Dillistone Group (DSG: LSE), the UK-based supplier of recruitment software to the international recruitment industry announced its final results for the 12 months ended 31 December 2018.

Overall revenue was down 10.7% to £8.7 million. Recurring revenue, which made up 82% of overall revenue, fell 10% to £7.1 million (restated 2017: £7.9 million). The loss of a major client, announced in Summer 2017 but materialising in February 2018, had a year-on-year revenue impact of approximately £0.62 million.

Gross profit was also down 9.9% in FY 2018.

Adjusted operating profit dropped significantly to £0.05 million (2017: £0.459m), in part due to the continued investment in GatedTalent and in part due to the loss of the major client. The operating loss generated by GatedTalent was £0.61 million.

The group’s Dillistone Systems division saw revenue fall 7% to £4.19 million. The Voyager Software division decreased by 15% to £4.42 million in FY 2018 and

Mike Love, Non-Executive Chairman, commented, “2018 was clearly a challenging year for the group. The executive team has nevertheless worked tirelessly and, despite the challenges faced during the year of GDPR, the loss of a major client, the continued investment in new products and, during 2018, the implications of re-structuring to reduce our cost base, we are now well on our way to restoring Dillistone to healthy operating profits on a sustainable footing.”

“Results in 2018 have clearly been disappointing and the Board has embarked on a plan which, it believes, will deliver significantly improved performance from 2020 onward,” Dillistone Group said in a statement. “We are now well progressed on our plan to streamline our operating procedures while maintaining our excellent reputation for client service. As stated previously we expect the costs of the restructuring to be in the region of £500,000 to £900,000. These costs are expected to be met without recourse to shareholders.”

As of last trade Dillistone Group traded at £37.50, down 8.54% on the day and 1.35% above its 52-week low of £37.00, set on 8 Apr 2019. Based on its current share price the company has a market value of £8.06 million.