Dillistone Group (DSG: LSE), the UK-based supplier of recruitment software for the recruitment industry, announced a trading update today.

The group, which will announce its interim results in the week beginning 24 September 2018, expects full year results to be in line with market expectations before acquisition related items.

Dillistone highlighted its new division GatedTalent, which allows executives to share information with executive recruiters in a secure and private manner, and said it is making positive progress with “excellent growth” in executive members since the previous trading update announcement on 26 June 2018. 

“Member profile creation has accelerated, with August being our best month for new platform registrations, delivering an increase of more than 50% in newly created profiles when compared to our previous best month.  The division is currently receiving well over 1,000 new registrations each week,” Dillistone stated.

The membership base for GatedTalent is exceptionally senior, with approximately 10% of its members being currently employed in a CEO role.  Furthermore, its membership pool is highly diverse, with executives registered from more than 100 nations, with the US being the largest single source of registrations.

According to Dillistone, the continuing growth of the membership pool means that GatedTalent is now ready to turn on the monetisation element of the platform, although it will generate only minimal revenue in 2018.  As previously noted, the GatedTalent division will be loss making in 2018 and 2019.

Dillistone also commented on its group balance sheet, saying that it remains strong, with a cash balance at 30 June 2018 of £1.065 million. 

Jason Starr, Chief Executive, commented, "We believe that GatedTalent has the ability to become a significant business for the group in its own right.  However, more immediately, we believe that it will have a positive impact on revenue for our Dillistone Systems division where GatedTalent will provide direct access to some of the World's leading executives from inside our FileFinder CRM.  This is a unique competitive advantage in the industry which will aid in both winning new clients and generating additional value for our existing client-base." 

In its last update, Dillistone said its revenue was hit by the loss of a major client and the impact of exchange rates have had a negative impact on recurring revenues compared to the same period in the previous year.

As of last trade, Dillistone Group PLC traded at £59.00, up 8.26% on the day and 22.92% above the 52 week low of £48.00 set on 24 August 2018. Based on its current share price the company has a market value of £10.72 million.