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REG - Dillistone Group PLC - Interim Results & Investor Presentation

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RNS Number : 2980B  Dillistone Group PLC  30 September 2025

30 September 2025

Dillistone Group Plc

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

Interim Results & Investor Presentation

 

Dillistone Group PLC, the AIM quoted supplier of software for the
international recruitment industry, announces Interim Results for the six
months to 30 June 2025.

 

Summary

 

·    Group H1 adjusted operating profit down at £0.079m (H1 2024:
£0.133m).

·    Total revenue of £2.173m (H1 2024: £2.519m), down 14% in a tough
recruitment market.

·    H1 New business sales for mature products exceed the total for all of
FY 2024.

·    Recurring revenues represented 91% (H1 2024: 91%) of Group revenue.

·    Net cash generated from operating activities stable at £0.528m
(2024: £0.529m).

·    Utilisation of bank facility at period end of £0.080m (2024:
utilisation £0.172m) reflecting ongoing repayment of Government support
loans. Final repayment due in July 2026.

·    Board expects to deliver full year results in line with adjusted PTP
market expectations.

 

Post Period

 

·    Talentis showing strong improvement in performance in Q3, with
significant growth of more than 30% in ARR and a contract win which, once
live, will be our  largest executive search competitive displacement in more
than five years.

·    Strong feedback from migrating customers, with multiple 5* Talentis
executive search software reviews on G2:
https://www.g2.com/products/talentis-executive-search-software/reviews
(https://www.g2.com/products/talentis-executive-search-software/reviews)

 

 

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

 

"I am pleased to confirm that the Group expects to deliver results in line
with expectations for EBITDA and adjusted pre-tax profit in 2025

 

I am also pleased to report that we now expect 2026 to be our first year of
revenue growth since 2022 and only our second since 2016. We believe that much
of that growth will be driven by Talentis."

 

*           Note: "Adjusted" refers to activities before
acquisition, reorganisation and one-off costs

 

 

Investor Presentation: 15:00 BST on Thursday 2 October 2025

 

Dillistone is pleased to announce that Jason Starr and Ian Mackin will provide
a live presentation relating to the Interim Results via the Investor Meet
Company platform on 02 October 2025, 15:00 BST.

 

The presentation is open to all existing and prospective investors. Questions
can be submitted at any time during the live presentation.

 

Investors can sign up to Investor Meet Company for free and can join the
Dillistone presentation via the following link:

 

https://www.investormeetcompany.com/dillistone-group-plc/register-investor
(https://urldefense.proofpoint.com/v2/url?u=https-3A__www.investormeetcompany.com_dillistone-2Dgroup-2Dplc_register-2Dinvestor&d=DwMGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=w0eRsxUu2UsBq3ls_LxRof2qWu3awsg_DX4QZ6SGwrQ&m=rxZo_5B3-Ch1dO13DViwnkBh16uQeiJYgAM3EwPKyzdGlESFGAowhe7IvFv0ox80&s=W1lzv3bvoOgPfpG-hXA7dZ0UeCDsNmqh5vGE-YFkrxM&e=)

 

Investors who already follow Dillistone on the Investor Meet Company platform
will automatically be invited.

 

 

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.

 

 

 

Enquiries:

 Dillistone Group Plc
 Giles Fearnley                  Chairman                            01256 297 000
 Jason Starr                     Chief Executive Officer
 Ian Mackin                      Finance Director

 Zeus (Nominated adviser and Broker)
 Mike Coe                        Director, Investment Banking         020 3829 5000

 

 

Chairman's Statement

 

Over the last few years, I've found myself reporting on a fairly consistent
theme. A challenging market for recruitment software, improvements in EBITDA
margin, acceptable performance for our contingency targeted products, let down
by disappointing performance for our executive search solutions.

 

At face value, H1 2025 represents more of the same. EBITDA margin has improved
once again (H1 2025 26.8% vs H1 2024 25.8%), our executive search performance
has been poor, while our contingency products report both positive and
negative results.

