TIDMAMO
RNS Number : 2699J
Amino Technologies PLC
15 July 2013
AMINO TECHNOLOGIES PLC
INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 MAY 2013
Amino Technologies plc ('Amino' or the 'Company') (LSE: AMO),
the Cambridge-based leader in digital entertainment solutions for
IPTV, Internet TV and in-home multimedia distribution, announces
unaudited consolidated results for the period ended 31 May 2013,
which demonstrate further improvements in gross margin and
operating profit.
Financial Overview
-- Revenue of GBP20.1m (H1 2012: GBP20.1m)
-- H1 operating profit increased to GBP2.6m (H1 2012: GBP0.2m)
- Operating profit before exceptional items up 735% to GBP1.7m
(H1 2012: GBP0.2m)
- Total operating profit figure includes previously announced
duties rebate of GBP1.7m and restructuring cost of GBP0.7m
-- EBITDA before exceptional items up 83% to GBP3.3m (H1 2012: GBP1.8m)
-- Gross profit up 30% to GBP9.3m (H1 2012: GBP7.1m) and gross
margin improvement of 10.8 percentage points to 46.2% (H1 2012:
35.4%)
-- Basic earnings per share excluding exceptional items increased to 3.23p (H1 2012: 0.34p)
-- Increase of 32% in net cash balance to GBP18.2m (H1 2012:
GBP13.9m) driven by continued margin focus, tight cost control and
strong working capital management
-- Interim dividend of 1p per share - with commitment to the
progressive full year dividend policy announced at the end of
2011.
Business highlights:
-- Focused "win back" campaigns secure North American market growth
-- Lower specification product secures important contract wins in emerging markets
-- Positioned strongly and gaining traction in "pure OTT" market
-- Live home media centre progressing to plan with general
availability towards the end of the year
-- Shortened lead times via lean supply chain help secure customer wins
-- Research and development teamwork benefits from single site focus
-- Margin enhancement as all customers migrate to current product range
Commenting on the results Keith Todd CBE, Non-Executive Chairman
said:
"This solid set of results underlines the progress Amino is
making against its goal of profitable growth and improvements in
shareholder returns. During the period, we have enhanced our
competitiveness in our markets through a clear and compelling
proposition - quality robust products, operational performance and
rapid delivery to meet demanding customer expectations. Our ability
to flex our portfolio is demonstrated by new contract wins from
target customers in both emerging and established markets.
"In line with our previously announced progressive dividend
policy, the Board is pleased to announce that an interim dividend
of 1p per share in respect of 2013 will be payable in September
2013. The Company is well placed to continue its growth strategy
and the Board remains confident that results for the full year will
be in line with current market expectations."
For further information please contact:
Amino Technologies plc +44 (0)1954 234100
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Keith Todd CBE, Chairman
Donald McGarva, Chief Executive Officer
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Julia Hornby, Chief Financial Officer
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FTI Consulting LLP +44 (0)20 7831 3113
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Matt Dixon / Chris Lane / Lucy Delaney
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finnCap Limited +44 (0)207 600 1658
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Charlotte Stranner / Simon Hicks -
Corporate Finance
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Victoria Bates / Stephen Norcross
- Corporate Broking
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About Amino Technologies plc
Amino Technologies plc specialises in the development and
delivery of IPTV and hybrid/OTT solutions. With over four million
devices sold to 850 customers in 85 countries, Amino's
award-winning solutions are deployed by major network operators and
service providers worldwide. Amino Technologies plc is listed on
the AIM market of the London Stock Exchange (AIM: symbol AMO). It
is headquartered near Cambridge, in the UK, with offices in the US
and China. For more information, please visit www.aminocom.com
Chairman's statement
Amino has delivered a solid set of half year results as the
Company continues to build on the firm foundations established over
the last 18 months. Improvements in profitability, gross margins
and cash position clearly indicate how the business is consistently
executing against its goals. The sharp focus on quality solutions,
supported by solid operational performance and a clear-sighted
understanding of regional market requirements, is creating a good
platform for further profitable growth.
