REG - Dillistone Group PLC - Interim Results & Investor Presentations
26/09/2023 07:00
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RNS Number : 5858N Dillistone Group PLC 26 September 2023
26 September 2023
Dillistone Group Plc
("Dillistone", the "Company" or the "Group")
Interim Results & Investor Presentations
Dillistone Group Plc, the AIM quoted supplier of software and services to
recruiters, is pleased to announce interim results for the six months ended 30
June 2023.
Financial Highlights
· Group eliminates losses, makes first H1 adjusted operating profit
since 2018 of £0.036m (H1 2022: loss (£0.129m)).
· Rolling 12 month adjusted operating profit also turns positive at
£0.009m for the first time since H2 2018 (12 months to June 2022: loss
(£0.342m)).
· First H1 recurring revenue growth since 2017 up 4% to £2.564m (2022:
£2.477m).
· Recurring revenues represented 91% (H1 2022: 88%) of Group revenue.
Total revenue flat at £2.826m (2022: £2.823m).
· Net cash from operating activities broadly the same at £0.565m
(2022: £0.560m).
· Cash at period end of £0.249m (2022: £0.608m) reflecting ongoing
repayment of Government support loans (£0.300m annually). The Board does not
expect the Group to require additional funding.
· Board expects to deliver full year profit results in line with market
expectations.
Operational Highlights
· Strong start to year for all products, followed by deterioration in
Q2 due to widely reported drop in UK advertised vacancies during this period
leading to a downturn in demand for many of our clients.
· Improved operational gearing ensures that business is able to react
rapidly to changes in demand.
· Post period end, major enhancements delivered for Talentis, Infinity
and Mid-Office, including integrations with OpenAI (the technology behind
ChatGPT) for both Talentis and Infinity.
· Implementation of previously announced major contract win progressing
well.
Commenting on the results and prospects, Giles Fearnley, Non-Executive
Chairman, said:
"In my statement in the annual report, I said that the underlying business had
improved. These results confirm that statement with the Group returning an
adjusted operating profit for the first time since 2018, despite the
challenging economic environment.
"Even with the current economic turbulence, we fully expect to make further
progress during the remainder of the year. The Board is confident of
delivering full year profit results in line with market expectations."
* Note: "Adjusted" refers to activities before
acquisition, reorganisation, Government support, and one-off costs
Investor Presentation: 3pm on Tuesday 26 September 2023
Jason Starr, Chief Executive, and Ian Mackin, Finance Director, will hold an
investor presentation to review the results and prospects at 3pm on Tuesday 26
September 2023.
The presentation will be hosted through the digital platform Investor Meet
Company. Investors can sign up to Investor Meet Company and add to meet
Dillistone Group Plc via the following link
https://www.investormeetcompany.com/dillistone-group-plc/register-investor
(https://www.investormeetcompany.com/dillistone-group-plc/register-investor) .
For those investors who have already registered and added to meet the Company,
they will automatically be invited.
Questions can be submitted pre-event to dillistone@walbrookpr.com
(mailto:dillistone@walbrookpr.com) or in real time during the presentation via
the "Ask a Question" function.
Mello Results Special webinar: Wednesday 27 September 2023 - event starting at
12pm
Dillistone will be presenting at the Mello Results Special webinar, on
Wednesday 27 September 2023 taking place via Zoom Webinar. The event starts at
12.00pm.
Jason Starr, Chief Executive, and Ian Mackin, Finance Director, will be
presenting to webinar participants during the event and taking questions.
Investor wishing to attend can register here
(https://urldefense.proofpoint.com/v2/url?u=https-3A__melloevents.com_melloresults2709_&d=DwMGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=w0eRsxUu2UsBq3ls_LxRof2qWu3awsg_DX4QZ6SGwrQ&m=IuYMWfD_zB4EG0OwbZ8AWK8mblZMOcJMi4IKZolh1W4VavqPZJfS2XldRWoMvUDu&s=1lb1kvDqA5guL9tXcXI25siLJ6ofuLS0hgm3rgwiHy8&e=)
for a free ticket for the event using code SHR100. The recording will be
sent out to all registrants within 48 hours of the event.