 

The bulk of our executive search revenue comes from our FileFinder platform
and this has unquestionably lost market share over recent years. Our Talentis
product was designed to be its successor and, until recently, revenue has
disappointed. I am delighted to report, however, that recent months have seen
a dramatic upturn in performance for this platform, and I take pleasure in
providing more details on this transformation below.

 

Executive search review:

 

As noted above, our executive search business has struggled over recent years,
but we are pleased to report signs of real progress, driven by our flagship
Talentis product.

Talentis was conceived as an all-in-one candidate sourcing / CRM platform for
executive search. When initially launched, it had primary strengths as a
sourcing tool, but CRM functionality was considered light by many buyers.

 

As a result, many of the early buyers of Talentis purchased it primarily for
its sourcing functionality. The revenue associated with this was of low
quality, with many of the subscriptions being on a month-to-month basis and of
low value.

 

In Q4 of last year, we reached the conclusion that the product had reached a
level where it was feature rich enough to be marketed as a successor platform
to FileFinder and competitor CRMs. As a result, we subsequently positioned the
product differently and increased its prices.

 

During the period in review, we saw our first "full" migrations into Talentis.
Client feedback has been very positive, with a number of 5* executive search
software reviews for Talentis appearing on G2:
https://www.g2.com/products/talentis-executive-search-software/reviews
(https://www.g2.com/products/talentis-executive-search-software/reviews)

 

During 2025, the mix of clients has changed away from sourcing customers
paying on a month to month basis, towards CRM customers on annually recurring
contracts. Indeed, while only 22% of new users signed in 2024 were under
annual (or longer) commitments, the figure in 2025 M1-M8 has risen to 59%, and
with the figure for M6-M8 up to 85%.

These new customers often have more users and often pay a higher price.

 

The change in positioning has caused the number of clients on the platform to
fall during the early part of the year. However, since then, the number of
licenced users and MRR have both increased with much of that increase
happening in Q3. Exit MRR at the end of Q3 is likely be 19% up on the
equivalent figure at the end of Q4 2024, and well over 30% up on the end of Q2
2025.

 

Talentis remains a low part of our overall revenue, but it is now our fastest
growing product - both in terms of new customer logos and migrations. While
much of the revenue growth in Q2-Q3 came from FileFinder migrations into
Talentis, our contracted orders for Q4 indicates a far higher percentage of
revenue coming from clients that are new to the Group. This includes our
largest competitive displacement in the executive search sector for over five
years.

 

Our Talentis B2C product, which trades under the name "GatedTalent", continues
to make a contribution.

 

Contingency review:

 

As has been previously mentioned, the recruitment market in general has
struggled over the past few years and the contingent space has been no
exception. Organisations across the globe have been reducing their permanent
and temporary headcount requirements.

The majority of our contingency clients are based in the UK which specifically
has shown a significant and sustained downturn since the 2022 post-Covid peak.
The ONS reports a drop of roughly 45% in vacancies over the past three years.
This directly impacts the recruitment agency market and this is felt by us
through clients reducing their own staff and hence licence numbers.

Whilst a nervous economic background has led to an overall reduction in user
numbers over the last 12 months, there is some early evidence of recovery. We
have seen a recent small upturn in the number of customers purchasing
additional licences for our Infinity product as well as the number of licences
in each transaction. On a rolling 6-month basis, additional licence sales from
existing customers are up just under 50% compared to June 2024.

In the period we rolled out first phase of our Mid-Office Online Timesheet
solution to positive feedback from the users. The second phase which expands
its functional capability to appeal to a wider user base was put on general
release towards the end of Q3.

We are pleased to report the continued adoption of our Candidate Portal add-on
for our Infinity product and a further significant update to this portal
adding functionality to support shift offers and selection is due to be
released by the end of the year. In August, we also released an improved
version of our consultant mobile app, Infinity Connect, and in addition we are
looking forward to releasing the further enhancements to the AI features for
the core Infinity product in Q4.

