TIDMAMO
RNS Number : 5756T
Amino Technologies PLC
21 July 2015
21 July 2015
AMINO TECHNOLOGIES PLC
INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 MAY 2015
CONTINUED OPERATING PROFIT GROWTH AND CASH GENERATION
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
2015.
Financial overview
-- Revenue of GBP17.9m (H1 2014: GBP16.4m) representing y-o-y growth of 9%
-- Gross profit growth 23% to GBP9.1m (H1 2014: GBP7.4m)
-- Gross margin strengthened to 50.8% (H1 2014: 44.9%) reflecting an improved product mix
-- EBITDA before exceptional items grew by 34% to GBP3.9m (H1
2014: GBP2.9m), representing a 4.3% improvement in EBITDA margin
(EBITDA margin 22.0%; H1 2014: 17.7%)
-- Basic earnings per share increased to 5.44p (H1 2014: 3.29p excluding exceptional items)
-- Adjusted operating profit up 56% to GBP2.8m (H1 2014: GBP1.8m) before exceptional items
-- Net cash generated by operating activities up 19% to GBP3.8m (H1 2014: GBP3.2m)
-- Strong net cash balance maintained at GBP17.3m (H1 2014:
GBP19.7m), notwithstanding the acquisition of Booxmedia Oy for
initial cash consideration net of cash acquired of GBP4.5m and an
increase in FY14 dividend of GBP0.7m
-- Interim dividend increased by 10% to 1.265p per share,
payable on 17 September 2015 (H1 2014: 1.15p per share)
Operational highlights:
-- Strong performance in key North American market with take-up of new products
-- New 4K Ultra-HD platform showcased at leading industry trade event
-- Acquisition of Booxmedia Oy, adding the delivery of "TV everywhere" to Amino's offering
-- YouTube certification for new IP device portfolio delivers
new value added content to customers
Post period-end, and as announced separately today, Amino has
conditionally agreed to acquire the entire issued share capital of
Entone Inc. ("Entone") for a total consideration of $73.0 million
(GBP46.7 million) in a transformational acquisition in line with
the Company's strategic goals.
Commenting on today's results and proposed acquisition, Keith
Todd CBE, Non-Executive Chairman said:
"Today's results mark a real turning point for Amino. Following
a significant amount of hard work, and thanks to a clear and well
thought-out strategy, our business has reignited its organic
revenue growth, extended its margins and profitability, and begun
to put in place some very exciting building blocks for the
future.
Our financial strength is allowing us to be bolder in our plans
for growth. Our acquisition of Booxmedia Oy extended our
credibility in customers' eyes as an innovator in the TV space.
Today's proposed acquisition of Entone takes that credibility one
step further still, not only adding excellent product and people to
our offering, but transforming the scale of our business too. We
enter the second half confidently and are excited by the long-term
potential for a bigger, bolder Amino."
For further information please contact:
Amino Technologies plc +44 (0)1954 234100
Keith Todd CBE, Chairman
Donald McGarva, Chief Executive Officer
Julia Hubbard, Chief Financial Officer
FTI Consulting LLP (Financial PR) +44 (0)20 3727 1000
Matt Dixon / Chris Lane / Nicola Krafft / Alex Le May
finnCap Limited (NOMAD and Joint Broker) +44 (0)20 7220 0500
Stuart Andrews / Matt Goode / Carl Holmes - Corporate Finance
Simon Johnson - Corporate Broking
Canaccord Genuity Limited (Financial Adviser and Joint Broker) +44 (0)20 7523 8000
Simon Bridges / James Craven / Emma Gabriel
About Amino Technologies plc
Amino Technologies plc specialises in the development and
delivery of IPTV and hybrid/OTT solutions. With over five 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 Finland. For more information, please visit
www.aminocom.com
Chairman's review:
The Company has continued to make strong progress in terms of
financial performance and delivery against its strategic
objectives. Revenue and profit growth experienced during the second
half of 2014 continued in this first half of the year, alongside
good cash generation and margin improvement. In turn, shareholder
returns have again been enhanced in line with our stated
progressive policy of no less than 10% dividend increase a
year.
