Amino Technologies plc (LON:AMO), a software-led global media technology company that delivers modern TV experiences, has announced its preliminary results for the year ended 30 November 2020.
Donald McGarva, Chief Executive Officer of Amino Technologies plc, said:
“Despite the impact of COVID-19, in 2020 Amino delivered a strong performance and we maintained our previous financial guidance through the year. All our key metrics tracked ahead, demonstrating that the software-led strategy we are following is delivering results. Like many, our business model has been tested in this challenging year but the financial and operational progress we have made, along with the opportunity we see ahead, give us the confidence to recommend a dividend. I would like to thank our amazing Amino team for seamlessly adapting to remote working, staying close to our customers without missing a beat and continuing to innovate throughout the pandemic.
To position Amino for future success, we recently launched our Amino 2025 strategy to capitalise on the convergence of streaming services, which is where we see the greatest opportunity for growth. COVID-19 has accelerated structural shifts in the TV viewing experience. Modern consumers not only want the ‘best of both worlds’ – video on demand and live TV working together seamlessly – but they increasingly expect it. Our Amino 2025 strategy is built around making this expectation a reality.
Our business and culture stand stronger today. With a pressing need for the solutions and services we deliver, Amino is trading in line and has started the new financial year from a position of strength. We have a clear strategy to drive software-led growth and to capitalise on real structural shifts, supported by our enhanced visibility and an acute focus on driving recurring revenue and strengthening our long-term customer relationships. We look forward to making further progress in the year ahead.”
Financial highlights
| US$m unless otherwise stated | 2020 | 2019 |
| Revenue Adjusted gross profit (1) Adjusted operating profit (2) Adjusted operating cash flow (3) Adjusted basic earnings per share (US cents)(4) | 82.7 39.7 10.5 18.2 10.07 | 77.2 35.7 10.2 17.2 11.00 |
| Statutory gross profit Statutory operating profit Statutory operating cash flow Statutory basic earnings per share (US cents) | 40.7 5.1 16.8 4.06 | 37.2 4.3 13.8 4.04 |
| Net cash Dividend per share (GBP pence) | 9.5 1.87 | 1.4 1.68 |
Financial highlights
· Achieved growth across all five Key Performance Indicators
· Improved quality of earnings and enhanced visibility
o High margin software revenue up 49% to $19.5 million (2019: $13.0million), total now 24% of Group revenues
o Exit run rate Annual Recurring Revenue (“ARR”) (5) up 12% to $10.6 million (2019: $9.5million)
· Strong balance sheet with significantly strengthened net cash position
· New dividend policy to provide shareholders with an income return as well as targeting capital growth
· Board recommends a dividend of 1.87p
Strategic and operational highlights
· Transition to software and services led business model progressing as planned
· Continued innovation and stayed close to our customers throughout the pandemic, while also expanding addressable market by landing new customers
o New business wins at Slovak Telecom, CWC, Broadway HD and Topic
· Key implementations for multiscreen video at YOUFONE, a Netherlands based MVNO(6)
· Deployment of our Android Pay TV+ solution with GO and CABLENET to add a new modern user experience and leading streaming services for their subscribers
· Impressive employee engagement with NPS score at 26%
· Introduced global graduate recruitment programme to drive industry innovation and attract talent
Launch of Amino 2025 strategy to address the convergence of streaming services
· Our ambition is to triple Group revenues and drive recurring revenue as a percentage of Group software revenues to 70% by 2025
· Traditional TV and content streaming are converging, driven by consumer needs
· ‘Best of both worlds’ is video on demand and live TV working together seamlessly
· Streaming market set to double to $167 billion by 2025 according to Digital TV Research
· This provides the greatest opportunities to drive software-led growth and capitalise on the structural shifts in the TV market to:
o Improve our quality of earnings through increased recurring revenue
o Drive higher margin solutions through growth in software and services revenues
o Deliver the technology to revolutionise viewer choice, usability and convenience
o Use actionable data to drive outcomes for our customers and their viewers
· We continue to assess M&A that will help drive the business forward and speed time to market
· Amino Technologies is well positioned to capture this opportunity, making it easy for people to connect to the TV and video they love
Current trading and outlook
· Amino entered 2021 with a solid order book, enhanced visibility and increasing quality of earnings
· Current trading is in line with the Board’s expectations
· Focused on growing software and services, ARR and strengthening long term relationships
· Amino 2025 strategy aims to deliver significant revenue and profit growth over the medium term
· Growth is expected to be delivered both organically, and via selective M&A opportunities
· Board strengthened with the appointment of Steve Oetegenn
Notes
| (1) | Adjusted gross profit is a non-GAAP measure and excludes exceptional items. Further details of these adjustments are set out in note 4. |
| (2) | Adjusted operating profit is a non-GAAP measure and excludes amortisation of acquired intangibles, exceptional items and share-based payment charges. Further details of these adjustments are set out in note 4. |
| (3) | Adjusted operating cash flow is a non-GAAP measure and excludes exceptional items. Further details of these adjustments are set out in note 10. |
| (4) | Adjusted basic earnings per share is a non-GAAP measure and excludes amortisation of acquired intangibles, exceptional items and share-based payment charges. Further details of these adjustments are set out in note 6. |
| (5) | Exit run rate ARR is annual run-rate recurring revenue as at 30 November 2020. |
| (6) | Mobile Virtual Network Operator |
