Unaudited interim results for six months ended 30 June 2018

15 August 2018

STILO INTERNATIONAL PLC

Stilo International plc (“Stilo”, the “Group” or the “Company”) today announces its unaudited Interim Results for the six months ended 30 June 2018. The Company provides software tools and cloud services that help organisations create and process structured 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

  • Reduction in sales revenues to £707,000 principally due to the expiry of a 3 year customer contract for Migrate. (2017: £910,000)
  • Reduction in operating costs to £657,000. (2017: £759,000)
  • Post-tax profits of £42,000.  (2017: £142,000)
  • Cash of £1,442,000 as at 30 June 2018. (2017: £1,602,000)
  • Payment of an interim dividend of 0.06 pence per Ordinary Share. (2017:0.05 pence per share)

BUSINESS HIGHLIGHTS

  • Migrate customers for the period include Viewpoint, Arris, Synopsis, Deltek, Varian and Tibco.
  • AuthorBridge order win at Kaplan Professional Education, incorporating integration with the Componize for Alfresco content management system.
  • OmniMark sales include Toshiba Digital Solutions Corporation (Japan Patent Office), European Parliament, Qantas and Gulfstream.
  • Launch in July of professional service to assist DITA users to maximise content re-use, utilising OptimizeR, a new product currently under development.

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

“Our total sales revenues for the period decreased significantly, principally due to the expiry of a three year customer contract for Migrate.  Changes to IFRS accounting rules in 2018 also had the effect of deferring £27,000 of software revenue recognition beyond the end of December 2017 and £64,000 beyond the end of June 2018 resulting in the net reduction in H1 revenue of £37,000.

Nevertheless, with a reduction in operating costs for the period, assisted by favourable exchange rates, we have still been able to report a profit for the half year. This reflects well upon the overall resilience of the Company. As we look to build future sales, supported by healthy cash reserves and a strong balance sheet, I am pleased to announce the payment of an increased interim dividend of 0.06 pence per share.”

Download a PDF of the 2018 Interim Results, including the Group Income Statement.


 

CHAIRMAN’S STATEMENT

Our total sales revenues for the period decreased significantly, principally due to the expiry of a three year customer contract for Migrate. Changes to IFRS accounting rules in 2018 also had the effect of deferring £27,000 of software revenue recognition beyond the end of December 2017 and £64,000 beyond the end of June 2018 resulting in the net reduction in H1 revenue of £37,000.

Nevertheless, with an annual reduction in operating costs, assisted by favourable exchange rates, we have still been able to report a small profit for the half year. This reflects well upon the overall resilience of the Company.

As we look to build future sales, supported by healthy cash reserves and a strong balance sheet, I am pleased to announce the payment of an increased interim dividend of 0.06 pence per share.

David Ashman
Chairman 

 

BUSINESS OVERVIEW 

Stilo develops software tools and cloud services that help organisations create and process structured 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, many organisations have adopted industry specific XML standards e.g. Publishing (DocBook), Aerospace & Defence (S1000D), Finance (XBRL), Life Sciences (SPL), Software and High Tech (DITA).  Stilo made the decision 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. DITA is now beginning to make inroads into additional market sectors including Manufacturing, Life Sciences and Publishing.

In order to diversify beyond the DITA market, we have recently undertaken research into the XML JATS (Journal Article Tag Suite) market for scientific and scholarly publishers. Initial indications are that this could represent a promising new business opportunity for Stilo, and we will seek to address this through the incremental development of AuthorBridge and Migrate.

We continue to build upon our strong reputation for excellent products and supporting technical expertise, resulting from many years of experience in the structured content marketplace. 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 The Boeing Company, Pratt and Whitney, Airbus Defence & Space, Clarivate Analytics, and Wolters Kluwer. Sales for the period included orders from the European Parliament, Toshiba Digital Solutions Corporation (Japan Patent Office), Qantas and Gulfstream. 

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. Sales for the period include orders from Viewpoint, Arris, Synopsis, Deltek, Varian and Tibco. Using Migrate, we have helped our customers convert over one million pages of content to the DITA format.

Complementing Migrate, we announced in July the introduction of a new professional service utilising OptimizeR. OptimizeR is a tool that we are developing to help automate the de-duplication of DITA content and help maximise the opportunity for content re-use. It will initially be used by Stilo professional services personnel and will be productised in due course as we gain experience of various customer use cases.

OptimizeR addresses key issues for customers who are converting their legacy content to DITA, in addition to experienced DITA users, and represents a promising new business opportunity. We are encouraged by initial feedback received from prospective customers and business partners. 

