LONDON (Alliance News) - Dillistone Group PLC on Tuesday said while it has performed well so far in 2016, it has seen a deterioration in economic conditions which is hitting its core recruitment sector end market.
Dillistone, which provides software and services to recruiters, said the economic environment had softened in recent months and, while the group has continued to win new contracts, it is apparent that many recruiters are not currently hiring new staff.
This has resulted in a reduction in the normal flow of incoming licence orders from the company's existing clients.
"We would hope that with the Brexit vote imminent this will prove to be a short term phenomenon," Dillistone said of the UK's European Union referendum on Thursday next week.
Dillistone said it remains confident it will deliver revenue and pretax profit growth in 2016 and will meet expectations, with the second half set to be stronger than the first.
Shares in the company were down 13% early Tuesday to 75.00 pence, one of the worst performers in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Dillistone (DSG)