Amino Technologies, a UK-based provider of digital entertainment solutions for IPTV, Internet TV and in-home multimedia distribution, has published a trading update for the six months ending May 31st 2016.
Trading for the period was in line with market expectations for revenue, and profit before tax and exceptional items. Net cash of £3.1 million as at May 31st (FY 2015: £2.1 million), after record outflows of £3 million for dividend payments and £1.2 million for acquisition-related cash outflows, is ahead of expectations.
The company said it has has delivered a strong first half performance with record order intake and a very encouraging backlog to take into the second half of the year following sales growth in key regions.
The integrations of the 2015 acquisitions of Booxmedia and Entone were completed during the period broadening the Company’s product offering and addressable markets. Cost savings from synergies between the businesses are in line with previously revised expectations.
Amino’s new differentiated portfolio, encompassing the twin growth drivers of hybrid TV and cloud services, is now being driven by a unified and expanded sales team with encouraging early market traction and improved pipeline visibility.
Sales performance has been particularly strong in Latin America, with repeat orders from existing customers and new contract wins from operators transitioning to IPTV deployments as part of fibre network roll-outs. There has also been continued traction in North America, across both IPTV and cable customers, with good progress in the previously announced contract with Cincinatti Bell Inc. to migrate its legacy IPTV devices to Amino’s Enable TV software platform. A number of new customer wins have also been secured in the region during the period.
In Europe, the renewal of an existing contract with Vodafone Netherlands was a positive signal of the Company’s ability to retain and grow key customer accounts. Likewise, the recent launch by Dutch operator DELTA of cloud TV services, based on an Amino platform, underlines the growing appetite for multiscreen entertainment service delivery and demonstrates the rationale of the 2015 acquisitions.
The Board said is pleased to confirm that it intends to recommend an interim dividend of 1.391 pence per share (H1 2015: 1.265 pence per share), representing a 10 per cent year-on-year increase. This is in line with the Company’s commitment to pursue a progressive dividend policy of no less than 10 per cent growth per annum, up to and including the year ending November 2016. Further details on the interim dividend will be given at the time of the Company’s interim results announcement on July 11th.
Commenting on the announcement, Keith Todd CBE, Non-Executive Chairman, said: “It’s encouraging to report a strong first half performance with record order intake and a very solid order backlog going into the second half. Revenue and profit before tax and exceptional items are in line with market expectations and continued strong cash generation has resulted in a closing cash position ahead of expectations. Amino is now in good shape – with the integration of Booxmedia and Entone complete and clearly defined propositions for target markets, supported and driven by a strengthened and focused sales team providing improved visibility of sales performance and prospects. We look forward with confidence to the second half of the year.”