Director / PDMR shareholding

25 October 2017

Stilo International plc (“Stilo” or the “Company”) has been notified that David Ashman, the Company’s Chairman and Non-Executive Director, has today purchased 400,000 ordinary shares of 1p each in Stilo (“Ordinary Shares”) at 4.75p per Ordinary Share.

Following this purchase, David Ashman has a beneficial interest in 13,712,000 Ordinary Shares, representing approximately 12.03 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)

400,000 at 4.75p

d)

Aggregated information

N/A (Single transaction)

–  Aggregated volume

–      Price

e)

Date of the transaction

25 October 2017

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)
Andy Thacker
Nick Emerson
T +44 1483 413500


Unaudited interim results for six months ended 30 June 2017

16 August 2017

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 2017. 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

  • 4% increase in sales revenues to £910,000
    (2016: £874,000)
  • Post-tax profits of £142,000
    (2016: £181,000)
  • Improved cash position of £1,602,000 as at 30 June 2017
    (2016: £1,393,000)
  • Payment of an interim dividend of 0.05 pence per Ordinary Share, representing a 25% increase
    (2016: 0.04 pence per share)
  • Increased investment in R&D to £290,000
    (2016: £259,000)

BUSINESS HIGHLIGHTS

  • 18% increase in recurring software maintenance revenues to £465,000 (2016: £394,000)
  • 34% increase in Migrate revenues
  • Migrate customers for the period include GE, Brocade, Tyco, ITT, Microchip, Tibco, Cisco, Deltek and the RSSB (Rail and Safety Standards Board)
  • Release of trial version of AuthorBridge v2
  • Release of Migrate JATS for the Scientific and Scholarly Publishing market
  • Launch of new web site (www.stilo.com)

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

“Our total sales revenues for the period increased by 4%, with encouraging increases in Migrate sales and OmniMark maintenance revenues. With continuing profitability and improved cash reserves, I am pleased to announce the payment by Stilo of an increased interim dividend of 0.05 pence per share.”

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014 .

Download a PDF of the 2017 Interim Results, including the Group Income Statement.


CHAIRMAN’S STATEMENT

Our total sales revenues for the period increased by 4%, with encouraging increases in Migrate sales and OmniMark maintenance revenues.

Marketing activities increased during the period as we attended additional conferences and launched a new, much improved web site which has been well received by customers, partners and shareholders. We released a trial version of AuthorBridge v2 to favourable acclaim, along with an initial version of Migrate JATS for the Scientific and Scholarly Publishing market. Additionally, new developers have been recently recruited as we look to push ahead and complete important aspects of AuthorBridge functionality in 2017.

With continuing profitability and improved cash reserves, I am pleased to announce the payment by Stilo of an increased interim dividend of 0.05 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 eg 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 highperformance 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, Japan Patent Office and Embraer in Brazil.

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 GE, Brocade, Tyco, ITT, Microchip, Tibco, Cisco, Deltek and the RSSB (Rail and Safety Standards Board). Using Migrate, we have helped our customers convert over one million pages of content to the DITA format.

We have recently completed the development of a JATS version of Migrate and have just commenced the process of introducing it to the Scientific and Scholarly Publishing market. This is a market characterised by long-established workflows with outsourced conversion vendors, and will hopefully represent a significant new business opportunity for Stilo in the years ahead.

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 is progressing well, albeit with some 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.

A trial version of AuthorBridge v2 was released in February 2017 to favourable acclaim and new developers have recently been recruited as we look to complete important aspects of AuthorBridge functionality in 2017.

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 2017, there were 18 permanent employees in the Company, complemented by the use of contractors. We will continue to consider the recruitment of additional development personnel in 2017, 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 six months ended 30 June 2017 have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards as adopted by the European Union.

In 2017, the interim results for Stilo show a reduction in post-tax profits to £142,000 (2016: £181,000).

Total sales revenues for the period increased by 4% to £910,000 (2016: £874,000). Significant growth in Migrate revenues were offset by lower OmniMark software sales, which was expected. The Company continued to benefit from recurring revenue from software maintenance contracts of £465,000 (2016: £394,000) which represents a very encouraging 18% annual increase.

