Interim Results

 

TIDMDSG 
 
RNS Number : 6327Z 
Dillistone Group PLC 
25 September 2009 
 

 
       25 September 2009 
 
 
DILLISTONE GROUP PLC 
 
 
INTERIM RESULTS 
FOR THE SIX MONTHS ENDED 30 JUNE 2009 
 
 
 
 
Dillistone Group Plc ('Dillistone' or 'the Group'), the AIM listed global 
supplier of executive recruitment software, announces interim results for the 
six months ended 30 June 2009. 
 
 
Commenting on the results, Chairman Jim McLaughlin said: 
 
 
"The Group enjoys a high proportion of recurring income which has supported the 
lower level of new systems sales so far this year and we have been diligent 
about controlling our cost base to ensure that we continue to meet market 
expectations. 
 
 
"Operating profits, although lower than for the same period last year, exceeded 
those recorded in the second half of 2008 when the full impact of the recession 
was first reflected in the Group's financial performance." 
 
 
Highlights for the period: 
+---------------------------+----------------+----------------+------------------+ 
|                                                             | 
+-------------------------------------------------------------+ 
|                           |    6 Months    |   6 Months     |    6 Months      | 
|                           | ended 30 June  | ended 31 Dec   |  ended 30 June   | 
|                           |      2009      |      2008      |      2008        | 
+---------------------------+----------------+----------------+------------------+ 
| *  Revenue                |   GBP1.822m    |   GBP2.092m    |    GBP2.516m     | 
+---------------------------+----------------+----------------+------------------+ 
| *  Operating profit       |   GBP0.466m    |   GBP0.440m    |    GBP0.932m     | 
+---------------------------+----------------+----------------+------------------+ 
| *  Profit before tax      |   GBP0.471m    |   GBP0.477m    |    GBP0.949m     | 
+---------------------------+----------------+----------------+------------------+ 
| *  Earnings per share     |     6.42p      |     6.18p      |      12.30p      | 
| (basic)                   |                |                |                  | 
+---------------------------+----------------+----------------+------------------+ 
| *  Cash balances          |   GBP1.795m    |   GBP2.352m    |    GBP2.042m     | 
+---------------------------+----------------+----------------+------------------+ 
 
 
  *  Recurring revenues increased over 2008 by 12% to GBP1.203m; 
  *  Maintained interim dividend of 3.5p per share; 
  *  Clients in over 55 countries world wide; 
  *  Resilient performance from US business; 
  *  Improving Order Book; 
 
 
 
On current trading and prospects, Mr McLaughlin added: 
 
 
"Having established some stability in a very difficult market, it does appear 
from recent orders received that the Group is likely to achieve its market 
expectations for the year as a whole and, with cash reserves, a strong balance 
sheet and increased recurring revenues, we are well positioned to take advantage 
of any upturn in global economic activity." 
 
Contacts: 
 
 
Jim McLaughlin                Dillistone Group Plc             01934 710 509 
Chairman & Finance Director 
 
 
Emily Morgan Blomfield Corporate Finance020 7489 4500 
Director, Corporate Finance 
 
 
Daniel Briggs                Religare Hichens, Harrison       020 7382 7776 
 
 
Tom Cooper/Paul Vann       Winningtons                      020 3043 4162 
0797 122 1972 
 
 
 
 
Notes to Editors: 
 
 
Dillistone Group Plc is a leader in the supply and support of recruitment 
software to the search and selection market. Dillistone was admitted to AIM, a 
market operated by the London Stock Exchange plc, in June 2006. 
 
 
Dillistone develops, publishes and supports FILEFINDER, its executive 
recruitment software, for recruitment companies and in-house recruitment teams. 
FILEFINDER is unique in providing tailored workflow and 24 hour support for 
global users, to mirror the profile and demands of an executive search 
assignment. FILEFINDER has been adopted by around 1,000 companies in more than 
55 countries. 
 
