What TV software specialist Amino Technologies (AMO) lacked in top-line momentum, it made up for in strong recurring revenue growth (up 38 per cent to £3.3m) and a huge boost to full-year earnings. Not to mention a significant gross margin improvement, from 42.9 per cent to 46.9 per cent – driven by efficient supply chain management.
The group attributed static revenues to a “shift in product mix”. This stemmed largely from varying demand for products in each customer region. In North America, Amino’s largest market, revenues rose by an impressive 22 per cent to £47.4m. Latin American sales fell 35 per cent to £8.4m, as Amino’s largest customer here focused on using up the prior year’s inventory. Still, management sees significant growth potential for this market, and believes deregulation should help boost demand for products. European sales also dropped 20 per cent to £18.1m, after a change in ownership for a key customer. But Amino has now retained this business on a multi-year contract.
Analysts at FinnCap forecast pre-tax profits of £7.9m and earnings per share of 9.6p for the year to November 2018, down from £9.6m and 15.5p in 2017.
| AMINO TECHNOLOGIES (AMO) | ||||
| ORD PRICE: | 196p | MARKET VALUE: | £142m | |
| TOUCH: | 194-197p | 12-MONTH HIGH: | 220p | LOW: 175p |
| DIVIDEND YIELD: | 3.4% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 75p* | NET CASH: | £13m | |
| Year to 30 Nov | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2013 | 35.9 | 4.2 | 7.9 | 3.45 |
| 2014 | 36.2 | 4.0 | 7.7 | 5.00 |
| 2015 | 41.7 | 0.3 | 0.6 | 5.50 |
| 2016 | 75.2 | 2.9 | 3.8 | 6.05 |
| 2017 | 75.3 | 9.6 | 15.5 | 6.66 |
| % change | +0 | +237 | +307 | +10 |
| Ex-div: | 5 Apr | |||
| Payment: | 27 Apr | |||
| *Includes intangible assets of £45.3m, or 62p a share | ||||
