TIDMSTL
RNS Number : 5776I
Stilo International PLC
01 September 2016
1 September 2016
STILO INTERNATIONAL PLC
UNAUDITED INTERIM RESULTS FOR SIX MONTHSED 30 JUNE 2016
Stilo International plc ("Stilo" or the "Company"), the AIM
quoted provider of XML cloud content conversion, content processing
and authoring tools, today announces its unaudited Interim Results
for the six months period ended 30 June 2016.
FINANCIAL PERFORMANCE
-- Sales revenues for six months to 30 June 2016 increase by 11% to GBP874,000
(2015: GBP784,000)
-- Increase in EBITDA* by 11% to GBP184,000
(2015: GBP166,000)
-- Operating costs, net of capitalised development costs, GBP691,000
(2015: GBP617,000)
-- Cash position increased by 30% to GBP1,393,000 as at 30 June 2016
(2015: GBP1,072,000)
-- Payment of an increased interim dividend of 0.04 pence per
share (2015: 0.03 pence per share)
* EBITDA comprises profit before taxation, interest,
depreciation and the amortisation of software development
costs.
BUSINESS HIGHLIGHTS
-- Increase in OmniMark revenues offset by reduction in Migrate sales
-- Migrate customers for the period include Dell, Locamation,
Informatica, Teradata, Qualcomm and Silicon Labs
-- Significant OmniMark software orders received from Toshiba
Solutions (Japan) and the European Parliament
-- Recurring OmniMark maintenance revenues increase by 7%
-- Successful initial deployment of AuthorBridge by central
Information Developer Tools team at IBM.
David Ashman, Chairman, commenting on the Company's performance,
stated:
Our trading results for the first half of 2016 showed an overall
improvement over the previous year, as an increase in OmniMark
sales was offset by a reduction in Migrate revenues.
It was very pleasing to see the successful initial deployment of
AuthorBridge in a production environment at IBM during June 2016.
It represents a significant milestone for Stilo and serves as a
very influential reference account for future sales into the XML
DITA authoring tools market.
The Company remains un-geared, and with a continued improvement
in our cash position, growth in both revenue and profits, and
continued advances in the development of our technology, I am
pleased to announce the declaration of an increased interim
dividend of 0.04 pence per share.
ENQUIRIES
Stilo International plc SPARK Advisory Partners
Les Burnham, Chief Executive (Nomad)
Richard Alsept, Chief Neil Baldwin
Financial Officer T +44 (0)203 368 3554
T +44 (0)1793 441444 Mark Brady
T +44 (0)203 368 3551
SI Capital (Broker)
Nick Emerson
Andy Thacker
T +44 (0)1483 413500
BUSINESS REVIEW
Large organisations need to process ever increasing amounts of
digital content and publish information to multiple media channels
including print, web, CD-ROM, smartphones, ebook readers and mobile
devices.
These organisations often need to author and publish content in
multiple languages, and re-use that content in many different ways,
across different publications and document types. Innovative web
applications dynamically assemble and deliver content to users that
is tailored to their individual purchasing requirements, reading
preferences or personal interests.
The content management systems that support such digital
publishing applications typically necessitate that content is
stored and processed in a 'neutral' XML (Extensible Markup
Language) format prior to publication.
The business opportunity for XML content conversion technology
and services is global and growing, and it is Stilo's strategic
objective to be a leading supplier to this market sector. Our tools
are used by commercial publishers, technology companies and
government agencies, and include organisations involved in the
production and maintenance of technical documentation.
Products and Customers
Stilo's core technology is OmniMark, a leading content
processing platform used by customers over many years to develop
high-performance, content processing solutions that support large
scale publishing applications. Users include Boeing, Pratt and
Whitney, EADS, Thomson Publishing, and Wolters Kluwer. Sales for
the period included orders from the European Parliament and Toshiba
Solutions (Japan).
Over recent years, the Company has made a significant investment
in the development of Migrate, the world's first cloud XML content
conversion service, based upon OmniMark technology. Through
advanced levels of automation, it enables our customers to improve
turnaround times, reduce operating costs and take direct control of
their conversion processes, providing them with an attractive
alternative to traditional in-house or outsourced conversion
services.
