Recruitment software supplier Dillistone Group (DSG:LSE) published its audited final results for the 12 months ended 31 December 2021. Revenue stood at £5.6 million, down 11.5% from £6.3 million in 2020.

Dillistone operates Voyager Software, a supplier of front office software and the mid-office pay & bill solution, Dillistone FileFinder. The company also provides Talentis executive search software, ISV.online, which provides online pre-employment skills testing and, training tools and GatedTalent, a global database of leading executives.

The group published a trading update in February where it highlighted that business continued improving in the fourth quarter with incoming orders at ‘levels not seen in years’.

Giles Fearnley, Non-Executive Chairman, said, "In my interim statement I highlighted that in our business, where a large part of our revenue is contracted annually in advance, the impact of Covid would be felt throughout the remainder of 2021. This proved to be the case as recurring revenue decreased by 13% to £5.0 million (89% of Group revenue (2020: 91%)) however we saw an uplift in orders in Q4 to pre-pandemic levels.”

The group said there was an adjusted operating loss in 2021 of £0.140 million (2020: loss £0.166 million) before acquisition related and other costs. Administration costs reduced by 14% excluding acquisition related items and other costs, depreciation and amortisation. The operating loss, including reorganisation and acquisition related items, was £0.199 million (2020: loss £0.821 million).

Dillistone also announced today that Joanne Curd, Chief Financial Officer, who was appointed in 2021 on a part time basis, has decided that she now wishes to further develop her commitment to her voluntary works and will be stepping down from the role.

The Board announced that Ian Mackin, currently Financial Controller, is stepping up to the lead financial role, as Interim Finance Director and main Board Director, on a full-time basis with effect from 16 June. Curd will be remaining with the group for a period to ensure a smooth handover. Mackin will also become Company Secretary.

Fearnley said, "I thank Joanne very much for her contribution during her time with us.  We are delighted that Ian has agreed to take on the role of Interim Finance Director and Company Secretary and we look forward to working with him."

Looking ahead, Fearnley added, “The current year has begun well following on from the strong finish to 2021. Growth in new business sales is helping us recover recurring revenue lost during the pandemic and, while we are conscious of the potential impact of ongoing economic turbulence, we are confident that the Group is well on the way to recovery, with positive signs across our entire product range and an exciting opportunity opening up with our new Talentis product."

“Compared to the same period to 31 March in 2021, Q1 2022 incoming orders are up by 41%, with all products performing broadly in line with, or better than management expectations,” Fearnley said. “Our contingency recruiting products have enjoyed a strong start, driven by increasingly strong performance by our Infinity product, which is proving to be especially successful in the UK temporary recruitment sector. In late 2021, we announced our largest new contract win since the Group's restructuring, and we are pleased to announce that this implementation of Infinity is now live and performing well. Our executive search products, Talentis, FileFinder and GatedTalent, have also enjoyed a strong start to the year.”

“The group continues to operate with a much lower cost base and as revenues recover, the improved operational leverage, following the efficiencies realised, will be reflected in overall performance,” Fearnley added. “The group is trading in line with market expectations, holding £0.764 million in cash as of 31 December 2021 and does not expect to raise additional funds.”

Fearnley added that the Board is optimistic for the future.

Shares in Dillistone Group last traded at £20.30, down 5.58% on the day and 12.78% above the 52 week low of £18.00 set on 25 November 2021. The company has a market cap of £4.23 million.

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