This strong financial performance was achieved against a
background of considerable and ongoing evolution within the pay-TV
industry where the shift towards "TV everywhere" viewing across
multiple TV, smartphone and tablet screens is accelerating. At the
same time, the timeframe within which new 4K Ultra-HD services are
expected to be deployed by service providers has also shortened
thereby bringing forward Amino's plans to introduce services to
support this exciting new medium and creating fresh demand for
compatible IP devices.
Amino has successfully aligned itself with these shifts in
market dynamics. The Company's heritage and expertise lies in using
IP as a means for delivering entertainment services. To some
extent, the market has now caught up - so much so that IP based
delivery is becoming the de facto pay-TV industry standard. Now,
the acquisitions Amino has undertaken and the product innovations
that are underway are each designed to ensure that the Company
capitalises on this heritage to make good on the new opportunities
that are opening up.
The acquisition of cloud-TV platform provider Booxmedia Oy,
announced in May 2015 is a prime example of this. It is a clear
signal of the Company's intention to extend and enhance its
offering and ensure that the Company is fully aligned with market
changes. This acquisition significantly strengthens Amino's
capabilities in the delivery of "TV everywhere" entertainment to
both existing customers and adjacent markets in mobile, broadcast
and content delivery.
Customers and ecosystem partners have welcomed the move and a
combined sales and marketing programme is underway to introduce
wider solutions-based offerings to the market.
This has been followed by the conditional agreement, post
period-end, to acquire the entire issued capital of Entone Inc, a
provider of broadcast hybrid TV and connected home solutions, for a
total consideration of $73.0 million (GBP46.7 million), and
involving a proposed placing to raise GBP21.0 million. There are
identified synergies between the two companies, with this
transaction further demonstrating Amino's continued focus on
increasing its footprint and scale. The acquisition is expected to
be earnings accretive in the first full year of ownership
(FY2016).
Growth across customers and markets:
The strong momentum seen in the key North American market at the
year-end has continued into 2015. Demand from existing customers
has grown strongly, alongside a number of new contract wins which
further strengthen Amino's position in the tier two and tier three
market.
New products launched into the market have been well-received
with further orders for the Live Advanced Media Platform from an
existing customer and good initial take-up of the A150 IP device,
which was introduced into the market during the period.
Building value around the core product portfolio continues to be
a key focus. The addition of certified YouTube capability alongside
Vudu video-on-demand and the Amino TV Appstore has been well
received by operators seeking to introduce fresh content features
to their offerings.
Progress on the availability of Home Reach has been slower than
expected, although commercial trials are now underway with a
regional operator in North America.
In Latin America, the demand for lower specification products
remains strong with substantial orders received from an existing
customer in Chile. There was also continued progress in the
Argentinian market where Catel, the association representing a new
breed of locally-focused IPTV operators, launched a second phase of
their IPTV deployment using the higher specification A150
device.
As indicated at the year end, Europe remains challenging,
although good progress was made with key customers in the
Netherlands where the A150 continues to be the product of choice
for new deployments.
Encouraging progress has been made in the Middle East where
focused sales and marketing activities are now beginning to
generate orders, albeit from a low base. This will continue into
the second half of the year with a focus on developing partnerships
with key regional systems integrators to address new hospitality,
residential compound and digital signage opportunities. A new H150
IP device was launched during the period to address these markets
both regionally and globally.
Focused strategy:
Amino, through its broadened product portfolio, is now better
positioned to capitalise on the opportunities in both its existing
and new markets and the proposed acquisition of Entone further
strengthens this position globally.
TV viewing continues to grow, both in the home, but particularly
away from the home on smartphones and tablets. The challenge for
operators is how to deliver these "TV everywhere" services with a
consistent "look and feel" that retains and enhances their brand.
As we have referenced above, this is the challenge that Booxmedia
Oy, which was acquired just before the period end, is perfectly
placed to solve.
At the same time, operators are also bringing forward their
plans for the deployment of new technologies, such as 4K Ultra-HD
services to meet growing consumer demand for 4K television sets and
the availability of content, albeit primarily from OTT
providers.