Migrate customers include IBM, Qualcomm, Cisco Systems, Oracle
and Micron Technology. New customers in 2016 include Dell,
Locamation, Informatica, Harmonic and Silicon Labs. In order to
diversify beyond the XML 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 Migrate.
Development of AuthorBridge, our new web-based XML DITA
authoring tool, is progressing well, albeit with some slippage
against original schedules. Its initial deployment in production at
IBM, following extensive co-operation and testing by the central
Information Developer Tools team, serves as a good foundation upon
which we can build. The ongoing development of AuthorBridge
continues unabated, as we add functionality that is necessary to
advance sales more generally in 2017.
OPERATIONS
At 30 June 2016, Stilo employed 17 permanent staff, based in the
UK and in Canada. We plan to make further investments in the
recruitment of additional personnel and contractors to assist with
AuthorBridge developments, but otherwise we do not anticipate
expanding the headcount significantly in the near future.
FINANCIAL PERFORMANCE
EBITDA for the first six months of the year increased to
GBP184,000 (2015: GBP166,000), and pre-tax profits were GBP181,000
(2015: GBP161,000).
Total sales revenue for the period increased by 11% compared to
the same period last year to GBP874,000 (2015: GBP784,000), with an
uplift in OmniMark sales being offset by a reduction in Migrate
revenues. Recurring revenues generated from software maintenance
contracts increased to GBP383,000 (2015: GBP358,000)
The Board continues to maintain careful control over operating
costs, although investment in additional development meant that
costs rose in the period to GBP691,000, net of capitalised
development expenditure (2015: GBP617,000). Total development
expenditure, including capitalised costs, was GBP259,000 (2015:
GBP216,000).
Staff costs and other expenditure which were directly
attributable to the development of AuthorBridge in the period were
GBP83,000 (2015: GBP77,000) and these costs have been capitalised
and recognised as an intangible asset.
The Company continues to further strengthen its balance sheet,
and remains entirely un-geared with a cash balance increased to
GBP1,393,000 as at 30 June 2016 (31 December 2015: GBP1,318,000, 30
June 2015: GBP1,072,000).
The results for the period ended 30 June 2016 have been prepared
in accordance with the recognition and measurement principles of
International Financial Reporting Standards as adopted by the
European Union.
DIVIDS
During the period, the final dividend for the year ended 31
December 2015 was paid, of 0.05 pence per share.
The Board is pleased to declare the payment of an Interim
dividend for the year ended 31 December 2016 to shareholders of
0.04 pence per share (2015: 0.03 pence per share), an increase of
33%, which will be paid on 24 October 2016 to those shareholders on
the register as at 23 September 2016 (the Record date). The shares
will be marked ex-dividend on 22 September 2016.
The Board's policy is to maintain the 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 digital content to
multiple channels continues to grow, which in turn drives the
market for XML content conversion and authoring tools.
Trading in 2016 continues in line with management expectations
overall, with a reduction in Migrate sales being offset by an
increase in OmniMark revenues. We continue to invest in the
development of innovative new products that will serve to underpin
our future growth.
1 September 2016
Unaudited Group Income Statement
for the six months ended 30 June 2016
Six months Six months Year to
to 30 to 30 31 December
June June 2015
2016 2015 Audited
Unaudited Unaudited GBP'000
GBP'000 GBP'000
Revenue - Continuing Operations 874 784 1,517
Cost of sales (6) (6) (12)
-------------- -------------- --------------
Gross profit 868 778 1,505
Operating costs (691) (617) (1,246)
Amortisation of intangible
assets - (2) (4)
-------------- -------------- --------------
Operating profit 177 159 255
Finance income 4 2 6
-------------- -------------- --------------
Profit before tax 181 161 261
Income tax - - 48
-------------- -------------- --------------
Profit for the period attributable
to the equity shareholders
of the parent company 181 161 309
======= ======= =======
Earnings per share
- basic (note 4) 0.16p 0.15p 0.28p
- diluted (note 4) 0.15p 0.14p 0.28p
-------------- -------------- --------------
Dividends
- dividends paid per share 0.05p 0.03p 0.06p
-------------- -------------- --------------
Unaudited Group Statement of Comprehensive Income
for the six months ended 30 June 2016
Six months Six months Year to
to 30 to 30 31 December
June June 2015
2016 2015 Audited
Unaudited Unaudited GBP'000
GBP'000 GBP'000
Profit for the period 181 161 309
-------------- -------------- --------------
Other comprehensive income
Items that may subsequently
be reclassified to profit
and loss
Foreign currency translation
differences 160 (72) (109)
-------------- -------------- --------------
Total other comprehensive
income 160 (72) (109)
-------------- -------------- --------------
Total comprehensive income
relating to the period 341 89 200
-------------- -------------- --------------
All comprehensive income is attributable to equity shareholders
of the parent company.
