SHARE PUNT OF THE WEEK

PRICE: 74.5p

WHO IS IT? Dillistone supplies software systems for the recruitment industry. The AIM listed business has clients in 70 countries.

WHAT’S THE LATEST? Shares in the business leapt 20pc this week after a positive trading update about the launch of its Gated Talent software, which has been designed for the headhunting industry.

Dillistone said the software, launched in October, could do twice the amount of business it had previously expected.

WHO BACKS IT? Chief executive Jason Starr is the largest shareholder with an 18.2pc stake. Starr joined the business in 1994 in a junior marketing role.

Many of the other members of Dillistone’s board of directors are also key shareholders, while investment company Alliance Trust holds a 0.4pc stake.

REASONS TO INVEST? In its half-year report in September, Dillistone reported revenue of £4.8m, with recurring revenue (from repeat business) making up 77pc of that.

This week it said performance in the second half of the year should be stronger, with operating profit for 2017 set to be ‘considerably better’ than market expectations of £200,000. The business finished the year with £1.4m in cash.

AND REASONS NOT TO… While Dillistone is confident that its new product will be a success, Gated Talent is still in its infancy. It contributed no revenue in 2017 and the firm said it is too early to tell what percentage of the businesses it contacts will use the platform.

Recruitment firms took a hit after the Brexit vote as investors worried that companies would move jobs elsewhere. It remains a cloud over the industry.