In line with this trend, the Company has showcased its new 4K
platform which is based on its widely-deployed Aminet software, to
customers at the major TV Connect industry event in April.
Availability in early 2016 is closely aligned with operator
deployment plans.
Financial progress
A solid sales performance delivered revenue for the period at
GBP17.9m (H1 2014: GBP16.4m).
Gross margins strengthened to 50.8%, an increase of 5.9% against
the prior year, due to improved product mix. Gross profit increased
to GBP9.1m (H1 2014: GBP7.4m).
Operating costs rose to GBP5.2m (H1 2014: GBP4.5m) during the
period. This increase was largely caused by higher R&D costs
for x5x and Live products in H2 2014 following their launch but
also one off legal costs relating to the Booxmedia Oy
acquisition.
EBITDA before exceptional items was GBP3.9m (H1 2014: GBP2.9m)
driven largely by increased gross margin.
Depreciation and amortisation at GBP1.1m is unchanged from the
prior period (H1 2014: GBP1.1m).
Operating profit increased 56% to GBP2.8m (H1 2014: GBP1.8m)
before an exceptional duty rebate of GBP0.7m.
The exceptional duty rebate was the third and final receipt from
the tax authorities in respect of duties paid on previously
recognised international product sales. The first two rebates
totalling GBP1.7m were received during March and April 2013.
The acquisition of Booxmedia Oy during May 2015 resulted in a
cash outflow of GBP4.5m during May 2015. Despite this outflow and
an increase in the final dividend of GBP0.7m, the Company's
continued drive for profitable underlying revenue, tight cost
control and strong working capital management brought further
benefit to the Company's net cash balance, which closed the period
at GBP17.3m (H1 2014: GBP19.7m), a decrease in cash on the 2014
year-end balance of GBP3.5m.
Dividend Policy
The Board is pleased to announce that an interim dividend of
1.265p per share (H1 2014: 1.15p per share) which represents a 10%
increase year on year and is in line with Amino's progressive
dividend policy. This will be payable on 17 September 2015. The
record date for the interim dividend is 4 September 2015 and the
corresponding ex-dividend date is 3 September 2015.
Outlook
Amino has worked hard over the years to ensure it is aligned
with key industry trends and the first half of the current
financial year has seen significant progress towards this goal. The
acquisition of Booxmedia Oy and the proposed acquisition of Entone
mean that Amino will be well positioned globally with a strong
product portfolio to seize these opportunities. Backed by both
strong financial performance and its industry aligned solution
offering, the Board remains confident of meeting market
expectations for the full year, prior to the impact of the
acquisition of Entone.
Consolidated income statement.
For the six months ended 31 May 2015
Six months Six months Year ended
ended ended 30 November
31 May 31 May 2014
Notes 2015 2014 Audited
Unaudited Unaudited
GBP000s GBP000s GBP000s
Revenue 3 17,935 16,412 36,190
Cost of sales (8,822) (9,046) (19,417)
---------- ---------- ------------
Gross profit 9,113 7,366 16,773
Other income 744 -
Operating expenses (6,276) (5,591) (12,815)
---------- ---------- ------------
Operating profit 3,581 1,775 3,958
Analysed as:
Gross profit 9,113 7,366 16,773
Selling, general and administrative
expenses (2,911) (2,664) (5,365)
Research and development
expenses (2,265) (1,803) (4,689)
---------- ---------- ------------
EBITDA before exceptional
items 3,937 2,899 6,719
Depreciation (75) (67) (141)
Amortisation (1,025) (1,057) (2,468)
---------- ---------- ------------
Operating profit before
exceptional items 2,837 1,775 4,110
Restructuring 4 - - (152)
---------- ---------- ------------
Operating profit after
restructuring 1,775 3,958
Exceptional income - duties
refund 4 744 - -
---------- ---------- ------------
Operating profit 3,581 1,775 3,958
------------------------------------ ------- ---------- ---------- ------------
Finance expense - - -
Finance income 27 18 87
---------- ---------- ------------
Net finance income 27 18 87
Profit before corporation
tax 3,608 1,793 4,045
Corporation tax (charge)/credit (13) (44) 29
---------- ---------- ------------
Profit for the period from
continuing operations attributable
to equity holders 3,595 1,749 4,074
---------- ---------- ------------
Basic earnings per 1p ordinary
share 5 6.85p 3.29p 7.68p
Diluted earnings per 1p
ordinary share 5 6.84p 3.24p 7.57p
Basic earnings per 1p ordinary
share (excluding exceptional
items) 5 5.44p 3.29p 7.97p
Diluted earnings per 1p
ordinary share (excluding
exceptional items) 5 5.43p 3.24p 7.85p
The accompanying notes are an integral part of these
interim financial statements.
