REG - Dillistone Group PLC - Final Results & Investor Presentation
25/04/2024 07:00
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RNS Number : 9297L Dillistone Group PLC 25 April 2024
25 April 2024
Dillistone Group Plc
("Dillistone", the "Company" or the "Group")
Final Results
& Investor Presentation
Dillistone Group Plc, the AIM quoted supplier of software for the
international recruitment industry, is pleased to announce its audited final
results for the 12 months ended 31 December 2023 ("FY2023").
Highlights:
· Adjusted operating profit increased by 241% to £0.220m, first
adjusted operating profit since 2018.
· EBITDA increased 38% to £1.314m (FY2022: £0.949m)
· EDITDA margin increased to 23.5% (FY2022: 16.7%)
· Loss before tax improved 77% to £0.104m (FY2022: £0.453m)
· Recurring revenues represented 89% (FY2022: 89%) of Group revenue,
equating to 100% of administration expenses (excluding depreciation and
amortisation).
· Revenue decreased by 2% to £5.595m (FY2022: £5.699m) reflecting
challenging market conditions.
· EPS returned to breakeven position at 0.01p (FY2022: (0.93p)).
· Net cash from operating activities £1.063m (FY2022: £1.189m).
· CBIL debt reduced by £0.300m.
· Net debt increased to £1.169m (FY2022: £1.017m)
Commenting on the results and prospects, Giles Fearnley, Non-Executive
Chairman, said:
"I am pleased to report the Group has returned to operating profitability in
FY2023 for the first time since 2018.
"In a challenging market, the Group has delivered profit performance in line
with expectations, paid down debt and continued to invest for the future.
"We have made a solid start to the year, with all products performing broadly
in line with expectations in the first quarter. The Board is confident of
making further progress in 2024."
Investor Presentation: 3pm on Tuesday 30 April 2024
Jason Starr, Chief Executive, and Ian Mackin, Finance Director, will hold an
investor presentation to review the results and prospects at 3pm on Tuesday 30
April 2024.
The presentation will be hosted through the digital platform Investor Meet
Company. Investors can sign up to Investor Meet Company and add to meet
Dillistone Group Plc via the following link
https://www.investormeetcompany.com/dillistone-group-plc/register-investor
(https://www.investormeetcompany.com/dillistone-group-plc/register-investor) .
For those investors who have already registered and added to meet the Company,
they will automatically be invited.
Questions can be submitted pre-event to dillistone@walbrookpr.com or in real
time during the presentation via the "Ask a Question" function.
Annual Report and Accounts - The final results announcement can be downloaded
from the Company's website (www.dillistonegroup.com
(http://www.dillistonegroup.com) ). Copies of the Annual Report and Accounts
(in addition to the notice of the Annual General Meeting) will be sent to
shareholders by 18 May 2024 for approval at the Annual General Meeting to be
held on 12 June 2024.
This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.
The person responsible for arranging the release of this announcement on
behalf of the Company is Ian Mackin, Finance Director of the Company.
Enquiries:
Dillistone Group Plc
Giles Fearnley Chairman Via Walbrook PR
Jason Starr Chief Executive Officer
Ian Mackin Finance Director
WH Ireland Limited (Nominated adviser)
Chris Fielding Deputy Head of Corporate Finance 020 7220 1650
Walbrook PR
Tom Cooper / Joe Walker Dillistone@walbrookpr.com
020 7933 8780
0797 122 1972
Notes to Editors:
Dillistone Group Plc is a leader in the supply and support of software and
services to the recruitment industry. Dillistone operates through the Ikiru
People (www.IkiruPeople.com (https://www.ikirupeople.com/) ) brand.
The Group develops, markets and supports the Talentis, FileFinder, Infinity,
Mid-Office, ISV and GatedTalent products.
Dillistone was admitted to AIM, a market operated by the London Stock Exchange
plc, in June 2006.
