Set-top box designer Amino Technologies (AMO) may have reported flat half-year sales, but a combination of cost-cutting and a shift towards higher-margin products is boosting earnings. Indeed, cash profit soared to £3.3m from £1.8m a year ago, and the group's gross margins jumped to a healthy 46 per cent from last year's 35 per cent.
Exceptional items bolstered the reported figures - £1.7m of tax rebates outweighed £0.7m in restructuring charges related to the closure of Amino's Swedish office. Further tax rebates could be on the cards in the second half, too, although management admits this is far from certain and would, in any case, be for a smaller amount. With a big chunk of full-year profit forecasts already accounted for, however, and confidence in the business growing, the group announced a maiden dividend payout. Management also reiterated guidance that the total dividend would rise by no less than 15 per cent this year, to around 3.5p a share.
Broker N+1 Singer expects adjusted full-year pre-tax profit of £3.2m, giving EPS of 6.1p, rising to £3.6m in 2014, with EPS of 6.9p (from £2.9m and 5.4p in 2012).
AMINO TECHNOLOGIES (AMO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 89p | MARKET VALUE: | £49m | |
| TOUCH: | 87-91p | 12-MONTH HIGH: | 93p | LOW: 50p |
| DIVIDEND YIELD: | 4.5% | PE RATIO: | 9 | |
| NET ASSET VALUE: | 43p | NET CASH: | £18.2m | |
| Half-year to 31 May | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 20.1 | 0.21 | 0.34 | nil |
| 2013 | 20.1 | 2.63 | 5.02 | 1.0 |
| % change | - | +1152 | +1376 | - |
Ex-div: 4 Sep Payment: 20 Sep | ||||