Contacts:
Dillistone Group Plc Via Walbrook PR
Jason Starr Chief Executive
Ian Mackin Finance Director
WH Ireland Limited (Nominated adviser)
Chris Fielding Head of Corporate Finance 020 7220 1650
Walbrook PR
Tom Cooper / Nick Rome 020 7933 8780
dillistone@walbrookpr.com
This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.
The person responsible for arranging the release of this announcement on
behalf of the Company is Ian Mackin, Finance Director of the Company.
Notes to Editors:
Dillistone Group Plc is a leader in the supply and support of software and
services to the recruitment industry. Dillistone operates through the Ikiru
People (www.IkiruPeople.com (https://www.ikirupeople.com/) ) brand.
The Group develops, markets and supports the Talentis, FileFinder, Infinity,
Mid-Office, ISV and GatedTalent products.
Dillistone was admitted to AIM, a market operated by the London Stock Exchange
plc, in June 2006.
Learn about our products:
Talentis Software:
https://www.talentis.global/recruitment-software/
(https://www.talentis.global/recruitment-software/)
Voyager Software:
https://www.voyagersoftware.com (https://www.voyagersoftware.com)
GatedTalent Executive Jobs:
https://talentis.global/all-jobs
Chairman's Statement
In my statement in the annual report, I said that the underlying business had
improved. These results confirm that view with the Group achieving its first
half year adjusted operating profit since H2 FY2018 and its first half year
profit from operating activity since H1 FY2016.
It is perhaps though, the rolling 12-month measure of adjusted operating
profit which truly shows the progress made. The table below shows the scale of
recovery the company has achieved, with a small profit of £0.009m being
achieved in the 12 months to 30 June 2023, a turnaround in operating
performance of more than £350k, when accounting for government support.
12 months to 30 June 2018 30 June 2019 30 June 2020 30 June 2021 30 June 2022 30 June 2023
Adjusted Operating Profit (£'000) 140 (6) (228) (568) (342) 9
In the annual report I also pointed to challenging economic conditions. These
worsened during Q2, with the widely reported reduction in hiring leading to a
number of recruitment agencies downsizing, subsequently reducing demand for
our products.
However, as a result of the restructuring undertaken over recent years, the
Group now has the ability to rapidly adjust cost in line with market
fluctuations and steps have been taken in H2 to reflect the harsher sales
environment we face. As a result, the Board remains confident of continuing
its financial recovery in 2023.
Operational Review
We split our products into two groups - products primarily targeting
contingency recruiters (largely, but not exclusively, in the United Kingdom)
and products used by executive search firms and in-house executive search
teams across the globe.
Contingency review:
In March, we announced that the Group had won a significant contract for our
Infinity product. We stated that "The contract includes a significant amount
of tailored development work which will determine the final value of the
contract. The sum total of this development work and the ongoing licence
revenue is expected by the Board to result in the contract being the largest
won since the restructuring of the Group in January 2020."
We are pleased to report that this project is progressing well and we
anticipate that the non-recurring revenue part of the project will largely be
realised in H2 2023. While the final value of this work remains unconfirmed,
at this stage, we are now anticipating that this will be marginally higher
than originally anticipated.
While some of our development focus has been driven by the requirements of
this contract, we continue to enhance our contingency products to deliver more
value for all our clients.
During Q2, we completed the integration of Infinity with the "Talentis
TalentGraph", allowing our contingency users to search across the huge
datapool which was previously available exclusively to our Talentis clients.
We believe this enhancement will create a competitive advantage for Infinity,
and the primary aim is to support client retention. In addition, we are
charging users a small additional fee to take advantage of this functionality
and we have already started to generate new revenue as a result.