Demand for the Company's offering remains strong. Amino's IPTV
portfolio is closely aligned with operator strategies to deliver a
mix of pay-TV and new services delivered "over the top" ("OTT") via
the open Internet.
The continued focus on software and hardware quality and
shortened delivery timescales - supported by expert customer
support - has created a powerful proposition in all target markets.
Industry-leading low return rates on Amino products have also
become a key competitive edge as operators concentrate on reducing
deployment and operational costs.
In North America, the benefit of focused customer campaigns has
continued. Several "win backs" in highly competitive pitches
underline the strength of the Amino brand. During the half year,
contracts were secured with customers including HickoryTech and
companies who are seeing the benefit of increased investment in
fibre networks via the government-backed broadband stimulus
programme.
As detailed at the year end, Amino has developed a
lower-functionality and specified device for emerging and
established markets where cost is the principal purchasing driver.
This is proving to be a successful strategy in specific regions
with contract and tender wins in Eastern Europe and Latin
America.
The growth in the pure OTT market - whereby operators deliver
services directly over the open Internet - is also proving
attractive, with the Company securing contracts with Russian
language TV service KartinaTV and Mexican fibre network operator
Maxcom. The previously announced contract with a leading European
telecoms operator has experienced some delays in its deployment
and, at this time, there is some uncertainty around the timings for
product roll-out. The Company continues to monitor this situation
closely and, irrespective of the outcome, the delay does not impact
current full year expectations.
As noted at the year end, demand remains muted in Russia. In the
Netherlands, the Company has seen demand return to normal levels as
the market continues to mature following strong growth during the
same period last year.
Amino continues to develop its portfolio to meet future customer
demands. Globally, there are a number of key market developments
that play to the Company's strengths. The rollout of fibre optic
networks in many regions positions operators to deploy more
advanced entertainment services using Internet Protocol ("IP")
technology, where Amino has over a decade's expertise. In turn,
regulatory change allows operators to utilise OTT as a means of
extending the reach of their services across networks, further
increasing their addressable market. The move towards the
"connected" home - whereby IP seamlessly connects security,
heating, personal safety and entertainment - is also an encouraging
trend.
The Company continues to develop its offering to meet
challenges. The high-specification Intel-powered Live home media
centre is progressing to plan with general availability towards the
end of the year.
The Amino team has also been strengthened with the appointment
of two new senior managers covering product management and
engineering functions. In addition, the recruitment of
regionally-focused sales specialists underlines the Company's
commitment to build a strong organisation to continue its good
momentum.
Financial progress
A good sales performance delivered underlying revenue for the
period at GBP20.1m, in line with the prior year (H1 2012:
GBP20.1m).
Profitability was strong with gross profit increasing 30% to
GBP9.3m (H1 2012: GBP7.1m) with operating profit, excluding GBP1.7m
in duties rebate, advancing ahead of the previous year to GBP1.0m
(H1 2012: GBP0.2m).
The continued focus on margin enhancement delivered headline
gross margin improvement up 10.8 percentage points to 46.2% (H1
2012: 35.4%). Factors in this encouraging trend include the
migration of all customers on to the Company's current product
range, with older devices now removed from the portfolio.
Operational improvement and cost optimisation remain a key
focus. Shortening product delivery times via a lean supply chain is
becoming a key differentiator in winning business and enhancing
margins.
Operating costs have increased by 12.8% to GBP6.0m (H1 2012:
GBP5.4m) to reflect investment for growth including new senior
appointments, regionally-focused sales specialists, R&D
resources and incentivisation of staff.
As announced in December 2012, it was decided to close the
Company's Swedish office and focus all research and development in
Cambridge. The process was completed to plan and the benefits are
now starting to feed through in terms of team working. This has
resulted in an exceptional cost of GBP0.7m.
