 31
December 2009 was 0.7 years (2008 - 0.45 years). Details of individual expiry
dates are shown above.
The fair value of all options granted is shown as an employee expense with a
corresponding increase in equity. The employee expense is recognised equally
over the time from grant until vesting of the option. The employee expense for
the year was GBP3,722. The fair value has been measured using the Black Scholes
model. The expected volatility is based on the historic volatility adjusted for
any expected changes in future volatility. The material inputs to the model
have been:
+------+---------------+------+-----------------+----------------+
| | | | Granted in year ended |
+------+---------------+------+----------------------------------+
| | | | 31 December | 31 December |
| | | | 2006 | 2007 |
+------+---------------+------+-----------------+----------------+
| Average share price | | GBP0.16 | GBP2.97 |
| at grant | | | |
+----------------------+------+-----------------+----------------+
| Average exercise | | GBP0.16 | GBP2.97 |
| price | | | |
+----------------------+------+-----------------+----------------+
| Expected volatility | | 10% | 10% |
+----------------------+------+-----------------+----------------+
| Expected life | | 3 years | 3 years |
+----------------------+------+-----------------+----------------+
| Expected dividend | | nil | nil |
| yield | | | |
+----------------------+------+-----------------+----------------+
| Risk-free rate of | | 5% | 5% |
| return | | | |
+------+---------------+------+-----------------+----------------+
16. Employees
The average number of employees was:
+------------------+------+----------------+--------+--+--------+
| | | | 2009 | | 2008 |
+------------------+------+----------------+--------+--+--------+
| Operations | | | 43 | | 41 |
+------------------+------+----------------+--------+--+--------+
| Management | | | 4 | | 4 |
+------------------+------+----------------+--------+--+--------+
| Employee numbers | | | 47 | | 45 |
+------------------+------+----------------+--------+--+--------+
Their aggregate remuneration comprised:
+-----------------+-----+----------------+------------+--+------------+
| | | | 2009 | | 2008 |
+-----------------+-----+----------------+------------+--+------------+
| | | | GBP | | GBP |
+-----------------+-----+----------------+------------+--+------------+
| | | | | | |
+-----------------+-----+----------------+------------+--+------------+
| Wages and | | | 1,480,545 | | 1,668,543 |
| salaries | | | | | |
+-----------------+-----+----------------+------------+--+------------+
| Social security | | | 171,116 | | 209,452 |
| costs | | | | | |
+-----------------+-----+----------------+------------+--+------------+
| Pension costs | | | 26,199 | | 32,960 |
+-----------------+-----+----------------+------------+--+------------+
| | | | 1,677,860 | | 1,910,955 |
+-----------------+-----+----------------+------------+--+------------+
The directors' remuneration is disclosed on page 12 of the financial statements.
17. Control
The ultimate controlling parties, by way of their significant holding of shares
in Dillistone Group Plc, were:
+-----------------+----+---------+----------+----------------------------+
| | | | | Ordinary Shares |
+-----------------+----+---------+----------+----------------------------+
| J S Starr | | | | 1,184,811 |
+-----------------+----+---------+----------+----------------------------+
| R Howard | | | 1,174,811 |
+----------------------+---------+----------+----------------------------+
| J McLaughlin | | | 1,012,350 |
+-----------------+----+---------+----------+----------------------------+
18. Dividends
The dividends paid in 2009 and 2008 were GBP594,353 (10.5p per share) and
GBP513,000 (9.5p per share) respectively. A further interim dividend in respect
of the year ended 31 December 2009 of GBP396,581 (7p per share) will be paid on
1 April 2010. These financial statements do not reflect this further interim
dividend.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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