 
 
Chairman's Statement 
 
 
 
 
I said in my report for the year ended 31 December 2008 that the Group would see 
the impact of the recession in its 2009 results, and that has been the case. The 
year ended December 2008 saw a marked downturn in the second half when compared 
to the first half of that year. I am very pleased to be able to report that, as 
a result of strong recurring revenues, and in spite of a reduction in new system 
sales, operating profits for the 6 months ended 30 June 2009 exceeded those seen 
in the second half of 2008, when the full impact of the recession was first 
reflected in the financial performance of the Group. 
 
Financial Performance 
 
 
Revenue in the 6 months ended 30 June 2009 amounted to GBP1,821,940 (2008 - 
GBP2,515,902), a reduction of 28% when compared with the same period in 2008. 
Operating profits for the 6 months ended 30 June 2009 were GBP465,655 (2008 - 
GBP931,631) and profits before tax fell to GBP471,461, (2008 - GBP948,577). 
 
 
However, when compared to the second half of 2008, operating profits increased 
slightly from GBP439,770 to GBP465,655, despite a reduction in revenue from 
GBP2.092m in the second half of 2008 to GBP1.822m in the period under review. 
Administrative costs were reduced to GBP1.296m in the 6 months ended 30 June 
2009, when compared to GBP1.465m in the first half of 2008, and GBP1.569m in the 
second half of that year. 
 
 
Recurring revenues increased by 12% to GBP1.204m when compared to the GBP1.071m 
earned in the first half of 2008, and by 2.5% over the GBP1.175m earned in the 
second half of 2008. In the first half of 2009, recurring revenues comprised 
some 66% of total sales, when compared to just 43% in the first half of 2008, 
and 56% in the second half of 2008. There was a marked difference in performance 
between the UK and Asia businesses, both of which suffered reductions in sales 
of over 40% in total sales, and our European and USA businesses, which were much 
less adversely affected. To illustrate the point, the USA business recorded an 
increase in sales of 4% in the first half of this year as a result of recurring 
ASP revenues. The USA business now earns some 70% of its revenues from recurring 
sources. 
 
 
Non recurring revenues, mainly arising from the sale of new systems, universally 
suffered throughout the Group as orders from both existing and new clients were 
more difficult to come by. However, since the start of the second half we have 
seen what appears to be a significant improvement in the market, and this has 
manifested itself in a number of valuable orders. 
 
 
Regionally, the UK and Asia both suffered badly in their overall performance, 
with the UK recording a 95% reduction in profits, and Asia 69%, both when 
compared to the comparable period in 2008.  Our Europe business showed a small 
reduction in profitability of just 7%, whilst the USA increased its profits from 
operations by some 13% partly as a result of a concentration in its business 
towards the ASP model. 
 
Cashflow in the 6 months ended 30 June 2009 showed an outflow of some GBP533,000 
primarily as a result of dividends paid of GBP396,000 and investment in new 
product development of GBP235,000 and reflects the decision to commit resources 
to the further development of FILEFINDER. This latter cost compares to just 
GBP38,000 in the first half of 2008. At 30 June 2009 we had cash reserves of 
some GBP1.8m and a strong balance sheet, both of which stand the Group in good 
stead and leave us well positioned to take advantage of any upturn. 
 
Earnings per share amounted to 6.42p, compared with 12.30p for the corresponding 
period in 2008, and 6.18p per share for the second half of 2008. As announced in 
my annual report for 2008, the Board has decided to maintain the dividend for 
2009 at the same level as was paid in respect of 2008, and accordingly, the 
Board has decided to pay a dividend of 3.5p per share (2008-3.5p) on 30 October 
2009 to holders on the register on 9 October 2009. Shares will trade ex-dividend 
from 7 October 2009. 
 
 
Prospects 
 
 
Having established some stability in a very difficult market, it does appear 
from recent orders received that the Group is likely to achieve its market 
expectations for the year as a whole, and is well positioned to take advantage 
of any upturn in global economic activity. The level of recurring revenue across 
the Group, the cash reserves and strong balance sheet all place the Group as a 
leading contender to emerge well from the current recession. 
 