As noted above, the UK recruitment market saw a marked decline in Q2, and we
saw a number of our clients reduce licence numbers or take steps to cancel
contracts. We also saw a steep decline in new business orders during this
period.
The recruitment software industry tends to be relatively slow in Q3 and this
has proven to be the case this year. However, there are no obvious signs of
further deterioration, and we anticipate the previously mentioned large
contract win will ensure a positive result for this part of the business in
H2, regardless of the economic environment.
Executive search review:
Our executive search platforms enjoy a far greater global client base than our
contingency products, with users accessing our systems from virtually every
continent. While we've seen a steep decline in the recruitment sector in the
UK, other countries have been less consistent with some territories and
sectors doing better than others. Nevertheless, we have more clients in the UK
than in other territories and as a result our executive search products were
not immune to the fluctuations referenced above and as a result, recurring
revenue associated with our headhunting products dropped in Q2.
In late Q2 following an extensive review by the organisation in question, we
signed a "preferred provider agreement" for Talentis with a major global
recruitment business. This has already created opportunities that have
generated new revenue for the Group.
As with our contingency products, the market for executive search technology
is typically slow over the summer months. However, after a tough second
quarter, we are pleased to report that our Talentis product has outperformed
expectations over the summer.
We continue to develop Talentis aggressively and, post period end, announced
our first integrations with OpenAI - the technology that underpins ChatGPT.
These integrations allow users to search for candidates more efficiently, and
helps users to find "similar candidates" based on a "template candidate".
These enhancements have been well received by our clients.
While the market remains challenging for all our executive search products, we
are pleased to see that Talentis is increasingly being considered as a viable
option for medium sized firms and we are pleased to note increasing levels of
engagement with search firms who are considering Talentis as a CRM alternative
to an existing platform - rather than a secondary resourcing tool.
KPIs and financial performance
The Group's operational performance has improved significantly in recent
years, with H1 FY2023 marking our return to operating profit. The success
measure for each of the KPIs used by management is year on year improvement.
FY23 H1 FY22 H1 % Move
£'000 £'000
Total revenue 2,826 2,823 0%
Recurring revenue 2,564 2,477 4%
Adjusted EBITDA * 581 435 34%
Adjusted Operating Cash ** 519 560 (8%)
Adjusted (loss) before tax *** (105) (274) 62%
* EBITDA adjusted for Government support
** Operating cash adjusted for Government support received
*** (Loss) before tax adjusted for Government support associated with Covid
and exceptional costs
Revenue
Group revenue stayed broadly flat at £2.826m from £2.823m in H1 FY2022
Recurring revenues increased by 4%, the first H1 increase since 2017, to
£2.564m over the comparable period last year (2022: 2% decline to £2.477m).
Recurring revenues represented 91% of total revenues (2022: 88%).
Non-recurring revenues were down 23% at £0.200m (2022: £0.260m).
Adjusted EBITDA*
The adjusted EBITDA* increased by 34% to £0.581m from £0.435m in H1 FY2022.
This resulted in a higher EBITDA margin of 20.6%, compared to 16.7% in H1
FY2022, reflecting the Group's focus on efficiency, whilst maintaining our
customer service.
Operating profit/(loss) and profit/(loss) before tax
The Group moved back into an operating profit in H1 FY2023. The operating
profit, before acquisition related, reorganisation and other items, increased
by 128% to stand at £0.036m from (£0.129m) in H1 FY2022.
Inclusive of acquisition related and other items, the operating profit was
£0.027m compared to a loss of (£0.105m) in H1 FY2022.
The loss before tax decreased to (£0.046m) from (£0.274m) in H1 FY2022.
Using a like for like measure, excluding Government support of £0.059m for H1
FY2023, the comparative figure for H1 FY2023 is (0.105m), a decrease in loss
of 62%.
Taxation
The net tax credit for H1 is £0.054m (FY 2022: £0.091m).
Balance sheet
The Group's net assets increased slightly to £3.236m (H1 FY2022: £3.213m)
Trade and other receivables decreased to £0.635m (H1 FY2022: £0.739m).