Learn about our products:
Talentis Software:
https://www.talentis.global/recruitment-software/
(https://www.talentis.global/recruitment-software/)
Voyager Software:
https://www.voyagersoftware.com (https://www.voyagersoftware.com)
GatedTalent Services:
https://www.talentis.global/optimization-services/
(https://www.talentis.global/optimization-services/)
CHAIRMAN'S STATEMENT
I am pleased to report the Group has returned to operating profitability in
2023 for the first time for a number of years.
In a challenging market, the Group has delivered profit performance in line
with expectations while paying down debt and continuing to invest for the
future.
The underlying business results continue to improve. The Group moved into
profit at an operating level, adjusted EBITDA increased 38%, loss before tax
was reduced by 77% and earnings per share reached breakeven. We have delivered
on our turnaround and present profit results in line with market expectations.
For the purposes of obtaining true comparatives, we focus on measures which
are adjusted to remove items of Government support, acquisition related or
exceptional items, to better understand the underlying business.
The adjusted operating profit before acquisition related, furlough and other
items improved by 241% to £0.220m (FY2022: (£0.156m)). This marks the first
adjusted operating profit since 2018.
Net cash from operating activities dipped slightly to £1,063m (FY2022:
£1.189m) with a similar level of reduction in the change in cash and cash
equivalents at (£0.441m) (FY2022: (£0.362m)).
During the year the Group paid down £300k of debt.
Dividends
The Group is not recommending a final dividend in respect of the year to 31
December 2023 (2022: nil).
Staff
In a challenging year for our markets, to deliver a successful outcome is
creditable, and I would like to, once again, thank all involved for their
efforts, commitment and determination to deliver first class products and
services to the sectors we serve.
Corporate governance
It is the Board's duty to ensure that the Group is managed for the long-term
benefit of all stakeholders.
Outlook
Our Group generates revenue primarily from the recruitment sector, and this is
a market that remains soft. We assume that the environment will remain
challenging, but we have made a solid start to the year, with all products
performing broadly in line with expectations in the first quarter. With our
recurring revenues covering our overheads and our ability to deliver our
products far more efficiently than in recent years, the Board is confident of
making further progress in 2024.
Giles Fearnley
Non-Executive Chairman
CEO's Review
Dillistone Group Plc is a global leader in the supply of technology to the
recruitment sector worldwide, working with executive search, contingent
recruiting and in-house staffing teams in over 1,000 organisations.
We split our products into two groups - products primarily targeting
contingency recruiters (largely, but not exclusively, in the United Kingdom)
and products targeting executive search firms and in-house executive search
teams across the globe.
Contingency recruitment products:
Our products serving this sector are:
· Infinity, which is an established recruitment CRM used primarily by
agencies in the UK, but also with users in Europe and Australia. It enables
recruitment businesses to manage prospects, clients, candidates and jobs in
one place and offers deep integration to Office365 and other recruitment
industry complementary solutions. It is one of the few solutions in the UK
market with extensive functionality for permanent, contract and temporary jobs
all in one system;
· ISV.Online, which is an online skills testing product used by both
recruitment agencies and corporate organisations and has a strong
international footprint. It allows recruiters and HR professionals to assess
individuals using our extensive portfolio of tests or to create their own
unique tests to meet their requirements; and
· Mid-Office, which is a comprehensive pay & bill solution that
allows recruitment businesses and back office service providers to process
timesheets and bridges the gap between paying workers and invoicing clients.
It can be used on a standalone basis or integrated with other recruitment
systems including our Infinity product.
Contingency review:
· Despite market conditions, the recurring revenue associated with this
part of our business was stable, generating a combined £3.460m in recurring
revenue, (FY2022 £3.441m).
· In Q1 2023, we announced a contract with a well-known leading UK
based contingency recruiter. This contract featured a significant amount of
custom work and the scope of this work grew over the course of the year. As a
result, while we anticipated that it would be fully live within the year, the
platform is now expected to go live in 2024. A significant proportion of the
non-recurring revenue associated with the custom development work was realised
within the year in review.
