(Alliance News) - Recruitment software provider Dillistone Group PLC on Wednesday said it is making good progress with restructuring of the business, and the company expects to deliver a small adjusted profit for 2019 in line with market views.
Dillistone also said costs relating to the reorganisation are likely to remain in the region of GBP500,000 to GBP900,000, as previously announced.
"The major focus for 2019 is the group restructuring exercise which is progressing well with the expanded office space in Basingstoke already fully functional. We expect that our London facility will be completely vacated by September of this year and the majority of our employees are expected to remain with the group," said Chair Mike Love in his annual general meeting statement.
"Response to the changes we are making has largely been positive. We expect to launch additional functionality for our FileFinder, Infinity and GatedTalent platforms later this year, with a significant amount of 'cross team' effort having underpinned this work," Love added.
Dillistone expects to fund the reorganisation costs from internal resources and from a GBP500,000 bank loan. The company does not expect to seek the support of shareholders for the cost of restructuring, it said.
"Costs in general have been well controlled across the group and so, while some products are showing stronger growth than others and with the benefits of costs savings in H2 from the restructuring, the group expects to deliver a small profit (prior to restructuring costs and acquisition related costs) for the year as a whole, in line with market expectations," Chair Love said.
The company remains confident for the restructuring to deliver long term benefits and is optimistic for the future.
Shares in Dillistone were untraded at 32.00 pence each.
Dillistone (DSG)