 
Jim McLaughlin 
25th September 2009 
 
 
 
 
 
 
 
+---------------------------------+-------------+-------------+--------------+ 
| CONSOLIDATED INCOME STATEMENTS                |             |              | 
+-----------------------------------------------+-------------+--------------+ 
|                                 |             |             |   Year Ended | 
+---------------------------------+-------------+-------------+--------------+ 
|                                 |  6 Months ended 30 June   |  31 December | 
+---------------------------------+---------------------------+--------------+ 
|                                 |        2009 |        2008 |         2008 | 
+---------------------------------+-------------+-------------+--------------+ 
|                                 |   Unaudited |   Unaudited |      Audited | 
+---------------------------------+-------------+-------------+--------------+ 
|                                 |         GBP |         GBP |          GBP | 
+---------------------------------+-------------+-------------+--------------+ 
| Revenue                         |   1,821,940 |  2,515,902  |   4,608,197  | 
+---------------------------------+-------------+-------------+--------------+ 
| Cost of sales                   |    (60,434) |   (119,473) |    (202,997) | 
+---------------------------------+-------------+-------------+--------------+ 
| Gross profit                    |   1,761,506 |  2,396,429  |   4,405,200  | 
+---------------------------------+-------------+-------------+--------------+ 
| Administrative expenses         | (1,295,851) | (1,464,798) |  (3,033,799) | 
+---------------------------------+-------------+-------------+--------------+ 
|                                 |             |             |              | 
+---------------------------------+-------------+-------------+--------------+ 
| Result from operating           |    465,655  |    931,631  |   1,371,401  | 
| activities                      |             |             |              | 
+---------------------------------+-------------+-------------+--------------+ 
| Financial income                |      5,806  |     16,946  |      54,171  | 
+---------------------------------+-------------+-------------+--------------+ 
| Profit before tax               |     471,461 |    948,577  |   1,425,572  | 
+---------------------------------+-------------+-------------+--------------+ 
|                                 |             |             |              | 
+---------------------------------+-------------+-------------+--------------+ 
| Tax expense                     |   (119,724) |   (284,573) |    (427,672) | 
+---------------------------------+-------------+-------------+--------------+ 
| Profit for the period/year      |    351,737  |    664,004  |     997,900  | 
+---------------------------------+-------------+-------------+--------------+ 
|                                 |             |             |              | 
+---------------------------------+-------------+-------------+--------------+ 
| Earnings per share (pence)      |             |             |              | 
+---------------------------------+-------------+-------------+--------------+ 
| Basic                           |       6.42  |      12.30  |       18.48  | 
+---------------------------------+-------------+-------------+--------------+ 
| Diluted                         |       6.17  |      11.60  |       17.50  | 
+---------------------------------+-------------+-------------+--------------+ 
|                                 |             |             |              | 
+---------------------------------+-------------+-------------+--------------+ 
 
