News blog

Dillistone Group

• BY: Andrew Hore |
• POSTED: 09/07/2013 |

Recruitment and executive search software provider Dillistone Group is acquiring rival recruitment software supplier FCP Internet.

FCP sells Evolve software via a SaaS model and it targets the same customers as the Voyager Software business previously acquired by Dillistone in September 2011. The business generated a profit of £171,000 on revenues of £941,000 in the year to October 2012.

Dillistone is paying an initial £750,000 for FCP and will return surplus cash of around £150,000 to the vendors. Up to £1.2m more is payable depending on achievement of recurring revenue targets in the period to March 2015.

House broker WH Ireland is maintaining its 2013 profit target at £1.8m and has edged up its 2014 profit forecast from £1.92m to £2m. The shares are trading on less than ten times prospective 2013 earnings, falling to less than nine in 2014. The prospective yield is 4.8%.

Dillistone is still expected to end the year with net cash of £1.7m.

At 79.5p a share, Dillistone is valued at £14.5m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJune2013_45.pdf