Amino revenues lifted by transition to software-led model
The UK share price for Amino Technologies plc headed slightly north at the start of trading after a promising trading update for the six months to May 31.
Revenues are strongly up and CEO Donald McGarva says the transition to a software-led business has built in greater resilience for Amino.
First-half revenues are expected to be around $38.1 million (H1 2019: $34.6m) of which some $9.8m relates to software and services ($3.6m) and $28.3m relates to devices including integrated software ($31m).
The company says it continues to manage liquidity carefully, with $3.7m of gross cash, drawn credit facilities of $2m and undrawn credit facilities of $13m at May 31.
McGarva said: “Our transformation to a software-led business positions us strongly to drive long-term profitable growth and manage the challenges presented by COVID-19 in the short-term.
“We have a robust balance sheet and liquidity and a well-diversified business that continues to deliver strong margins. Whilst we are seeing challenges arising from COVID-19, the underlying strength of our business model and strategy support our confidence for further progress going forward.”
Amino says it has continued to invest in product development to support long-term profitable growth as it focuses on the software-led strategy.
COVID-19 has accelerated the usage of streaming services globally. Amino has therefore experienced increased business levels with existing customers. However, it anticipates that new business wins may be delayed in the second half of the financial year for which visibility is less certain.