· Summer 2023 saw us launch our Mid-Office cloud offering. This offers
new and existing clients the ability to use our Mid Office product without the
need for internal servers. We are seeing encouraging early adoption of this
offering,
During Q1, we have delivered further enhancements to our range of contingency
products, including the development and successful use of a psychometric
testing service as an enhancement to our ISV platform. The first client to use
this product was one of the best-known recruiting firms in the UK, operating
on behalf of a globally known automotive company.
Executive Search products:
Our primary products in the Executive Search sector are:
· Talentis, which is our latest product targeting executive recruiters
and is used for both candidate research and sourcing and as an executive
recruiting CRM;
· FileFinder, which is an established CRM product with thousands of
users worldwide; and
· GatedTalent, which is a service that helps recruiters source
candidates and candidates find jobs.
Executive search review:
Our executive search products have suffered a challenging few years. However
we are pleased to report that while we have further work to do in this sector,
our performance is stabilising. Despite continued challenging market
conditions, following a 24% fall in 2021 and a 10% fall in 2022, revenue fell
by a lower 5% in 2023, totalling £2.135m compared to £2.258m in 2022.
The Board believes that Talentis will become the main revenue driver for the
executive search division in the fullness of time. Initially positioned
primarily as a research tool, we have continued to add CRM functionality and,
since late Q4 2023, we have been actively positioning the platform as a viable
upgrade option for FileFinder customers. As part of that process, the
GatedTalent platform has since Q1 2024 no longer been supported by FileFinder
and, instead, key GatedTalent functionality has been integrated with Talentis
with the legacy GatedTalent platform being turned off.
While FileFinder and GatedTalent revenue fell in 2023, Talentis revenue grew.
The Board believes that positioning Talentis as the natural successor to
FileFinder will help to retain customers within the Group.
During Q1 2024, we have continued to enhance our executive search products,
with the primary focus being on Talentis. Despite the challenging market
conditions, Talentis revenues have grown in the quarter.
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%.
KPIs and financial performance
The Group's operational performance has improved significantly in recent
years, with FY2023 marking our return to operating profit. The success measure
for each of the KPIs used by management is year on year improvement.
FY23 FY22 % Move
£'000 £'000
Total revenue 5,595 5,699 (2%)
Recurring revenue 4,974 5,051 (2%)
Adjusted EBITDA * 1,314 949 38%
Cash from operating activities 1,063 1,189 (11%)
Adjusted profit /(loss) before tax ** 65 (290) 122%
* EBITDA adjusted for exceptional items
** Adjusted profit / (loss) before tax is statutory profit before
acquisition related intangible amortisation, reorganization and other costs.
See note 2 and note 5.
Strategy
The Group's strategy is to grow the business organically. This strategy is
made possible through our commitment to product development, which generates
the future revenue of the business. In 2023, product development equated to
17.2% of revenues (FY2022: 17.4%) and we continue to invest in our products
going forward.
The Group's objectives are principally to:
· Ensure our products meet the needs of the recruitment sector through
continual investment and development;
· Be a leading player in all the markets we serve;
· Develop our staff; and
· Increase our profitability and deliver increased shareholder value
year on year.
Financial Review
Summary
The Group saw a return to operating profitability in the year.
· First operating profit since 2016
· Improvement of £0.376m in operating profit before acquisition,
reorganisation and other items results in first such profit since 2018
· Adjusted EBITDA increased by 38%
· EBITDA margin up to 23.5% from 16.7% in FY2022
· Loss before tax down by 77%
· EPS returned to breakeven position
· CBIL loan reduced by £0.300m in year
· Net debt increased to £1.169m (FY2022: £1.017m)
The above was achieved whilst maintaining the level of investment in our
products and paying down the CBIL loan.
Revenue
Group revenue decreased by 2% to £5.595m from £5.699m in FY2022.
Revenue by type FY 2023 FY 2022 % Change
£'000 £'000
Recurring revenue 4,974 5,051 (1.5%)
Non-recurring revenue 497 488 1.8%
Third party revenue 124 160 (22.5%)
5,595 5,699 (1.8%)
Recurring revenue % 89% 89% -
The total annual contract value (TACV), which is a forward looking measure of
recurring revenue expectations for the next 12 months, has fallen to £4.451m
(FY2022: £4.995m).
