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Dillistone (DSG:AIM) 96.5p

Loss to date: 3%

A profit warning from FTSE 250 recruiter Michael Page (MPI) (14 Oct) has unsettled the wider recruitment space but we believe staffing software group Dillistone (DSG:AIM) is capable of carefully navigating obstacles.

Flagged in the summer at 99.5p (see Shares, Plays, 10 July), the shares are off just 3% despite the vicious market sell-off, a sure sign of how robust the little company is perceived to be.

Plays update DSG

Gradually building a global resource planning software business to the recruitment industry, recent interims were solid, although containing the steer for a flat 2014. Still, management refuse to overstretch resources and let customers down, surely a good sign for the longer-term.

A new Filefinder Anywhere headhunter product has launched and the company has expanded into the training and testing market through the £1 million acquisition of specialist ISV (30 Sep), another reason to be cheerful over medium term prospects.

We’ll be closely watching the recruitment space for signs of extended difficulties but Dillistone has a long history of profits and rising dividends. On a 2015 price to earnings multiple of 10.2 and payout yield of 4.4%, we remain positive. (SFr)

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