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Dillistone Group

  • BY: Andrew Hore |
  • POSTED: 14/06/2011 |

Executive search software supplier Dillistone Group has managed to narrow its spread by giving shareholders two shares for each share they owned and thereby reducing the share price.

The shares had closed at 212.5p each on Monday and the bid/offer spread was 20p. The bid offer spread was 3p when the shares opened after the two-for-one bonus issue but it widened to 72p/77p by the close. That still represents a narrowing of the percentage spread on the previous day.

Dillistone expects a stronger first half in 2011 but the full year outlook is still for a flat profit of £1.2m. The dividend will be maintained at 3.5p a share. There is still £2.15m in the bank even though the dividend costs nearly £600,000 a year and development spending has increased.

At 72.5p a share, Dillistone is valued at £12.3m. The shares are trading on 14 times prospective 2011 earnings. The yield is 4.8%.

Dillistone wants to make earnings enhancing acquisitions of recruitment software companies. The launch of FileFinder 10, the latest version of Dillistone’s software will make it easier to add new pieces of software to the product offering. Dillistone has talked to companies in the UK, Europe and North America. A deal may require further cash to be raised through a placing. That might help to improve liquidity. 

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