Dillistone Group (DSG: LSE), the UK-based supplier of recruitment software to the international recruitment industry reported revenue of £4.1 million for the six months ended 30 June 2019, a decrease of 6.0% compared to the previous year.

Revenue was down £0.26 million (-6.0%) of which £0.13 million related to the previously announced loss of a major client in 2018.

Recurring revenues represented 83% of revenues (2018: 81%). Recurring revenue decreased by 4% to £3.4 million over the comparable period last year.

Loss for the period incorporated the loss in the GatedTalent division of £0.25 million.(anything on this)

By division, Dillistone Systems reported revenue of £2.10 million, down 0.9% compared to the previous year.

Voyager Software reported revenue of £1.948 million, down 15.8%, with recurring revenue also decreasing due mainly to the loss of the major legacy contract in February 2018. The fall in revenue is also, in part, due to a change in business model on the sale of one of the Voyager products which has resulted in lower revenue but higher margins. Dillistone said the overall effect of this change is essentially neutral in the period.

GatedTalent’s revenue increased significantly in the period rising to £0.13 million (2018: £0.01 million) and continues to grow on a monthly basis. An increasing proportion of revenue comes from sales of services to individuals rather than to businesses. However, the division made a loss during the period  And this is expected to continue during 2019.

Mike Love, Non-Executive Chairman, commented, “While we have some final steps still to complete, we are pleased to report that the cost of our restructuring process is expected to be at the lower end of expectations. Additionally, our anticipation is that the level of running costs taken out of the business will be as good if not better than we had previously hoped.”

“We expect both Dillistone Systems and Voyager Software to be profitable in the full year, with GatedTalent reporting reduced losses on higher revenue,” Love said. “However, with the continuing uncertainty over Brexit in the UK, and ongoing economic uncertainty in the wider world, the group does expect revenue to be down on its previous expectations and this will result in a loss in the year to 31 December 2019. In the longer term, the reduced cost base of the group, along with the improved operating structure and our ongoing investment in product development will deliver growth in the business.”

As of last trade Dillistone shares traded at £25.50, down 1.9% on the day. Based on its current share price the company has a market value of £5.01 million.