TIDMAMO
RNS Number : 6533K
Amino Technologies PLC
11 July 2017
11 July 2017
AMINO TECHNOLOGIES PLC
("Amino", the "Company" or the "Group")
INTERIM RESULTS FOR THE SIX MONTHSED 31 MAY 2017
Strong trading in the first half of the year
Amino Technologies plc (LSE AIM: AMO), the global provider of
digital TV entertainment and cloud solutions to network operators,
announces unaudited consolidated results for the six months ended
31 May 2017.
Financial highlights:
Adjusted Unadjusted
H1 H1 Change H1 H1 Change
2017 2016 2017 2016
GBPm GBPm GBPm GBPm
------- ------- ------- ------- ------- -------
Revenue 39.9 33.0 21% 39.9 33.0 21%
Gross profit 17.8 14.4 24% 17.8 14.4 24%
Gross profit margin 44.5% 43.6% 44.5% 43.6%
EBITDA (1) 8.8 5.2 70% 7.8 1.5 520%
Operating profit
(2) 6.9 4.2 64% 4.8 (0.5) n/a
Profit/(loss)
before tax (2) 6.9 4.2 64% 4.8 (0.5) n/a
Basic earnings/(loss)
per share (2) 9.2p 5.7p 61% 6.5p (0.8)p n/a
Cash generated
from operations
(3) 13.0 6.4 102% 13.0 5.4 129%
Net cash 13.1 3.1 423% 13.1 3.1 423%
Dividend per share 1.530p 1.391p 10% 1.530p 1.391p 10%
-- Revenue growth of 21% to GBP40m, in line with management's expectations
-- Underlying revenue growth of 4% in constant currency, in line
with management's expectations
-- Gross margin increased to 44.5% from 43.6%, as a result of a
higher proportion of mature products sold in the period
-- Adjusted profit before tax up 64% to GBP6.9m
-- Adjusted basic EPS up 61% to 9.2p
-- Adjusted cash generated from operations up 102% to GBP13m,
representing 148% of adjusted EBITDA
-- Net cash of GBP13.1m at 31 May 2017, up GBP6.9m since 30
November 2016, after paying final dividend of GBP3.3m
-- Increase in interim dividend to 1.530p per share, up by 10%
year on year in line with the Company's stated progressive dividend
policy, and representing the sixth consecutive year the interim
dividend has been increased
(1) Adjusted EBITDA is a non-GAAP measure and is defined as
earnings before interest, taxation, depreciation, amortisation,
exceptional items and share-based payment charges. Further details
of these adjustments are set out in note 5.
(2) Adjusted operating profit, adjusted profit before tax and
adjusted earnings per share are non-GAAP measures and exclude
amortisation of acquired intangibles, exceptional items and
share-based payment charges. Further details of these adjustments
are set out in note 5.
(3) Adjusted cash generated from operations is a non-GAAP
measure and excludes cash from exceptional items as set out in note
6.
Operational highlights:
-- Strong first half performance as anticipated, executing on entry order book
-- Continued sales growth in North and Latin America with
growing traction in the transition from cable to IP
-- Launch of Enable(TM) "virtual set-top box" software to
address operator demand to transform legacy devices to new user
experiences which was also deployed with Chilean operator GTD
-- Deployment of first "end-to-end" entertainment delivery solution for European operator
-- Broadened device portfolio with launch of new compact Android TV device
Commenting on today's results, Keith Todd CBE, Non-Executive
Chairman said:
"We are delighted to deliver a strong first half performance
which has been achieved by effective execution on our order book.
Revenue and adjusted profit before tax are in line with our
expectations and the closing cash position is ahead of
expectations. Our sales pipeline is robust and we are therefore
confident that we will deliver full year profits in line with
market expectations."
