Amino bounceback literally pays dividends and sets up acquisitions
Quoted Cambridge company Amino Technologies is reintroducing dividend payments after boosting revenues and profit for the year to November 30 – and says it is in the market to make strategic acquisitions.
It is a remarkable performance in the face of the coronavirus pandemic and sent the UK share price 6.30 per cent higher in early trading on Tuesday.
Amino is a software-led global media technology business that delivers modern TV experiences.
The group expects to report total revenue of approximately $83 million, representing around an eight per cent increase on the prior year with adjusted operating profit slightly ahead year-on-year.
Amino further reports enhanced visibility with an exit run rate annual recurring revenue of approximately $11 million, up from $9.5m on last year. It also revealed a strengthened net cash position of $9.4m (November 30, 2019: $1.4m) and no debt.
In line with its software-led strategy to create an increasingly predictable and resilient revenue base, Amino 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.
The new dividend policy reflects Amino’s continued resilience and strategy of growing ARR. It is targeted at delivering income returns to shareholders through the payment of an annual full year dividend of between 33 pr cent and 50 per cent 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 intention is to pay approximately 1/3 of the full year dividend as an interim dividend and approximately 2/3 as a final dividend.
CEO Donald McGarva 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.
“The pandemic has accelerated structural shifts in viewer behaviour 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.
“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.”