Media technology company Amino Technologies Plc (LON: AMO) have noted that they are expecting revenues for the first half of the financial year to fall 15%, on the back of the Company having made ‘good progress’ with its transformation programme which is targeting $5 million in cost savings.
The Company announced that its turnaround programme, which after being announced in February and completed in April this year, was expected to deliver annual cost savings of $5 million as planned.
As of May 31st, the Company had accrued net cash of $19.3 million, from $15 million a year earlier and reflecting what the Company described as strong margins and cash conversion.
For the half which ended May 31st, Amino expected revenues to fall approximately 15% to $35 million, down from $41.2 million a year earlier.
Amino Technologies Comments
“We have made good progress on our new strategic focus, which is intended to support a more resilient business model, improved operating margins and recurring revenue in the medium term,” said Donald McGarva, Amino Chief Executive Officer,
“The first half of 2019 has provided further evidence that Amino offers pay TV operators the ability to deliver cost effective modern TV experiences.”
Disappointing results continue
This latest announcement only serves to compound the bad news of 2018, with the Company releasing last year’s results in February.
Keith Todd CBE, Non-Executive Chairman, commented,
“The Board remains confident in the strength and strategic direction of the Company and has committed to continue its dividend policy for this financial year and maintain this dividend level for at least two years thereafter. The diversity and depth of change in our industry this year has created difficult trading conditions in the short term, however the Company remains well positioned to take advantage of the all IP future, and remains profitable and cash generative.
“To support a higher quality of earnings and de-risk the business, we are accelerating our strategy to improve growth in recurring revenues from software and services, reinforce our focus on value-add hardware, and remove our exposure to low margin hardware activities. This will increase the quality of our earnings and our resilience going forward.”
Trading Update
In spite of revenue fears, the company’s shares rallied during trading on Thursday, up 8.95p or 9.68% to 101.45p a share 06/06/19. Analysts from finnCap are ‘unchanged’ in their ‘Corporate’ stance on Amino stock.