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
For further information please contact:
Amino Technologies plc +44 (0)1954 234100
Donald McGarva, Chief Executive Officer
Mark Carlisle, Chief Financial Officer
finnCap Limited (NOMAD and Joint Broker) +44 (0)20 7220 0500
Matt Goode / Carl Holmes / Simon Hicks - (Corporate Finance)
Simon Johnson / Tim Redfern - (Corporate Broking)
Canaccord Genuity Limited (Joint Broker and Financial Advisor) +44 (0)20 7523 8000
Simon Bridges / James Craven / Emma Gabriel
FTI Consulting LLP (Financial PR) +44 (0)20 3727 1000
Chris Lane / Alex Le May / Darius Alexander
About Amino Technologies plc
Amino Technologies plc is a global leader in innovative IP/Cloud
video software and device solutions that enable service providers
to transform the consumer experience. As pioneers of IPTV and with
over seven million devices sold worldwide, Amino has a proven track
record for rock-solid reliability, innovation and best-in-class
customer care. Over 1,000 of the world's leading service providers,
across 100 countries have relied on Amino to provide a seamless
delivery of rich entertainment experiences. We pride ourselves in
providing award-winning solutions that enable the delivery of
innovative services to enrich the lives of connected consumers.
Amino Technologies plc is headquartered near Cambridge, in the UK,
and is listed on the AIM market of the London Stock Exchange (AIM:
symbol AMO). www.aminocom.com
Chief Executive Officer's review:
The Group entered the period with a solid order book and
consequently delivered strong first half growth as expected.
Revenue was GBP39.9m (H1 2016: GBP33.0m) representing 21% growth
year on year. At constant currency, with revenue translated at last
year's average exchange rates, this represents revenue growth of
4%. Gross margins have remained strong despite lower software and
services revenues. During the period the Group sold a high
proportion of high margin mature products and mitigated component
price increases through an active cost reduction programme and our
close working relationships with all elements of the supply
chain.
The Group delivered adjusted profit before tax of GBP6.9m (H1
2016: GBP4.2m), representing 64% growth year on year and an
improvement in operating margin to 17.3% from 12.7%. This
improvement was a result of both the 24% increase in gross profit
and strong operating cost control following the GBP2 million
annualised cost reductions (at constant currency) delivered last
summer.
The Group continues to generate significant cashflow with
adjusted cash generated from operations up 102% to GBP13.0m (H1
2016: GBP6.4m). This resulted in net cash at 31 May 2017 of
GBP13.1m (FY 2016: GBP6.2m, H1 2016: GBP3.1m). The period end net
cash position was positively impacted by the timing of delivery of
larger orders which were completed well in advance of the period
end.
There has been encouraging traction across the Group's portfolio
which is now positioned to provide customers with a broad range of
solutions, based on our core Enable software capabilities.
Sales of IP devices were strong, particularly in North and Latin
America which reported overall revenue growth of 38% and 196%
respectively. In North America, sales through our distribution
partners - typically to small to medium-sized operators - showed
good momentum. A major customer also placed follow-on orders for
devices after the deployment of our Enable virtual set-top box
software platform, underlining the value of our software
proposition in securing additional revenue from hardware sales. In
addition, there are an increasing number of opportunities arising
from the migration of old style cable TV networks to IP-based
service delivery, often over new fibre infrastructure. This is a
market where Amino has a highly relevant product offering and
capabilities. Post-period-end we secured orders from a new
customer, US regional operator Muscatine Power and Water, as a
direct result of this migration.
The Latin America market continues to develop, with both
established operators and new entrants deploying significant
volumes of devices. Regulatory change in the region is also
presenting new opportunities for Amino to build on its existing
foothold. Revenue growth in the period was driven by a mix of new
customer wins and continued demand from established operators for
IP devices and the Enable software platform.
European sales were 48% lower, as expected, principally due to
the change of ownership of a key customer impacting the timing of
orders which we expect to recover over the medium term. However,
during the period we progressed well with the implementation of our
first full end-to-end multiscreen entertainment service to Delta,
the Netherlands-based operator. This comprises both the MOVE cloud
TV platform delivering TV to mobile devices, as well as TV services
delivered to the home via a 4K UHD compatible Amino IPTV
device.
Beyond this, we see new opportunities in an increasingly
disrupted global market where traditional operator business models
face continued pressure from OTT subscription video on demand
(SVOD) providers, such as Netflix and Amazon.
