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Stilo International (STL)

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Friday 23 August, 2019

Stilo International

Half-year Report

RNS Number : 9876J
Stilo International PLC
23 August 2019
 

23 August 2019

                                                                                                                                        

STILO INTERNATIONAL PLC



UNAUDITED INTERIM RESULTS FOR SIX MONTHS ENDED 30 JUNE 2019

 

 

Stilo International plc ("Stilo", the "Group" or the "Company") today announces its unaudited Interim Results for the six months ended 30 June 2019. 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 £638,000 (2018: £707,000)

·    Operating costs remain level £656,000 (2018: £657,000), excluding capitalised development costs for AuthorBridge of £110,000 (2018: £99,000)

·    Loss before tax for the period of £29,000 (2018: £42,000 profit)

·    Total comprehensive income for the period remained positive at £14,000 (2018: £5,000)  subsequent to favourable foreign currency translation differences

·    Cash of £1,096,000 as at 30 June 2019 (2018: £1,442,000)

·    No interim dividend declared

 

 

BUSINESS HIGHLIGHTS

 

·      Migrate customers for the period include Mastercard, Arris/Commscope, Applied Materials, Visa, GE Healthcare and Deltek.    
 

·    AuthorBridge customers in the US include IBM, Kaplan Professional Education and the Nuclear Regulatory Commission. A major release of AuthorBridge shipped in June 2019 and it is not expected to further capitalise AuthorBridge development costs beyond this date.
 

·    OmniMark sales include European Parliament, Qantas and Embraer. 

 

 

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

 

In our Trading Update of 23 May 2019 we indicated that sales were slower than planned and that a loss was expected for the half-year period.

 

We are currently expecting trading to continue slowly for the remainder of 2019 and need to take measures to reduce our operating costs wherever possible. Of primary importance is the proposal to de-list from AIM and re-register as a private limited company, subject to shareholders' approval. This is the subject of an associated announcement issued immediately following the release of these interim results and is expected to generate potential annualised cost savings of over £120,000. Additional cost-reduction activities include organisational and management changes that are currently underway.  

 

The Company continues to develop high-quality software tools used by leading organisations around the world. With a reduced cost base and increased sales to be driven by the recruitment to the newly created role of VP Sales & Marketing, it is our intention to generate steady ongoing profits and resume the payment of dividends to shareholders as soon as possible.

 

 

 

 

 

ENQUIRIES

 

Stilo International plc
Les Burnham, Chief Executive

T +44 (0)1793 441444

 

SPARK Advisory Partners
(Nominated Adviser)
Neil Baldwin T +44 (0) 203 368 3554
Mark Brady   T +44 (0) 203 368 3551

 

SI Capital (Broker)

Nick Emerson

 

T +44 (0) 1483 413500

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited Group Income Statement

for the six months ended 30 June 2019

 

Six months
to 30 June
2019
Unaudited
£'000

Six months
to 30 June
2018
Unaudited
£'000

Year to
31 December
2018
Audited
£'000

 

 

 

 

Revenue - Continuing Operations

638

707

1,487

 

 

 

 

Cost of sales

(4)

(4)

(16)

 

--------------

--------------

--------------

Gross profit

634

703

1,471

 

 

 

 

Operating costs

(656)

(657)

(1,342)

Amortisation of intangible assets

-

-

-

 

--------------

--------------

--------------

Operating (loss) / profit

(22)

46

129

 

 

 

 

Finance income

6

5

10

Finance expense

(8)

-

-

 

--------------

--------------

--------------

(Loss) / profit before tax

(24)

51

139

Income tax

(5)

(9)

38

 

--------------

--------------

--------------

(Loss) / profit for the period attributable to the equity shareholders of the parent company

(29)

 

42

 

177

 

=======

=======

=======

(Loss) / earnings per share

- basic  (note 4)

(0.03p)

0.04p

0.16p

- diluted  (note 4)

(0.02p)

0.04p

0.15p

 

--------------

--------------

--------------

Dividends paid per share

 

 

 

