Director / PDMR Shareholding

31 March 2017

Stilo International plc (“Stilo” or the “Company”) has been notified that David Ashman, the Company’s Chairman and Non-Executive Director, has today transferred a total of 7,590,000 ordinary shares of 1p each in Stilo (“Ordinary Shares”) as a gift to his three adult children.

Following this transfer, David Ashman has a beneficial interest in 13,312,000 Ordinary Shares, representing approximately 11.7 percent. of the issued share capital of the Company.

ENQUIRIES

Stilo International plc
Les Burnham, Chief Executive
T +44 1793 441 444

SPARK Advisory Partners Limited (Nominated Adviser)
Neil Baldwin T +44 203 368 3554
Mark Brady  T +44 203 368 3551

SI Capital (Broker)
Andy Thacker
Nick Emerson
T +44 1483 413500


Correction – final 2015 dividend record

16 March 2016

Stilo International plc (the “Company”)

The Record Date for the final 2015 dividend, payable to shareholders on 23 May 2016 is 22 April 2016. The ex-dividend date is 21 April 2016.

ENQUIRIES

Stilo International plc
Les Burnham, Chief Executive
T +44 1793 441 444

SPARK Advisory Partners Limited (Nominated Adviser)
Neil Baldwin T +44 203 368 3554
Mark Brady  T +44 203 368 3551

SI Capital (Broker)
Andy Thacker
Nick Emerson
T +44 1483 413500


Preliminary announcement of results for year ended 31 December 2015

16 March 2016

Stilo International plc (“Stilo”, the “Group” or the “Company”) today announces its results for the year ended 31 December 2015. The Company provides software tools and cloud services that help organisations create and process content in XML format, so that it can be more easily stored, managed, re-used, translated and published to multiple print and digital channels.

FINANCIAL HIGHLIGHTS

  • Sales revenues increased by 20% to £1,517,000 (2014: £1,262,000)
  • Increase in EBITDA* to £272,000 (2014: £108,000)
  • Annual recurring software maintenance revenues of £713,000 (2014: £710,000)
  • Continued investment in product development of £419,000 (2014: £403,000)
  • Improved cash position of £1,318,000 as at 31 December 2015 (2014: £1,089,000)
  • Final dividend proposed of 0.05 pence per Ordinary Share, making total dividend of 0.08 pence for the year (2014:total 0.06 pence); increased by 33%

*EBITDA comprises profit before taxation, interest, depreciation and the amortisation of software development costs, and excludes non-recurring exceptional costs

BUSINESS HIGHLIGHTS 

  • 61% growth in revenues for Migrate, the world’s first cloud XML content conversion service, with new customers including Qualcomm, Perceptive Software, Tridium, Infinera, Dell Software, Applied Materials, GE Medical, Molina Healthcare and Pitney Bowes.
  • Largest ever order for Migrate, value US$765k over 3 years, received from a major US client.
  • Orders for OmniMark, a high-performance content processing development platform, received from the European Parliament, Scandinavian Airlines, Honeywell, Japan Patent Office, Electric Boat and Hebco.
  • Successful beta testing of AuthorBridge, our new cloud XML authoring service, by major customer. 

David Ashman, Chairman, commenting on the Company’s performance, stated:

“The Company made good progress in 2015. In addition to growing sales revenues and increasing profits, we made substantial progress with the development of AuthorBridge, our new cloud XML authoring service for non-technical users.

With cash reserves continuing to be strong, I am pleased to propose the payment of a final dividend of 0.05 pence per share, providing a total dividend for the year of 0.08 pence per share.’

CHAIRMAN’S STATEMENT

The Company made good progress in 2015. In addition to growing sales revenues and increasing profits, we made substantial progress with the development of AuthorBridge, our new cloud XML authoring service for non-technical users.

With cash reserves continuing to be strong, I am pleased to propose the payment of a final dividend of 0.05 pence per share, providing a total dividend for the period of 0.08 pence per share.

The market for XML DITA technologies and services continues to grow steadily, and it is our long-term intention to provide interoperable cloud services that dramatically reduce the barriers to entry and ongoing cost of ownership for new DITA adopters.

Migrate is now well-established as a unique and market-leading cloud conversion service. It helps us to quickly establish good relationships with new customers that in turn provide potential cross-sell opportunities for AuthorBridge.

We now look forward to the general release of AuthorBridge during 2016. Pricing will be based upon a low-cost annual licensing model, and while not significantly impacting results in 2016, it will serve to establish a firm foundation for growth in revenues and profits in future years.

David Ashman
Chairman
15 March 2016

Download a PDF of the full 2015 preliminary results announcement

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BUSINESS OVERVIEW 

Stilo develops software tools and cloud services that help organisations create and process content in XML format, so that it can be more easily stored, managed, re-used, translated and published to multiple print and digital channels.