As a result, Amino's customer offering has broadened in line
with the industry-wide shift to IP and cloud-based TV service
delivery. We have continued to innovate our core capabilities being
our Move cloud TV platform, Enable software and View devices. Our
portfolio has been enhanced during the period by the addition of a
new compact 4K UHD Android TV device to meet the needs of the
growing number of operators who are planning to deploy Android to
support their TV offering.
We have also positioned our core Enable software platform as a
"virtual set-top box" to provide operators with a cost-effective
means of delivering new and unified TV experiences across legacy
devices already installed in customers' homes. During the period,
the Chilean operator GTD deployed this solution across its customer
base - further underlining the progress we are making with this
important offering.
The continued industry shift towards IP based delivery of TV has
meant that we are seeing growing traction for our newer offerings,
as consumers demand higher performance devices and operators deal
with their legacy deployments. In particular, the pipeline of
qualified software opportunities arising from planed upgrades to
legacy devices in 2018 is significant.
Outlook
Having delivered a strong performance in the first half, we
expect to continue our progress in the remainder of the year and
beyond. Our sales pipeline is robust and we are confident that we
will deliver full year profits in line with market
expectations.
Donald McGarva
Chief Executive Officer
10 July 2017
Chief Financial Officer's review
Revenue for the period increased by 21% to GBP39.9m (H1 2016:
GBP33.0m) as a result of organic growth and the impact of foreign
exchange. Adjusted operating profit was GBP6.9m (H1 2016: GBP4.2m).
Operating profit was GBP4.8m (H1 2016: GBP(0.5)m loss). In line
with its progressive dividend policy, the Board has recommended an
interim dividend of 1.530 pence per share, a 10% increase over the
prior year. The Group has a strong balance sheet with net cash at
31 May 2017 of GBP13.1m (FY 2016: GBP6.2m, H1 2016: GBP3.1m) and is
debt free.
Revenue
Set out below is revenue by type on an 'as reported' and
'constant currency' basis (with H1 2017 revenue translated using H1
2016 average exchange rates). In H1 2017 and 2016 approximately 95%
of the Group's revenue and cost of sales were transacted in US
Dollars. Excluding the impact of foreign exchange, underlying
organic revenue growth was 4%.
As reported Constant
currency
H1 H1 Growth H1 H1 Growth
2017 2016 2017 2016
GBPm GBPm GBPm GBPm
------ ------ ------ ------
Software
and services 3.0 4.3 (31%) 2.5 4.3 (41%)
Devices 36.9 28.7 29% 31.8 28.7 11%
------ ------ ------ ------
Revenue 39.9 33.0 21% 34.3 33.0 4%
Software and service revenues represent revenues from our Enable
virtual set-top box and Engage service assurance software, Move
cloud TV platform as well as support for our View IPTV devices.
Software and service revenues in H1 2016 included GBP2.0m of
one-off revenue from Enable software contracts that did not repeat
in H1 2017, as expected. Excluding these non-recurring contracts,
recurring software and service revenues of GBP3.0m grew by 30% (H1
2016: GBP2.3m).
The Group's revenues are globally distributed as follows:
As reported
H1 H1 Growth
2017 2016
GBPm GBPm
------ ------
North America 24.9 18.0 38%
Latin America 8.3 2.8 196%
Europe 6.1 11.8 (48%)
Rest of World 0.6 0.4 67%
------ ------
Revenue 39.9 33.0 21%
Year on year revenue growth has been achieved in all regions
except for Europe. In Europe, the year on year decrease primarily
resulted from the change of ownership of a key customer impacting
the timing of orders which we expect to recover over the medium
term.