The above additions, along with our ongoing development of these products,
have enabled our contingent new business sales in H1 to exceed those in the
whole of FY24.

Our ISV product has seen a number of enhancements delivered to the customer
base along with a significant improvement to the test score and results
systems. Furthermore, the previous work undertaken to enhance our content
creation infrastructure has meant we have been able to efficiently deliver a
number of bespoke client requests in the period.  Whilst not directly
attributable to these  product enhancements we have seen increased order
volumes for ISV in comparison to prior year.

 

Financial performance

 

Revenue

 

Group revenue in H1 FY2025 reduced to £2.173m from £2.519m in H1 FY2024.

Recurring revenues decreased by 14% to £1.966m over the comparable period
last year (2024: £2.293m).

 

Recurring revenues represented 91% of total revenues (2024: 91%).
Non-recurring revenues were down 14% at £0.150m (2024: £0.175m).

 

Adjusted EBITDA*

 

The adjusted EBITDA* decreased by 10% to £0.583m from £0.650m in H1 FY2024.
This however still resulted in another increase in EBITDA margin to 26.8%,
compared to 25.8% in H1 FY2024.

 

Operating profit/(loss) and profit/(loss) before tax

 

The Group operating profit, before acquisition related, reorganisation and
other items, decreased by 41% to stand at £0.079m from £0.133m in H1 FY2024.

 

Inclusive of acquisition related and other items, the operating profit was
£0.024m compared to a profit of £0.065m in H1 FY2024.

 

The loss before tax increased to (£0.048m) from (£0.015m) in H1 FY2024.

 

Taxation

 

The net tax credit for H1 is £0.028m (H1 FY2024: £0.006m).

 

Balance sheet

 

The Group's net assets increased slightly to £3.288m (H1 FY2024: £3.206m)
with trade and other receivables decreasing to £0.310m (H1 FY2024: £0.493m).
Trade and other payables also decreased to £1.509m (H1 FY2024: £2.005m).

 

R&D development

 

The Group capitalised £0.414m in development costs in the period (H1 FY2024:
£0.436m) as the business continued its commitment to developing its products.
Amortisation of development costs was £0.485m (H1 FY2024: £0.489m)

 

Financing

 

The CBIL loan balance stands at £0.300m (31 December 2024: £0.450m) and, on
the current payment profile, will be repaid by June 2026.

 

The Group also has two convertible loans totalling £0.700m (31 December 2024:
£0.700m), which will not be repaid until the CBIL loan has been repaid.  The
two convertible loans were made by current and former Directors of the Group.

 

The Group also added in FY2025 H1 a loan agreement to a related party
totalling £0.120m (31 December 2024: £nil).

 

Cashflow

 

Net cash generated from operating activities was broadly unchanged at £0.528m
(2024: £0.529m).

 

Net change in cash improved by 97% to (£0.004m) (H1 FY2024: (£0.153m)).

 

At 30 June 2025, we had a utilisation of our bank facility of (£0.080m)
(2024: utilisation £0.172m).

 

 Summarised cashflow                                     H1 FY2025  H1 FY2024
                                                         £'000      £'000
 Adjusted net cash from normalised operating activities  528        529
 Investing Activities - net                              (419)      (441)
 Financial Activities - net                              (113)      (241)
 Net change in cash and cash equivalents                 (4)        (153)
 Cash and cash equivalents at beginning of year          (74)       (19)
 Effect of foreign exchange rate changes                 (2)        -
 Cash and cash equivalents at 30(th) June                (80)       (172)

 

Outlook

 

We are now seeing positive momentum with our Talentis product. While this
momentum  will come too late to change the shape of our numbers in 2025, I am
pleased to confirm that the Group expects to deliver results in line with
expectations for EBITDA and adjusted pre-tax profit in 2025

 

I am also pleased to report that we now expect 2026 to be our first year of
revenue growth since 2022 and only our second since 2016. We believe that much
of that growth will be driven by Talentis.