+----------------------------------+------------+------------+------------+----------+ 
| CONSOLIDATED BALANCE SHEETS      |                         |                       | 
+----------------------------------+-------------------------+-----------------------+ 
|                                  |                         |      As at | 
+----------------------------------+-------------------------+------------+ 
|                                  |      As at 30 June      |         31 | 
|                                  |                         |   December | 
+----------------------------------+-------------------------+------------+ 
|                                  |       2009 |       2008 |       2008 | 
+----------------------------------+------------+------------+------------+ 
|                                  |  Unaudited |  Unaudited |    Audited | 
+----------------------------------+------------+------------+------------+ 
| ASSETS                           |        GBP |        GBP |        GBP | 
+----------------------------------+------------+------------+------------+ 
| Non-current assets               |            |            |            | 
+----------------------------------+------------+------------+------------+ 
| Intangible assets                |   911,540  |   655,862  |    707,396 | 
+----------------------------------+------------+------------+------------+ 
| Property plant & equipment       |   132,222  |   147,877  |    158,443 | 
+----------------------------------+------------+------------+------------+ 
|                                  | 1,043,762  |   803,739  |    865,839 | 
+----------------------------------+------------+------------+------------+ 
| Current assets                   |            |            |            | 
+----------------------------------+------------+------------+------------+ 
| Inventories                      |    31,003  |    21,506  |     50,628 | 
+----------------------------------+------------+------------+------------+ 
| Trade and other receivables      | 1,311,385  | 1,333,539  |  1,306,748 | 
+----------------------------------+------------+------------+------------+ 
| Cash and cash equivalents        | 1,795,323  | 2,041,885  |  2,352,794 | 
+----------------------------------+------------+------------+------------+ 
|                                  | 3,137,711  | 3,396,930  |  3,710,170 | 
+----------------------------------+------------+------------+------------+ 
| Total Assets                     | 4,181,473  | 4,200,669  |  4,576,009 | 
+----------------------------------+------------+------------+------------+ 
|                                  |            |            |            | 
+----------------------------------+------------+------------+------------+ 
|                                  |            |            |            | 
+----------------------------------+------------+------------+------------+ 
| EQUITY AND LIABILITIES           |            |            |            | 
+----------------------------------+------------+------------+------------+ 
| Equity                           |            |            |            | 
+----------------------------------+------------+------------+------------+ 
| Share capital                    |   282,976  |   270,000  |    270,000 | 
+----------------------------------+------------+------------+------------+ 
| Share premium                    |    28,947  |          - |          - | 
+----------------------------------+------------+------------+------------+ 
| Share option reserve             |     9,254  |    36,476  |     40,427 | 
+----------------------------------+------------+------------+------------+ 
| Retained earnings                | 1,620,667  | 1,489,027  |  1,633,923 | 
+----------------------------------+------------+------------+------------+ 
| Translation reserve              |    99,084  |    82,939  |    123,749 | 
+----------------------------------+------------+------------+------------+ 
| Total Equity                     | 2,040,928  | 1,878,442  |  2,068,099 | 
+----------------------------------+------------+------------+------------+ 
|                                  |            |            |            | 
+----------------------------------+------------+------------+------------+ 
| Liabilities                      |            |            |            | 
+----------------------------------+------------+------------+------------+ 
| Current liabilities              |            |            |            | 
+----------------------------------+------------+------------+------------+ 
| Trade and other payables         | 2,014,617  | 1,982,768  |  2,328,489 | 
+----------------------------------+------------+------------+------------+ 
| Current tax payable              |   122,928  |   336,459  |    176,421 | 
+----------------------------------+------------+------------+------------+ 
|                                  | 2,137,545  | 2,319,227  |  2,504,910 | 
+----------------------------------+------------+------------+------------+ 
| Non-current liabilities          |            |            |            | 
+----------------------------------+------------+------------+------------+ 
| Deferred tax liability           |     3,000  |     3,000  |      3,000 | 
+----------------------------------+------------+------------+------------+ 
| Total Liabilities                | 2,140,545  |  2,322,227 |  2,507,910 | 
+----------------------------------+------------+------------+------------+ 
|                                  |            |            |            | 
+----------------------------------+------------+------------+------------+ 
| Total liabilities and equity     | 4,181,473  | 4,200,669  |  4,576,009 | 
+----------------------------------+------------+------------+------------+----------+ 
+-----------------+------------------+------------------+-----------------+ 
| The financial statements were approved by the board of directors and    | 
| authorised for issue on  25th September 2009.                           | 
| They were signed on its behalf by:                                      | 
+-------------------------------------------------------------------------+ 
|                 |                  |                  |                 | 
+-----------------+------------------+------------------+-----------------+ 
|                 |                  |                  |                 | 
+-----------------+------------------+------------------+-----------------+ 
|                 |                  |                  |                 | 
+-----------------+------------------+------------------+-----------------+ 
| J S Starr       |                  | J McLaughlin     |                 | 
+-----------------+------------------+------------------+-----------------+ 
 