Unaudited Group Statement of Financial Position
as at 30 June 2016
As at As at As at
30 June 30 June 31 December
2016 2015 2015
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Non-current assets
Goodwill 1,678 1,666 1,660
Other Intangible assets 349 188 225
Plant and equipment 24 19 19
Deferred tax assets 50 50 50
-------------- -------------- --------------
2,101 1,923 1,954
Current assets
Trade and other receivables 373 409 203
Income tax asset - - 49
Cash and cash equivalents 1,393 1,072 1,318
-------------- -------------- --------------
1,766 1,481 1,570
-------------- -------------- --------------
Total Assets 3,867 3,404 3,524
======= ======= =======
Current liabilities:
Trade and other payables 545 530 474
Non-current liabilities:
Other payables - - 28
-------------- -------------- --------------
Total liabilities 545 530 502
Equity attributable to
equity shareholders of
the parent company
Called up share capital 1,124 1,098 1,124
Share premium 13 - 13
Merger reserve 658 658 658
Retained earnings 1,527 1,118 1,227
-------------- -------------- --------------
Total equity 3,322 2,874 3,022
-------------- -------------- --------------
Total Equity and Liabilities 3,867 3,404 3,524
======= ======= =======
Unaudited Group Statement of Changes in Equity
for the six months ended 30 June 2016
Attributable to equity
shareholders of the parent
company
Called Share
up share premium Merger Retained
capital account reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 January
2015 (audited) 1,098 - 658 1,062 2,818
Comprehensive income
Profit for the period - - - 161 161
Other comprehensive
income
Exchange adjustments
- may recycle to
profit and loss account - - - (72) (72)
---------- --------- --------- ---------- ---------
Total comprehensive
income - - - 89 89
Transactions with
owners
Dividend paid - - - (33) (33)
Total transactions
with owners - - - (33) (33)
Balance at 30 June
2015 (unaudited) 1,098 - 658 1,118 2,874
Comprehensive income
Profit for the period - - - 148 148
Other comprehensive
income
Exchange adjustments
- may recycle to
profit and loss account - - - (37) (37)
---------- --------- --------- ---------- ---------
Total comprehensive
income - - - 111 111
Transactions with
owners
Share based transactions - - - 31 31
Shares issued 26 13 - - 39
Dividend paid - - - (33) (33)
Total transactions
with owners 26 13 - (2) 37
Balance at 31 December
2015 (audited) 1,124 13 658 1,227 3,022
Comprehensive income
Profit for the period - - - 181 181
Other comprehensive
income
Exchange adjustments
- may recycle to
profit and loss account - - - 160 160
---------- --------- --------- ---------- ---------
Total comprehensive
income - - - 341 341
Transactions with
owners
Share based transactions - - - 15 15
Dividend paid - - - (56) (56)
---------- --------- --------- ---------- ---------
Total transactions
with owners - - - (41) (41)
Balance at 30 June
2016 (unaudited) 1,124 13 658 1,527 3,322
========== ========= ========= ========== =========
Unaudited Group Cash Flow Statement
for the six months ended 30 June 2016
Six months Six months Year to
to 30 June to 30 31 December
2016 June 2015
Unaudited 2015 Audited
GBP'000 Unaudited GBP'000
GBP'000
Cash flows from operating
activities
Profit before taxation 181 161 261
Adjustment for depreciation
and amortisation 7 7 17
Adjustment for investment
income (4) (2) (6)
Adjustment for gain on
financial derivatives - (5) (26)
Adjustment for share based
payments 15 - 31
Adjustment for foreign
exchange differences 73 (46) (81)
-------------- -------------- --------------
Operating cash flows before
movements in working capital 272 115 196
(Increase) / Decrease in
trade and other receivables (170) (137) 69
Increase in trade and other
payables 71 66 64
-------------- -------------- --------------
Cash generated from operations 173 44 329
Tax paid - - (1)
Tax credit received 49 53 59
-------------- -------------- --------------
Net cash from operating
activities 222 97 387
Cash flows from investing
activities
Finance income 4 2 6