Gross profit
Gross profit for the period increased by 24% to GBP17.8m (H1
2016: GBP14.4m). Gross margin increased to 44.5% (H1 2016: 43.6%)
despite lower software sales. The gross margin achieved during the
period was largely driven by a greater mix of higher margin, mature
products in addition to our continued focus on cost control. As
announced at the time of the Group's trading update on 6 June 2017,
gross margins in the second half are expected to be lower as a
result of the shift in product mix towards newer product lines and
industry wide pricing pressures for certain components in line with
the current industry cycle. As is typical with the launch of newer
products, these will command lower gross margins at first,
improving over time as products are optimised. On a full year
basis, we now expect gross margins overall to be higher than
previously expected at circa 42%. Looking further ahead, we expect
margins to also benefit from the execution of our pipeline of
software opportunities.
Operating expenses
As reported
H1 H1 Growth
2017 2016
GBPm GBPm
------ ------
R&D 2.9 3.2 (8)%
SG&A 6.1 6.0 -%
Share-based payment
charge 0.4 0.1 420%
Exceptional items 0.6 3.5 (83)%
Depreciation and
amortisation 3.0 2.1 43%
------ ------
Operating expenses 13.0 14.9 (13)%
In H1 2017 the Group's R&D and SG&A costs were
denominated 51% in US and HK Dollars, 40% in British Pounds and 9%
in Euros. Costs as reported have therefore been negatively impacted
by the year on year movement in exchange rates. Whilst operating
expenses excluding exceptional items increased by 9% to GBP12.4m
(H1 2016: GBP11.4m) this is notably less than the 21% revenue
growth achieved in the period. This is primarily a result of the
significant restructuring programme to realise synergies identified
following the acquisition of Entone undertaken by the Group in May
2016, which resulted in GBP2.0m annualised cost reductions (at
constant currency).
The Group continues to invest in research and the development of
new products and spent GBP5.0m on R&D activities (H1 2016:
GBP5.1m) of which GBP2.1m was capitalised (H1 2016: GBP1.9m). Share
based payment charges totalled GBP0.4m (H1 2016: GBP0.1m).
Exceptional items
Exceptional items included within operating expenses in H1 2017
comprised GBP0.6m contingent post-acquisition remuneration in
respect of the Entone acquisition. The final Entone retention plan
payment is due in August 2017 and is expected to result in a
maximum cash payment of US$1.5m (GBP1.2m).
Depreciation and amortisation
Excluding amortisation of intangibles recognised on acquisition,
depreciation and amortisation was GBP1.9m (H1 2016: GBP1.0m).
Amortisation of intangibles recognised on acquisition was GBP1.1m
(H1 2016: GBP1.1m).
Operating profit
Adjusted operating profit excluding share-based payment charges
of GBP0.4m, exceptional items of GBP0.6m and amortisation of
intangibles recognised on acquisition of GBP1.1m was GBP6.9m (H1
2016: GBP4.2m). Statutory operating profit was GBP4.8m (H1 2016:
GBP(0.5)m loss).
Taxation
The tax charge of GBP0.1m comprises a GBP0.3m current tax charge
and GBP0.2m credit relating to the unwind of the deferred tax
liability recognised in respect of the amortisation of intangible
assets recognised on acquisition.
Profit after tax
Profit after tax was GBP4.7m (H1 2016: GBP(0.5)m loss).
Earnings per share
After adjusting for the after-tax impact of exceptional items,
share-based payment charges and amortisation of intangibles
recognised on acquisition, basic earnings per share increased by
61% to 9.21 pence (H1 2016: 5.7 pence) and diluted earnings per
share increased by 62% to 8.98 pence (H1 2016: 5.55 pence). Basic
earnings per share was 6.51 pence (H1 2016: (0.79) pence loss).
Cash flow
Adjusted cash flow from operations was GBP13.0m (H1 2016:
GBP6.4m) and represented 148% of adjusted EBITDA (H1 2016: 123%).
The final Entone deferred consideration payment of US$1.5m
(GBP1.2m) is due to be paid in August 2017. Cash generated from
operations was GBP13.0m (H1 2016: GBP5.4m).
During the period the Group spent GBP0.1m (H1 2016: GBPnil) on
capital expenditure and capitalised GBP2.1m of research and
development costs (H1 2016 GBP1.9m). The Group also paid GBP0.4m
deferred consideration in respect of the Booxmedia acquisition and
paid dividends of GBP3.3m.