 
+--------------------------------------+------------+------------+--------------+ 
| CONSOLIDATED CASH FLOW STATEMENTS                 |            |              | 
+---------------------------------------------------+------------+--------------+ 
|                                      |            |            |   Year ended | 
+--------------------------------------+------------+------------+--------------+ 
|                                      |    6 Months ended 30    |  31 December | 
|                                      |          June           |              | 
+--------------------------------------+-------------------------+--------------+ 
|                                      |       2009 |       2008 |         2008 | 
+--------------------------------------+------------+------------+--------------+ 
|                                      |  Unaudited |  Unaudited |      Audited | 
+--------------------------------------+------------+------------+--------------+ 
|                                      |        GBP |        GBP |          GBP | 
+--------------------------------------+------------+------------+--------------+ 
| Operating Activities                 |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
| Profit from operations               |   465,655  |   931,631  |   1,371,401  | 
+--------------------------------------+------------+------------+--------------+ 
| Less taxation paid                   |  (173,217) |  (248,937) |    (552,074) | 
+--------------------------------------+------------+------------+--------------+ 
| Adjustment for                       |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
| Depreciation                         |    71,610  |    52,938  |     132,712  | 
+--------------------------------------+------------+------------+--------------+ 
| Share option expense                 |          - |     9,698  |      13,649  | 
+--------------------------------------+------------+------------+--------------+ 
| Operating cash flows before          |            |            |              | 
| movements                            |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
|   in working capital                 |   364,048  |   745,330  |     965,688  | 
+--------------------------------------+------------+------------+--------------+ 
| Decrease / (Increase) in receivables |    (4,637) |   (49,349) |     (22,558) | 
+--------------------------------------+------------+------------+--------------+ 
| Decrease / (Increase) in inventories |    19,625  |   (19,172) |     (48,294) | 
+--------------------------------------+------------+------------+--------------+ 
| (Decrease) / Increase in payables    |  (313,872) |   134,730  |     480,451  | 
+--------------------------------------+------------+------------+--------------+ 
|                                      |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
| Net cash generated from operating    |    65,164  |   811,539  |   1,375,287  | 
| activities                           |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
|                                      |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
| Investing Activities                 |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
| Interest received                    |     5,806  |    16,946  |      54,171  | 
+--------------------------------------+------------+------------+--------------+ 
| Purchases of property plant and      |   (14,088) |   (22,941) |     (71,747) | 
| equipment                            |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
| Investment in product development    |  (235,445) |   (38,400) |    (131,579) | 
+--------------------------------------+------------+------------+--------------+ 
|                                      |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
| Net cash used in investing           |  (243,727) |   (44,395) |    (149,155) | 
| activities                           |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
|                                      |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
| Financing Activities                 |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
| Proceeds from issue of share capital |    41,923  |          - |            - | 
+--------------------------------------+------------+------------+--------------+ 
| Dividends paid                       |  (396,166) |  (324,000) |    (513,000) | 
+--------------------------------------+------------+------------+--------------+ 
| Net cash used by financing           |  (354,243) |  (324,000) |    (513,000) | 
| activities                           |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
|                                      |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
|                                      |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
| Net change in cash and cash          |  (532,806) |   443,144  |     713,132  | 
| equivalents                          |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
| Cash and cash equivalents at         |            |            |              | 
| beginning of the                     |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
| Period                               | 2,352,794  | 1,533,649  |   1,533,649  | 
+--------------------------------------+------------+------------+--------------+ 
|                                      |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
| Effect of foreign exchange rate      |   (24,665) |    65,092  |     106,013  | 
| changes                              |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
|                                      |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
|                                      |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
| Cash and cash equivalents at end of  | 1,795,323  | 2,041,885  |   2,352,794  | 
| period                               |            |            |              | 
+--------------------------------------+------------+------------+--------------+ 
 
