Amino Technologies plc (LON:AMO), a software-led global media technology company that delivers modern TV experiences, announces a trading update for the year ended 30 November 2020. All key metrics are expected to have tracked ahead of the prior year, demonstrating a resilient trading performance. Consequently, the Board has decided to reintroduce dividends under a new dividend policy.
Trading update
The Group expects to report that all key metrics have tracked ahead of the prior year, delivering a strong and resilient trading performance. The Group has successfully navigated the COVID-19 pandemic’s challenges and expects to deliver profitability ahead of the prior year.
The Group expects to report1:
| · | total revenue of approximately $83 million, representing a c.8% increase on the year ending 30 November 2019 (“FY19”); |
| · | adjusted operating profit2 slightly ahead of FY19; |
| · | improved quality of earnings with higher margin software revenue of approximately $20 million, representing a c.50% increase on FY19; |
| · | enhanced visibility with an exit run rate Annual Recurring Revenue (“ARR”) of approximately $11 million, up from $9.5m at 30 November 2019; |
| · | a strengthened net cash position of $9.4m at 30 November 2020 (30 November 2019: $1.4m) and no debt. |
In line with its software-led strategy to create an increasingly predictable and resilient revenue base, the Group has made continued progress during the year in signing new customers, increasing ARR and driving software revenues. With increased visibility of revenues from both new business opportunities and from its focus on growing ARR, the Board expects Amino to continue to grow profits and operating cash flow whilst continuing to invest in its product portfolio.
New dividend policy
Following a period of robust trading and continued cash generation, achieved in spite of COVID-19 supply chain and market uncertainty, the Board announces a new dividend policy, reflecting Amino’s continued resilience and strategy of growing ARR. The Company’s new dividend policy is targeted at delivering income returns to shareholders through the payment of an annual full year dividend of between 33% and 50% of adjusted annual earnings per share, depending on the investment requirements of the Company each year, in addition to targeting capital growth from share price appreciation. The Company’s policy is to pay approximately 1/3 of the full year dividend as an interim dividend and approximately 2/3 as a final dividend.
The Board expects to recommend a final dividend for FY20 under this policy at the lower end of the payout range alongside its full year results, expected to be published in February 2021 with the dividend expected to be paid in April 2021, following approval by shareholders at the Annual General Meeting in March 2021.
Notice of results
More detail will be provided at the Company’s full year results for the year ended 30 November 2020 expected to be announced on 9 February 2021.
Donald McGarva, Chief Executive Officer of Amino Technologies, said:
“In a year of unprecedented challenge, we have continued to execute our strategy and delivered a resilient performance. Despite the impact of COVID-19 we maintained our previous financial guidance throughout the year and expect to report all key performance metrics ahead of 2019. We have grown our recurring software revenues, improved the quality of our earnings, secured new customers and consequently enter the new financial year with enhanced visibility. This achievement has been made possible by the passion of our employees, our innovative software solutions and the strength of our customer relationships.
The pandemic has accelerated structural shifts in viewer behavior and expectations. Traditional TV and content streaming are converging, with viewers wanting the best of both worlds. Amino is positioned to capture this opportunity, making it easy for people to connect to the TV and video they love. To keep pace with this change, the owners and distributors of TV programming need to rapidly evolve their business models. Amino’s technology and solutions make this evolution possible.
Looking to the year ahead, in light of our robust performance, cash generation and balance sheet strength, the Board has announced a new dividend policy in order to target delivering shareholder value from both capital growth and income. We enter the new financial year with enhanced visibility and quality of earnings and a clear strategy to enable the structural shifts in the TV market through innovative software with the aim of delivering significant revenue and profit growth over the medium term. This growth is expected to be delivered both organically, and from the execution of selective M&A opportunities.”
| 1 | All numbers in this section are unaudited. |
| 2 | Adjusted operating profit is a non-GAAP measure and excludes amortization of acquired intangible assets, exceptional items and share-based payment charges. |