Financial position
The net cash balance at 31 May 2017 was GBP13.1m (FY 2016:
GBP6.2m, H1 2016: GBP3.1m). The Group also has a GBP15.0m
multicurrency working capital loan facility which amortises to
GBP12.5m in July 2018 and to GBP10m in July 2019. It expires in
July 2020 and was undrawn at the period end.
At 31 May 2017 the Group had equity of GBP48.4m (FY 2016:
GBP45.9m, H1 2016: GBP43.2m) and net current assets of GBP4.5m (FY
2016: GBP1.9m, H1 2016: GBP(0.8)m liabilities). 61% of trade
receivables were insured (FY 2016: 39%, H1 2016: 34%) and debtor
days were 25 days (FY 2016: 42 days, H1 2016: 46 days).
Dividend
The Board is pleased to confirm that it intends to recommend an
interim dividend of 1.530p per share (H1 2016: 1.391p per share),
representing a 10% year-on-year increase, in line with Amino's
previously stated progressive dividend policy. This will be payable
on 1st September 2017. The record date for the interim dividend is
11th August 2017 and the corresponding ex-dividend date is 10th
August 2017.
Mark Carlisle
Chief Financial Officer
10 July 2017
Consolidated Income Statement
For the six months ended 31 May 2017
Six months Six months
ended ended Year ended
31 May 31 May 30 November
2017 2016 2016
Unaudited Unaudited Audited
Total Total Total
Notes GBP000s GBP000s GBP000s
Revenue 3 39,935 33,004 75,178
Cost of sales (22,156) (18,605) (42,890)
__________ __________ __________
Gross profit 17,779 14,399 32,288
Operating expenses (13,013) (14,944) (29,433)
_________ _________ _________
Operating profit/(loss) 4,766 (545) 2,855
Analysed as:
Adjusted operating
profit 6,923 4,212 10,226
Share based payment
charge (433) (83) (297)
Exceptional items 4 (599) (3,549) (4,825)
Amortisation of acquired
intangible assets (1,125) (1,125) (2,249)
__________ __________ __________
Operating profit 4,766 (545) 2,855
Finance expense (3) (4) (10)
Finance income - - 6
__________ __________ __________
Net finance income (3) (4) (4)
__________ __________ __________
Profit/(loss) before
tax 4,763 (549) 2,851
Corporation tax charge (108) 1 (170)
__________ __________ __________
Profit/(loss) for the period
from continuing operations
attributable to equity
holders 4,655 (548) 2,681
__________ __________ __________
Basic earnings per
1p ordinary share 5 6.51p (0.79)p 3.81p
Diluted earnings per
1p ordinary share 5 6.34p (0.76)p 3.77p
The accompanying notes are an integral part of these interim
condensed consolidated financial statements.
Consolidated Statement of Comprehensive Income
For the six months ended 31 May 2017
Six months Six months
ended 31 ended Year ended
May 31 May 30 November
2017 2016 2016
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
Profit/(loss) for the period 4,655 (548) 2,681
---------- ---------- ------------
Foreign exchange difference
arising on consolidation 46 (100) (327)
---------- ---------- ------------
Other comprehensive income/(expense) 46 (100) (327)
---------- ---------- ------------
Total comprehensive income/(loss)
for the period 4,701 (648) 2,354
---------- ---------- ------------
Consolidated Balance Sheet
As at 31 May 2016
As at As at As at
31 May 31 May 30 November
2017 2016 2016
Notes Unaudited Unaudited Audited
Assets GBP000s GBP000s GBP000s
Non-current assets
Property, plant and
equipment 652 452 757
Intangible assets 6 46,183 48,164 46,950
Deferred tax assets 560 560 560
Other receivables 310 216 384
---------- ---------- ------------
47,705 49,392 48,651
---------- ---------- ------------
Current assets
Inventories 5,512 2,621 5,569
Trade and other receivables 4,911 12,122 14,301
Cash and cash equivalents 13,114 4,052 6,218
---------- ---------- ------------
23,537 18,795 26,088
---------- ---------- ------------
Total assets 71,242 68,187 74,739
---------- ---------- ------------
Capital and reserves
attributable to equity
holders of the business
Called-up share capital 749 747 747
Share premium 20,854 20,510 20,510
Capital redemption
reserve 6 6 6
Foreign exchange reserves 537 718 491
Other reserves 16,389 16,389 16,389
Equity reserve - 1,826 -
Retained earnings 9,880 3,001 7,712
---------- ---------- ------------
Total equity 48,415 43,197 45,855
---------- ---------- ------------
Liabilities
Current liabilities
Trade and other payables 18,516 18,131 23,665
Corporation tax payable 536 458 524
Bank loans - 1,004 -
------ ------ ------
19,052 19,593 24,189
Non-current liabilities
Trade and other payables - 1,416 628
Provisions 2,167 1,922 2,233
Deferred tax liability 1,608 2,059 1,834
------ ------ ------
3,775 5,397 4,695
Total liabilities 22,827 24,990 28,884
------ ------ ------
Total equity and liabilities 71,242 68,187 74,739
------ ------ ------
The interim condensed consolidated financial statements on pages
8 to 16 were approved by the Board of directors on 10 July 2017 and
were signed on its behalf by Donald McGarva, Director.