Gross profit margin
The gross margin increased to 89% from 86%. Going forward, the management team
is focused on maintaining gross margin levels, particularly during challenging
economic conditions.
Adjusted EBITDA*
The adjusted EBITDA* increased by 38% to £1.314m from £0.949m in FY2022.
This resulted in a higher EBITDA margin of 23.5%, compared to 16.7% in FY2022.
This was a result of the Group's agility in responding to market conditions,
as a result of the investment we have made in systems over recent years.
* Refers to segment EBITDA in note 3
Operating profit/(loss) and profit/(loss) before tax
The operating position, before acquisition related, reorganisation and other
items (adjusted operating profit) improved greatly to deliver a profit of
£0.220m from (£0.156m) in FY2022. This is the Group's first such profit
since 2018.
Inclusive of acquisition related, reorganisation and other items, the Group
made an operating profit of £0.051m compared to an operating loss of
(£0.319m) in FY2022. This is the first profit at an operating level since
2016.
The loss before tax decreased to (£0.104m) from (£0.453m) in FY2022
representing a decrease in loss of 77%. This led to a small profit after tax
of £0.003m (FY2022: (0.183m)).
This set of profit figures demonstrates the progress made in recent years.
Taxation
The net tax credit for the year was £0.107m (FY 2022: £0.270m).
Balance sheet
The Group's net assets decreased slightly to £3.217m (FY 2022: £3.223m).
Trade and other receivables decreased slightly to £0.559m (FY 2022:
£0.608m). Trade and other payables also decreased to £2.019m (FY2022:
£2.341m).
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).
The Group continues to pay down its debt. The repayment of the Government CBIL
loan which is fully repayable by June 2026 is now well underway.
As a result, the CBIL loan balance at 31 December 2023 was £0.750m (2022:
£1.050m). The Group also has a convertible loan to current and former
Directors of £0.400m (2022: £0.400m), which will not be repaid until the
CBIL loan has been repaid.
Due to the activation of a break clause on office space, lease liabilities
were adjusted down by £0.475m. In 2024, a new lease was entered into for a
reduced office space with liabilities of £0.218m on signing.
Cashflow
Net cash from normalised operating activities decreased 10% to £1.063m
(FY2022: £1.189m). Net change in cash decreased to (£0.441m) (FY2022:
(£0.362m)). The Group finished the year with a utilisation less than 10% of
the current bank facility at (£0.019m) (2022: cash and cash equivalents
£0.433m).
Summarised cashflow FY 2023 FY 2022
£'000 £'000
Adjusted net cash from normalised operating activities 1,063 1,189
Investing Activities - net (972) (1,022)
Financial Activities - net (532) (529)
Net change in cash and cash equivalents (441) (362)
Cash and cash equivalents at beginning of year 433 764
Effect of foreign exchange rate changes (11) 31
Cash and cash equivalents at 31(st) December (19) 433
Jason Starr
Chief Executive Officer
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
2023 2022
Note £'000 £'000
Revenue 3 5,595 5,699
Cost of sales (601) (816)
Gross profit 4,994 4,883
Administrative expenses (4,943) (5,202)
Operating profit / loss 6 51 (319)
Adjusted operating profit / (loss) before acquisition related, reorganisation 2 220 (156)
and other items
Acquisition related, reorganisation and other items 5 (169) (163)
Operating profit / (loss) 51 (319)
Financial cost 8 (155) (134)
(Loss) before tax (104) (453)
Tax income 9 107 270
Profit / (loss) for the year 3 (183)
Other comprehensive income/(loss)
Items that will be reclassified subsequently to profit and loss:
Currency translation differences (3) 7
Total comprehensive profit / (loss) for the year - (176)
Earnings per share
Basic 10 0.01p (0.93p)
Diluted 10 0.01p (0.93p)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
Share capital Share Merger Convertible Retained Share options Foreign exchange Total
premium reserve loan reserve earnings
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2022 983 1,631 365 14 262 64 63 3,382
Comprehensive income
Loss for the year - - - - (183) - - (183)
Other comprehensive income
