News blog
Dillistone Group
- BY: Andrew Hore |
- POSTED: 02/10/2011 |
Dillistone Group has widened the range of recruitment software it offers through the purchase of Voyager Software.
Dillistone has always focused on the executive search end of the market and Voyager supplies software for uses across the recruitment process.
Voyager generated revenues of £2.2m in the year to June 2011, compared with Dillistone’s revenues of £4.3m in 2010. Voyager has more than 700 clients and is profitable.
Voyager sells its software in the UK and Australia and Dillistone will be able to offer it in other international markets. The Voyager Infinity software will be launched in the US during 2013. The brands will be kept separate but the software development plan will be integrated. There should also be annualised cost savings of £130,000.
Dillistone paid an initial £1.5m in cash and £390,000 in shares with further potential deferred consideration depending on performance. The maximum total payment is £4m although it is unlikely it will be that much. Edison estimates that if Voyager continues to grow at 20% a year then the total consideration could be £2.5m.
Interim revenues rose 16% to £2.28m, with recurring revenues generating the majority of this income. Pre-tax profit improved from £512,000 to £551,000 in the first half of 2011. The interim dividend is unchanged at 1.1667p a share.
There was cash in the bank of £2.14m at the end of June 2011. A share placing raised £500,000 from old and new shareholders. This helped to pay the cash consideration for Voyager. Pro forma cash is effectively £1.1m.
Edison forecasts a combined turnover of £8m for 2012 and a profit of £1.6m. The deal will be earnings enhancing. The shares are trading on around 12 times 2012 prospective earnings.
At 76p a share, Dillistone is valued at £13.8m. A two-for-one share bonus issue earlier this year appears to have helped to reduce the bid/offer spread to around 5%. It had previously been around 20%.
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