The Company maintains careful control over all operating costs. Investments in additional staff, a new web site, and attendances at new JATS–related conferences, contributed to an increase in operating costs during the period, excluding capitalised development costs, to £759,000 (2016: £691,000).
Investment in R & D continued in 2017, with total expenditure for the period of £290,000 (2016: £259,000). As a result of this investment, Stilo continues to benefit from research and development tax credits.

Of this expenditure, £91,000 relating to the development of AuthorBridge has been capitalised (2016: £83,000), and the total accumulated capitalised costs will be depreciated over a 10 year period, commencing later in 2017.

There was an improved cash balance of £1,602,000 as at 30 June 2017 (30 June 2016: £1,393,000), 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 2016 was paid, of 0.05 pence per share, providing an increased total dividend of 0.09 pence for the year (2015: total 0.08 pence).

The Board is pleased to declare the payment of an Interim dividend for the year ended 31 December 2017 to shareholders of 0.05 pence per share (2016: 0.04 pence per share) which will be paid on 21 November 2017 to those shareholders on the register as 20 October 2017. The shares will be marked ex-dividend on 19 October 2017.

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.

Following the launch of AuthorBridge v2 in February 2017, we have been receiving very encouraging feedback from trial users. There are still some important aspects of development that need to be undertaken over the coming months and this continues to be a high priority activity for the Company. As a consequence, AuthorBridge is not expected to contribute significantly to sales revenues in 2017.

Otherwise, the outlook for Migrate conversion services and OmniMark software remains promising for the remainder of the year, and overall Company trading is in line with management expectations.

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


Exercise of share options

7 July 2017

Issue of new shares / Exercise of Share Options

The Board of Stilo International plc (“Stilo” or the “Company”) (LSE:STL), the AIM quoted software and cloud services company, announces that it has today issued 87,000 new ordinary shares of 1p each in the company (”Ordinary Shares”) following notification of the exercise of share options by an employee. The exercise price of the new shares is 1.5 pence per share.

Application has been made for the 87,000 Ordinary Shares to be admitted to trading on AIM and it is expected that admission will take place on 13th July 2017.

The Ordinary Shares will rank pari passu with the existing shares of the Company.  Following allotment of the Ordinary Shares, the total issued share capital of the Company will be 113,930,470 ordinary shares.

For the purposes of the Financial Conduct Authority’s Disclosure and Transparency Rules (“DTRs”), the issued ordinary share capital of Stilo following this allotment will consist of 113,930,470 ordinary shares with voting rights attached (one vote per share). There are no shares held in treasury.  This total voting rights figure may be used by shareholders as the denominator for the calculation by which they will determine whether they are required to notify their interest in, or a change to their interest in, Stilo under the DTRs.

ENQUIRIES

Stilo International plc
Les Burnham, Chief Executive T +44 1793 441 444
Liam O’Donoghue, Company Secretary T +44 20 7583 8304

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


Exercise of share options

8 June 2017

Issue of new shares / Exercise of Share Options

The Board of Stilo International plc (“Stilo” or the “Company”) (LSE:STL), the AIM quoted software and cloud services company, announces that it has today issued 75,000 new ordinary shares of 1p each in the company (”Ordinary Shares”) following notification of the exercise of share options by an employee. The exercise price of the new shares is 1.5 pence per share.

Application has been made for the 75,000 Ordinary Shares to be admitted to trading on AIM and it is expected that admission will take place on 14th June 2017.

The Ordinary Shares will rank pari passu with the existing shares of the Company.  Following allotment of the Ordinary Shares, the total issued share capital of the Company will be 113,843,470 ordinary shares.

For the purposes of the Financial Conduct Authority’s Disclosure and Transparency Rules (“DTRs”), the issued ordinary share capital of Stilo following this allotment will consist of 113,843,470 ordinary shares with voting rights attached (one vote per share). There are no shares held in treasury.  This total voting rights figure may be used by shareholders as the denominator for the calculation by which they will determine whether they are required to notify their interest in, or a change to their interest in, Stilo under the DTRs.