EBITDA before exceptional items showed an 83% uplift year on
year to GBP3.3m (H1 2012: GBP1.8m) as a result of the gross margin
improvement, partially offset by higher costs.
During the period, the Company received two rebates totalling
GBP1.7m in respect of duties paid on previously recognised
international product sales. These receipts followed claims and
negotiations with the tax authorities which were successfully
argued and refunds were received during March and April 2013. There
remains a slightly smaller final retrospective claim in respect of
other duties paid by the Company but at this time there can be no
certainty over timing or likelihood of such a rebate.
The Company's focus on profitable underlying revenue, investment
in the cost base and strong working capital management delivered
further improvements in the Company's net cash balance, which
closed the period at GBP18.2m (H1 2012: GBP13.9m). Although the
receipt of duties rebates contributed GBP1.7m to the net cash
balance, this was offset by the payment during the period of the
year-end dividend of GBP1.6m (2011: GBP1.0m) and settlement of the
reorganisation exceptional item which largely reflected the closure
of the Swedish office.
The Board remains committed to its progressive dividend policy.
The Board announced a 3p per share dividend for 2012, with an
expectation that this dividend would grow by no less than 15 per
cent per annum for each of the next two years. In addition, the
Board is pleased to announce that an interim dividend of 1p per
share in respect of H1 2013 will be payable on 20 (th) September
2013. The record date for the interim dividend is 6(th) September
2013 and the corresponding ex-dividend date is 4(th) September
2013.
Outlook
Amino has made solid progress in the first half of the current
financial year. The next six months will see continued focus placed
on winning profitable business whilst further developing the
product portfolio and adding to the net cash position. The Company
has successfully established a leading position within the IPTV
industry and the Board is confident that this knowledge and track
record will enable Amino to innovate within the wider IP
marketplace. The Company is well placed to continue its growth
strategy and the Board remains confident that results for the full
year will be in line with current market expectations.
Ends
Consolidated income statement
For the six months ended 31 May 2013
Six months Six months Year ended
ended ended 30 November
31 May 2013 31 May 2012 2012
Notes Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
Revenue 3 20,144 20,139 41,700
Cost of sales (10,836) (13,001) (24,160)
------------ ------------ ------------
Gross profit 9,308 7,138 17,540
Other income 1,650 - -
Operating expenses (8,347) (6,938) (14,709)
------------ ------------ ------------
Operating profit 2,611 200 2,831
Analysed as:
Gross profit 9,308 7,138 17,540
Selling, general and administrative
expenses (3,737) (3,247) (6,603)
Research and development expenses (2,305) (2,111) (4,746)
------------ ------------ ------------
EBITDA before exceptional items 3,266 1,780 6,191
Depreciation (76) (172) (235)
Amortisation (1,520) (1,408) (3,125)
------------ ------------ ------------
Operating profit before exceptional
items 1,670 200 2,831
Restructuring 4 (709) - -
------------ ------------ ------------
Operating profit after restructuring 961 200 2,831
Exceptional Income - duties refund 4 1,650 - -
------------ ------------ ------------
Operating profit 2,611 200 2,831
-------------------------------------- ------- ------------ ------------ ------------
Finance expense (1) - (1)
Finance income 21 6 55
------------ ------------ ------------
Net finance income 20 6 54
Profit before corporation tax 2,631 206 2,885
Corporation tax credit / (charge) 2 (27) (43)
------------ ------------ ------------
Profit for the period from continuing
operations attributable to equity
holders 2,633 179 2,842
------------ ------------ ------------
Basic earnings per 1p ordinary
share 5 5.02p 0.34p 5.45p
Diluted earnings per 1p ordinary
share 5 4.99p 0.34p 5.40p
Basic earnings per 1p ordinary
share (excluding exceptional items) 5 3.23p 0.34p 5.45p
Diluted earnings per 1p ordinary
share (excluding exceptional items) 5 3.21p 0.34p 5.40p
The accompanying notes are an integral part of these interim financial
statements.
