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DSG Dillistone Group Plc

9.25
-0.25 (-2.63%)
21 Jun 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Dillistone Group Plc LSE:DSG London Ordinary Share GB00B13QQB40 ORD 5P
  Price Change % Change Share Price Shares Traded Last Trade
  -0.25 -2.63% 9.25 24,008 16:02:39
Bid Price Offer Price High Price Low Price Open Price
8.50 10.00 9.50 9.125 9.50
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Computer Related Svcs, Nec 5.7M -183k -0.0093 -9.95 1.82M
Last Trade Time Trade Type Trade Size Trade Price Currency
16:28:06 O 5,153 9.625 GBX

Dillistone (DSG) Latest News

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Dillistone Forums and Chat

Date Time Title Posts
21/6/202416:33 Friends of the Directors thread in Dillistone, a grain of Sand to a Pearl274
21/6/202414:53Dillistone Group: 10
27/4/202315:05Undervalued growth?304
27/9/201212:09Interesting audto from Jason Starr CE1

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Posted at 22/6/2024 09:20 by Dillistone Daily Update
Dillistone Group Plc is listed in the Computer Related Svcs, Nec sector of the London Stock Exchange with ticker DSG. The last closing price for Dillistone was 9.50p.
Dillistone currently has 19,668,021 shares in issue. The market capitalisation of Dillistone is £1,819,292.
Dillistone has a price to earnings ratio (PE ratio) of -9.95.
This morning DSG shares opened at 9.50p
Posted at 20/6/2024 16:34 by clocktower
My guess is that the directors would like to see the share price fall, so they may issue shares in exchange for the cash that was loaned by some of the insiders, which was in effect a covid recovery loan of £400k over and above that of the government loan that has been and is being paid off at the rate of £30k a month. This debt has now reduced considerabley I reckon.

However, if my memory serves me correctly, this loan pays 10% interest pa. so if the share price drops, they are able to issue shares in payment at or around that level I guess.

If this occurs, one has to question if a few friends have been selling to help the share price slide. Of course the directors would not have known anything about why this is possible and would not want to see such a fall.

So if they do this, maybe the very same sellers will become buyers in larger numbers, as the accounts will benefit, as debt will drop to a very low level imo.

DYOR - This is just me guessing and I do not suggest any wrong doing by anyone, as even I had considered selling as I was guessing when I saw the resolutions being voted upon.
Posted at 19/6/2024 07:26 by clocktower
The company complains of softening markets but the defence industry is crying out for skilled personnel. It is reported that there are over 37,000 vacancies in the industry, so why is DSG unable to obtain contracts from agencies that recruit in this sector?

The space industry is another sector that has a large number of small businesses that require highly trained engineers and software developers but what is DSG doing for this high growth business to obtain the skilled staff it needs?

It seems to me that they have and are failing to recognise where the potential and growth markets lie.
Posted at 12/6/2024 13:45 by hedgehog 100
12/06/2024 07:00 RNS Regulatory News Dillistone Group PLC AGM Statement LSE:DSG Dillistone Group Plc

"Annual General Meeting statement

At today's Annual General Meeting ('AGM') of Dillistone Group Plc, the AIM quoted supplier of software and services to the recruitment industry, Giles Fearnley, Chairman of Dillistone, will make the following AGM statement:

"We are pleased to report that trading is marginally ahead of management expectations for H1.

"The market remains challenging and, if anything, has softened further in Q2, with fewer recruitment firms currently prepared to invest in new technology, and existing clients often reducing in size.

"While the Group expects therefore to see revenue fall, it remains confident in its ability to deliver satisfactory performance for the full year in line with management expectations." ..."




Well done to DSG for performing well in challenging market conditions.

This bodes very well for its performance when market conditions improve: which, with the UK recently having emerged from recession, and its inflation rate recently having dropped to just 2.3%, should be relatively soon.

Note that improved profitability on reduced revenue clearly equates to improved margins, a sign of a strengthening competitive position.
Posted at 29/4/2024 15:26 by hedgehog 100
Compare & contrast:-


1. Clocktower DSG bull thread started 3rd. February 2023, a day the DSG share price opened at 15.5p, and closed at 17.5p.