Trade and other payables also decreased to £2.523m (H1 FY2022: £2.847m).
R&D development
The Group capitalised £0.460m in development costs in the period (H1 FY2022:
£0.476m) as the business continued its commitment to developing its products.
Amortisation of development costs was £0.496m (H1 FY2022: £0.490m)
Financing
The CBIL loan balance stands at £0.900m (31 December 2022: £1.050m) and, on
the current payment profile, will be repaid by June 2026. The Group also has a
convertible loan of £0.400m (31 December 2022: £0.400m), which is not
expected to be repaid until the CBIL loan has been repaid.
Cashflow
Net cash from normalised operating activities (before government support)
decreased 7% to £0.519m (H1 FY2022: £0.560m). Adjusted net change in cash
before government support deteriorated by 17% to (£0.217m) (H1 FY2022:
(£0.186m)).
At 30 June 2023, we had net cash reserves of £0.249m (2022: £0.608m).
Summarised cashflow H1 FY2023 H1 FY2022
£'000 £'000
Adjusted net cash from normalised operating activities 519 560
Investing Activities - net (469) (482)
Financial Activities - net (267) (264)
Adjusted Net change in cash and cash equivalents (217) (186)
Adjustment for Government Support 46 -
Net change in cash and cash equivalents (171) (186)
Cash and cash equivalents at beginning of year 433 764
Effect of foreign exchange rate changes (13) 30
Cash and cash equivalents at 30 June 249 608
Strategy
Our long-term strategy is unchanged, concentrating on reducing the size of our
product range to concentrate on the best opportunities while broadly
maintaining consistent levels of product development expenditure. While the
economic climate is challenging, we intend to maintain our current focus and
deliver significant improvements to users of both our product groups.
Outlook
After a challenging few years for the Group, the Board is delighted to report
a return to profitability in the first half of 2023.
The recruitment sector has had a turbulent time in recent months, and this has
unquestionably impacted upon demand for our services. To be able to report
improved performance despite these market conditions is particularly pleasing
and we are confident that the Group has exciting times ahead of it, especially
when we see improvement in our recruitment and search customer bases.
Despite this current economic turbulence, we fully expect to make further
progress during the remainder of the year. The Board is confident of
delivering full year profit results in line with market expectations.
Giles Fearnley
Non-Executive Chairman
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Note 6 Months ended 30 June Year ended 31 Dec
2023 2022 2022
Unaudited Unaudited Audited
£'000 £'000 £'000
Revenue 4 2,826 2,823 5,699
Cost of sales (312) (351) (816)
Gross profit 2,514 2,472 4,883
Administrative expenses (2,487) (2,683) (5,202)
Result from operating activities 4 27 (211) (319)
Analysed as:
Result from operating activities before acquisition related, reorganisation 36 (129) (156)
and other items
Acquisition related, reorganisation and other items 5 (9) (82) (163)
Result after acquisition related items 27 (211) (319)
Financial cost (73) (63) (134)
(Loss) before tax (46) (274) (453)
Tax income 6 54 91 270
Profit / (Loss) for the period 8 (183) (183)
Other comprehensive income net of tax:
Currency translation differences (6) 6 7
Total comprehensive income / (loss) for period net of tax 2 (177) (176)
Earnings per share (pence)
Basic 8 0.04 (0.93) (0.93)
Diluted 0.04 (0.93) (0.93)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2023 As at 30 June 2022 As at 31 Dec 2022
Unaudited Unaudited Audited
ASSETS £'000 £'000 £'000
Non-current assets
Goodwill 3,415 3,415 3,415
Intangible assets 2,886 3,030 2,990
Right of use assets 455 541 498
Property plant & equipment 27 22 25