+-----------------------------+----------+---------+------+---+------------+----------+------------+ 
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY             |   |            |          |            | 
+---------------------------------------------------------+---+------------+----------+------------+ 
|                             |          |         |          |            |          |            | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
|                             |          |         |    Share |            |          |            | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
|                             |    Share |   Share |   option |   Retained |  Foreign |      Total | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
|                             |  capital | premium |  reserve |   earnings | exchange |            | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
|                             |      GBP |     GBP |      GBP |        GBP |      GBP |        GBP | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
| Balance at 31 December 2007 | 270,000  |       - |  26,778  | 1,149,023  |  17,736  | 1,463,537  | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
|                             |          |         |          |            |          |            | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
| Profit for the 6 months     |        - |       - |        - |   664,004  |        - |   664,004  | 
| ended 30 June 2008          |          |         |          |            |          |            | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
|                             |          |         |          |            |          |            | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
| Share option expense        |        - |       - |   9,698  |          - |        - |     9,698  | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
| Exchange differences on     |          |         |          |            |          |            | 
| translation                 |          |         |          |            |          |            | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
|   of overseas operations    |        - |       - |        - |          - |  65,203  |    65,203  | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
| Dividends paid              |        - |       - |        - |  (324,000) |        - |  (324,000) | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
| Balance at 30 June 2008     | 270,000  |       - |  36,476  | 1,489,027  |  82,939  | 1,878,442  | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
|                             |          |         |          |            |          |            | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
| Profit for the 6 months     |        - |       - |        - |   333,896  |        - |   333,896  | 
| ended 31                    |          |         |          |            |          |            | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
|   December 2008             |          |         |          |            |          |            | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
| Share option expense        |        - |       - |   3,951  |          - |        - |     3,951  | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
| Exchange differences on     |          |         |          |            |          |            | 
| translation                 |          |         |          |            |          |            | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
|   of overseas operations    |        - |       - |        - |          - |  40,810  |    40,810  | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
| Dividends paid              |        - |       - |        - |  (189,000) |        - |  (189,000) | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
| Balance at 31 December 2008 | 270,000  |       - |  40,427  | 1,633,923  | 123,749  | 2,068,099  | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
|                             |          |         |          |            |          |            | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
| Profit for the 6 months     |        - |       - |        - |   351,737  |        - |   351,737  | 
| ended 30 June 2009          |          |         |          |            |          |            | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
|                             |          |         |          |            |          |            | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
| Issue of share capital      |  12,976  | 28,947  |        - |          - |        - |    41,923  | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
| Share option release        |        - |       - | (31,173) |    31,173  |        - |          - | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
| Exchange differences on     |          |         |          |            |          |            | 
| translation                 |          |         |          |            |          |            | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
|   of overseas operations    |        - |       - |        - |          - | (24,665) |   (24,665) | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
| Dividends paid              |        - |       - |        - |  (396,166) |        - |  (396,166) | 
+-----------------------------+----------+---------+----------+------------+----------+------------+ 
| Balance at 30 June 2009     | 282,976  | 28,947  |   9,254  | 1,620,667  |  99,084  | 2,040,928  | 
+-----------------------------+----------+---------+------+---+------------+----------+------------+ 
 
 
 
 
 
 
 
 
 
 
 
+------------------------------------------------------------------------+ 
|  NOTES TO THE INTERIM REPORT                                           | 
+------------------------------------------------------------------------+ 
 
 
1.Basis of Preparation 
 
 
The financial information for the six months ended 30 June 2009 included in this 
interim report comprises the consolidated income statement, the consolidated 
balance sheet, the consolidated cash flow statement, the consolidated statement 
of changes in equity and the related notes. This statement has been prepared in 
accordance with IAS 34 "Interim Financial Reporting". 
 
 
This interim financial information is unaudited but has been reviewed by the 
auditors and their review opinion is included in this interim report. The 
financial information set out in this report does not constitute statutory 
accounts as defined by the Companies Act 2006.  The comparative figures for the 
year ended 31 December 2008 were derived from the statutory accounts for that 
year which have been delivered to the Registrar of Companies. Those accounts 
received an unqualified audit report which did not contain statements under 
sections 498(2) or (3) (accounting record or returns inadequate, accounts not 
agreeing with records and returns or failure to obtain necessary information and 
explanations) of the Companies Act 2006. 
 
 
The interim financial statements have been prepared on the basis of the 
accounting policies set out in the December 2008 financial statements of 
Dillistone Group Plc. 
 
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, 
adjusted to take into account sub-optimal exercise factor and other flaws in 
Black-Scholes, and taking into account the terms and conditions upon which the 
incentives were granted. 
 