AuthorBridge

AuthorBridge is a web-based XML authoring tool, designed for occasional content contributors who have no knowledge of XML or its complexities. It is currently targeted at large enterprises, which are looking to extend the use of DITA across different business units and potentially support thousands of users.

Development of AuthorBridge continues to progress well in 2018, albeit with significant slippage against original schedules. Its initial adoption by the central Information Developer Tools team at IBM in the USA and the Nuclear Regulatory Commission in Washington D.C. provides a good foundation upon which we can build future sales.

Early in 2018 AuthorBridge was selected by Kaplan Professional Education as their web authoring tool of choice and has since been successfully integrated with their Componize for Alfresco content management system, The partnership with Componize is encouraging and is already helping to generate additional business opportunities for AuthorBridge in the DITA market.

OPERATIONS

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

As of 30 June 2018, there were 17 permanent employees in the Company, complemented by the use of contractors. We will not be growing headcount significantly in 2018, as we look to contain our costs in line with the latest sales projections.

FINANCIAL RESULTS

The results for the six months ended 30 June 2018 have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards as adopted by the European Union.

In 2018 the interim results for Stilo show post-tax profits of £42,000. (2017:  £142,000)

Total sales revenues for the period decreased to £707,000 (2017: £910,000), principally due to the expiry of a 3 year customer contract for Migrate. A reduction in maintenance revenues and the net impact of transition to the new accounting standard IFRS 15 were otherwise offset by increases in sales of Migrate, OmniMark licences and initial embryonic revenues for AuthorBridge.

The Company maintains careful control over all operating costs. Favourable exchange rates helped as we reduced our operating costs during the period, excluding capitalised development costs, to £657,000 (2017: £759,000).

Investment in R & D continued in 2018, with total expenditure for the period of £271,000 (2017: £290,000). As a result of this investment, Stilo continues to benefit from research and development tax credits. Of this expenditure, £99,000 relating to the development of AuthorBridge has been capitalised (2017: £91,000), and the total accumulated capitalised costs will be depreciated over a 10 year period, likely commencing in 2019.

There was a reduced cash balance of £1,442,000 as at 30 June 2018 (30 June 2017: £1,602,000) 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.

DIVIDENDS

During the period, the final dividend for the year ended 31 December 2017 was paid, of 0.05 pence per share (2016: 0.05 pence), providing an increased total dividend of 0.10 pence for the year.

The Board is pleased to declare the payment of an Interim dividend for the year ending 31 December 2018 to shareholders of 0.06 pence per share (2017: 0.05 pence per share) which will be paid on 20 November 2018 to those shareholders on the register as at 19 October 2018. The shares will be marked ex-dividend on 18 October 2018.

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. 

OUTLOOK

The global market for dynamically publishing structured content to multiple channels continues to grow, which in turn drives the market for XML content conversion and authoring tools.

In the Company’s AGM Statement of 23 May 2018 and Trading Update of 26 July 2018 we indicated that results for the year ending 31 December 2018 would likely be impacted because of the non-repeatability of two significant contracts that were received in 2017. Unfortunately, during the first six months of 2018 the Company has not made the sales breakthroughs required to compensate for the orders shortfall.

This position is likely to continue for the second half of 2018, as the Company looks to build the sales pipeline whilst controlling costs in line with sales projections.

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)
Nick Emerson
T +44 1483 413500


WEBINAR | DITA OptimizeR—maximizing content reuse, September 27

Thursday, September 27, 2018
9am PDT | 12noon EDT | 5pm UK

REGISTER HERE

Presented by
Les Burnham, CEO
Helen St. Denis, Conversion Services Manager

Content reuse is a fundamental benefit of DITA adoption, providing huge efficiency gains to authoring teams and helping to ensure the consistency of published information across an enterprise. However, identifying potential reuse opportunities and implementing reuse strategies can be a painstaking and laborious process. As an increasing volume of content is authored in DITA across authoring teams, then invariably more content is replicated over a period of time.

Join us for this Stilo DITA Knowledge Series webinar as we introduce DITA OptimizeR, Stilo's new content optimization service. See just how easy it is to automatically identify reuse potential across your DITA content, deduplicate topics and update your maps and conref files.

Learn how, with the DITA OptimizeR service, you can

• significantly reduce the amount of content that needs to be maintained on an ongoing basis

• generate more focussed and rapid search engine results for customer queries

• publish more accurate and normalized content

Plus everyone who registers will be able to try OptimizeR for free! We will be happy to analyze a small sample of your DITA content. Details on how to participate will be provided during the webinar.

