Dillistone Group trading in line as it progresses restructure
By Josh White
Date: Wednesday 26 Jun 2019
(Sharecast News) - Recruitment software and services supplier Dillistone Group told investors on Wednesday that its restructuring exercise was progressing "well", with its expanded office space in Basingstoke said to now be fully functional.
The AIM-traded firm, which was holding its annual general meeting, said it expected that its London facility would be "completely vacated" by September, with the majority of employees expected to remain with the group.
Chairman Mike Love told shareholders that the response to the changes the company was making had largely been positive.
"An example of this would be our product development effort, where we are already seeing benefits from our more integrated structure," Love said.
"We expect to launch additional functionality for our FileFinder, Infinity and GatedTalent platforms later this year, with a significant amount of 'cross team' effort having underpinned this work."
In the long term, he said the streamlined business would allow Dillistone to deliver superior service to clients, and superior results to shareholders, while in the short term, the firm was facing additional costs as a result of the decisions it had taken.
Dillistone had previously stated that those costs were likely to be in the region of £0.5m to £0.9m.
"This remains the board's view, and we expect to provide more detail on this at the time of our interim announcement," Love explained.
"The costs of the reorganisation are expected to be met from our own internal resources and from the £0.5m bank loan recently announced.
"We do not expect to seek the support of shareholders for the cost of restructuring."
Costs in general had been well controlled across the group, Mike Love claimed, and thus, while some products were showing stronger growth than others and with the benefits of costs savings in the from the restructure, the group expected to deliver a small profit prior to restructuring and acquisition-related costs, for the year as a whole - in line with market expectations.
"GatedTalent continues to progress well and we are currently expecting it to start to make a profit at EBITDA level, before group charges, by September.
"The board is confident that the restructuring will deliver long term benefits to all stakeholders and is optimistic for the future."
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