 
3.Segment reporting 
+----------------------------------+-------+-------+-------+------------+-------------+ 
| Geographical segments                    |               |            |             | 
+------------------------------------------+---------------+------------+-------------+ 
| The following table provides an analysis of the Group's sales by geographical       | 
| market.                                                                             | 
+-------------------------------------------------------------------------------------+ 
|                                  |               |                    |             | 
+----------------------------------+---------------+--------------------+-------------+ 
|                                  |               |                    |  Year ended | 
+----------------------------------+---------------+--------------------+-------------+ 
|                                  |             6 Months ended 30 June | 31 December | 
+----------------------------------+------------------------------------+-------------+ 
|                                  |          2009 |               2008 |        2008 | 
+----------------------------------+---------------+--------------------+-------------+ 
|                                  |           GBP |                GBP |         GBP | 
+----------------------------------+---------------+--------------------+-------------+ 
| UK                               |      720,668  |         1,285,633  |  2,256,516  | 
+----------------------------------+---------------+--------------------+-------------+ 
| Europe                           |      527,791  |           570,005  |  1,008,035  | 
+----------------------------------+---------------+--------------------+-------------+ 
| USA                              |      423,936  |           407,702  |    832,527  | 
+----------------------------------+---------------+--------------------+-------------+ 
| Asia Pacific                     |      149,545  |           252,562  |    511,120  | 
+----------------------------------+---------------+--------------------+-------------+ 
|                                  |    1,821,940  |         2,515,902  |  4,608,198  | 
+----------------------------------+---------------+--------------------+-------------+ 
|                                  |               |                    |             | 
+----------------------------------+---------------+--------------------+-------------+ 
| Business Segment                 |               |                    |             | 
+----------------------------------+---------------+--------------------+-------------+ 
| The following table provides an analysis of the Group's sales by business segment.  | 
+-------------------------------------------------------------------------------------+ 
|                                  |               |                    |             | 
+----------------------------------+---------------+--------------------+-------------+ 
|                                  |               |                    |  Year ended | 
+----------------------------------+---------------+--------------------+-------------+ 
|                                  |             6 Months ended 30 June | 31 December | 
+----------------------------------+------------------------------------+-------------+ 
|                                  |          2009 |               2008 |        2008 | 
+----------------------------------+---------------+--------------------+-------------+ 
|                                  |           GBP |                GBP |         GBP | 
+----------------------------------+---------------+--------------------+-------------+ 
| Recurring                        |    1,203,759  |         1,071,388  |  2,245,943  | 
+----------------------------------+---------------+--------------------+-------------+ 
| Non Recurring                    |      618,181  |         1,444,514  |  2,362,254  | 
+----------------------------------+---------------+--------------------+-------------+ 
|                                  |    1,821,940  |         2,515,902  |  4,608,197  | 
+----------------------------------+---------------+--------------------+-------------+ 
|                                  |               |                    |             | 
+----------------------------------+---------------+--------------------+-------------+ 
| Recurring income includes all support services, and web hosting income. Non         | 
| recurring income includes sales of new licenses, and income derived from installing | 
| those licenses including training, installation, and data translation.              | 
+----------------------------------+-------+-------+-------+------------+-------------+ 
 
 
 
 
+----------------------------------+--------------+------------+--------------+ 
| Result                           |              |            |              | 
+----------------------------------+--------------+------------+--------------+ 
|                                  |              |            |   Year ended | 
+----------------------------------+--------------+------------+--------------+ 
|                                  |    6 Months ended 30 June |  31 December | 
+----------------------------------+---------------------------+--------------+ 
|                                  |         2009 |       2008 |         2008 | 
+----------------------------------+--------------+------------+--------------+ 
|                                  |          GBP |        GBP |          GBP | 
+----------------------------------+--------------+------------+--------------+ 
| UK                               |      22,737  |   456,307  |     523,611  | 
+----------------------------------+--------------+------------+--------------+ 
| Europe                           |     408,923  |   440,668  |     729,318  | 
+----------------------------------+--------------+------------+--------------+ 
| USA                              |     176,841  |   156,840  |     324,377  | 
+----------------------------------+--------------+------------+--------------+ 
| Asia Pacific                     |      44,396  |   141,860  |     307,447  | 
+----------------------------------+--------------+------------+--------------+ 
|                                  |     652,897  | 1,195,675  |   1,884,753  | 
+----------------------------------+--------------+------------+--------------+ 
| Unallocated Expenses             |    (187,242) |  (264,044) |    (513,352) | 
+----------------------------------+--------------+------------+--------------+ 
| Profit from Operations           |     465,655  |   931,631  |   1,371,401  | 
+----------------------------------+--------------+------------+--------------+ 
 