Consolidated Cash Flow Statement
For the six months ended 31 May 2017
Six months Six months Year
ended ended to
31 May 31 May 30 November
2017 2016 2016
Notes Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
Cash flows from operating
activities
Cash generated from operations 6 12,996 5,388 12,481
Corporation tax (paid)/received (8) 508 97
---------- ---------- ------------
Net cash generated from
operating activities 12,988 5,896 12,578
---------- ---------- ------------
Cash flows from investing
activities
Expenditure on intangible
assets (2,067) (1,874) (3,715)
Purchase of property, plant
and equipment (80) (35) (681)
Interest paid (3) 0 (4)
Acquisition of subsidiary (396) (360) (360)
---------- ---------- ------------
Net cash used in investing
activities (2,546) (2,269) (4,760)
---------- ---------- ------------
Cash flows from financing
activities
Proceeds from exercise
of employee share options 117 202 225
Proceeds from issue of
new shares - - -
Dividends paid (3,337) (2,971) (3,964)
Repayment of borrowings - - (1,000)
New bank loans raised - 1,000 1,000
---------- ---------- ------------
Net cash used in financing
activities (3,220) (1,769) (3,739)
---------- ---------- ------------
Net increase in cash and
cash equivalents 7,222 1,858 4,079
Cash and cash equivalents
at start of the period 6,218 2,094 2,094
Effects of exchange rate
fluctuations on cash held (326) 100 45
---------- ---------- ------------
Cash and cash equivalents
at end of period 13,114 4,052 6,218
---------- ---------- ------------
The accompanying notes are an integral part of these interim
condensed consolidated financial statements.
Consolidated Statement of Changes in Equity
Profit
Foreign Capital and
Share Share Merger Equity Exchange Redemption loss
capital premium reserve reserve reserve reserve account Total
GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s
Shareholders' equity
at 1 December 2015
(audited) 744 20,193 16,389 665 818 6 6,235 45,050
--------------------------- --------- --------- --------- --------- ---------- ------------ --------- --------
Profit for the
period - - - - - - (548) (548)
Other comprehensive
expense - - - - (100) - - (100)
--------------------------- --------- --------- --------- --------- ---------- ------------ --------- --------
Total comprehensive
income for the
period attributable
to equity holders - - - - (100) - (548) (648)
--------------------------- --------- --------- --------- --------- ---------- ------------ --------- --------
Share option compensation
charge - - - - - - 83 83
Exercise of employee
share options - - - - - - 202 202
Issue of new shares 3 317 - - - - - 320
Equity to be issued - - - 1,161 - - - 1,161
Dividends paid - - - - - - (2,971) (2,971)
--------------------------- --------- --------- --------- --------- ---------- ------------ --------- --------
Total transactions
with owners 3 317 - 1,161 - - (2,686) (1,205)
--------------------------- --------- --------- --------- --------- ---------- ------------ --------- --------
Total movement
in shareholders'
equity 3 317 - 1,161 (100) - (3,234) (1,853)
--------------------------- --------- --------- --------- --------- ---------- ------------ --------- --------
At 31 May 2016
(unaudited) 747 20,510 16,389 1,826 718 6 3,001 43,197
--------------------------- --------- --------- --------- --------- ---------- ------------ --------- --------
Shareholders' equity
at 1 December 2016
(audited) 747 20,510 16,389 - 491 6 7,712 45,855
--------------------------- --------- --------- --------- --------- ---------- ------------ --------- --------