 

 

Giles Fearnley

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

                                                                              Note                  6 Months ended 30 June      Year ended 31 Dec
                                                                                                    2025          2024          2024
                                                                                                    Unaudited     Unaudited      Audited
                                                                                                    £'000         £'000         £'000

 Revenue                                                                      4                     2,173         2,519         4,903
 Cost of sales                                                                                      (224)         (269)         (503)
 Gross profit                                                                                       1,949         2,250         4,400
 Administrative expenses                                                                            (1,925)       (2,185)       (4,235)

 Result from operating activities                                             4                     24            65            165

 Analysed as:
 Result from operating activities before acquisition related, reorganisation                        79            133           269
 and other items

 Acquisition related, reorganisation and other items                          5                     (55)          (68)          (104)
 Result after acquisition related items                                                             24            65            165

 Financial cost                                                                                     (72)          (80)          (152)
 (Loss) / Profit before tax                                                                         (48)          (15)          13

 Tax income                                                                   6                     28            6             27
 (Loss) / Profit for the period                                                                     (20)          (9)           40

 Other comprehensive income net of tax:
 Currency translation differences                                                                   (7)           (2)           (4)
 Total comprehensive (loss) / income for period net of tax                                          (27)          (11)          36

 Earnings per share (pence)
 Basic                                                                        8                     (0.10)        (0.05)        0.20
 Diluted                                                                                            (0.10)        (0.05)        0.20

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

                                 As at 30 June 2025  As at 30 June 2024  As at 31 Dec 2024
                                 Unaudited           Unaudited           Audited
 ASSETS                          £'000               £'000               £'000
 Non-current assets
 Goodwill                        3,415               3,415               3,415
 Intangible assets               2,520               2,700               2,618
 Right of use assets             193                 219                 206
 Property plant & equipment      13                  19                  14
                                 6,141               6,353               6,253
 Current assets
 Trade and other receivables     310                 493                 430
 Current tax receivable          -                   -                   1
 Cash and cash equivalents       -                   -                   -
                                 310                 493                 431
 Total assets                    6,451               6,846               6,684

 EQUITY AND LIABILITIES
 Equity
 Share capital                   1,021               983                 1,021
 Share premium                   1,653               1,631               1,653
 Merger reserve                  365                 365                 365
 Convertible loan reserve        14                  14                  14
 Retained earnings               150                 91                  170
 Share option reserve            29                  57                  29
 Translation reserve             56                  65                  63
 Total equity                    3,288               3,206               3,315

 Liabilities
 Non current liabilities
 Trade and other payables        116                 169                 148
 Lease liabilities               181                 3                   182
 Borrowings                      820                 700                 850
 Deferred tax                    223                 236                 223
 Total non-current liabilities   1,340               1,108               1,403
 Current liabilities
 Trade and other payables        1,393               1,836               1,564
 Lease liabilities               18                  218                 28
 Borrowings                      300                 300                 300
 Current tax payable             32                  6                   -
 Utilisation of bank facility    80                  172                 74
 Total non-current liabilities   1,823               2,532               1,966
 Total liabilities               3,163               3,640               3,369
 Total liabilities and equity    6,451               6,846               6,684

 

The interim report was approved by the Board of directors and authorised for
issue on 29 September 2025.  They were signed on its behalf by:

JS
Starr
IJ Mackin

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

                                                                          As at 30 June           As at 31 December
                                                                          2025       2024         2024
                                                                          Unaudited   Unaudited   Audited

                                                                           £'000      £'000        £'000
 Operating Activities
 (Loss) before tax                                                        (48)       (9)          13
 Adjustment for
   Financial cost                                                         72         80           152
   Depreciation and amortisation                                          531        584          1,131
   Share option expense                                                   -          -            2
   Other including foreign exchange adjustments arising from operations   (5)        (2)          14
 Operating cash flows before movements in working capital                 550        653          1,312

