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TV, everywhere: Amino's acquisitions are paying off

The online television group's acquisitions helped it to win customers and break into new markets
July 11, 2016

Consumers' insatiable desire to watch television shows on the move has driven pay-TV companies and mobile operators to the door of Amino Technologies (AMO), a specialist in video-streaming technology. Include a boost from two acquisitions in 2015 and exclude £3.5m in one-off takeover and restructuring costs, and operating profit climbed 6 per cent to £3m in the reported period.

IC TIP: Buy at 112p

Amino's purchases of Booxmedia and Entone - specialists in mobile streaming and delivering both broadcast and online television, respectively - added new products and customers. However, they conspired to shrink the gross margin by 7.2 percentage points to 43.6 per cent. Management didn't break out organic growth as the businesses are inextricable, but it anticipates overall annual sales growth of 8 to 10 per cent.

The enlarged group won work with US telco Cincinatti Bell and renewed its contract with Vodafone Netherlands. Delta, a Dutch utilities company, also rolled out cloud TV services on its platform. And it signed up several operators in Latin America, reflecting market deregulation and a growing appetite for online TV.

Broker finnCap expects adjusted pre-tax profit of £8.7m, giving EPS of 11.4p (from £5.1m and 7.3p in FY2015).

AMINO TECHNOLOGIES (AMO)
ORD PRICE:112pMARKET VALUE:£79m
TOUCH:110-113p12-MONTH HIGH:170pLOW: 101p
DIVIDEND YIELD:5%PE RATIO:na
NET ASSET VALUE:61p*NET CASH:£3.1m

Half-year to 31 MayTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
201517.93.66.91.265
201633.0-0.5-0.81.391
% change+84--+10

Ex-div: 1 Sep

Payment: 22 Sep

*Includes intangible assets of £48.2m, or 68p a share