Consolidated statement of comprehensive income
For the six months ended 31 May 2013
Six months Six months Year ended
ended 31 ended 31 30 November
May May 2012
2013 2012 Audited
Unaudited Unaudited
GBP000s GBP000s GBP000s
Profit for the period 2,633 179 2,842
---------- ---------- ------------
Foreign exchange difference arising
on consolidation 24 (22) (45)
---------- ---------- ------------
Other comprehensive income / (expense) 24 (22) (45)
---------- ---------- ------------
Total comprehensive income for
the period 2,657 157 2,797
---------- ---------- ------------
The accompanying notes are an integral part of these interim
financial statements.
Consolidated Balance Sheet
As at 31 May 2013
As at As at As at
31 May 31 May 30 November
2013 2012 2012
Unaudited Unaudited Audited
Assets GBP000s GBP000s GBP000s
Non-current assets
Property, plant and equipment 509 630 579
Intangible assets 3,233 4,191 3,478
Deferred income tax assets 644 644 644
Other receivables 162 163 162
---------- ---------- ------------
4,548 5,628 4,863
---------- ---------- ------------
Current assets
Inventories 2,337 4,156 2,097
Trade and other receivables 8,598 7,165 7,936
Derivative financial instruments - - 5
Cash and cash equivalents 18,247 13,864 17,103
---------- ---------- ------------
29,182 25,185 27,141
---------- ---------- ------------
Total assets 33,730 30,813 32,004
---------- ---------- ------------
Capital and reserves attributable
to equity holders of the business
Called-up share capital 579 579 579
Share premium 126 126 126
Capital redemption reserve 6 6 6
Foreign exchange reserves 566 611 542
Other reserves 16,389 16,389 16,389
Retained earnings 6,042 2,103 4,803
---------- ---------- ------------
Total equity 23,708 19,814 22,445
---------- ---------- ------------
Liabilities
Current liabilities
Trade and other payables 9,962 10,999 9,559
Derivative financial instruments 60 - -
------ ------ ------
Total liabilities 10,022 10,999 9,559
------ ------ ------
Total equity and liabilities 33,730 30,813 32,004
------ ------ ------
The interim financial statements on pages 5 to 11 were approved
by the Board of directors on 15(th) July 2013 and were signed on
its behalf by:
Donald McGarva Julia Hornby
Director Director
The accompanying notes are an integral part of these interim
financial statements
Consolidated Cash Flow Statement
As at 31 May 2013
Six months Six months Year to
ended 31 ended 31 30
May May November
2013 2012 2012
Notes Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
Cash flows from operating activities
Cash generated from operations 6 3,793 1,724 5,968
Corporation tax received 63 316 312
---------- ---------- ---------
Net cash generated from operating
activities 3,856 2,040 6,280
---------- ---------- ---------
Cash flows from investing activities
Expenditure on intangible assets (1,275) (1,159) (2,111)
Purchase of property, plant and
equipment (29) (86) (148)
Interest received 20 6 54
---------- ---------- ---------
Net cash used in investing activities (1,284) (1,239) (2,205)
---------- ---------- ---------
Cash flows from financing activities
Proceeds from exercise of employee
share options 152 - 8
Dividends paid (1,580) (1,043) (1,043)
---------- ---------- ---------
Net cash used in financing activities (1,428) (1,043) (1,035)
---------- ---------- ---------
Net increase / (decrease) in cash
and cash equivalents 1,144 (242) 3,040
Cash and cash equivalents at start
of the period 17,103 14,124 14,124
Effects of exchange rate fluctuations
on cash held - (18) (61)
---------- ---------- ---------
Cash and cash equivalents at end
of period 18,247 13,864 17,103
---------- ---------- ---------
Consolidated Statement of changes in equity
Foreign Capital Profit
Share Share Other exchange redemption and loss
capital premium reserves reserve reserve account Total
GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s
Shareholders' equity at 30
November 2011 (audited) 579 126 16,389 589 6 2,940 20,629
----------------------------------- --------- --------- ---------- ---------- ------------ ---------- --------
Comprehensive income
Profit for the period - - - - - 179 179
Foreign exchange on consolidation - - - 22 - - 22
----------------------------------- --------- --------- ---------- ---------- ------------ ---------- --------