REGISTER HERE


Trading Update

26 July 2018                            

Stilo International plc (“Stilo” or the “Company”) today provides a trading update following its half year end on 30 June 2018. The Company develops software tools and cloud services that help organisations create and process structured content in XML format so that it can be more easily stored, managed, re-used, translated and published to multiple print and digital channels. 

In the Company’s AGM statement of 23 May 2018 we indicated that results for year ended 31 December 2018 would likely be impacted because of the non-repeatability of two significant contracts that were received in 2017. Unfortunately, during the first six months of 2018 the Company has not made the sales breakthroughs required to compensate for the orders shortfall and the Board can now confirm that the Company expects to report a near break-even position for the six month period ended 30 June. 

Current indications are that this position is likely to continue for the second half of 2018, as the Company looks to build the sales pipeline. In the meantime, given our strong balance sheet, the Board intends to continue to make significant investments in R&D and expects to announce the payment of an interim dividend when the interim results are published in late August.

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)
Nick Emerson T +44 1483 413500


Stilo introduce new content optimization service—DITA OptimizeR

Stilo International is pleased to announce the availability of a new content optimization service—DITA OptimizeR—that can automatically identify reuse potential across your DITA content, deduplicate topics and update your maps and conref files.

Whether you are embarking on the conversion of your content to DITA for the first time, or have existing DITA content that you would like to evaluate for additional reuse opportunities, then Stilo's DITA OptimizeR can help!

Maximizing content reuse
Content reuse is a fundamental benefit of DITA adoption, providing huge efficiency gains to authoring teams and helping to ensure the consistency of published information across an enterprise.

However, identifying potential reuse opportunities and implementing reuse strategies can be a painstaking and laborious process. As an increasing volume of content is authored in DITA across authoring teams, then invariably more content is replicated over a period of time. Keeping your content optimized for potential reuse should form part of any successful DITA implementation strategy.

With DITA OptimizeR you can

  • Significantly reduce the amount of content that needs to be maintained on an ongoing basis
  • Generate more focussed and rapid search engine results for customer queries
  • Publish more accurate and normalized content, especially important in potentially hazardous and highly regulated environments

Try DITA OptimizeR for free!
We offer a free trial analysis with OptimizeR - simply send us a small sample set of your DITA content, and we will review the results with you. And if you don't yet have your content in DITA, no problem - you can take advantage of our free conversion offer with Migrate.

Find out more and upload sample for free analysis

 


CMS/DITA Europe 2018 | November 5-6, Rotterdam, Netherlands

Stilo is pleased to once again be one of the sponsors of the 2018 Content Management Strategies/DITA Europe conference being held in Rotterdam, Netherlands from November 5-6, 2018.

Join colleagues from around the world for two days of career-empowering knowledge, practices, networking, and practical solutions. With insights from over 30 speakers, 13 Sessions in the Technology Test Kitchen, an exhibit hall packed with the best content management solutions, and the very best in industry networking, CMS/DITA Europe is designed with your specific needs in mind—providing strategies you can use immediately as you create and manage technical content, and expanding your professional network with information development experts from around the world.

Whether you’re a Novice or a Master, you’ll find sessions that provide inspiration and practical skills, covering topics such as:

  • Implementing a component Content Management System
  • Adopting DITA, Markdown, or other XML structures
  • Effectively reusing content
  • Creating corporate taxonomies
  • Incorporating social media strategies
  • Managing teams
  • Collaborating across the enterprise

Find out more about Content Management Strategies/DITA Europe 2018 and register.


Director / PDMR Shareholding

Stilo International plc (“Stilo” or the “Company”) has been notified that David Ashman, the Company’s Chairman and Non-Executive Director, purchased 475,000 ordinary shares of 1p each in Stilo (“Ordinary Shares”) at 3.7p per Ordinary Share on 29 May 2018.

Following this purchase, David Ashman, and persons associated with David Ashman, have a beneficial interest in 24,083,910 Ordinary Shares, representing approximately 21.14 percent of the issued share capital of the Company.

 

1. Details of the PDMR / person closely associated
a) Name David Ashman
2. Reason for the notification
a) Position / status PDMR
b) Initial notification / amendment Initial notification
3. Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a) Name Stilo International  plc
b) LEI 213800QIK312ADX4DN82
4. Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a)

Description of the financial instrument, type of instrument

Identification code

Purchase of ordinary shares of £0.01 each in Stilo International plc

GB0009597484

b) Nature of the transaction Purchase of Shares
c) Price(s) and volume(s) 475,000 at 3.7p
d) Aggregated information N/A (Single transaction)
–  Aggregated volume
–      Price
e) Date of the transaction 29 May 2018
f) Place of the transaction London Stock Exchange (XLON)

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)
Nick Emerson T +44 1483 413500


Result of AGM 23 May 2018

23 May 2018

Stilo International plc (AIM:STL), the AIM quoted software and cloud services company, announces that all resolutions proposed at its AGM held earlier today were duly passed without amendment.