Development costs capitalised (83) (77) (125)
Purchase of plant and equipment (12) (6) (12)
-------------- -------------- --------------
Net cash used in investing
activities (91) (81) (131)
Financing Activities
Dividends paid (56) (33) (66)
Issue of ordinary share
capital - - 39
-------------- -------------- --------------
Net cash used in financing
activities (56) (33) (27)
-------------- -------------- --------------
Net increase / (decrease)
in cash and cash equivalents 75 (17) 229
Cash and cash equivalents
at beginning of period 1,318 1,089 1,089
-------------- -------------- --------------
Cash and cash equivalents
at end of period 1,393 1,072 1,318
======= ======= =======
Notes to the Interim Results
for the six months ended 30 June 2016
1. The interim results (approved by the Board of Directors and
authorised for issue on 1 September 2016) are neither audited nor
reviewed and do not constitute statutory accounts within the
meaning of Section 434 of the Companies Act 2006. The financial
information for the full preceding year is extracted from the
statutory accounts for the financial year ended 31 December 2015.
Those accounts, upon which the auditors issued an unqualified
opinion, and did not contain a statement under Section 498 (2) and
(3) of the Companies Act 2006, have been delivered to the Registrar
of Companies. As permitted, this interim report has been prepared
in accordance with UK AIM listing rules and not in accordance with
IAS 34 'Interim Financial Reporting,' therefore it is not fully in
compliance with IFRS.
2. Stilo International plc is a public limited company
incorporated in the United Kingdom. The Company is domiciled in the
United Kingdom and its ordinary shares are traded on the AIM market
of the London Stock Exchange plc. Stilo provides specialist
software and professional services.
The consolidated interim results have been prepared in
accordance with the recognition and measurement principles of IFRS
including standards and interpretations issued by the International
Accounting Standards Board, as adopted by the European Union. They
have been prepared using the historical cost convention.
The preparation of the interim results requires management to
make estimates and assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities, and the disclosure of
contingent liabilities at the reporting date. If in the future such
estimates and assumptions, which are based on management's best
judgement at the reporting date, deviate from the actual
circumstances, the original estimates and assumptions will be
modified as appropriate in the year in which the circumstances
change. The interim results are presented in sterling and all
values are rounded to the nearest thousand pounds (GBP'000) except
where otherwise indicated.
The interim results of the Group for the six months period ended
30 June 2016 have been prepared in accordance with the accounting
policies expected to apply in respect of the financial statements
for the year ended 31 December 2016.
3. There is no tax charge for the period due to the availability of tax losses brought forward.
4. The basic earnings per share is calculated on the weighted
average number of shares in issue during the period. The fully
diluted earnings per share takes account of outstanding options.
The weighted average number of ordinary shares in issue for the six
months to 30 June 2016 was 112,408,470 shares (30 June 2015:
109,808,470 and 31 December 2015: 110,566,803 shares). The weighted
average number of ordinary shares in issue for the six months to 30
June 2016, for the fully diluted earnings per share, taking account
of outstanding options was 119,184,584 (30 June 2015: 114,149,841,
31 December 2015: 110,951,117).
5. Copies of this report will sent to those shareholders who
have requested a hard copy, and will be available to download from
the investor relations section of the Company's website
www.stilo.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFFFTSILVIR
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