6,783 7,008 6,928
Current assets
Trade and other receivables 635 739 608
Current tax receivable 134 119 72
Cash and cash equivalents 249 608 433
1,018 1,466 1,113
Total assets 7,801 8,474 8,041
EQUITY AND LIABILITIES
Equity
Share capital 983 983 983
Share premium 1,631 1,631 1,631
Merger reserve 365 365 365
Convertible loan reserve 14 14 14
Retained earnings 103 79 93
Share option reserve 76 72 67
Translation reserve 64 69 70
Total equity 3,236 3,213 3,223
Liabilities
Non current liabilities
Trade and other payables 206 252 241
Lease liabilities 448 516 483
Borrowings 1000 1300 1,150
Deferred tax 226 210 226
Total non-current liabilities 1,880 2,278 2,100
Current liabilities
Trade and other payables 2,317 2,595 2,341
Lease liabilities 68 88 77
Borrowings 300 300 300
Current tax payable - - -
Total non-current liabilities 2,685 2,983 2,718
Total liabilities 4,565 5,261 4,818
Total liabilities and equity 7,801 8,474 8,041
The interim report was approved by the Board of directors and authorised for
issue on 25 September 2023. They were signed on its behalf by:
JS
Starr
IJ Mackin
CONSOLIDATED STATEMENT OF CASH FLOWS
As at 30 June As at 31 December
2023 2022 2022
Unaudited Unaudited Audited
£'000 £'000 £'000
Operating Activities
(Loss) before tax (46) (274) (453)
Adjustment for
Financial cost 73 63 134
Depreciation and amortisation 614 648 1,268
Share option expense 11 8 17
Other including foreign exchange adjustments arising from operations 7 (24) (24)
Operating cash flows before movements in working capital 659 421 942
(Increase) / Decrease in receivables (27) (124) 20
Increase / (Decrease) in payables (59) 263 (16)
Net taxation (Paid) / repaid (8) - 243
Net cash generated from operating activities 565 560 1,189
Investing Activities
Purchases of property plant and equipment (9) (5) (15)
Investment in development costs (460) (477) (1,007)
Net cash used in investing activities (469) (482) (1,022)
Financing Activities
Finance cost (73) (63) (134)
Lease payments made (44) (51) (95)
Bank loan repayments (150) (150) (300)
Net cash generated from financing activities (267) (264) (529)
Net change in cash and cash equivalents (171) (186) (362)
Cash and cash equivalents at beginning of the period 433 764 764
Effect of foreign exchange rate changes (13) 30 31
Cash and cash equivalents at end of period 249 608 433
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Merger Retained Convertible Share Foreign Total
capital premium Reserve earnings loan reserve option exchange
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 31 December 2022 983 1,631 365 93 14 67 70 3,223
Comprehensive income
Loss for the 6 months ended 30 June 2023 - - - 8 - - - 8
Other comprehensive income -
Exchange differences on translation of overseas operations - - - - - - (6) (6)
Total comprehensive profit - - - 8 - - (6) 2
Transactions with owners
Share option charge - - - 2 - 9 - 11
Balance at 30 June 2023 983 1,631 365 103 14 76 64 3,236
Balance at 31 December 2021 983 1,631 365 262 14 64 63 3,382
Comprehensive income
Loss for the 6 months ended 30 June 2022 - - - (183) - - - (183)
Other comprehensive income -
Exchange differences on translation of overseas operations - - - - - - 6 6
Total comprehensive (loss) - - - (183) - - 6 (177)
Transactions with owners
Share option charge - - - - - 8 - 8
Balance at 30 June 2022 983 1,631 365 79 14 72 69 3,213
NOTES TO THE INTERIM
NOTES TO THE UNAUDITED INTERIM REPORT
CONSOLIDATED STATEMENT OF
1. Basis of Preparation
The financial information for the six months ended 30 June 2023 included in
this condensed interim report comprises the consolidated statement of
comprehensive income, the consolidated statement of financial position, the
consolidated statement of cash flows, the consolidated statement of changes in
equity and the related notes.
