Business
Trading & New Product Update
Trading & New Product Update.
About this update from Dillistone Group Plc
[{"type":"text","content":"\n \nRNS Number : 0875H Dillistone Group PLC 05 June 2017 \n\n \nDillistone Group Plc\nTrading and New Product Update \nDillistone Group Plc (\"Dillistone\", the \"Company\" or the \"Group\"), the AIM quoted supplier of software for the international recruitment industry through its Dillistone Systems and Voyager Software divisions, is providing an update on trading and its new product under development (\"New Product\") ahead of its Annual General Meeting to be held on Wednesday 7 June.\nThis announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.\nAt the final results announcement for 2016 released in April, the Board noted some softness in the UK recruitment market, following the BREXIT vote. As we have moved further into the year, we have seen some improvement in terms of the volume of new business wins and are pleased to have taken a number of clients from our direct competitors. However, a significant majority of our new clients have been new or young businesses with relatively few users purchasing on a subscription, as opposed to a licence model. While these subscriptions may be valuable in the long term, they have a much reduced impact on short term revenues and this has not allowed us to catch up on the slow start to the year.\nThe Group has also been informally told that a contract with a major client is likely to expire later this year or early next. This contract, which is with a client using a legacy product, is worth in the region of £600,000 per annum in contribution terms to the Group.\nDespite this, we are pleased that recurring revenues in both divisions are at record levels providing good forward visibility and largely underpinning the Group's administrative cost base. This enables us to anticipate that revenue in the first six months of the year will be broadly in line with the first six months of the previous year.\nThe Group has announced its intention to develop an entirely New Product. Development to date has been funded by internal resources while the Company explored the feasibility of the New Product. The New Product addresses a market need which, in the view of the Board, is global in nature and has the potential to be very significant for the Group. We believe that our New Product will be uniq...