Consolidated statement of comprehensive income
For the six months ended 31 May 2015
Six months Six months Year ended
ended ended 30 November
31 May 31 May 2014
2015 2014 Audited
Unaudited Unaudited
GBP000s GBP000s GBP000s
Profit for the period 3,595 1,749 4,074
---------- ---------- ------------
Foreign exchange difference
arising on consolidation 11 (11) (14)
---------- ---------- ------------
Other comprehensive income/(expense) 11 (11) (14)
---------- ---------- ------------
Total comprehensive income
for the period 3,606 1,738 4,060
---------- ---------- ------------
The accompanying notes are an integral part of these interim
financial statements.
Consolidated Balance Sheet
As at 31 May 2015
As at As at As at
31 May 31 May 30 November
2015 2014 2014
Unaudited Unaudited Audited
Notes
Assets GBP000s GBP000s GBP000s
Non-current assets
Property, plant and equipment 388 456 439
Intangible assets 6 11,231 4,330 3,717
Deferred income tax assets 560 560 560
Other receivables 162 162 162
---------- ---------- ------------
12,341 5,508 4,878
---------- ---------- ------------
Current assets
Inventories 1,303 2,192 2,262
Trade and other receivables 9,419 6,479 6,903
Cash and cash equivalents 17,298 19,703 20,758
---------- ---------- ------------
28,020 28,374 29,923
---------- ---------- ------------
Total assets 40,361 33,882 34,801
---------- ---------- ------------
Capital and reserves attributable
to equity holders of the
business
Called-up share capital 583 579 579
Share premium 605 126 126
Capital redemption reserve 6 6 6
Foreign exchange reserves 595 586 584
Other reserves 16,389 16,389 16,389
Retained earnings 10,280 7,717 8,113
---------- ---------- ------------
Total equity 28,458 25,403 25,797
---------- ---------- ------------
Liabilities
Current liabilities
Trade and other payables 11,367 8,479 9,000
Derivative financial instruments - - 4
------ ------ ------
11,367 8,479 9,004
Non-current liabilities
Deferred tax liability 536 - -
------ ------ ------
536 - -
Total liabilities 11,903 8,479 9,004
------ ------ ------
Total equity and liabilities 40,361 33,882 34,801
------ ------ ------
The interim financial statements on pages 8 to 14 were approved
by the Board of directors on 20 July 2015 and were signed on its
behalf by:
Donald McGarva Julia Hubbard
Director Director
The accompanying notes are an integral part of these interim
financial statements
Consolidated Cash Flow Statement
As at 31 May 2015
Six months Six months Year
ended 31 ended 31 to 30
May May 2014 November
2015 Unaudited 2014
Notes Unaudited Audited
GBP000s GBP000s GBP000s
Cash flows from operating
activities
Cash generated from operations 7 3,799 3,223 6,447
Corporation tax (paid)/received (13) (44) 35
---------- ---------- ---------
Net cash generated from
operating activities 3,786 3,179 6,482
---------- ---------- ---------
Cash flows from investing
activities
Expenditure on intangible
assets (1,139) (1,575) (2,373)
Purchase of property, plant
and equipment (34) (40) (114)
Proceeds on disposal of
property, plant and equipment - 2 2
Interest received 27 18 87
Acquisition of subsidiary (4,512) - -
---------- ---------- ---------
Net cash used in investing
activities (5,658) (1,595) (2,398)
---------- ---------- ---------
Cash flows from financing
activities
Proceeds from exercise
of employee share options 567 27 96
Share repurchase - - (1,429)
Dividends paid (2,043) (1,302) (1,914)
---------- ---------- ---------
Net cash used in financing
activities (1,476) (1,275) (3,247)
---------- ---------- ---------
Net increase in cash and
cash equivalents (3,348) 309 837
Cash and cash equivalents
at start of the period 20,758 19,521 19,521
Effects of exchange rate
fluctuations on cash held (112) (127) 400
---------- ---------- ---------
Cash and cash equivalents
at end of period 17,298 19,703 20,758
---------- ---------- ---------
Consolidated Statement of changes in equity
Share Share Other Foreign Capital Profit Total
capital premium reserves exchange redemption and
reserve reserve loss
account
GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s
Shareholders' equity
at 30 November 2013
(audited) 579 126 16,389 598 6 7,224 24,922
--------------------------------- --------- --------- ---------- ---------- ------------ --------- --------
Comprehensive income
Profit for the period - - - - - 1,749 1,749
Other comprehensive
income - - - (11) - - (11)