 Decrease / (Increase) in receivables                                     120        66           129
 (Decrease) in payables                                                   (203)      (184)        (483)
 Net taxation (Paid) / repaid                                             61         (6)          1

 Net cash generated from operating activities                             528        529          959

 Investing Activities
 Purchases of property plant and equipment                                (5)        (5)          (8)
 Sale of fixed assets                                                     -          -            1
 Investment in development costs                                          (414)      (436)        (881)
 Net cash used in investing activities                                    (419)      (441)        (888)

 Financing Activities
 Finance cost                                                             (72)       (80)         (152)
 Lease payments made                                                      (11)       (11)         (16)
 Issue of Shares                                                          -                       60
 Proceeds from loan notes                                                 120                     300
 Bank loan repayments                                                     (150)      (150)        (300)
 Net cash generated from financing activities                             (113)      (241)        (108)

 Net change in cash and cash equivalents                                  (4)        (153)        (37)
 Cash and cash equivalents at beginning of the period                     (74)       (19)         (19)
 Effect of foreign exchange rate changes                                  (2)        -            (18)

 Cash and cash equivalents at end of period                               (80)       (172)        (74)

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                                              Share     Share     Merger   Retained  Convertible    Share     Foreign        Total
                                                             capital   premium   Reserve   earnings  loan reserve  option    exchange
                                                              £'000     £'000     £'000     £'000    £'000          £'000     £'000         £'000

 Balance at 31 December 2024                                 1,021     1,653     365       170       14            29        63             3,315
 Comprehensive income
 Loss for the 6 months ended 30 June 2025                     -         -         -        (20)      -              -         -             (20)
 Other comprehensive income                                                                                                                 -
 Exchange differences on translation of overseas operations   -         -         -         -        -              -        (7)            (7)
 Total comprehensive profit                                   -         -         -        (20)      -             -         (7)            (27)
 Transactions with owners
 Share option charge                                          -         -         -         -        -             -          -             -

 Balance at 30 June 2025                                     1,021     1,653     365       150       14            29        56             3,288

 Balance at 31 December 2023                                 983       1,631     365       100       14            57        67             3,217
 Comprehensive income
 Loss for the 6 months ended 30 June 2024                     -         -         -        (9)       -              -         -             (9)
 Other comprehensive income                                                                                                                 -
 Exchange differences on translation of overseas operations   -         -         -         -        -              -        (2)            (2)
 Total comprehensive profit                                   -         -         -        (9)       -             -         (2)            (11)
 Transactions with owners
 Share option charge                                          -         -         -         -        -             -          -             -

 Balance at 30 June 2024                                     983       1,631     365       91        14            57        65             3,206

 

OTES TO THE INTERIM

  NOTES TO THE UNAUDITED INTERIM REPORT

CONSOLIDATED STATEMENT OF

1.         Basis of Preparation

 

The financial information for the six months ended 30 June 2025 included in
this condensed interim report comprises the consolidated statement of
comprehensive income, the consolidated statement of financial position, the
consolidated statement of cash flows, the consolidated statement of changes in
equity and the related notes.

 

The financial information in these interim results is that of the holding
company and all of its subsidiaries (the Group). It has been prepared in
accordance with UK adopted international accounting standards but does not
include all of the disclosures that would be required under International
Financial Reporting Standards (IFRSs). The accounting policies applied by the
Group in this financial information are the same as those applied by the Group
in its financial statements for the year ended 31 December 2024 and are those
which will form the basis of the 2025 financial statements.

 

The comparative financial information presented herein for the year ended 31
December 2024 does not constitute full statutory accounts for that period. The
Group's annual report and accounts for the year ended 31 December 2024 have
been delivered to the Registrar of Companies. The Group's independent
auditor's report on those statutory accounts was unqualified, did not draw
attention to any matters by way of emphasis, and did not contain a statement
under 498(2) or 498(3) of the Companies Act 2006.

 

Going concern

 

The directors have continued to perform detailed forecasting on a regular
basis taking into account current trading and expectations and cash balances
and, having reflected upon these forecasts, the directors of the Company
continue to adopt the going concern basis of accounting in preparing the
financial statements.

