Stilo International Seeks New Contracts Despite Annual Revenue Rise

15th Mar 2018 12:15

LONDON (Alliance News) - Stilo International PLC on Thursday posted a small drop in profit for 2017, though sales rose, as it warned it will have to find new contracts to make up for two that will not repeat in 2018.

Stilo makes software tools and cloud services to help make content easier to store, manage, re-use, translate, and publish to "multiple" print and digital channels.

Its pretax profit for 2017 fell slightly to GBP309,000 from GBP318,000, though sales increased by 8% to GBP1.9 million.

Stilo has proposed a final dividend of 0.05 pence per share, the same as its interim payout, taking the total return for the year to 0.10p. This is an 11% increase on 2016's total dividend of 0.09p.

Sales in Japan were "particularly" strong for its OmniMark software licences, and revenue growth from its Migrate product was likewise "healthy".

However, the development of the AuthorBridge product is taking longer than expected. Looking ahead, two key contracts for OmniMark and Migrate will not occur in 2018, and as such Stilo will need to secure new sales to maintain current revenue levels.

Looking forward, Stilo commented: "We are encouraged by the sales pipeline for new business prospects, but at the current time it is far too early to know what the outcome will be for 2018."

"However, Stilo has the balance sheet, and product portfolio, not to shy away from incurring costs today in order to sharpen the group's long term growth curve and deliver sustainable value growth to investors."

Shares were down 5.9% on Thursday at a price of 4.00p each.

---

Related Shares:

Stilo