- Interim current period

Nil

Nil

0.06p

- Final prior period

0.06p

0.05p

0.05p

 

--------------

--------------

--------------

 

 

 

 

Unaudited Group Statement of Comprehensive Income
for the six months ended 30 June 2019

 

Six months
to 30 June
2019
Unaudited
£'000

Six months
to 30 June
2018
Unaudited
£'000

Year to
31 December
2018
Audited
£'000

 

 

 

 

(Loss)/profit for the period

(29)

42

177

 

--------------

--------------

--------------

 

 

 

 

Other comprehensive income

Items that may subsequently be reclassified to profit and loss

 

 

 

Foreign currency translation differences

43

(37)

(39)

 

--------------

--------------

--------------

Total other comprehensive income

43

(37)

                  (39)

 

--------------

--------------

--------------

 

 

 

 

Total comprehensive income relating to the period

14

 5

 138

 

--------------

--------------

--------------

 

 

All comprehensive income is attributable to equity shareholders of the parent company.

 

Unaudited Group Statement of Financial Position

as at 30 June 2019

 

As at
30 June

2019
Unaudited

£'000

As at
30 June
2018
Unaudited

£'000

As at
31 December
2018

Audited

£'000

Non-current assets:

 

 

 

Goodwill

1,633

1,660

1,633

Other intangible assets

1,033

771

882

Plant and equipment

12

18

14

Right-of-use asset

327

-

-

Deferred tax assets

50

50

50

 

--------------

--------------

--------------

 

3,055

2,499

2,579

Current assets:

 

 

 

Trade and other receivables

644

209

259

Income tax asset

58

53

56

Cash and cash equivalents

1,096

1,442

1,271

 

--------------

--------------

--------------

 

1,798

1,704

1,586

 

--------------

--------------

--------------

Total Assets

4,853

4,203

4,165

 

=======

=======

=======

Current liabilities:

Trade and other payables

865

 

472

 

436

Non-current liabilities:

Other payables

317

 

71

 

4

 

--------------

--------------

--------------

Total liabilities

1,182

543

440

 

 

 

 

Equity attributable to equity shareholders of the parent company

 

 

 

 

Called up share capital

1,139

1,139

1,139

Share premium

29

29

29

Merger reserve

658

658

658

Retained earnings

1,845

1,834

1,899

 

--------------

--------------

--------------

Total equity

3,671

3,660

3,725

 

--------------

--------------

--------------

 

 

 

 

Total Equity and Liabilities

4,853

4,203

4,165

 

=======

=======

=======

 

 

Unaudited Group Statement of Changes in Equity

for the six months ended 30 June 2019

 

 

 

Attributable to equity shareholders of the parent company

 

Called up share capital

£'000

Share premium account £'000

Merger reserve

£'000

Retained earnings

£'000

Total

£'000

 

 

 

 

 

 

Balance at 1 January 2018 (audited)

1,139

29

658

1,885

3,711

 

 

 

 

 

 

Comprehensive income

 

 

 

 

 

Profit for the period

-

-

-

42

(42)

Other comprehensive loss

 

 

 

 

 

Exchange adjustments - may recycle to profit and loss account

-

-

-

(37)

(37)

Total comprehensive income

-

-

-

5

5

Transactions with owners

 

 

 

 

 

Shared based transactions

-

-

-

1

1

Dividend paid

-

-

-

(57)

(57)

Total transactions with owners

-

-

-

(56)

(56)

 

 

 

 

 

 

Balance at 30 June 2018 (unaudited)

1,139

29

658

1,834

3,660

 

 

 

 

 

 

Comprehensive income

 

 

 

 

 

Profit for the period

-

-

-

135

135

Other comprehensive loss

 

 

 

 

 

Exchange adjustments - may recycle to profit and loss account

-

-

-

(3)

(3)

Total comprehensive income

-

-

-

132

132

Transactions with owners

 

 

 

 

 

Share based transactions

-

-

-

1

1

Dividend paid

-

-

-

(68)

(68)

Total transactions with owners

-

-

-

(67)