ENQUIRIES

Stilo International plc
Les Burnham, Chief Executive T +44 1793 441 444
Liam O’Donoghue, Company Secretary T +44 20 7583 8304

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


Result of AGM 18 May 2017

18 May 2017

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
Liam O’Donoghue, Company Secretary T +44 20 7583 8304

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


Chairman’s AGM statement 18 May 2017

18 May 2017

Stilo International plc (“Stilo” or the “Company”) (AIM:STL) is holding its Annual General Meeting later today. 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.

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

“Following the launch of AuthorBridge v2.0 in February 2017, we have been receiving very encouraging feedback from trial users. However, there are still some important aspects of development that need to be undertaken over the coming months and this continues to be a high priority activity for the Company.

As a consequence, AuthorBridge is not expected to contribute significantly to sales revenues in 2017. Rather, our goal in 2017 is to implement AuthorBridge at a number of key customer sites and in so doing, provide a solid foundation upon which we can build future business.

Otherwise, the market for Migrate DITA conversion services and OmniMark software remains steady, and overall Company trading is in line with management expectations.

The Company remains un-geared, and cash balances at 30 April 2017 stood at £1,560,000 (31 December 2016: £1,466,000). Current levels of cash will serve to fund additional development, sales and marketing efforts as we look to grow our portfolio of solutions and enter new market sectors. It will also be used to assist with potential acquisitions, whilst providing an appropriate financial reserve for the business. Ongoing, it is the Board’s intention to maintain a progressive dividend policy with scope for special one-off dividends as may be deemed appropriate from time to time.

Subject to approval by shareholders at the meeting, a final dividend for the year ended 31 December 2016 of 0.05 pence per Ordinary Share will be paid on 23 May 2017 to those shareholders on the register at 21 April 2017.”

ENQUIRIES

Stilo International plc
Les Burnham, Chief Executive T +44 1793 441 444
Liam O’Donoghue, Company Secretary T +44 20 7583 8304

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


Director / PDMR Shareholding

13 June 2016

Stilo International plc (“Stilo” or the “Company”) has today been notified that Les Burnham, the Company’s CEO and Executive Director, on 10th June 2016 sold 2,600,000 ordinary shares of 1p each in Stilo at a price of 5.25 pence per share.

Following this sale, Les Burnham has a beneficial interest in 5,000,000 ordinary shares, representing approximately 4.45% 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


Posting of Annual Report, Notice of AGM and Proxy Form

25 April 2017

Stilo International plc (the “Company”), the AIM quoted software and cloud services company, announces that its 2017 Annual General Meeting will be held at the offices of RSM UK Audit LLP, 25 Farringdon Street, London EC4A 4AB at 11.30 a.m. on Thursday 18 May 2017 (“AGM”).

In connection with this meeting, the Annual Report of the Company for the year ended 31 December 2016 (“Annual Report”) has been posted to shareholders who have elected to receive hard copies of the Annual Report. The Notice of the AGM, and its associated Proxy Form, are both included within the Annual Report.

The Annual Report of the Company (including the Notice of AGM, and its associated Proxy Form) are also available to view and download from the Company’s website at www.stilo.com

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 2016

16 March 2017

STILO INTERNATIONAL PLC

Stilo International plc (“Stilo”, the “Group” or the “Company”) today announces its results for the year ended 31 December 2016. 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.

FINANCIAL HIGHLIGHTS

  • 16% increase in sales revenues to £1,761,000 (2015: £1,517,000)
  • 22% increase in profits before tax to £318,000 (2015 : £261,000)
  • 15% increase in operating costs, net of capitalised development costs, to £1,437,000 (2015: £1,246,000)
  • 22% increase in annual recurring software maintenance revenues to £871,000 (2015: £713,000)
  • Increased investment in total product development to £538,000(2015: £419,000) of which £204,000 capitalised (2015: £125,000)
  • Improved cash position of £1,466,000 as at 31 December 2016 (2015: £1,318,000)
  • Final dividend proposed of 0.05 pence per Ordinary Share, providing a 12.5% increase in total dividend to 0.09 pence for the year (2015: total 0.08 pence).

