Stilo to pay first and special dividends after profits leap

12th Sep 2013 07:48

AIM-listed computer technology provider Stilo International is set to pay its first dividend, along with a special dividend, after delivering an upbeat first half report. The dividend payment will be 0.02p per share, while the special dividend will be 0.1p a share. Pre-tax profit for the period totalled £72,000 (2012 H1: £2,000) on revenues of £733,000 (2012 H1: £702,000). Revenue generated from software maintenance contracts held broadly level at £371,000 (2012: £378,000).Earnings before interest, tax, depreciation and amortisation (EBITDA) over the six month period rose to £97,000 (2012 H1: £26,000).The group's cash position increased to £1.0m from £0.97m. Chairman David Ashman said: "Following a steadily improving cash position over recent years, and an encouraging set of interim results which show continued profitability, I am pleased to announce the payment by Stilo of its first interim dividend together with an additional special dividend. This has been made possible by the completion of the capital reduction process, recently announced."With leading technology and expertise in the XML/SGML content processing sector, the company is well placed to make further progress."The capital reduction was agreed earlier this month, after the High Court of Justice Chancery Division approved the cancellation of the share premium account, which stood at £5.52m, along with the cancellation of 452m deferred shares. The cancellation of the deferred shares will reduce the called up share capital of the company from £5.6m to £1.1m. The group added that the global market for dynamically publishing digital content to desktop computers, laptops, tablets and mobile devices is "rapidly expanding" and it believes it will be able to continue to build on its current position in the DITA XML content conversion market while exploring further opportunities for automated XML content processing solutions.NR