Over recent years, different industries have adopted specific XML standards e.g. Publishing (DocBook), Aerospace & Defence (S1000D), Finance (XBRL), Life Sciences (SPL), Software and High Tech (DITA). The decision was made by the Company some years ago to focus new product development and marketing efforts on the emerging DITA standard. This standard originated within IBM to support the publishing of its technical documentation and has been increasingly adopted by other software and high tech companies. Stilo is now beginning to make inroads into new market sectors including Manufacturing, Life Sciences and Publishing.

The market for DITA-based tools and services is growing steadily, with several hundred companies having adopted the standard worldwide. With a strong reputation for excellent products and supporting technical expertise, Stilo is well-positioned to be successful in this particular sector, and we will also seek to expand into other XML markets, as suitable business opportunities arise.

With offices in the UK and Canada, we support clients throughout North America, Europe and Japan.

Products and Customers 

OmniMark

Stilo’s core technology is OmniMark, a long-established development platform used to build high-performance content processing applications integral to enterprise publishing solutions.

Users include Boeing, Pratt and Whitney, EADS, Thomson Publishing, and Wolters Kluwer. Sales for the period included orders from the European Parliament, Scandinavian Airlines, Honeywell, Electric Boat, Hebco, and the Japan Patent Office. 

Migrate

Migrate is the world’s first cloud XML content conversion service, and utilises OmniMark technology. Through advanced levels of automation, it enables organisations to improve turnaround times, reduce operating costs and take direct control of their work schedules, providing an attractive alternative to traditional outsourced conversion services.

Migrate users include IBM, Cisco, EMC and Oracle. New customers in 2015 include Qualcomm, Perceptive Software, Tridium, Infinera, Openet, Sensus, Harmonic, NetApp, Dell Software, Applied Materials, GE Medical, Molina Healthcare and Pitney Bowes. During the period, we achieved a significant 61% growth in sales revenues, including our largest ever order for Migrate, with a value of US$765k over 3 years, from a major US client.

Using Migrate, our customers have converted over one million pages of content to the DITA format. 

AuthorBridge

AuthorBridge is a cloud XML authoring service, designed for occasional content contributors who have no knowledge of DITA or its complexities.

It is targeted at large enterprises that are looking to extend the use of DITA across different business units and potentially support thousands of users. We have made considerable progress with the development of AuthorBridge in 2015, working closely with an internationally renowned customer that has helped guide our technical efforts. Following successful beta testing, AuthorBridge is now scheduled to be deployed by them in full production in the coming months.

In the meantime, we continue to invest significantly in the continuing development of AuthorBridge as we look to address the requirements of the wider market, and to proceed with a more general controlled release in 2016. 

Sales analysis by geographic region 

Our customers typically comprise large organisations, and are spread globally. Geographic sales revenues were derived as follows:

Region                         2015                 2014

UK                                    2%                     3%

Rest of Europe              16%                 17%

North America               67%                 61%

South America                1%                   5%

Asia                                  14%                 14%

North America continues to represent a significant proportion of sales revenues as adoption of the DITA standard has been primarily led by corporations with their headquarters based in the USA. It is anticipated that adoption of DITA will spread internationally in the future. 

Technical Expertise

Our technical team includes leading experts in the development of XML content processing technologies and along with our support services, are very highly regarded by customers.

OmniMark is used in the development of Migrate, and both Migrate and OmniMark technologies are utilised in AuthorBridge, which results in very efficient integrated development and support activities. 

Operations  

Stilo operates from offices located in Swindon, UK and Ottawa, Canada. The technical team is based in our Ottawa office.

As of 31 December 2015, there were 17 permanent employees in the Company, complemented by the use of contractors. In 2016 we will be making additional investments in the recruitment of development personnel, but it is not anticipated that we will be growing headcount significantly, as we look to contain our costs and scale the business through technology sales.

FINANCIAL RESULTS

The results for the year ended 31 December 2015 have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards as adopted by the European Union.

In 2015, the results for Stilo show an increase in EBITDA to £272,000 (2014: £108,000). Pre-tax profits were £261,000 (2014: £95,000).

Total sales revenues for the year increased by 20% to £1,517,000 (2014: £1,262,000). The increase in revenue was due primarily to a growth of 61% in Stilo Migrate sales. The Company continued to benefit from recurring revenue from software maintenance contracts of £713,000 (2014: £710,000) which represents 47% (2014: 56%) of annual sales revenue. Revenue from OmniMark software remained broadly level compared to the previous year.

The Company continues to maintain careful control over operating costs. Operating expenses, excluding capitalised development costs, increased to £1,250,000 (2014: £1,160,000), due primarily to the recruitment of additional staff.