 

Dillistone Group Plc is the Group's ultimate parent company.  It is a public
listed company and is domiciled in the United Kingdom.  The address of its
registered office and principal place of business is 9 Cedarwood, Crockford
Lane, Chineham Business Park, Basingstoke, RG24 8WD.  Dillistone Group Plc's
shares are listed on the Alternative Investment Market (AIM).

 

2.         Share Based Payments

 

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

 

 

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

 

 

6 months ended 30 June 2025 and 30 June 2024

 

                                                                  Adjusted operating profits  Acquisition and reorganisation related items                   Adjusted operating profits  Acquisition and reorganisation related items
                                                                  30-Jun-2025                  2025*                                        30-Jun-2025      30-Jun-2024                  2024*                                        30-Jun-2024

                                                                  £'000                       £'000                                          £'000           £'000                       £'000                                          £'000

 Revenue                                                          2,173                       -                                             2,173            2,519                       -                                             2,519

 Cost of sales                                                    (224)                       -                                             (224)            (269)                       -                                             (269)

 Gross profit                                                     1,949                       -                                             1,949            2,250                       -                                             2,250

 Administrative expenses                                          (1,870)                     (55)                                          (1,925)          (2,117)                     (68)                                          (2,185)

 Results from operating activities                                79                          (55)                                          24               133                         (68)                                          65

 Financial cost                                                   (72)                        -                                             (72)             (80)                        -                                             (80)

 (Loss) before tax                                                7                           (55)                                          (48)             53                          (68)                                          (15)

 Tax (charge) / income                                            23                          5                                             28               (7)                         13                                            6

 Profit / (loss) for the period                                   30                          (50)                                          (20)             46                          (55)                                          (9)

 Other comprehensive income net of tax:
 Currency translation differences                                 (7)                         -                                             (7)              (2)                         -                                             (2)

 Total comprehensive (loss) / profit for the year net of tax      23                          (50)                                          (27)             44                          (55)                                          (11)

 

*  see accounts note 5

 

 

Earnings per share - from continuing activities

 

 Basic            0.15p           (0.10p)        0.23p  (0.05p)
 Diluted          0.15p                 (0.10p)  0.23p         (0.05p)

 

 

Year Ended 31 December 2024

                                                                  Adjusted operating profits  Acquisition and reorganisation related items
                                                                  31 December                  2024*                                        31 December 2024

                                                                  2024

                                                                  £'000                       £'000                                          £'000

 Revenue                                                          4,903                       -                                             4,903

 Cost of sales                                                    (503)                       -                                             (503)

 Gross profit                                                     4,400                       -                                             4,400

 Administrative expenses                                          (4,131)                     (104)                                         (4,235)

 Results from operating activities (inc furlough)                 269                         (104)                                         165

 Financial cost                                                   (152)                       -                                             (152)

 Profit / (Loss) before tax                                       117                         (104)                                         13

 Tax income                                                       5                           22                                            27

 Profit / (Loss) for the year                                     122                         (82)                                          40

 Other comprehensive income net of tax:
 Currency translation differences                                 (4)                         -                                             (4)

 Total comprehensive Profit / (Loss) for the year net of tax      118                         (82)                                          36

 

*  see accounts note 5

 

 

Earnings per share - from continuing activities

 

 Basic    0.61p  0.20p
 Diluted  0.61p  0.20p

 

 

4.         Segment reporting

 

 

 Results
                                                                                                               Year ended
                                        6 months ended 30 June                                                             31 Dec
                                        2025                                                 2024                          2024
                                        £'000                                                £'000                         £'000

 Results from operating activities
 Ikiru People                                                                  59                  112               237

 Central                                                                       20                  21                32

 Reorganisation and other costs                                                (28)                -                 12
 Amortisation of acquisition intangibles and other one off costs or income     (27)                (68)              (116)
 Result from operating activities                                              24                  65                165

