Announcement • May 14
DLSI, Annual General Meeting, Jun 18, 2026 DLSI, Annual General Meeting, Jun 18, 2026. Location: metz France New Risk • Apr 20
New major risk - Revenue and earnings growth Earnings have declined by 8.5% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 8.5% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.3% net profit margin). Market cap is less than US$100m (€22.6m market cap, or US$26.7m). Reported Earnings • Oct 27
First half 2025 earnings released: €0.12 loss per share (vs €0.19 loss in 1H 2024) First half 2025 results: €0.12 loss per share (improved from €0.19 loss in 1H 2024). Revenue: €102.9m (flat on 1H 2024). Net loss: €296.0k (loss narrowed 40% from 1H 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 63 percentage points per year, which is a significant difference in performance. Reported Earnings • Sep 30
First half 2025 earnings released First half 2025 results: Revenue: €102.9m (flat on 1H 2024). Net loss: €296.0k (loss narrowed 40% from 1H 2024). Buy Or Sell Opportunity • Jun 30
Now 22% overvalued Over the last 90 days, the stock has fallen 6.8% to €11.00. The fair value is estimated to be €9.03, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 3.1% over the last 3 years. Earnings per share has declined by 36%. Declared Dividend • Jun 22
Dividend of €0.40 announced Shareholders will receive a dividend of €0.40. Ex-date: 1st July 2025 Payment date: 3rd July 2025 Dividend yield will be 3.7%, which is higher than the industry average of 2.9%. Sustainability & Growth Dividend is not covered by earnings (205% earnings payout ratio) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 5.7% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 128% to bring the payout ratio under control. However, EPS has declined by 36% over the last 5 years so the company would need to reverse this trend. New Risk • Jun 03
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 205% The company is paying a dividend despite having no free cash flows. Dividend yield: 3.6% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 205% Paying a dividend despite having no free cash flows. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.2% net profit margin). Market cap is less than US$100m (€27.7m market cap, or US$31.6m). Reported Earnings • Mar 31
Full year 2024 earnings released Full year 2024 results: Revenue: €211.9m (up 3.6% from FY 2023). Net income: €496.0k (down 87% from FY 2023). Profit margin: 0.2% (down from 1.8% in FY 2023). The decrease in margin was driven by higher expenses. Announcement • Mar 29
DLSI, Annual General Meeting, Jun 19, 2025 DLSI, Annual General Meeting, Jun 19, 2025. Valuation Update With 7 Day Price Move • Oct 04
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to €11.60, the stock trades at a trailing P/E ratio of 30.2x. Average trailing P/E is 11x in the Professional Services industry in France. Total loss to shareholders of 7.4% over the past three years. Reported Earnings • Oct 01
First half 2024 earnings released First half 2024 results: Revenue: €102.9m (up 3.7% from 1H 2023). Net loss: €492.0k (down 122% from profit in 1H 2023). Declared Dividend • Jun 27
Dividend of €0.40 announced Shareholders will receive a dividend of €0.40. Ex-date: 1st July 2024 Payment date: 3rd July 2024 Dividend yield will be 3.1%, which is higher than the industry average of 2.9%. Sustainability & Growth The dividend has increased by an average of 5.7% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to decline by 76% to shift the payout ratio to a potentially unsustainable range, which is more than the 13% EPS decline seen over the last 5 years. Reported Earnings • Apr 03
Full year 2023 earnings released Full year 2023 results: Revenue: €204.5m (up 4.0% from FY 2022). Net income: €3.68m (down 23% from FY 2022). Profit margin: 1.8% (down from 2.4% in FY 2022). The decrease in margin was driven by higher expenses. Reported Earnings • Oct 05
First half 2023 earnings released First half 2023 results: Revenue: €99.2m (up 6.4% from 1H 2022). Net income: €2.21m (flat on 1H 2022). Profit margin: 2.2% (down from 2.4% in 1H 2022). The decrease in margin was driven by higher expenses. Upcoming Dividend • Jun 22
Upcoming dividend of €0.40 per share at 3.0% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 03 July 2023. Trailing yield: 3.0%. Lower than top quartile of French dividend payers (5.2%). In line with average of industry peers (2.8%). Reported Earnings • Oct 03
First half 2022 earnings released: EPS: €0 (vs €0.28 in 1H 2021) First half 2022 results: EPS: €0. Revenue: €93.2m (flat on 1H 2021). Net income: €2.20m (up 204% from 1H 2021). Profit margin: 2.4% (up from 0.8% in 1H 2021). Upcoming Dividend • Jun 23
Upcoming dividend of €0.30 per share Eligible shareholders must have bought the stock before 30 June 2022. Payment date: 04 July 2022. Trailing yield: 3.1%. Lower than top quartile of French dividend payers (5.4%). Higher than average of industry peers (1.7%). Reported Earnings • Apr 03
Full year 2021 earnings released Full year 2021 results: Revenue: €194.9m (up 18% from FY 2020). Net income: €2.94m (up €3.41m from FY 2020). Profit margin: 1.5% (up from net loss in FY 2020). The move to profitability was driven by higher revenue. Valuation Update With 7 Day Price Move • Apr 01
Investor sentiment improved over the past week After last week's 16% share price gain to €12.75, the stock trades at a trailing P/E ratio of 15.3x. Average trailing P/E is 18x in the Professional Services industry in France. Total loss to shareholders of 26% over the past three years. Reported Earnings • Apr 02
Full year 2020 earnings released The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2020 results: Revenue: €164.9m (down 29% from FY 2019). Net loss: €470.0k (down 110% from profit in FY 2019). Is New 90 Day High Low • Feb 25
New 90-day low: €11.60 The company is down 9.0% from its price of €12.80 on 27 November 2020. The French market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Professional Services industry, which is up 1.0% over the same period. Is New 90 Day High Low • Jan 19
New 90-day high: €13.00 The company is up 35% from its price of €9.62 on 21 October 2020. The French market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Professional Services industry, which is up 12% over the same period. Is New 90 Day High Low • Nov 16
New 90-day high: €10.80 The company is up 7.0% from its price of €10.10 on 18 August 2020. The French market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Professional Services industry, which is up 9.0% over the same period. Valuation Update With 7 Day Price Move • Oct 30
Market pulls back on stock over the past week After last week's 16% share price decline to €8.16, the stock is trading at a trailing P/E ratio of 4.3x, down from the previous P/E ratio of 5.1x. This compares to an average P/E of 19x in the Professional Services industry in France. Total return to shareholders over the past three years is a loss of 66%. Is New 90 Day High Low • Oct 29
New 90-day low: €8.76 The company is down 9.0% from its price of €9.66 on 30 July 2020. The French market is down 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Professional Services industry, which is up 2.0% over the same period. Reported Earnings • Oct 03
First half earnings released Over the last 12 months the company has reported total profits of €280.0k, down 96% from the prior year. Total revenue was €189.3m over the last 12 months, down 18% from the prior year. Is New 90 Day High Low • Sep 24
New 90-day low: €9.62 The company is down 12% from its price of €10.90 on 26 June 2020. The French market is down 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Professional Services industry, which is up 7.0% over the same period.