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A silver lining for Amino Tech

The digital-streaming specialist delivered strong full-year metrics on the back of integration benefits and currency translations in the wake of the EU referendum.
February 7, 2017

Management at Aim-traded Amino Technologies (AMO), which sells hybrid TV devices and services, highlighted the scale benefits flowing through from a suite of acquisitions completed in 2015. But even excluding their impact, revenues for its November year-end were still up 7 per cent. Revenues at its largest division, devices, were up 70 per cent to £67.1m, while the top line more than tripled at its software and services unit, to £8.1m.

IC TIP: Buy at 190p

With around 95 per cent of group revenues and sales costs transacted in dollars through the year, reported figures were buoyed by sterling's post-referendum decline. That fed into an already robust cash profile, with operating cash flows equivalent to 149 per cent of cash profits. A series of product launches meant that the gross margin pulled back by 190 basis points.

Canaccord Genuity expects adjusted profits of £10.9m for the November 2017 year-end, leading to EPS of 11.9p (from £10.2m and 11.5p in FY2016).

 

AMINO TECHNOLOGIES (AMO)
ORD PRICE:190pMARKET VALUE:£136m
TOUCH:186p-193p12-MONTH HIGH:192pLOW: 101p
DIVIDEND YIELD:3.2%PE RATIO:50
NET ASSET VALUE:64p*NET CASH:£6.2m

Year to 30 NovTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
201241.72.95.53.00
201335.94.27.93.45
201436.24.07.75.00
201541.70.30.65.50
201675.22.93.86.05
% change+80+785+525+10

Ex-div: 6 Apr

Payment: 28 Apr

*Includes intangible assets of £47m, or 66p a share