--------------------------------- --------- --------- ---------- ---------- ------------ --------- --------
Total comprehensive
income for the period
attributable to equity
holders - - - (11) - 1,749 1,738
--------------------------------- --------- --------- ---------- ---------- ------------ --------- --------
Share option compensation
charge - - - - - 18 18
Movement on EBT reserves - - - - - 27 27
Dividends paid - - - - - (1,302) (1,302)
--------------------------------- --------- --------- ---------- ---------- ------------ --------- --------
Total transactions with
owners - - - - - (1,257) (1,257)
--------------------------------- --------- --------- ---------- ---------- ------------ --------- --------
Total movement in shareholders'
equity - - - (11) - 492 481
--------------------------------- --------- --------- ---------- ---------- ------------ --------- --------
At 31 May 2014 (unaudited) 579 126 16,389 586 6 7,717 25,403
--------------------------------- --------- --------- ---------- ---------- ------------ --------- --------
Comprehensive income
Profit for the period - - - - - 2,325 2,325
Other comprehensive
income - - - (3) - - (3)
--------------------------------- --------- --------- ---------- ---------- ------------ --------- --------
Total comprehensive
income for the period
attributable to equity
holders - - - (3) - 2,325 2,322
--------------------------------- --------- --------- ---------- ---------- ------------ --------- --------
Share option compensation
charge - - - - - 44 44
Movement on EBT reserves - - - - - 69 69
Purchase of own shares - - - - - (1,429) (1,429)
Dividends paid - - - - - (612) (612)
---------------------------------
Total transactions with
owners - - - - - (1,928) (1,928)
--------------------------------- --------- --------- ---------- ---------- ------------ --------- --------
Total movement in shareholders'
equity - - - (3) - 397 394
--------------------------------- --------- --------- ---------- ---------- ------------ --------- --------
Shareholders' equity
at 30 November 2014
(audited) 579 126 16,389 584 6 8,113 25,797
--------------------------------- --------- --------- ---------- ---------- ------------ --------- --------
Comprehensive income
Profit for the period - - - - - 3,595 3,595
Other comprehensive
income - - - 11 - - 11
--------------------------------- --------- --------- ---------- ---------- ------------ --------- --------
Total comprehensive
income for the period
attributable to equity
holders - - - 11 - 3,595 3,606
--------------------------------- --------- --------- ---------- ---------- ------------ --------- --------
Share option compensation
charge - - - - - 48 48
Movement on EBT reserves - - - - - 567 567
Issue of new shares 4 479 - - - - 483
Dividends paid - - - - - (2,043) (2,043)
--------------------------------- --------- --------- ---------- ---------- ------------ --------- --------
Total transactions with
owners 4 479 - - - (1,428) (945)
--------------------------------- --------- --------- ---------- ---------- ------------ --------- --------
Total movement in shareholders'
equity 4 479 - 11 - 2,167 2,661
--------------------------------- --------- --------- ---------- ---------- ------------ --------- --------
At 31 May 2015 (unaudited) 583 605 16,389 595 6 10,280 28,458
--------------------------------- --------- --------- ---------- ---------- ------------ --------- --------
Notes to the interim financial statements
Six months ended 31 May 2015
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 2015 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 2014, 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 2015 and 31
May 2014 have not been audited. The figures for the year ended 30
November 2014 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 ended 30 November
31 May 31 May 2014
2015 2014 Audited
Unaudited Unaudited
GBP000s GBP000s GBP000s
USA 9,262 7,338 16,176
Canada 1,439 511 1,369
---------- ---------- ------------
10,701 7,849 17,545
Serbia 38 3,168 3,585
Netherlands 2,327 1,753 5,459
Rest of the World 4,869 3,642 9,601
---------- ---------- ------------
17,935 16,412 36,190
---------- ---------- ------------
4 Exceptional items
During the six months ending 31 May 2015, the Company received a
final rebate of GBP743,565 in respect of duties paid on previously
recognised international product sales.
