Economic headwinds blow Amino off course
Amino Technologies in Cambridge saw more than 16 per cent chipped off its UK share price after a plunge in revenues and profits for the year ended November 30.
Non-executive chairman Keith Todd said unprecedented macro-economic headwinds allied to continued industry transformation impacted the performance.
Amino provides media & entertainment technology solutions to network operators worldwide. Revenue fell seven per cent to £88.9m and adjusted pre-tax profit plummeted 26 per cent to £11.2m.
As a show of confidence in its future prospects the company continued its policy of hoisting the dividend to shareholders – by 10 per cent to 7.32p per share.
Todd said: “The board remains confident in the strength and strategic direction of the company and has committed to continue its dividend policy for this financial year and maintain this dividend level for at least two years thereafter.
“The diversity and depth of change in our industry this year has created difficult trading conditions in the short term, however the company remains well positioned to take advantage of the all IP future, and remains profitable and cash generative.
“2018 presented Amino with unprecedented macro-economic headwinds which, together with continued industry transformation, impacted our performance.
“Amino delivered a resilient performance in this context, with excellent cash generation supporting a net cash position and strong balance sheet.
“Swift and decisive management action was taken on cost protected group margins. Amino continues to make good progress with its three long-term growth priorities: IP/Cloud TV Everywhere, Operator Ready Android TV and Upcycling legacy devices to next generation TV experiences.
“To support a higher quality of earnings and de-risk the business, we are accelerating our strategy to improve growth in recurring revenues from software and services, reinforce our focus on value-add hardware, and remove our exposure to low margin hardware activities. This will increase the quality of our earnings and our resilience going forward.”