Exchange differences on translation of overseas operations - - - - - - 7 7
Total comprehensive loss - - - - (183) - 7 (176)
Transactions with owners
Share option charge - - - - 14 3 - 17
Total transactions with owners - - - - 14 3 - 17
Balance at 31 December 2022 983 1,631 365 14 93 67 70 3,223
Comprehensive income
Profit for the year - - - - 3 - - 3
Other comprehensive income
Exchange differences on translation of overseas operations - - - - - - (3) (3)
Total comprehensive loss - - - - 3 - (3) -
Transactions with owners
Share option charge - - - 4 (10) - (6)
Total transactions with owners - - - 4 (10) - (6)
Balance at 31 December 2023 983 1,631 365 14 100 57 67 3,217
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
Group
2023 2022
£'000 £'000
ASSETS
Non-current assets
Goodwill 3,415 3,415
Other intangible assets 2,822 2,990
Property, plant and equipment 20 25
Right of use assets 15 498
Investments - -
Total non-current assets 6,272 6,928
Current assets
Trade and other receivables 559 608
Current tax receivable - 72
Cash and cash equivalents - 433
Total current assets 559 1,113
Total assets 6,831 8,041
EQUITY AND LIABILITIES
Equity attributable to owners of the parent
Share capital 983 983
Share premium 1,631 1,631
Merger reserve 365 365
Convertible loan reserve 14 14
Retained earnings 100 93
Share option reserve 57 67
Foreign exchange reserve 67 70
Total equity 3,217 3,223
Liabilities
Non-current liabilities
Trade and other payables 170 241
Lease liabilities 3 483
Borrowings 850 1,150
Deferred tax liability 244 226
Total non-current liabilities 1,267 2,100
Current liabilities
Trade and other payables 2,019 2,341
Lease liabilities 5 77
Borrowings 319 300
Current tax payable 4 -
Total current liabilities 2,347 2,718
Total liabilities 3,614 4,818
Total liabilities and equity 6,831 8,041
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
For the year ended 31 December 2023 For the year ended 31 December 2023 For the year ended 31 December 2022 For the year ended 31 December 2022
Operating activities £'000 £'000 £'000 £'000
Loss before tax (104) (453)
Adjustment for
Financial cost 155 134
Depreciation and amortisation 1,230 1,268
Share option expense (6) 17
Lease Termination (77) -
Foreign exchange adjustments arising from operations 8 (24)
Operating cash flows before movement in working capital 1,206 942
Decrease in receivables 49 20
Decrease in payables (393) (16)
Taxation refunded 201 243
Net cash generated from operating activities 1,063 1,189
Investing activities
Purchases of property, plant and
equipment (9) (15)
Investment in development costs (963) (1,007)
Net cash used in investing activities (972) (1,022)
Financing activities
Interest paid (155) (134)
Bank loan repayments made (300) (300)
Lease payments made (77) (95)
Net cash (used in)/generated from financing activities (532) (529)
Net (decrease)/increase in cash and cash equivalents (441) (362)
Cash and cash equivalents at beginning of the year 433 764
Effect of foreign exchange rate changes (11) 31
Cash and cash equivalents at end of year (19) 433
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
1. Publication of non-statutory accounts
In accordance with section 435 of the Companies Act 2006, the Directors advise
that the financial information set out in this announcement does not
constitute the Group's statutory financial statements for the year ended 31
December 2023 or 2022, but is derived from these financial statements. The
financial statements for the year ended 31 December 2022 have been audited and
filed with the Registrar of Companies. The financial statements for the year
ended 31 December 2023 have been prepared in accordance with UK-adopted
international accounting standards, IFRIC Interpretations and the Companies
Act 2006. The financial statements for the year ended 31 December 2022 have
been audited and will be filed with the Registrar of Companies following the
Company's Annual General Meeting. The Independent Auditors Report on the
Group's statutory financial statements for the years ended 31 December 2023
and 2022 were unqualified and did not draw attention to any matters by way of
emphasis and did not contain statements under Section 498(2) or (3) of the
Companies Act 2006.
