Stilo International......have you noticed this penny share ?

End of a complete turnaround year for Stl that has really yet
to affect the share price.

First half results were excellent considering the profits
warning issued at the start of the year :

LONDON (AFX) - XML software specialist company Stilo International PLC
narrowed is first half losses as its turnover rose by a fifth, and said it sees
further progress in the second half.
Six months to June pretax loss before exceptionals narrowed to 128,000 stg
from 695,000, while sales rose to 1.231 mln from 1.034 mln.
The group said its Content Engineering Division traded profitably in the
first half, and group operating expenses were cut by 20 pct. However, the
Knowledge Engineering Division's losses were greater than planned. Stilo said it
has plans to ensure that divisional losses will not be continued beyond 2004.
March saw a successful share placing, raising 900,000 stg net of costs, so
that cash balances at the end of June were 1.215 mln stg.
Chairman Barry Welck said he expects the company "will continue to make
progress in its performance for the second half of 2004 and beyond."

They stood by their word and closed down the Knowledge Engineering Business :

"Stilo also said it closed its Knowledge Engineering business, based in
Bristol, as at Nov 30 2004. This is in line with the board's stated intention,
announced on Sept 8, to take such steps as may be necessary to ensure that
losses for the division do not extend beyond 2004"

Now that should mean a profitable company now that just needs to concentrate
on increasing turnover to deliver bigger profits so the latest acquisition makes sense :

LONDON (AFX) - Stilo International PLC said it has acquired certain assets
and contracts comprising the content engineering division of Xia Systems
Corporation, Ottawa for around 108,000 stg in cash, financed from the company's
existing resources.

And then shortly afterwards the chairman buys 700k to add to his holding.

Stilo International Plc ("Stilo" or the "Company") has been informed today that
on 9 December 2004 Mr Barry Welck, Non-executive Chairman of Stilo, acquired
700,000 ordinary shares at a price of 4.6 pence per share held directly by The
Welck Trust, of which he is the beneficial owner. Following this transaction Mr
Welck's beneficial holding is now 2,125,040 shares representing approximately
2.35 per cent. of the issued share capital of the Company.

I'm still amazed by the lack of interest in this stock, it's like a jigsaw
puzzle were all the pieces are going in the right places yet at present there
is still no reward, this stock should be trading much higher.

It could well be tipped at new year !

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