"Friends of the Directors thread in Dillistone, a grain of Sand to a Pearl"
clocktower 3 Feb '23 - 08:53


Current DSG share price 11.5p: a fall of at least 25% since the thread was started.


2. Hedgehog 100 NWT bull thread started 14th. February 2023, when the NWT share price was 46p.

"Newmark Security in 2023: A Transformed Tech & USA Success Story"


Current NWT share price 85p: a rise of 84.78% since the thread was started.


The only people who don't like my NWT thread are envious, embittered losers, frustrated at missing out on that brilliant share price rise.

And anyone of any intelligence who had missed out, would surely be interested in some useful and insightful 'how to do it' information.

It's fairly basic, isn't it.

See what successful investment techniques are working for others, and then try to apply them yourself.
Posted at 29/4/2024 12:59 by hedgehog 100
So DSG's first adjusted operating profit since 2018 ... a year when its share price topped 100p, over eight times the current level of 11.5p.

Any views as to what a takeover value here would be?

Potentially/probably multiples of the current share price of 11.5p I would think.

And at this level, predators have probably already been sniffing around, at least.


Dillistone Group (DSG):-
Posted at 28/4/2024 12:48 by hedgehog 100
25/04/2024 07:00 RNS Regulatory News Dillistone Group PLC Final Results & Investor Presentation LSE:DSG Dillistone Group Plc

" ... Cost savings and EBITDA Margin step-change.

During 2023, we made significant strides in improving margins within the business, reflecting our investment in improving our internal systems and architecture. This allows us to deliver products and services more efficiently and, with the downturn in our market, we were able to reduce our personnel related and office overheads while continuing to provide what we consider to be industry leading levels of service. The majority of the financial benefit of these moves will be felt from FY2024 onwards.

Nevertheless, due in part to these measures, we were able to reduce our cost base by £0.400m in FY23 enabling the adjusted EBITDA margin to reach 23.5%.

This is a step change from the margins obtained between 2017 and 2022, when the average margin was 16.8%. Excluding the Covid-19 support received from Government, the average historical margin over the same period was 14.9%. ..."




So a step change in margins improvement, which bodes very well for future profits.

And with the majority of the financial benefit of this and cost savings to be felt from the current year onwards ... which we are already about a third of the way through.
Posted at 27/4/2024 15:43 by hedgehog 100
25/04/2024 07:00 RNS Regulatory News Dillistone Group PLC Final Results & Investor Presentation LSE:DSG Dillistone Group Plc

" ... The Group capitalised £0.963m in development costs in the year (FY 2022: £1.007m) as the business continued its commitment to developing its products. Amortisation of development costs was £0.994m (FY 2022: £0.980m). ..."




DSG's R&D investment is a major bull point here.

DSG market capitalisation at the current share price of 11.5p: £2.26M.

Divided into DSG's year end 31.12.23 R&D spending of £0.963M.

= PRR (price-to-research ratio) of 2.35.

This highlights DSG's bullish growth prospects and undervaluation.


From the legendary tech stocks guru Conor McCarthy:

"Calculate annual R & D expenditure per share and compare it to the share price.
If the PRR (price-research ratio - share price divided by R and D per share) is 5 or less it is nearly always worth buying the shares. This applies particularly to recovery situations. As long as an exploration company has the wherewithal to drill holes, there is always the possibility it will strike it lucky. The same goes for an out-of-favour technology company. As long as it can continue to invest in R and D there is the chance it will come up with a blockbuster product. The lower the PRR the more development bang you get for your buck."



Conor McCarthy's tech investment approach is based on the principles set out in the classic 1984 book "Super Stocks" by Kenneth Fisher.

This is the book that McCarthy recommends to his subscribers.
(And perhaps it also inspired him to start "Techinvest" the same year?)

And a good example of a low PRR recovery-growth stock of his is mentioned in "Beyond The Zulu Principle" (1996) by Jim Slater:-

"I asked Conor McCarthy to give me a good example of Techinvest's success using Fisher's approach. He mentioned Kewill Systems which went astray a few years ago by making an unfortunate acquisition in Germany. The company began to make substantial losses and the shares fell from 318p in 1992 to a low of 49p in 1993. At this point, the PRR of 2 was astoundingly attractive. The Germany subsidiary was sold shortly afterwards and by the end of 1993 Kewill Systems had risen to 265p."