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)
Nick Emerson T +44 1483 413500


Chairman’s AGM statement 23 May 2018

23 May 2018

Stilo International plc (“Stilo” or the “Company”) (AIM:STL), is holding its Annual General Meeting later today. The Company develops software tools and cloud services that help organisations create and process structured content in XML format so that it can be more easily stored, managed, re-used, translated and published to multiple print and digital channels.

At the meeting, Chairman David Ashman will make the following statement:

“Sales projections for the current financial year remain in line with management forecasts, albeit, as always, dependent on the materialisation of key contracts. The Company has taken on more sales and technical resources to help deliver on pipeline projects and generate new business, which, while impacting the Company’s cost base and short term profitability, should underpin our projected growth in 2019 and beyond.

The Company remains un-geared, and cash balances at 30 April 2018 stood at £1,358,000 (31 December 2017: £1,621,000).

Subject to approval by shareholders at the meeting, a final dividend for the year ended 31 December 2017 of 0.05 pence per Ordinary Share will be paid on 23 May 2018 to those shareholders on the register at 19 April 2018.”

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)
Nick Emerson T +44 1483 413500


WEBINAR | Sharing content across the enterprise

Broadcast June 20, 2018

Presented by Amber Swope, DITA Strategies, Inc.
Introduced by Les Burnham, Stilo International

Can you easily find content created by other teams?
Is content consistently structured across the enterprise?
Do you have a common content lifecycle management strategy?

If you answered “no” to any of these questions, then join us for this Stilo DITA Knowledge Series webinar featuring guest presenter, Amber Swope, president of DITA Strategies, Inc., for a discussion on using content collections to share content.

Content collections are libraries of organized, labeled, source content units that are accessible by the appropriate people. Let’s talk about strategies to create and share the right content in your organization. 

What can you expect to learn?

In this presentation, Amber will explain how to:

  • Identify the requirements for the collection
  • Determine the collection scope
  • Collaborate with other stakeholders to build and manage the collection

VIEW RECORDING (registration required)

This is the third in a new programme of Stilo DITA Knowledge Series webinars for 2018. Check our website for updates - new topics and dates are being added all the time! You can also find more Stilo DITA Knowledge Series resources at stilo.com/knowdita


Meet the presenter

Amber is an internationally-recognized expert on the Darwin Information Typing Architecture (DITA), creator of the Information Architecture Blueprint™, and president of DITA Strategies, Inc. With over 20 years of experience in the information development field and 12 years of DITA expertise, Amber helps teams design, develop, and optimize their information architecture (IA) and implement DITA to improve efficiency and reduce costs. Amber has authored numerous papers and articles on information design, development, and architecture, and has presented at leading industry conferences as a DITA expert. She holds a master’s degree in technical and professional writing and a certificate in computer technical writing, both from Northeastern University.


STC Summit 2018 | May 20-23, Orlando, FL

Stilo is pleased to once again be one of the merit sponsors of this year's Society for Technical Communication Summit - you will find us in the Expo Hall on booth # 304.

STC’s Technical Communication Summit is the premier conference for technical communication education and networking. The conference attracts over 600 attendees and 40 exhibitors during a 3 day period and brings together like minded individuals to grow in their knowledge of the technical communication field.

The 2018 Summit takes place 20-23 May at the Hyatt Regency Orlando in Orlando, FL.  The Summit kicks off Sunday evening with the Welcome Reception in the Expo Hall. The 2018 theme is ‘Communicate the Future’, which will be reflected in the overall program of events as well as individual education sessions.

The Summit is made up of two major parts:

The Education. Organized in tracks, these sessions begin Monday morning and continue through Wednesday morning. Sessions are offered in a variety of formats and tracks.

The Expo Hall. This opens on Sunday evening and features numerous companies, all prepared to unveil and demonstrate new and exciting products, services, and technology to the world of technical communication.

Find out more about the STC 2018 Technical Communication Summit.


Stilo's Conversion Services Manager, Helen St. Denis, will be making a technical presentation at the STC Summit 2018:

Monday 21 May 2018 | 10.30 - 11.20am