Total comprehensive income
for the period attributable
to equity holders - - - 22 - 179 201
----------------------------------- --------- --------- ---------- ---------- ------------ ---------- --------
Share option compensation
charge - - - - - 27 27
Dividends paid - - - - - (1,043) (1,043)
----------------------------------- --------- --------- ---------- ---------- ------------ ---------- --------
Total transactions with owners - - - - - (1,016) (1,016)
----------------------------------- --------- --------- ---------- ---------- ------------ ---------- --------
Total movement in shareholders'
equity - - - 22 - (837) (815)
----------------------------------- --------- --------- ---------- ---------- ------------ ---------- --------
At 31 May 2012 (Unaudited) 579 126 16,389 611 6 2,103 19,814
----------------------------------- --------- --------- ---------- ---------- ------------ ---------- --------
Comprehensive income
Profit for the period - - - - - 2,663 2,663
Foreign exchange on consolidation - - - (69) - - (69)
----------------------------------- --------- --------- ---------- ---------- ------------ ---------- --------
Total comprehensive income
for the period attributable
to equity holders - - - (69) - 2,663 2,594
----------------------------------- --------- --------- ---------- ---------- ------------ ---------- --------
Share option compensation
charge - - - - - 29 29
Movement on EBT reserves - - - - - 8 8
-----------------------------------
Total transactions with owners - - - - - 37 37
----------------------------------- --------- --------- ---------- ---------- ------------ ---------- --------
Total movement in shareholders'
equity - - - (69) - 2,700 2,631
----------------------------------- --------- --------- ---------- ---------- ------------ ---------- --------
Shareholders' equity at 30
November 2012 (audited) 579 126 16,389 542 6 4,803 22,445
----------------------------------- --------- --------- ---------- ---------- ------------ ---------- --------
Comprehensive income
Profit for the period - - - - - 2,633 2,633
Foreign exchange on consolidation - - - 24 - - 24
----------------------------------- --------- --------- ---------- ---------- ------------ ---------- --------
Total comprehensive income
for the period attributable
to equity holders - - - 24 - 2,633 2,657
----------------------------------- --------- --------- ---------- ---------- ------------ ---------- --------
Share option compensation
charge - - - - - 34 34
Movement on EBT reserves - - - - - 152 152
Dividends paid - - - - - (1,580) (1,580)
----------------------------------- --------- --------- ---------- ---------- ------------ ---------- --------
Total transactions with owners - - - - - (1,394) (1,394)
----------------------------------- --------- --------- ---------- ---------- ------------ ---------- --------
Total movement in shareholders'
equity - - - 24 - 1,239 1,263
----------------------------------- --------- --------- ---------- ---------- ------------ ---------- --------
At 31 May 2013 (Unaudited) 579 126 16,389 566 6 6,042 23,708
----------------------------------- --------- --------- ---------- ---------- ------------ ---------- --------
Notes to the interim financial statements
Six months ended 31 May 2013
1 General information
Amino Technologies plc ('the Company') and its subsidiaries
(together 'the Group') specialises in IPTV software technologies
and hardware platforms that enable delivery of digital programming
and interactivity over IP networks, including the internet.
The Company is a public limited company which is listed on the
AIM market of the London Stock Exchange and is incorporated and
domiciled in the UK.
2 Basis of preparation
The financial information has been prepared in accordance with
all relevant International Financial Reporting Standards ("IFRS")
and International Financial Reporting Interpretations Committee
("IFRIC") interpretations that had been published by 31 May 2013 as
endorsed by the European Union (EU). The accounting policies
adopted are consistent with those of the financial statements for
the year ended 30 November 2012, as described in those financial
statements. In preparing these interim financial statements the
Board has not sought to adopt IAS 34 "Interim financial
reporting".