BUSINESS HIGHLIGHTS

  • Substantial increase in OmniMark revenues partially offset by reduction in Migrate sales
  • Migrate customers for the period include Dell, Locamation, Teradata, Qualcomm, Silicon Labs, VMWare, Swift and Motorola Solutions
  • Significant OmniMark software orders received from the Japan Patent Office, the European Parliament and Embraer in Brazil
  • Initial adoption of AuthorBridge by the central Information Developer Tools team at IBM and the Nuclear Regulatory Commission, Washington D.C.

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

I am very pleased to report a 16% increase in revenues, a 22% increase in profits before tax and an improved cash position for 2016.

A significant increase in OmniMark sales from customers in Japan and Brazil was partially offset by a reduction in Migrate revenues, in what we considered to be a general softening of demand for conversion services in the XML DITA market.

Following substantial development efforts, it was particularly pleasing to see the initial adoption of AuthorBridge by the central Information Developer Tools team at IBM in the USA, and the Nuclear Regulatory Commission in Washington D.C. This is a very positive beginning for AuthorBridge and augurs well for future sales.

The 2016 results benefitted from the weakening of the UK pound, post the Brexit referendum in June 2016. The majority of our sales are transacted in US dollars, with the balance mainly in euros, while our costs are primarily in Canadian dollars and UK pounds.

Our reported profits include the capitalisation of AuthorBridge development costs, as mandated by IFRS reporting standards and we anticipate depreciating the accumulated capitalised costs over a ten year period starting in 2017, following the general release of AuthorBridge v2.0.

We continue to press ahead with innovative new software developments, and with cash reserves remaining 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 0.09 pence per share.

Download a PDF of the full 2016 preliminary results announcement


CHAIRMAN’S STATEMENT

I am very pleased to report a 16% increase in revenues, a 22% increase in profits before tax and an improved cash position for 2016.

A significant increase in OmniMark sales from customers in Japan and Brazil was partially offset by a reduction in Migrate revenues, in what we considered to be a general softening of demand for conversion services in the XML DITA market.

Following substantial development efforts, it was particularly pleasing to see the initial adoption of AuthorBridge by the central Information Developer Tools team at IBM in the USA, and the Nuclear Regulatory Commission in Washington D.C. This is a very positive beginning for AuthorBridge and augurs well for future sales.

The 2016 results benefitted from the weakening of the UK pound, post the Brexit referendum in June 2016. The majority of our sales are transacted in US dollars, with the balance mainly in euros, while our costs are primarily in Canadian dollars and UK pounds.

Our reported profits include the capitalisation of AuthorBridge development costs, as mandated by IFRS reporting standards and we anticipate depreciating the accumulated capitalised costs over a ten year period starting in 2017, following the general release of AuthorBridge v2.0.

We continue to press ahead with innovative new software developments, and with cash reserves remaining 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 0.09 pence per share.

David Ashman
Chairman
16 March 2017

 

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 Boeing, Pratt and Whitney, EADS, Thomson Publishing, and Wolters Kluwer. Sales for the period included orders from the European Parliament, Japan Patent Office and Embraer in Brazil.

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 included orders from Dell, Locamation, Teradata, Qualcomm, Silicon Labs, VMWare, Swift and Motorola Solutions. Using Migrate, we have helped our customers convert over one million pages of content to the DITA format.

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 is progressing well, albeit with some 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.

The ongoing development of AuthorBridge continues at a pace, as we add functionality that is necessary to advance sales more generally in the DITA market.

Planned developments in 2017 also include support for the XML JATS (Journal Article Tag Suite) standard for scientific and scholarly publishers, and for the ISO-STS (Standards Tagging Set) standard developed by NISO (National Information Standards Organisation). These are emerging new international XML standards with the potential for adoption by thousands of diverse organisations around the world, with an associated demand for specialist authoring tools and conversion services.