No exceptional items were disclosed in the financial statements
for the prior period.
5 Earnings per share
Six months Six months Year to
ended 31 ended 31 30 November
May May 2014
2015 2014 Audited
Unaudited Unaudited
GBP000s GBP000s GBP000s
Profit attributable to
shareholders 3,595 1,749 4,074
---------- ---------- ------------
Profit attributable to
shareholders excluding
exceptional items 2,851 1,749 4,074
---------- ---------- ------------
Number Number Number
Weighted average number
of shares (Basic) 52,453,196 53,128,260 57,893,052
---------- ---------- ------------
Weighted average number
of shares (Diluted) 52,561,432 54,038,981 57,893,052
---------- ---------- ------------
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 and held by the Company in
treasury.
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 vesting conditions have not yet been met.
6 Intangible Assets
Goodwill IPR Software Development Total
licenses costs
GBP000s GBP000s GBP000s GBP000s GBP000s
Cost at 30 November
2013 (audited) 4,138 291 1,960 12,496 18,885
Additions - - - 1,575 1,575
----------------------------- --------- -------- ---------- ------------ --------
Costs at 31 May 2014
(unaudited) 4,138 291 1,960 14,071 20,460
Additions - - 64 734 798
Derecognised - - - (5,016) (5,016)
----------------------------- --------- -------- ---------- ------------ --------
Cost at 30 November
2014 (audited) 4,138 291 2,024 9,789 16,242
Additions - - 23 1,116 1,139
Acquired on acquisition
of subsidiary 4,720 588 - 2,092 7,400
----------------------------- --------- -------- ---------- ------------ --------
Costs at 31 May 2015
(unaudited) 8,858 879 2,047 12,997 24,781
----------------------------- --------- -------- ---------- ------------ --------
Amortisation at 30 November
2013 (audited) 4,138 291 1,950 8,694 15,073
Charge for the period - - 4 1,053 1,057
----------------------------- --------- -------- ---------- ------------ --------
Amortisation at 31 May
2014 (unaudited) 4,138 291 1,954 9,747 16,130
Charge for the period - - 14 1,397 1,411
Derecognised - - - (5,016) (5,016)
----------------------------- --------- -------- ---------- ------------ --------
Amortisation at 30 November
2014 (audited) 4,138 291 1,968 6,128 12,525
Charge for the period - - 15 1,010 1,025
-----------------------------
Amortisation at 31 May
2015 (unaudited) 4,138 291 1,983 7,138 13,550
----------------------------- --------- -------- ---------- ------------ --------
Net book amount
----------------------------- --------- -------- ---------- ------------ --------
At 31 May 2015 (unaudited) 4,720 588 64 5,859 11,231
----------------------------- --------- -------- ---------- ------------ --------
At 31 May 2014 (unaudited) - - 6 4,324 4,330
At 30 November 2014
(audited) - - 56 3,661 3,717
----------------------------- --------- -------- ---------- ------------ --------
7 Cash generated from operations
Six months Six months Year to
ended ended 30
31 May 31 May 2014 November
2015 Unaudited 2014
Unaudited Audited
GBP000s GBP000s GBP000s
Operating profit before
exceptional items 2,837 1,775 4,110
Restructuring costs - - (152)
Duties rebate 744 - -
---------- ------------ ---------
Operating profit 3,581 1,775 3,958
Amortisation charge 1,025 1,057 2,468
Depreciation charge 75 69 141
Loss/(gain) on disposal
of property, plant &
equipment 10 (2) 17
Share-based payment charge 48 18 62
Loss on derivative financial
instruments (4) - 4
Exchange differences 124 116 (415)
Decrease in inventories 959 345 275
(Increase) in trade and
other receivables (2,069) (1,126) (1,660)
Increase in trade and
other payables 50 971 1,597
---------- ------------ ---------
Cash generated from operations 3,799 3,223 6,447
8 Acquisition of a subsidiary
On 19 May 2015, the Group acquired 99.9% of the issued share
capital of Booxmedia Oy, obtaining control of Booxmedia Oy.
