Stilo International PLC – Preliminary Results

Stilo International PLC – Preliminary Results

Stilo International plc today announces its results for the year ended 31 December 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, reused, translated and published to multiple print and digital channels.

FINANCIAL HIGHLIGHTS

  • Sales revenues of £1,487,000 (2017: £1,894,000).
  • Profit after tax of £177,000 (2017: £313,000).
  • Reduction in operating costs, net of capitalised development costs, to £1,358,000
    (2017: £1,591,000), primarily due to favourable currency exchange rates.
  • Investment in total product development of £583,000 (2017: £656,000) of which £213,000 capitalised (2017: £213,000).
  • Cash of £1,271,000 as at 31 December 2018 (2017: £1,621,000), with reduction largely due to continued investment in development projects and dividend payments to shareholders.
  • Final dividend proposed of 0.06 pence per Ordinary Share, providing a total dividend of 0.12 pence for the year (2017: total 0.10 pence).

BUSINESS HIGHLIGHTS

  • Total sales revenues for the period decreased significantly, principally due to an expected reduction in OmniMark-related revenues from one major customer. 
  • Migrate revenues held up well given the expiry of a significant contract from earlier years.  Customers during the period included Edwards Lifesciences, Visa, Viewpoint, ARRIS, Synopsys, Deltek, Varian and TIBCO.   
  • AuthorBridge beginning to get traction with new customers including Kaplan Professional, Intel and Coriolis.
  • Initiated the development of OptimizeR – a new tool to help customers deduplicate their DITA content, improve content consistency and maximise the opportunity for content reuse.

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

“Total sales revenues for the period decreased significantly, principally due to an expected reduction in OmniMark-related revenues from one major customer. However, it was encouraging that our Migrate revenues held up well, as new customer wins compensated for the expiry of a major contract. We were also successful in making some initial breakthroughs with sales of AuthorBridge to new customers.  

Given our size, we continue to incur significant financial overheads associated with being a public listed company, but notwithstanding this we were able to generate a post-tax profit for the period of £177,000.  

The Company continues to invest in the development of leading technologies for the structured content market and in so doing build long-term value for shareholders. As we look forward to growing future sales, supported by healthy cash reserves and a strong balance sheet, I am pleased to announce the payment of an increased final dividend of 0.06 pence per share, providing a total dividend for the year of 0.12 pence”.

OUTLOOK

The long-awaited release of AuthorBridge v3 in 2019 provides for a best-in-class, web authoring tool for the DITA market. However, the DITA market has well-established competitors and it will likely take some time to build significant new revenue streams with customers and technology partners.

In the short term, growth will be primarily driven by sales of Migrate and OptimizeR solutions to new customers and we will be stepping up our sales, marketing and development efforts accordingly. 2019 is going to be a challenging year for the Company, with potential demand, as always, difficult to predict at the current time. 

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