The financial information in these interim results is that of the holding
company and all of its subsidiaries (the Group). It has been prepared in
accordance with UK adopted international accounting standards but does not
include all of the disclosures that would be required under International
Financial Reporting Standards (IFRSs). The accounting policies applied by the
Group in this financial information are the same as those applied by the Group
in its financial statements for the year ended 31 December 2022 and are those
which will form the basis of the 2023 financial statements.
The comparative financial information presented herein for the year ended 31
December 2022 does not constitute full statutory accounts for that period. The
Group's annual report and accounts for the year ended 31 December 2022 have
been delivered to the Registrar of Companies. The Group's independent
auditor's report on those statutory accounts was unqualified, did not draw
attention to any matters by way of emphasis, and did not contain a statement
under 498(2) or 498(3) of the Companies Act 2006.
Going concern
The directors have continued to perform detailed forecasting on a regular
basis taking into account current trading and expectations and cash balances
and, having reflected upon these forecasts, the directors of the Company
continue to adopt the going concern basis of accounting in preparing the
financial statements.
Dillistone Group Plc is the Group's ultimate parent company. It is a public
listed company and is domiciled in the United Kingdom. The address of its
registered office and principal place of business is 12 Cedarwood, Crockford
Lane, Chineham Business Park, Basingstoke, RG24 8WD. Dillistone Group Plc's
shares are listed on the Alternative Investment Market (AIM).
2. Share Based Payments
The Company operates two share option schemes. The fair value of the options
granted under these schemes is recognised as an employee expense with a
corresponding increase in equity. The fair value is measured at grant date
and spread over the period at the end of which the option holder may exercise
the option. The fair value of the options granted is measured using the
Black-Scholes model.
3. Reconciliation of adjusted operating profits to
consolidated statement of comprehensive income
6 months ended 30 June 2023 and 30 June 2022
Adjusted operating profits Acquisition related items Adjusted operating profits Acquisition and reorganisation related items
30-Jun-2023 2023* 30-Jun-2023 30-Jun-2022 2022* 30-Jun-2022
£'000 £'000 £'000 £'000 £'000 £'000
Revenue 2,826 - 2,826 2,823 - 2,823
Cost of sales (312) - (312) (351) - (351)
Gross profit 2,514 - 2,514 2,472 - 2,472
Administrative expenses (2,478) (9) (2,487) (2,601) (82) (2,683)
Results from operating activities 36 (9) 27 (129) (82) (211)
Financial cost (73) - (73) (63) - (63)
(Loss) before tax (37) (9) (46) (192) (82) (274)
Tax income 41 13 54 76 15 91
Profit / (loss) for the period 4 4 8 (116) (67) (183)
Other comprehensive income net of tax:
Currency translation differences (6) - (6) 6 - 6
Total comprehensive (loss) / profit for the year net of tax (2) 4 2 (110) (67) (177)
* see accounts note 5
Earnings per share - from continuing activities
Basic 0.02p 0.04p (0.59)p (0.93)p
Diluted 0.02p 0.04p (0.59)p (0.93)p
Year Ended 31 December 2022
Adjusted operating profits Acquisition and reorganisation related items
31 December 2022* 31 December 2022
2022
£'000 £'000 £'000
Revenue 5,699 - 5,699
Cost of sales (816) - (816)
Gross profit 4,883 - 4,883
Administrative expenses (5,039) (163) (5,202)
Results from operating activities (inc furlough) (156) (163) (319)
Financial cost (134) - (134)
(Loss) before tax (290) (163) (453)
Tax income 239 31 270
(Loss) for the year (51) (132) (183)
Other comprehensive income net of tax:
Currency translation differences 7 - 7
Total comprehensive (Loss) for the year net of tax (44) (132) (176)
* see accounts note 5
Earnings per share - from continuing activities
Basic (0.26p) (0.93p)
Diluted (0.26p) (0.93p)
4. Segment reporting
Results
Year ended
6 months ended 30 June 31 Dec
2023 2022 2022
£'000 £'000 £'000
Results from operating activities
Ikiru People 15 (128) (200)
Central 21 (1) 44
Reorganisation and other costs - - -
Amortisation of acquisition intangibles and other one off costs or income (9) (82) (163)
Result from operating activities 27 (211) (319)
Geographical segments
The following table provides an analysis of the Group's revenues by
geographical market.
