LONDON (Alliance News) - Stilo International PLC shares dropped on Wednesday despite increasing its dividend after reporting a rise in profit and revenue during 2015.
Stilo shares were down 16% to 5.16 pence per share on Wednesday morning.
The provider of content processing software tools and cloud services said an increase in revenue during 2015 to GBP1.5 million from the GBP1.3 million generated in 2014 pushed its pretax profit up to GBP261,000 in the year from the GBP95,000 made the year before.
Costs were broadly flat from the previous year, allowing that revenue increase to push up gross profit to GBP1.5 million from GBP1.2 million and operating profit up to GBP255,000 from GBP89,000.
Earnings before interest, tax, depreciation and amortisation increased to GBP272,000 from GBP108,000.
As a result, Stilo increased its final dividend to 0.05 pence per share to add to the interim payment of 0.03 pence to give a total dividend for 2015 of 0.08 pence, a third higher than the 0.06 pence paid in 2014.
Stilo said recurring revenue from software maintenance services was a smidgen higher in the year at GBP713,000 from GBP710,000 a year earlier.
The overall revenue growth in 2015 came from a 61% lift in revenue from Migrate, the world's first cloud XML content conversion service, as it won a string of new customers in 2015 including Qualcomm, Perceptive Software, Tridium, Infinera, Dell Software, Applied Materials, GE Medical, Molina Healthcare and Pitney Bowes.
North America remains the company's biggest geography, accounting for 67% of all of the company's sales in 2015 compared to 61% in the previous year. Europe accounted for 16% of overall revenue compared to 17% last year whilst Asia accounted for 14% of overall sales, which was flat from the previous year.
Sales in the UK only accounted for 2% of overall sales in 2015 compared to 3% last year whilst South America saw the biggest fall, contributing only 1% of overall sales compared to 5% last year.
Cash at the end of the year stood at GBP1.3 million, rising from GBP1.1 million at the end of 2014.
"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 planned for 2016, however, overall costs will continue to be carefully managed in order to maintain cash reserves at a satisfactory level," Stilo said.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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