Trading Update

RNS Number : 1877P

Amino Technologies PLC

08 June 2020

 

8 June 2020

AMINO TECHNOLOGIES PLC

(" Amino ", the "Company" or the " Group ")

Trading update

Transition to software-led business has supported resilience during COVID-19

Amino Technologies plc (LSE AIM: AMO), the global provider of media and entertainment technology solutions, announces a trading update for the six months ended 31 May 2020 ("H1 2020").

Our transformation to a software-led business has provided the Group with improved resilience during this COVID-19 period. Whilst we have experienced challenges in the supply chain and delayed orders, we have also seen increased viewing on our streaming platforms. The Group is well-diversified and continues to secure new business, particularly in OTT streaming. We have good visibility of orders and sales pipeline to meet revenue expectations for the financial year. However, it is still too early to quantify the potential negative impact of the current economic situation and therefore the outcome remains uncertain.

As outlined in our update on 30 March 2020, the safety of our people, business partners and customers remains our highest priority.

H1 2020 revenues are expected to be approximately $38.1m (H1 2019: $34.6m) of which approximately $9.8m relates to software and services (H1 2019 $3.6m) and $28.3m relates to devices including integrated software (H1 2019: $31.0m).  We continue to manage liquidity carefully, with $3.7m of gross cash, drawn credit facilities of $2.0m and undrawn credit facilities of $13.0m at 31 May 2020.

We have continued to invest in product development to support long-term profitable growth as we focus on our software-led strategy. COVID-19 has accelerated the usage of streaming services globally. We have therefore experienced increased business levels with existing customers; however, we anticipate that new business wins may be delayed in the second half of the financial year.

The Board remains confident that the Group's strategy, and focus on higher margin software, has built a strong platform to deliver future growth, notwithstanding uncertainty for the remainder of this financial year due to ongoing disruption from COVID-19.

Donald McGarva, Amino Chief Executive Officer, said:

"Our transformation to a software-led business positions us strongly to drive long-term profitable growth, and manage the challenges presented by COVID-19 in the short-term. We have a robust balance sheet and liquidity, and a well-diversified business that continues to deliver strong margins . Whilst we are seeing challenges arising from COVID-19, the underlying strength of our business model and strategy support our confidence for further progress going forward. "

For further information please contact:

Amino Technologies PLC	[phone]
Donald McGarva, Chief Executive Officer Mark Carlisle, Chief Financial Officer
finnCap Ltd (NOMAD and Broker)	[phone]
Matt Goode / Carl Holmes / Simon Hicks (Corporate Finance) Tim Redfern / Richard Chambers (Equity Capital Markets)
FTI Consulting (Financial communications)	[phone]
Jamie Ricketts / Chris Birt / Gregory Hynes

About Amino Technologies plc

Amino Technologies plc is a new breed of Media Tech business, focused on enabling operators to meet the challenge of the rapidly converging worlds of broadcast and next-generation streaming services. We believe the operators that will succeed will be those that allow consumers to control how, when and where they "watch TV" and consume video. The smart operator will enable each consumer to define what TV means to them.

It is our mission to anticipate the technological and consumer behavioural trends so that we can keep on creating the solutions that enable operators and media companies to drive growth in engagement and profitability while embracing the inevitable disruption to the video market. The Group meets these challenges through combining its award-winning IP/cloud platforms and deep deployment expertise to create solutions that enable our customers to design and deliver innovative and profitable next-generation video experiences.

Amino Technologies plc consists of two operating companies providing transformational media experiences: Amino Communications, with TV-centric solutions and 24i, focused on streaming and OTT experiences.

24i and Amino Communications are subsidiaries of Amino Technologies PLC which is listed on the London Stock Exchange Alternative Investment Market (AIM: symbol AMO), headquartered in Cambridge, Amino has offices in New York, Los Angeles, San Francisco, Amsterdam, Helsinki, Madrid, Porto, Brno and Hong Kong. For more details, visit https://investor.aminocom.com/

 

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