2. Basis of preparation
The preliminary announcement is extracted from the consolidated financial
statements of the Group. The financial statements of the subsidiaries are
prepared for the same reporting date as the parent company. Consistent
accounting policies are applied for like transactions and events in similar
circumstances.
All intra-group balances, transactions, income and expenses and profits and
losses resulting from intra-group transactions that are recognised in assets
or liabilities are eliminated in full.
The Group's business activities and financial position, together with the
factors likely to affect its future development, performance and position, are
set out in the CEO's Review and Financial Review on pages 7 to 12. Together
with the financial statements and notes which detail the results for the year,
net current liability position and cash flows for the year ended 31 December
2023. The Group prepare 3 year budgets and cash flow forecasts to ensure that
the Group can meet its liabilities as they fall due.
The Group meets its day to day working capital requirements through its cash
balances and bank facilities.
It has in place a £1.5m CBIL loan, secured in June 2020, repayable over 6
years with capital repayments commencing from July 2021. The Group has the
ability to take a holiday from the capital repayments on the CBIL loan for a
period of 6 months on request. Compliance with the current CBIL covenant has
been considered and based on management expectations and actions, that could
practically be taken, the directors do not consider any reasonable risk to
arise from this.
The Group secured an extended overdraft facility in March 2024 and undertook a
series of cost restructuring encompassing personal related and office
overheads during 2023. The majority of the financial benefit of these moves
will be felt from FY2024 onwards.
As at the date of this report, the Directors have a reasonable expectation
that the Company and the Group have adequate resources to continue in
operational existence for the foreseeable future. For this reason, they
continue to adopt the going concern basis in preparing the financial
statements.
3. Accounting policies
This preliminary announcement has been prepared in accordance with the
accounting policies adopted in the last annual financial statements for the
year to 31 December 2022.
4. Reconciliation of adjusted profits to consolidated
statement of comprehensive income
Note Adjusted profits Acquisition related, reorganisation and other costs Adjusted profits Acquisition related reorganisation and other costs
2023 2023* 2023 2022 2022* 2022
£'000 £'000 £'000 £'000 £'000 £'000
Revenue 5,595 - 5,595 5,699 - 5,699
Cost of sales (601) - (601) (816) - (816)
Gross profit 4,994 - 4,994 4,883 - 4,883
Administrative expenses (4,774) (169) (4,943) (5,039) (163) (5,202)
Operating (loss) 220 (169) 51 (156) (163) (319)
Financial income - - - - - -
Financial cost (155) - (155) (134) - (134)
(Loss) before tax 65 (169) (104) (290) (163) (453)
Tax income 81 26 107 239 31 270
Profit/(loss) for the year 146 (143) 3 (51) (132) (183)
Other comprehensive loss net of tax:
Currency translation differences (3) - (3) 7 - 7
Total comprehensive profit/(loss) for the year net of tax 143 (143) - (44) (132) (176)
Earnings per share
Basic 10 0.74p - 0.01p (0.26p) - (0.93p)
Diluted 10 0.74p - 0.01p (0.26p) - (0.93p)
* See note 9
5. Segment reporting
Divisional segments Ikiru People Central Total Ikiru People Central Total
2023 2023 2023 2022 2022 2022
£'000 £'000 £'000 £'000 £'000 £'000
Segment revenue 5,595 - 5,595 5,699 - 5,699
Segment EBITDA 1,250 64 1,314 905 44 949
Depreciation and amortisation expense (1,094) - (1,094) (1,105) - (1,105)
Segment result before reorganisation and other costs 156 64 220 (200) 44 (156)
Reorganisation and other costs (32) - (32) - - -
Segment result 124 64 188 (200) 44 (156)
Acquisition related amortisation - (137) (137) - (163) (163)
Operating (loss) 124 (73) 51 (200) (119) (319)
Loan interest/ lease interest (26) (129) (155) (31) (103) (134)
Loss before tax (104) (453)
Additions of non-current assets 972 972 1,022 1,022
Revenue by Business Segment
The following table provides an analysis of the Group's revenue by product
area for the 12 months of the financial year.