 

 

 Geographical segments
 The following table provides an analysis of the Group's revenues by
 geographical market.
                                                                                                                    Year ended
                6 months ended 30 June                                                                  31 Dec
                2025                                                      2024                                2024
                £'000                                                     £'000                               £'000
 UK             1,730                                                     1,941                               3,750
 Europe         179                                                       250                                 464
 Americas       151                                                       189                                 382
 Australia      71                                                        68                                  131
 ROW            42                                                        71                                  176
                2,173                                                     2,519                               4,903

 4.         Segment reporting (continued)

 Business Segment
 The following table provides an analysis of the Group's revenues by products
 and services.
                                                                                                                    Year ended
                               6 months ended 30 June                                                               31 Dec
                               2025                                             2024                                2024
                               £'000                                            £'000                               £'000
 Recurring                     1,966                                            2,293                               4,394
 Non recurring                 150                                              175                                 395
 Third party revenues          57                                               51                                  114
                               2,173                                            2,519                               4,903

 'Recurring income' represents all income recognised over time, whereas
 'Non-recurring income' represents all income recognised at a point in time.
 Recurring income includes all support services, software as a service income
 (SaaS) and hosting income. Non-recurring income includes sales of new
 licenses, and income derived from installing those licenses including
 training, installation, and data translation.  Third party revenues arise
 from the sale of third party software.

 Business Sector

 The following table provides an analysis of the Group's revenues by market
 sector.
                                                                                                                    Year ended
                               6 months ended 30 June                                                               31 Dec
                               2025                                             2024                                2024
                               £'000                                            £'000                               £'000
 Contingent                    1,486                                            1,620                               3,460
 Executive Search              687                                              899                                 2,135
                               2,173                                            2,519                               5,595

 

5.         Acquisition related items and other one off costs

                                                                          Year ended
                                              6 months ended 30 June      31 Dec
                                              2025          2024          2024
                                              £'000         £'000         £'000
 Reorganisation and other costs               28            -             -
 Lease Termination                            -             -             -
 Grants received from overseas jurisdictions  -             -             (12)
 Amortisation of acquisition intangibles      27            68            116

 Total                                        55            68            104

 

6.         Tax

                                                                      Year ended
                                          6 months ended 30 June      31 Dec
                                          2025          2024          2024
                                          £'000         £'000         £'000

 Current tax                              (8)           (1)           (1)
 Prior year adjustment - current tax      -             -             (5)
 Deferred tax release                     (13)          (9)           (9)
 Prior year adjustment - deferred tax     -             17            17
 Deferred tax rate change                 (2)           -             (7)
 Deferred tax re acquisition intangibles  (5)           (13)          (22)
 Tax credit for the period                (28)          (6)           (27)

 

The tax charge is calculated for each jurisdiction based on the estimated
position for the year.  Deferred tax has been provided at a rate of 25%
(2024: 25%).

 

7.         Dividends

 

The Board has decided not to pay an interim dividend (2024: nil per share).

 

8.         Earnings per Share

                                                                                    Year ended
                                                        6 months ended 30 June      31 Dec
                                                        2025          2024          2024

 Basic earnings per share
 Profit / (Loss) attributable to ordinary shareholders  (£20,000)     (£9,000)      £40,000

 Weighted average number of shares                      20,418,021    19,668,021    19,922,119

 Basic earnings / (loss) per share (pence)              (0.10)        (0.05)        0.20

 

 9.        Related party transactions

 

The Company has related party relationships with its subsidiaries, its
directors, and other employees of the Company with management responsibility.
The Group issued £120,000 in loan notes which carry interest at 10.85% per
annum payable quarterly in arrears to a related party during the period.

 

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

 

The Directors participated in the issue of convertible loan notes in 2024
which carry interest at 9.85% per annum payable quarterly in arrears.

 

There were no transactions with any other related parties.

 

10.       Cautionary statement

 

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

 

 

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.   END  IR EAPNNAEFSEFA

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