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Dillistone Group

  • BY: Andrew Hore |
  • POSTED: 03/10/2014 |

Recruitment and executive search software provider Dillistone Group is acquiring ISV, which provides training and testing services to the UK recruitment sector.

Dillistone is paying an initial £850,000 and £150,000 in January. Any surplus cash will also be paid to the sellers. In 2013, ISV made a pre-tax profit of £162,000 on revenues of £750,000. The total purchase price values the business at just over six times post-tax earnings.

ISV works for most of the largest recruitment agencies and it will provide additional services that Dillistone can sell to its own client base.

Dillistone has raised £1m at 95p a share and its chairman Mike Love bought nearly one-quarter of the shares, taking his stake 703,254 shares. Chief executive Jason Starr also bought a small number of shares in the placing and his stake is 3.56m shares. The current share price is 98.5p.

In the first half of 2014, Dillistone increased its revenues by 10% to £4.2m but there was a fall in underlying pre-tax profit from £862,000 to £774,000, although it was mainly down to exchange rate movements. Net cash was £1.19m at the end of June 2014. The interim dividend was raised by 4% to 1.3p a share.

Voyager Software revenues grew strongly and the Dillistone contribution fell.

The full year profit will be similar to the £1.73m made last year – a profit nearer £2m was previously expected.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFSeptember2014_60.pdf

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