Profit for the
period - - - - - - 4,655 4,655
Other comprehensive
expense - - - - 46 - - 46
--------------------------- --------- --------- --------- --------- ---------- ------------ --------- --------
Total comprehensive
loss for the period
attributable to
equity holders - - - - 46 - 4,655 4,701
--------------------------- --------- --------- --------- --------- ---------- ------------ --------- --------
Share option compensation
charge - - - - - - 433 433
Movement on EBT
reserves - - - - - - 117 117
Issue of new shares 2 344 - - - - - 346
Treasury shares
used - - - - - - 300 300
Dividends paid - - - - - - (3,337) (3,337)
--------------------------- --------- --------- --------- --------- ---------- ------------ --------- --------
Total transactions
with owners 2 344 - - - - (2,487) (2,141)
--------------------------- --------- --------- --------- --------- ---------- ------------ --------- --------
Total movement
in shareholders'
equity 2 344 - - 46 - 2,168 2,560
--------------------------- --------- --------- --------- --------- ---------- ------------ --------- --------
At 31 May 2017
(unaudited) 749 20,854 16,389 - 537 6 9,880 48,415
--------------------------- --------- --------- --------- --------- ---------- ------------ --------- --------
Notes to the interim condensed consolidated financial
statements
Six months ended 31 May 2017
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
These interim condensed consolidated financial statements have
been prepared using accounting policies based on International
Financial Reporting Standards ("IFRS") and International Financial
Reporting Interpretations Committee ("IFRIC") interpretations
published by 31 May 2017 as endorsed by the European Union (EU).
The accounting policies, presentation and methods of computation
followed in the preparation of these interim consolidated financial
statements are consistent with those applied in the Group's audited
financial statements for the year ended 30 November 2016. These
interim condensed consolidated financial statements are not
required to and do not comply with IAS 34 "Interim financial
reporting".
The financial information presented for the six-month periods
ended 31 May 2017 and 31 May 2016 has not been audited. The
comparative financial information presented for the year ended 30
November 2016 has been extracted from, but does not constitute, the
full statutory Annual Report of Amino Technologies plc for that
year. The statutory Annual Report and Financial statements for 2016
have been delivered to the Registrar of Companies. The independent
Auditors' Report on that Annual Report and Financial Statements for
the year ended 30 November 2016 was unqualified and did not contain
a statement under Section 498(2) or Section 498(3) Companies Act
2006.
After making enquiries, the Directors have concluded that the
Group has adequate resources to continue operational existence for
the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing these interim condensed
consolidated financial statements.
3 Revenue
Based on the management reporting system the Group has only one
operating segment, being the development and sale of broadband
network software and systems, including an incidental amount in
respect of licensing and support services. All revenues, costs,
assets and liabilities relate to this segment. The information
provided to the Amino Technologies plc chief operating decision
maker is measured in a manner consistent with the measures within
the financial statements. The chief operating decision maker is the
executive board.