(67)

 

 

 

 

 

 

Balance at 31 December 2018 (audited)

1,139

29

658

1,899

3,725

Comprehensive income

 

 

 

 

 

Loss for the period

-

-

-

(29)

(29)

Other comprehensive income

 

 

 

 

 

Exchange adjustments - may recycle to profit and loss account

-

-

-

43

43

Total comprehensive income

-

-

-

14

14

Transactions with owners

 

 

 

 

 

Dividend paid

-

-

-

(68)

(68)

Total transactions with owners

-

-

-

(68)

(68)

 

 

 

 

 

 

Balance at 30 June 2019 (unaudited)

1,139

29

658

1,845

3,671

 

Unaudited Group Cash Flow Statement

for the six months ended 30 June 2019

 

Six months
to 30 June
2019
Unaudited
£'000

Six months
to 30 June
2018
Unaudited
£'000

Year to
31 December
2018
Audited
£'000

Cash flows from operating activities

 

 

 

(Loss)/profit before taxation

(24)

51

139

Adjustment for depreciation and amortisation

26

5

11

Adjustment for impairment and write off of goodwill

-

-

27

Adjustment for investment income

(6)

(5)

(10)

Adjustment for interest expense

8

-

-

Adjustment for share based payments

1

1

2

Adjustment for foreign exchange differences

-

(13)

-

 

--------------

--------------

--------------

Operating cash flows before movements in working capital

5

39

169

(Increase) in trade and other receivables

(398)

(39)

(86)

Increase/(decrease) in trade and other payables

374

1

(112)

 

--------------

--------------

--------------

Cash used in operations

(19)

1

(29)

Tax paid

(61)

(60)

(16)

Tax credit received

56

52

53 

 

--------------

--------------

--------------

Net cash used (in)/from operating activities

(24)

(7)

8

 

 

 

 

Cash flows from investing activities

 

 

 

Finance income

6

5

11

Development costs capitalised

(110)

(99)

(213)

Purchase of plant and equipment

(1)

(11)

(13)

 

--------------

--------------

--------------

 

 

 

 

Net cash used (in) investing activities

(105)

(105)

(215)

 

 

 

 

Financing Activities

 

                                    

 

Dividends paid

(68)

(57)

(125)

Issue of ordinary share capital

-

-

-

 

--------------

--------------

--------------

Net cash used in financing activities

(68)

(57)

(125)

 

--------------

--------------

--------------

Net (decrease) in cash and cash equivalents

 

(197)

(169)

 

(332)

Cash and cash equivalents at beginning of period

 

Exchange losses on cash and cash equivalents

1,271

 

22

1,621

 

(10)

1,621

 

(18)

 

--------------

--------------

--------------

Cash and cash equivalents at end of period

1,096

1,442

1,271

 

=======

=======

=======

 

 

Notes to the Interim Results

for the six months ended 30 June 2019

 

 

1.   The interim results (approved by the Board of Directors and authorised for issue on 23 August 2019) 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 2018. 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 (£'000) except where otherwise indicated.

 

The interim results of the Group for the period ended 30 June 2019 have been prepared in accordance with the accounting policies expected to apply in respect of the financial statements for the year ending 31 December 2019.

 

3.   The financial position and performance of the group was particularly affected by the adoption of the new revenue standard IFRS 16 Leases as from 1 January 2018. In accordance with the transition provisions in IFRS 16, the Group has adopted the new rules retrospectively with the cumulative effect of initially applying the standard recognised at the date of the initial application. The impact of the adoption as at 1 January 2019 was to recognise a right-of-use asset and a lease liability of £335,000.

 

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 2019 was 113,930,470 shares (30 June 2018: 113,930,470 and 31 December 2018: 113,930,470 shares).  The weighted average number of ordinary shares in issue for the six months to 30 June 2019, for the fully diluted earnings per share, taking account of outstanding options was 117,380,214 (30 June 2018: 116,615,746, 31 December 2018: 115,944,901).

 

5.   Copies of this report 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 news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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