Kewill Systems (KWL):-




So PRR (price-to-research ratio) analysis can help you to see value before the crowd, which is what I did with NWT (Newmark Security) in 2022, since when the share price has more than doubled ... and in fact has more than trebled from its 2022 lows.

A couple of caveats to check for are the possibility of massive dilution or worse in a loss-making stock, and that the products-services being developed are likely to sell well - which is more likely if they're updating existing products-services already being sold.

But DSG looks to measure up on both of these, as did NWT.
Posted at 27/4/2024 13:56 by hedgehog 100
% Gainers % Losers Most Active
Ticker Name Price Change Change % Volume Trades
CAR CAR Carclo Plc 13.00 5.58 75.10% 2,174,625 348
ORCP ORCP Oracle Power Plc 0.032 0.0068 27.00% 51,652,030 76
MAST MAST Mast Energy Developments Plc 0.475 0.10 26.70% 25,054,706 142
DSG DSG Dillistone Group Plc 11.50 2.00 21.10% 48,710 6
HUM HUM Hummingbird Resources Plc 8.10 1.10 15.70% 1,941,226 43


DSG closed yesterday for the weekend at the fourth top riser.


From Investing.com:-

"Dillistone Group (DSG)"

"11.50 +2.00 (+21.05%)"

"DSG Technical Analysis"

"Summary: Strong Buy
Moving Averages: Strong Buy Buy (10) Sell (2)
Technical Indicators: Strong Buy Buy (7) Sell (1)"




From TradingView.com:-

"DILLISTONE GROUP ORD GBP0.05"

"11.5GBXD +2.00 +21.05%"

"DSG technical analysis"

"Oscillators Summary Moving Averages"

"Buy Buy Strong buy"




From SwingTradeBot.com:-

"Technical Analysis for DSG - Dillistone Group Plc"

"DSG closed up 21.05 percent on Friday, April 26, 2024, on 3.02 times normal volume. The stock rose above its 50 day moving average, improving its intermediate-term outlook by crossing above that important trendline."

"ADX Long Term Intermediate Term Short Term
Very Strong Down Up Up"
Posted at 25/4/2024 17:00 by hedgehog 100
"NAME NO. OF SHARES % OF ISSUED ORDINARY SHARES
Jason Starr 3,577,591 18.19
Giles Fearnley 483,435 2.46
Simon Warburton 77,290 0.39
Paul Mather 82,177 0.42
Julie Pomeroy 78,416 0.40
Ian Mackin 14,071 0.07"


Note that DSG's directors alone do not own the required 25% to block a takeover.

However, they would only need a further 3.07% to do so, so that is perhaps an ideal situation: as a fair offer is unlikely to be blocked, but a rip-off offer could well be - which could well help to flush out a higher offer, or indeed force a better offer in the first place.


The CLNs are unlikely be converted by the directors because of the high conversion price relative to the current s.p.:-

28/09/2017 07:02 UK Regulatory Dillistone Group PLC Issue of Loan Notes LSE:DSG Dillistone Group Plc
" ... The Loan Notes carry an interest coupon of 8.15 per cent pa over their maximum term of 36 months, with a conversion price of 71.6 pence per new Dillistone ordinary share. The interest payments will be payable quarterly in arrears and will be satisfied through the issue of further new ordinary shares or in cash at the individual Noteholders' election. Various rights are built into the agreement for early repayment or conversion. ..."
Posted at 25/4/2024 13:31 by hedgehog 100
So DSG's first adjusted operating profit since 2018 ... a year when its share price topped 100p, i.e. over ten times the current level of 9.5p.

Any views as to what a takeover value here would be?

Potentially/probably multiples of the current share price of 9.5p I would think.

And at this level, predators have probably already been sniffing around, at least.


Dillistone Group (DSG):-
Dillistone share price data is direct from the London Stock Exchange