Stilo results and important matters re:AIM listing

Following the release of today's results from Stilo International, I have written a short blog post about the figures, the narrative and their AIM listing:-

https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/STL/14001536.html

Firstly, let's address this line where some have hinted it suggests that Stilo will seek a de-listing,

"Given our size, we continue to incur significant financial overheads associated with being a public listed company, but notwithstanding this we were able to generate a post-tax profit for the period of £177,000."

Whilst a de-listing is not out the question, it should be noted that Stilo's Directors hold less than 25% of the company's shares which makes it impossible at this juncture to secure a de-listing without significant support from it's other shareholders. If the company wanted to de-list they would need to make an offer for the entire share capital in my opinion i.e. a Management buyout. As a shareholder I would expect a far higher offer than the current lowly market cap.

As for today's results, I'm pleased that they still managed to make a profit after warnings earlier in the year, and I'm extremely pleased with a 20% hike in the proposed dividend (2018:0.12p, 2017:0.10p). Incidently, this is the 5th consecutive year of rising dividends. In short, they continue profitably with plenty of cash and a strong un-geared balance sheet.

As for the outlook, they appear non-committal at this stage. In fact, mixed messages possibly? We have:-

"The Company continues to invest in the development of leading technologies for the structured content market and in so doing build long-term value for shareholders. As we look forward to growing future sales, supported by healthy cash reserves and a strong balance sheet, I am pleased to announce the payment of an increased final dividend of 0.06 pence per share, providing a total dividend for the year of 0.12 pence".

then

"In the short term, growth will be primarily driven by sales of Migrate and OptimizeR solutions to new customers and we will be stepping up our sales, marketing and development efforts accordingly. 2019 is going to be a challenging year for the Company, with potential demand, as always, difficult to predict at the current time. " 

Here's my blog from September 2018. 

http://michae1mouse.blogspot.com/2018/09/its-steal.html

Not much has changed for me following these results. Stilo is undervalued and I continue to hold and await developments.