Trading Update

RNS Number : 7981H

Amino Technologies PLC

03 December 2015

 

3 December 2015

Amino Technologies plc

("Amino" or "the Company")

Trading Update

Amino Technologies plc (LSE AIM: AMO), the Cambridge-based provider of digital entertainment solutions for IPTV, Internet TV and in-home multimedia distribution, today provides the following trading update for the year ended 30 November 2015.

FY2015 financials

·      Revenue in line with revised market expectations

·      Profit in line with revised market expectations and prior year

·      Net cash ahead of market expectations at £2.1m and dividend policy reaffirmed

The Company is pleased to confirm that it is trading in line with revised market expectations (as updated following the trading update on 27 October 2015) for both revenue and profit before tax and exceptional items.

Net cash of £2.1m as at 30 November 2015, following the acquisition of Entone Inc. in August 2015, is ahead of market expectations (FY 2014: £20.8m).  The Board is pleased to be able to reiterate its commitment to the Company's progressive dividend policy of no less than 10% growth per annum up to and including the year ending November 2016.

Sales team actions

Further to the Company's trading update on 27 October 2015, Amino has restructured its sales team to address the problems in execution experienced in the second half of 2015. The new integrated sales organisation across the Amino and Entone businesses will be led by Steve McKay, who led Entone's international expansion and successfully secured a number of Tier 2 customers, including Cincinnati Bell, in his former role as CEO of Entone Inc.  The Company now has a better sales focus in all key regions, with dedicated teams for Latin America and Europe and a new combined sales team for North America.

Acquisition integration progress

The Group continues to make solid progress with regard to the Booxmedia and Entone acquisitions that were completed in May and August 2015 respectively. The Entone acquisition is expected to drive significant cost synergies and the integration of teams and product lines of each acquired company is on schedule.

The acquisition of Entone has strengthened the combined group position in the North American market with the addition of direct Tier 2 operator customers - Cincinnati Bell and Consolidated Communications Inc. - complementing existing distribution partners serving Tier 3 operators.  The enlarged group has also brought stability in Western Europe to a wider base of Tier 2 operator customers.  Eastern Europe has been more challenging, with the potential consolidation of a major South Eastern European customer impacting further roll out of their IPTV solution.

Since the completion of the acquisition of Entone, the Company is engaged in a number of new hybrid TV opportunities based on Entone's portfolio.

Booxmedia sales and marketing plans have progressed well with two major customer wins secured in the second half of 2015.  Dutch utilities and digital services company DELTA selected Booxmedia's white-label platform and products to provide, install and maintain a new end-to-end multiscreen cloud TV solution.  Belgian broadcaster RTL selected Booxmedia to provide, install and maintain a full end-to-end cloud video-on-demand (VOD) platform.

Management update

The Board of Amino Technologies also announces that Julia Hubbard, Chief Financial Officer, has recently taken a short leave of absence from the business with the Board arranging appropriate cover for her absence through the services of Julian Sanders, who previously acted as Amino's Interim Chief Financial Officer during Julia's maternity leave in 2014.  Julia's leave of absence has now been extended beyond the short period originally envisaged by the Board and accordingly Julian will continue to provide interim support.

Commenting on the announcement, Keith Todd CBE, Non-Executive Chairman, said: 

"I am pleased to report that revenue and profits are in line with revised expectations. Our executive team have focused on improving our sales capabilities and structure to ensure we can best meet our existing and potential new clients' needs across our key geographies and drive growth. This, coupled with strong progress in the integration of Entone as well as the great progress at Booxmedia, are already starting to be reflected in increased interest in our cloud TV and IPTV broadcast offerings."

-Ends-

For further information please contact:

Amino Technologies PLC	[phone]
Donald McGarva, Chief Executive Officer
Julian Sanders, Interim Chief Financial Officer
finnCap Ltd (NOMAD and Joint Broker)	[phone]
Stuart Andrews / Matt Goode / Carl Holmes (Corporate Finance) Simon Johnson (Corporate Broking)
Canaccord Genuity Limited (Joint Broker and Financial Adviser)	[phone]
Simon Bridges / James Craven / Emma Gabriel
FTI Consulting LLP (Financial PR)	[phone]
Matt Dixon / Chris Lane / Alex Le May / Nicola Krafft

About Amino Technologies plc

Amino Technologies plc specialises in the development and delivery of IPTV/OTT solutions. With over five million devices sold to 1,000 customers in 100 countries, Amino's award-winning solutions are deployed by major network operators and service providers worldwide. During 2015, Amino has enhanced its offering through the acquisition of Entone Inc., a provider of broadcast hybrid TV and connected home solutions, and cloud TV platform provider Booxmedia.  Amino Technologies plc is headquartered near Cambridge, in the UK, and is listed on the AIM market of the London Stock Exchange (AIM: symbol AMO).

 

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