 
 
+----------------------------------+------------+------------+---------------+ 
| Total assets                     |      As at |      As at |         As at | 
+----------------------------------+------------+------------+---------------+ 
|                                  |    30 June |    30 June |   31 December | 
|                                  |       2009 |       2008 |          2008 | 
+----------------------------------+------------+------------+---------------+ 
|                                  |        GBP |        GBP |           GBP | 
+----------------------------------+------------+------------+---------------+ 
| UK                               | 2,595,856  | 2,792,493  |    3,438,892  | 
+----------------------------------+------------+------------+---------------+ 
| Europe                           |   716,558  |   539,621  |      338,609  | 
+----------------------------------+------------+------------+---------------+ 
| US                               |   554,072  |   684,360  |      583,553  | 
+----------------------------------+------------+------------+---------------+ 
| Asia Pacific                     |   314,987  |   184,195  |      214,955  | 
+----------------------------------+------------+------------+---------------+ 
|                                  | 4,181,473  | 4,200,669  |    4,576,009  | 
+----------------------------------+------------+------------+---------------+ 
 
 
4.Dividends 
 
 
A final dividend of 7p per share in respect of the year ended 31 December 2008 
was paid on 9 June 2009. The total cost of this dividend was GBP396,166. 
 
 
The Board has decided to pay an interim dividend of 3.5 pence per share (2008: 
3.5p) on 30 October 2009 to holders on the register on 9 October 2009. Shares 
will trade ex-dividend from 7 October 2009. 
 
 
 
 
 5.Earnings per Share 
+-----------------------------------+--------------+-------------+--------------+ 
|                                   |              |             |   Year ended | 
+-----------------------------------+--------------+-------------+--------------+ 
|                                   |  6 Months ended 30th June  |  31 December | 
+-----------------------------------+----------------------------+--------------+ 
|                                   |         2009 |        2008 |         2008 | 
+-----------------------------------+--------------+-------------+--------------+ 
| Basic earnings per share          |              |             |              | 
+-----------------------------------+--------------+-------------+--------------+ 
| Profit attributable to ordinary   |  GBP351,737  | GBP664,004  |  GBP997,900  | 
| shareholders                      |              |             |              | 
+-----------------------------------+--------------+-------------+--------------+ 
|                                   |              |             |              | 
+-----------------------------------+--------------+-------------+--------------+ 
| Weighted average number of shares |   5,480,739  |  5,400,000  |   5,400,000  | 
+-----------------------------------+--------------+-------------+--------------+ 
|                                   |              |             |              | 
+-----------------------------------+--------------+-------------+--------------+ 
| Basic earnings per share (pence)  |        6.42  |      12.30  |       18.48  | 
+-----------------------------------+--------------+-------------+--------------+ 
|                                   |              |             |              | 
+-----------------------------------+--------------+-------------+--------------+ 
| Diluted Earnings per share        |              |             |              | 
+-----------------------------------+--------------+-------------+--------------+ 
| Profit attributable to ordinary   |  GBP351,737  | GBP666,427  |  GBP997,900  | 
| shareholders                      |              |             |              | 
+-----------------------------------+--------------+-------------+--------------+ 
|                                   |              |             |              | 
+-----------------------------------+--------------+-------------+--------------+ 
| Diluted weighted average number   |   5,701,325  |  5,745,449  |   5,702,087  | 
| of shares                         |              |             |              | 
+-----------------------------------+--------------+-------------+--------------+ 
|                                   |              |             |              | 
+-----------------------------------+--------------+-------------+--------------+ 
| Diluted earnings per share        |        6.17  |      11.60  |       17.50  | 
| (pence)                           |              |             |              | 
+-----------------------------------+--------------+-------------+--------------+ 
 
 
6.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. There were no transactions with any other related 
parties. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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