Investment summary

Dillistone produced a highly respectable performance in FY11 despite the weak backdrop, with revenues and profits ahead of our expectations. Voyager, acquired in September, has been trading slightly ahead of expectations. Synergies of £0.2m have already been established, including from merging offices in Australia and shared procurement; further benefits are planned from R&D synergies. However, we have cut our forecasts due to continuing economic uncertainties and on the view that Voyagers’ customers will hold back for its new product – Infinity. The business continues to be highly cash generative and our model suggests fair value of c 97p.

Last updated on 25/04/2012

Industry outlook

Dillistone is a developer and vendor of software to the recruiting industry. It has two subsidiary companies: Dillistone Systems, which targets the executive search sector, and Voyager, acquired in September 2011, which is focused on other recruitment markets. The group has a very strong following among the largest executive recruitment firms across the globe and while market conditions softened towards the end of FY11, a series of larger than average order wins, including one with a FTSE 100 firm, helped the group meet targets.

Last updated on 23/04/2012