Year ended
6 months ended 30 June 31 Dec
2023 2022 2022
£'000 £'000 £'000
UK 2,068 1,942 4,148
Europe 293 350 663
Americas 242 309 518
Australia 127 117 147
ROW 96 105 223
2,826 2,823 5,699
4. Segment reporting (continued)
Business Segment
The following table provides an analysis of the Group's revenues by products
and services.
Year ended
6 months ended 30 June 31 Dec
2023 2022 2022
£'000 £'000 £'000
Recurring 2,564 2,477 5,051
Non recurring 200 261 488
Third party revenues 62 85 160
2,826 2,823 5,699
'Recurring income' represents all income recognised over time, whereas
'Non-recurring income' represents all income recognised at a point in time.
Recurring income includes all support services, software as a service income
(SaaS) and hosting income. Non-recurring income includes sales of new
licenses, and income derived from installing those licenses including
training, installation, and data translation. Third party revenues arise
from the sale of third party software.
Business Sector
The following table provides an analysis of the Group's revenues by market
sector.
Year ended
6 months ended 30 June 31 Dec
2023 2022 2022
£'000 £'000 £'000
Contingent 1,703 1,712 3,441
Executive Search 1,123 1,111 2,258
2,826 2,823 5,699
5. Acquisition related items and other one off costs
Year ended
6 months ended 30 June 31 Dec
2023 2022 2022
£'000 £'000 £'000
Grants received from overseas jurisdictions (59) - -
Amortisation of acquisition intangibles 68 82 163
Total 9 82 163
6. Tax
Year ended
6 months ended 30 June 31 Dec
2023 2022 2022
£'000 £'000 £'000
Current tax (13) (56) (139)
Prior year adjustment - current tax - - (146)
Deferred tax release (28) (20) (23)
Prior year adjustment - deferred tax - - 69
Deferred tax re acquisition intangibles (13) (15) (31)
Tax credit for the period (54) (91) (270)
The tax charge is calculated for each jurisdiction based on the estimated
position for the year. Deferred tax has been provided at a rate of 25%
(2022: 25%).
7. Dividends
The Board has decided not to pay an interim dividend (2022: nil per share).
8. Earnings per Share
Year ended
6 months ended 30 June 31 Dec
2023 2022 2022
Basic earnings per share
Profit / (Loss) attributable to ordinary shareholders £4,000 £(183,000) £(183,000)
Weighted average number of shares 19,668,021 19,668,021 19,668,021
Basic earnings / (loss) per share (pence) 0.02 (0.93) (0.93)
9. Related party transactions
The Company has related party relationships with its subsidiaries, its
directors, and other employees of the Company with management
responsibility. There were no transactions with these parties during the
period outside the usual course of business.
The Directors participated in the issue of convertible loan notes in 2017
which carry interest at 8.15% per annum payable quarterly in arrears.
There were no transactions with any other related parties.
10. Cautionary statement
This Interim Report has been prepared solely to provide additional information
to shareholders to assess the Company's strategies and the potential for these
strategies to succeed. The Interim Report should not be relied on by any other
party or for any other purpose. The Interim Report contains certain
forward-looking statements with respect to the financial condition, results of
operations and businesses of the Company. These statements are made in good
faith based on the information available to them up to the time of their
approval of this report. However, such statements should be treated with
caution as they involve risk and uncertainty because they relate to events and
depend upon circumstances that will occur in the future. There are a number
of factors that could cause actual results or developments to differ
materially from those expressed or implied by these forward-looking
statements. The continuing uncertainty in global economic outlook inevitably
increases the economic and business risks to which the Company is exposed.
Nothing in this announcement should be construed as a profit forecast.
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