Sales analysis by geographic region

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

Region 2016 2015
UK 2% 2%
Rest of Europe 10% 16%
North America 49% 67%
South America 9% 1%
Asia 30% 14%

 

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

The percentage increase in sales to Asia is as a consequence of major OmniMark licence sales to the Japan Patent Office through our partner Toshiba Solutions, based in Tokyo.

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 used 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 at 31 December 2016, there were 18 permanent employees in the Company, complemented by the use of contractors. In 2017 we will be making additional investments in the recruitment of development personnel, although 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 2016 have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards as adopted by the European Union.

In 2016, the results for Stilo show an increase in EBITDA to £327,000 (2015: £272,000). Pre-tax profits were £318,000 (2015: £261,000).

Total sales revenues for the year increased by 16% to £1,761,000 (2015: £1,517,000). The increase in revenue was due primarily to a £331,000 growth in OmniMark licence sales, from major customers in Japan and Brazil. The Company also benefitted from an increase in recurring revenue from software maintenance contracts to £871,000 (2015: £713,000) which represents 49% (2015: 47%) of annual sales revenue. Revenue from Migrate reduced by £223,000 compared to the previous year, in what we considered to be a general softening of demand for conversion services in the DITA market.

The Company continues to maintain careful control over operating costs. Investment in additional development staff has meant that operating costs increased in the year. Operating expenses, excluding capitalised development costs, were £1,437,000 (2015: £1,246,000).

Investment in R & D continued in 2016, with total expenditure for the year of £538,000 (2015: £419,000). As a result of this investment, Stilo continues to benefit from research and development tax credits. Of this expenditure, £204,000 (2015: £125,000) relating to the development of AuthorBridge has been capitalised, and the total accumulated capitalised costs will be depreciated over a 10 year period, commencing in 2017.

There was a cash balance of £1,466,000 as at 31 December 2016 (31 December 2015: £1,318,000), 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 expected in 2017, however, overall costs will continue to be carefully managed in order to maintain cash reserves at a satisfactory level.

Total trade debtors were £348,000 (2015: £161,000), equating to 72 days (2015: 54 days). Albeit outside of standard credit terms, the directors consider this to be reasonable, due to the specific circumstances relating to one balance. Overdue amounts are closely monitored.

DIVIDENDS

The Board recommends the payment of a Final Dividend for the year of 0.05 pence per Ordinary Share which, if approved by shareholders at the AGM on 18 May 2017, will be paid on 23 May 2017 to shareholders on the register on 21 April 2017. The shares will be marked ex-dividend on 20 April 2017. If approved, payment of the Final Dividend will bring the total dividends paid to shareholders for the year to 0.09 pence per Ordinary Share.

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.

Overall trading in 2017 continues in line with management expectations, as we continue to invest in the development of innovative new products that will serve to underpin our future growth.

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


Board Appointment

28 September 2016

Stilo International plc

The Board of Stilo International plc (“Stilo” or the “Company”) (LSE:STL), the AIM quoted software and cloud services company, is pleased to announce that it has appointed Liam O’Donoghue to its Board of Directors as a Non-Executive Director with effect from 3 October 2016.

Liam qualified as a lawyer with leading Irish Corporate law firm William Fry and also spent a number of years in the corporate finance department of Seymour Pierce in London where he advised on a wide range of corporate transactions. Liam is a founder member and director of ONE Advisory Group, which provides corporate advisory and administration services to listed companies.

Stilo non-executive Chairman, David Ashman commented:

“I am delighted to welcome Liam to the Board as an independent, non-executive director. We look forward to benefiting from fresh insights drawing upon his valuable experience of corporate transactions and company governance”.

Information in respect of Mr O’Donoghue as required by Schedule 2(g) of the AIM Rules for Companies is included below.

 

ADDITIONAL INFORMATION

Full name: William John O’Donoghue
Age: 34

Current Directorships / Partnerships:
One Advisory Limited
One Capital Limited
One Advisory Group Limited

Previous Directorships / Partnerships in the last 5 years:
Amedeo Assets Limited
Amedeo Capital Limited
Creon Corporation Limited
Adcompass Ltd
CMS Corporate Services Limited

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