The geographical analysis of revenue from external customers
generated by the identified operating segment is:
Six months
ended Six months Year to
31 May ended 30 November
2017 31 May 2016 2016
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
North America 24,889 18,007 38,949
Latin America 8,300 2,805 12,883
Europe 6,151 11,834 22,499
Rest of the World 595 358 847
---------- ------------ ------------
39,935 33,004 75,178
---------- ------------ ------------
4 Exceptional items
Exceptional items included within operating expenses
comprised:
Six months
ended Six months Year to
31 May ended 30 November
2017 31 May 2016 2016
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
Contingent post acquisition
remuneration 599 2,285 3,600
Integration costs - 447 443
Redundancy and associated
costs - 817 782
Total exceptional items 599 3,549 4,825
---------- ------------ ------------
The Group identifies and reports material, non-recurring and
incremental costs and income as exceptional items separately from
underlying operating expenses and income. Exceptional and other
costs may include: restructuring costs (as defined in IAS 37
Provisions, Contingent Liabilities and Contingent Assets), legal
and professional advisors fees in respect of acquisition costs,
contingent post-acquisition remuneration payable relating to the
acquisition of Entone Inc., contractor and travel fees relating to
post acquisition integration activities and accelerated
amortisation incurred as a result of the rationalisation of the
product development roadmap after the acquisition of Entone
Inc.
5 Earnings per share
Six months Six months
ended 31 ended 31 Year to
May May 30 November
2017 2016 2016
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
Profit/(loss) attributable
to shareholders 4,655 (548) 2,681
Adjustments:
Employee share based
payment charge 433 83 297
Exceptional items 599 3,549 4,825
Amortisation on acquired
intangible assets 1,125 1,125 2,249
Tax associated with above
items (224) (225) (449)
---------- ---------- ------------
Adjusted profit for the
year 6,586 3,984 9,603
---------- ---------- ------------
Number Number Number
Weighted average number
of shares (Basic) 71,507,847 69,838,968 70,401,918
---------- ---------- ------------
Weighted average number
of shares (Diluted) 73,373,264 71,804,664 71,131,763
---------- ---------- ------------
Basic earnings per share 6.51p (0.79)p 3.81p
Diluted earnings per
share 6.34p (0.76)p 3.77p
Adjusted basic earnings
per share 9.21p 5.70p 13.64p
Adjusted diluted earnings
per share 8.98p 5.55p 13.50p
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.
Adjusted earnings per share is a non-GAAP measure and therefore
the approach may differ between companies.
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 and shares to be issued
in respect of the contingent post acquisition remuneration relating
to the acquisition of Entone Inc. 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 Cash generated from operations
Six months Six months
ended ended Year ended
31 May 31 May 30 November
2017 2016 2016
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
Operating profit/(loss) 4,766 (545) 2,855
Amortisation charge 2,834 1,957 5,000
Depreciation charge 165 136 495
Loss on disposal of property,
plant & equipment - - 14
Share-based payment charge 433 83 297
Exchange differences 128 (163) 31
Decrease/(increase) in
inventories 57 1,030 (1,919)
Decrease/(increase) in
trade and other receivables 9,463 (503) (2,849)
(Decrease)/increase in
trade and other payables (4,850) 3,393 8,557
---------- ---------- ------------
Cash generated from operations 12,996 5,388 12,481
Adjusted operating cash flow before exceptional cash outflows
was GBP12,996,000 (H1 2016 GBP6,439,000) and is reconciled to cash
generated from operations as follows:
Six months Six months
ended ended Year to
31 May 31 May 30 November
2017 2016 2016
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
Adjusted operating cashflow 12,996 6,439 15,795
Integration costs - (399) (443)
Redundancy and associated
costs - (652) (1,150)
Contingent post-acquisition
remuneration - - (1,721)
Cash generated from operations 12,996 5,388 12,481
Cash generated from operations in the six months to 31 May 2016
has been restated to reclassify GBP360k in respect of deferred
contingent consideration, which is now disclosed as acquisition of
subsidiaries within investing activities. This is consistent with
the audited financial statements for the year to 30 November
2016.
7 Cautionary statement
This document contains certain forward-looking statements
relating to the Group. The Group considers any statements that are
not historical facts as "forward-looking statements". They relate
to events and trends that are subject to risk and uncertainty that
may cause actual results and the financial performance of the Group
to differ materially from those contained in any forward-looking
statement. These statements are made by the directors in good faith
based on information available to them and such statements should
be treated with caution due to the inherent uncertainties,
including both economic and business risk factors, underlying any
such forward-looking information
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFLTDIIILID
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