News blog
Dillistone Group
- BY: Andrew Hore |
- POSTED: 19/04/2009 |
Executive selection software provider Dillistone Group continues to generate cash as well as paying attractive dividends.
Revenues grew from £4.1m to £4.6m in 2008, while profits improved from £1.2m to £1.43m. Recurring revenues were £2.25m. Cash increased from £1.53m to £2.35m.
A final dividend of 7p a share takes the total for the year to 10.5p a share. Management says that the dividend will be maintained even though profits may fall this year.
Recurring revenues are running at £2.4m a year. Edison Investment Research forecasts 2009 revenues of £4m. That suggests that licence sales will fall by one-third. It is difficult to predict these more than a couple of months ahead so this should prove conservative. If trading picks up then there is room for an upgrade. Profits are forecast to fall to £1.06m and the cash balance should be maintained even though capitalised development spending will increase as a new software platform is developed.
A shortage of suitable candidates for top jobs should mean that there is a positive outlook for Dillistone’s market.
At 147.5p a share, Dillistone is valued at £7.96m. The yield is 7.1%. The shares are tightly held. Share options at 16p a share are maturing on 5 May 2009 and management believes that around 85,000 shares will be sold when they go ex-dividend. There appears to be demand for these shares and they could help to make the share quotation more liquid.
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