The figures for the six-month periods ended 31 May 2013 and 31
May 2012 have not been audited. The figures for the year ended 30
November 2012 have been extracted from, but do not constitute, the
consolidated financial statements of Amino Technologies plc for
that year. Those financial statements have been delivered to the
Registrar of Companies and included an auditors' report, which was
unqualified and did not contain a statement under Section 498(2) or
Section 498(3) Companies Act 2006.
3 Revenue
The Group has only one operating segment, being the development
and sale of broadband network software and systems. All revenues,
costs, assets and liabilities relate to this segment.
The geographical analysis of revenue is as follows:
Six months Six months Year to
ended 31 May ended 31 May 30 November
2013 2012 2012
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
USA 8,572 6,102 15,563
Netherlands 3,664 7,650 11,510
Serbia 1,676 1 1,438
Russia 482 1,216 1,460
Italy - 1,315 1,405
United Kingdom 116 391 526
Rest of the World 5,634 3,464 9,798
------------- ------------- ------------
20,144 20,139 41,700
------------- ------------- ------------
4 Exceptional items
As announced in December, it was decided to close the Company's
Swedish office and focus all research and development in Cambridge.
The process was completed to plan and the benefits are now starting
to feed through in terms of team working. This has resulted in an
exceptional restructuring cost of GBP709,000.
During the period, the Company received two rebates totalling
GBP1,650,000 in respect of duties paid on previously recognised
international product sales. These receipts followed claims and
negotiations with the tax authorities which were successfully
argued and refunds were received during March and April 2013. There
remains a slightly smaller final retrospective claim in respect of
other duties paid by the Company but at this time there can be no
certainty over timing or likelihood of such a rebate.
No exceptional items were disclosed in the financial statements
for comparator periods.
5 Earnings per share
Six months Six months Year to
ended 31 May ended 31 May 30 November
2013 2012 2012
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
Profit attributable to shareholders 2,633 179 2,842
------------- ------------- ------------
Profit attributable to shareholders
excluding exceptional items 1,692 179 2,842
------------- ------------- ------------
Number Number Number
Weighted average number of shares
(Basic) 52,479,170 52,127,570 52,131,082
------------- ------------- ------------
Weighted average number of shares
(Diluted) 52,765,559 52,532,746 52,583,136
------------- ------------- ------------
The calculation of basic earnings per share is based on profit
after taxation and the weighted average number of ordinary shares
of 1p each in issue during the period, as adjusted for shares held
by an Employee Benefit Trust.
The profit attributable to shareholders excluding exceptional
items is derived by adding back the exceptional items disclosed in
note 4 to the profit attributable to ordinary shareholders.
For diluted earnings per share, the weighted average number of
ordinary shares in issue is adjusted to assume conversion of all
dilutive potential ordinary share options. The Group has only one
category of dilutive potential ordinary share options: those share
options where the exercise price is less than the average market
price of the Company's ordinary shares during the period.
6 Cash generated from operations
Six months Six months Year to
ended ended 30 November
31 May 2013 31 May 2012 2012
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
Profit before corporation tax 2,631 206 2,885
Adjustments for:
Amortisation charge 1,520 1,408 3,125
Depreciation charge 76 172 235
Loss on disposal of property,
plant & equipment 23 5 5
Share-based payment charge 34 27 56
Loss on derivative financial instruments 65 42 37
Financial income - net (20) (6) (54)
Exchange differences 23 44 16
(Increase) / decrease in inventories (240) (139) 1,919
(increase) / decrease in trade
and other receivables (722) 2,928 2,147
Increase / (decrease) in trade
and other payables 403 (2,963) (4,403)
------------ ------------ ------------
Cash generated from operations 3,793 1,724 5,968
------------ ------------ ------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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