Investment in R & D continued in 2015, with total expenditure for the year of £419,000 (2014: £403,000). Of this expenditure, £125,000 (2014: £114,000) relating to the development of AuthorBridge has been capitalised. As a result of this investment, Stilo continues to benefit from research and development tax credits.

There was a cash balance of £1,318,000 as at 31 December 2015 (31 December 2014: £1,089,000), and Stilo remains entirely un-geared. This balance sheet stability provides a sound financial base for the Company and will support continued investment in product development, sales and marketing. Further investment in staff recruitment is planned for 2016, however, overall costs will continue to be carefully managed in order to maintain cash reserves at a satisfactory level.

DIVIDENDS

The Board recommends the payment of a Final Dividend for the year of 0.05 pence per Ordinary Share which, if approved at the AGM on 18 May, will be paid on 23 May 2016 to shareholders on the register on 25 April 2015. The shares will be marked ex-dividend on 22 April 2016. If approved, payment of the Final Dividend will bring the total dividends paid to shareholders for the year to 0.08 pence per Ordinary Share, representing an annualised increase of 33% over 2014.

The Board’s policy is to maintain payment of a steady and progressive dividend, well covered and paid subject to maintaining sufficient funds within the business with regard to prudent forecasts of future capital requirements, without the need for debt funding.

ENQUIRIES

Stilo International plc
Les Burnham, Chief Executive
T +44 1793 441 444

SPARK Advisory Partners Limited (Nominated Adviser)
Neil Baldwin T +44 203 368 3554
Mark Brady  T +44 203 368 3551

SI Capital (Broker)
Andy Thacker
Nick Emerson
T +44 1483 413500


Migration to DITA – The Atmel Story

Presented by Morten Haaker, Senior Project Manager | Atmel Corporation

Are you thinking about moving to DITA? In addition to learning DITA, tool and vendor selection, creation of stylesheets, change management and other challenges, you may be faced with having to convert thousands of pages of detailed technical information from an unstructured format to DITA.

Learning from the experience of others can make a big difference to your project success and the Atmel story may just help you to better determine your migration strategy.

Join us for this Stilo DITA Knowledge Series webinar as we hear from Atmel Corporation’s Morten Haaker who will show how Atmel, a global semiconductor company, approached the issue of content conversion as an integral part of their DITA implementation.

Morten is a Senior Project Manager at Atmel Corporation responsible for the technical documentation project. Located in Norway, Morten has been with Atmel for more than 12 years. He holds a Master of Computer Science from the Norwegian University of Science and Technology and heads up the Nordic SDL LiveContent User Group.

Due to an unforeseen technical problem, we were unable to record this webinar.

View webinar slides

 

Meet the presenter

Morten Haaker

Morten is a Senior Project Manager at Atmel Corporation responsible for the technical documentation project. Located in Norway, Morten has been with Atmel for more than 12 years. He holds a Master of Computer Science from the Norwegian University of Science and Technology and heads up the Nordic SDL LiveContent User Group.


Migrate service extended to include conversion of MS Word to JATS

Stilo extends Migrate cloud XML conversion service to include the automated conversion of MS Word to the Journal Article Tag Suite (JATS) specification.

The Migrate cloud conversion service has been used by global customers to convert over a million pages of content from various source formats to XML. The Migrate JATS service is now available, and enables journal, academic and book publishers to automate the conversion of MS Word documents to the National Information Standards Organization JATS specification, in the cloud.

Migrate offers a radically different approach to traditional outsourced conversion services, i.e.

  • A dedicated conversion portal, accessible 24x7x365
  • Immediate turnaround times for document conversion
  • Full user control over conversion results with an easy-to-use rules editor
  • A scalable solution for any number of journals, reports, articles or books
  • Low cost pricing

For customers with documents to convert on an ongoing basis, Migrate can be deployed as part of a publishing workflow. Alternatively, for customers with less frequent conversion requirements we can offer an outsourced conversion service, with Stilo utilizing Migrate ‘behind the scenes’. Either way, document conversion is quick, high-quality and cost-effective.

Free sample conversion offer

To quickly assess the quality of the Migrate service, simply upload your sample MS Word document and we will convert it free of charge, review the results with you, and provide you with the output for your own evaluation and testing purposes.

Find out more about Migrate JATS Edition at http://www.stilo.com/migrate-jats/

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About Stilo International

Stilo International (LSE:STL) are the developers of Migrate, the leading cloud XML content conversion service, OmniMark, the high-performance XML/SGML content processing platform and AuthorBridge, a Guided + Fluid DITA authoring solution for SMEs and occasional contributors.

Operating from offices in the UK and Canada, we support commercial publishers, technology companies and government agencies around the world.

www.stilo.com

For further information, please contact

Helen Owens-Pope, Marketing Manager
Stilo International plc
email