Amino Technologies plc (LON:AMO), the global provider of media and entertainment technology solutions, has announced unaudited results for the six months ended 31 May 2020.
Financial summary
| $m unless otherwise stated | H1 2020 | H1 2019 | Change | |
| Revenue | 38.0 | 34.6 | 10% | |
| Adjusted gross profit (1) | 19.0 | 15.4 | 24% | |
| Adjusted gross profit margin (%) | 50.1% | 44.5% | 6pp | |
| Adjusted operating profit | 4.2 | 4.7 | (11%) | |
| Adjusted profit before tax (1) | 3.9 | 4.7 | (17%) | |
| Adjusted basic earnings per share (US cents)(1) | 4.88c | 6.12c | (21%) | |
| Statutory gross profit | 19.2 | 15.9 | 20% | |
| Statutory operating profit | 0.7 | 2.1 | (68%) | |
| Statutory profit before tax | 0.5 | 2.2 | (79%) | |
| Statutory basic earnings per share (US cents) | 0.92c | 2.94c | (69%) | |
| Net cash | 2.1 | 19.3 | ||
| Interim dividend per share (GBP pence) | – | 1.68p |
Strategic and operational highlights
- Transformation to software-led strategy leading to improved quality of earnings
- Strong platform to capitalise on changing market dynamics
o Well diversified business: TV Solutions (Amino) and streaming / online video (24i)
o Accelerated use of streaming services globally
- Continuing to win new business (particularly OTT streaming) with new and existing customers
- Managing the impact of Covid-19
o Health and well-being of people and customers top priority
o Supply chain disruption minimised by close collaboration with customers and suppliers
o Factory capacity at manufacturing partners back to pre-Covid-19 levels
- Amino device business continues to generate cash
- Investment in product development for long-term profitable growth
o 24i: end-to-end platform deployment in the Netherlands
o SmartVideo: first deployment outside EMEA
o AminoOS: Android TV device deployments; Amazon Prime certification; and Disney+
Financial highlights
- Revenues up 10%, reflecting focus on software-led strategy
o Software and services revenues now account for 26% group revenues (H119: 10%)
o Recurring revenues doubled to c.$10m
- Adjusted operating profit decreased by 11%, as expected, as a result of ongoing investment into 24i next generation platform and delays to some customer orders due to Covid-19 lockdown conditions
- Adjusted cash flow from operations was $4.8m (H1 2019: $8.1m) reflecting the impact on working capital from the mix of orders from customers with longer payment terms than at the end of FY 2019
- Managing liquidity carefully: $4.3m gross cash; $13m undrawn credit facilities
- Well diversified business continues to deliver strong margins
Current trading and outlook
- Visibility of orders and sales pipeline support management’s FY20 revenue expectations
- However, it is possible that new business wins in H2 2020 may be impacted by any further negative Covid-19 impacts on the global economy and potential knock on impact for our customers and our supply chain
Karen Bach, Non-Executive Chairman, said:
“Amino has a clear strategy: in the long term, to focus on software-led business, and in the near term, to place the needs and wellbeing of customers and employees above all else. This has supported a resilient performance during Covid-19, with significant growth in software-led and recurring revenues, and an excellent improvement in gross margins given the macro backdrop.
Our goal is to provide our operator, broadcast and media customers with enabling technologies that fulfil and anticipate consumer-led expectations and requirements. The Board is confident that Amino has the right foundation to meet its goals, and expect to make further progress in the second half of the year.”