Booxmedia Oy is a Software-as-a-Service cloud TV platform provider.
Booxmedia Oy was acquired to enhance Amino's offering by adding a
field-proven and scalable cloud-based platform which can enable the
delivery of "TV everywhere" entertainment to a full range of IP
connected devices to align the Company with the industry shift
towards "TV everywhere" viewing.
The remaining 0.1% share capital was acquired on 1 July
2015.
The amounts recognised in respect of the identifiable assets
acquired and liabilities assumed are as set out in the table
below.
Book Fair Fair value
value value
adjustment
GBP000s
Financial assets 929 - 929
Inventory - - -
Property, plant and equipment - - -
Identifiable intangible assets - 2,680 2,680
Financial liabilities (248) (536) (784)
Contingent liability - - -
--------------------------------------- ------ ----------- ----------
Total identifiable assets 681 2,144 2,825
Goodwill 4,720
--------------------------------------- ------ ----------- ----------
Total consideration 7,545
--------------------------------------- ------ ----------- ----------
Satisfied by:
Cash 4,993
Equity instruments (360,845
ordinary shares of Amino Technologies
plc) 483
Contingent and deferred consideration
arrangements 2,069
--------------------------------------- ------ ----------- ----------
Total consideration transferred 7,545
--------------------------------------- ------ ----------- ----------
Net cash outflow arising on
acquisition
Cash consideration 4,993
Less: cash and cash equivalent
balances acquired (481)
4,512
----------
The fair value of the financial assets includes trade
receivables with a fair value of GBP181k and a gross contractual
value of GBP181k. The best estimate at acquisition date of the
contract cash flows not to be collected is GBPnil.
The goodwill of GBP4,720k arising from the acquisition consists
of expected growth in the sale of "TV everywhere" services as the
industry shifts away from the current connected home focus. The
acquisition of Booxmedia will expand Amino's addressable market to
include mobile operators, OTT providers, media companies and
broadcasters. None of the goodwill is expected to be deductible for
income tax purposes.
The fair value of the 360,845 ordinary shares issued as part of
the consideration paid for Booxmedia Oy (GBP483k) was determined on
by reference to the average of the middle market share price on
each of the five business days preceding the second business day
before completion.
The contingent consideration arrangement requires Booxmedia Oy
to achieve certain revenue targets over a three year period. The
potential undiscounted amount of all future payments that Amino
Technologies plc could be required to make under the contingent
consideration arrangement is GBP2,069k.
The fair value of the contingent consideration arrangement of
GBP2,069k was estimated by applying the exchange rate at completion
to the gross expected payments.
Booxmedia Oy contributed GBP77k revenue and GBP0k to the Group's
profit for the period between the date of acquisition and the
balance sheet date.
If the acquisition of Booxmedia Oy had been completed on the
first day of the financial year, group revenues for the period
would have been GBP18,452k and group profit would have been
GBP3,709k.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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