2023 2022
£'000 £'000
Recurring income 4,974 5,051
Non-recurring income 497 488
Third party revenues 124 160
5,595 5,699
In the table above 'Recurring income' represents all income recognised over
time, whereas 'Non-recurring income' and 'Third party revenues' represent all
income recognised at a point in time.
Recurring income includes all support services, SaaS and hosting income and
revenue on perpetual licenses with mandatory support contracts deferred under
IFRS 15. Non-recurring income includes sales of new licences which do not
require a support contract, and income derived from installing licences
including training, installation and data translation. Third party revenues
arise from the sale of third party software.
It is not possible to allocate assets and additions between recurring,
non-recurring income and third party revenue. No customer represented more
than 10% of revenue of the Group in 2023 or 2022.
Revenue by Business Sector
The following table provides an analysis of the Group's revenue by market
sector.
2023 2022
£'000 £'000
Contingent 3,460 3,441
Executive Search 2,135 2,258
5,595 5,699
6. Geographical analysis
The following table provides an estimated of the Group's revenue by geographic
market based on the Customers' country. This is provided for information
only as the Board does not review the performance of the business from a
geographical viewpoint.
Revenue
2023 2022
£'000 £'000
UK 4,175 4,148
Europe 583 663
Americas 496 518
Australia 147 147
ROW 194 223
5,595 5,699
Non-current assets by geographical location
2023 2022
£'000 £'000
UK 6,271 6,927
US - -
Australia 1 1
6,272 6,928
7. Acquisition related, reorganisation and other costs
2023 2022
£'000 £'000
Included within administrative expenses:
Reorganisation and other costs 168 -
Lease Termination (77) -
US government grant (Employee Retention Program) (59) -
Amortisation of acquisition intangibles 137 163
169 163
Reorganisation and other costs include severance payments and loss of office
payments.
8. Tax income
2023 2022
£'000 £'000
Current tax (53) (139)
Prior year adjustment - current tax (72) (146)
Total current tax (125) (285)
Deferred tax (6) (23)
Prior year adjustment - deferred tax 56 69
Deferred tax rate change from 19% to 25% in 2021 (6) -
Deferred tax re acquisition intangibles (26) (31)
Total deferred tax 18 15
Tax (income) for the year (107) (270)
Factors affecting the tax credit for the year
Loss before tax (104) (453)
UK rate of taxation 19.0% 19.0%
Loss before tax multiplied by the UK rate of taxation (86) (20)
Effects of:
Overseas tax rates - -
Impact of deferred tax not provided (8) 17
Enhanced R&D relief (110) (174)
Disallowed expenses 11 6
Deferred tax rate change from 19% to 25% in 2021 - -
Rate difference between CT rate and deferred tax rate (8) (5)
Rate difference between CT rate and rate of R&D repayment 49 43
Prior year adjustments (16) (76)
Tax (income) (107) (270)
9. Earnings per share
2023 2022
Using adjusted profit 2023 Using adjusted profit 2022
Profit/(loss) attributable to ordinary shareholders (note 2) £146,000 £3,000 (£51,000) (£183,000)
Weighted average number of shares 19,668,021 19,668,021 19,668,021 19,668,021
Basic profit/(loss) per share 0.74 p 0.01 p (0.26 p) (0.93 p)
Weighted average number of shares after dilution 19,668,021 19,668,021 19,668,021 19,668,021
Fully diluted profit/(loss) per share 0.74 p 0.01 p (0.26 p) (0.93 p)
Reconciliation of basic to diluted average number of shares:
2023 2022
Weighted average number of shares (basic) 19,668,021 19,668,021
Effect of dilutive potential ordinary shares - employee share plans - -
Weighted average number of shares after dilution 19,668,021 19,668,021
There are 1,646,500 (2022: 476,510) share options not included in the above
calculations, as they are underwater or have been forfeited.
The impact of the convertible loan notes in the period is not dilutive, as the
EPS of the convertible loan notes is greater than the basic EPS, and therefore
does not impact the calculation of the fully diluted earnings per share.
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