TIDMAMO
RNS Number : 9810D
Amino Technologies PLC
06 February 2018
AMINO TECHNOLOGIES PLC
("Amino", the "Company" or the "Group")
FULL YEAR RESULTS FOR THE YEARED 30 NOVEMBER 2017
Continued progress - strong margin progression and cashflow
Amino Technologies plc (LSE AIM: AMO), the global provider of
digital TV video solutions to network operators, announces audited
consolidated results for the year ended 30 November 2017.
Growing traction for software and new products
Financial highlights
Adjusted Unadjusted
2017 2016 Change 2017 2016 Change
GBPm GBPm GBPm GBPm
------- ------- -------- ------- ------ --------
Revenue 75.3 75.2 0% 75.3 75.2 0%
Gross profit(1) 33.5 32.3 +4% 35.3 32.3 +9%
Gross profit margin(1) 44.5% 42.9% +160bps 46.9% 42.9% +400bps
EBITDA(2) 15.4 13.5 +14% 16.0 8.3 +93%
Operating profit (3) 11.1 10.2 +9% 9.5 2.9 +228%
Profit before tax(3) 11.2 10.2 +10% 9.6 2.9 +231%
Basic earnings per share(3) 15.27p 13.64p +12% 15.49p 3.81p +307%
Cashflow from operations(4) 16.9 15.8 +7% 15.8 12.6 +26%
Net cash 13.0 6.2 +110% 13.0 6.2 +110%
Dividend per share 6.655p 6.05p +10% 6.655p 6.05p +10%
Financial highlights
-- Results in line with market expectations
-- Revenue in line with prior year
- Organic constant currency revenue down 7%, reflecting shift in
product mix
-- Increased gross margins, reflecting supply chain management capability and product mix
-- Profit growth, in spite of industry component pricing headwinds
-- Continued solid cash generation
-- Recommended dividend up 10%
- Sixth consecutive year of dividend increases
Operational and strategic progress
-- Continued growth in North America
-- Traction with software and new product lines
- Customer demand growing for service assurance and legacy
transition software
- Multi-year contract with tier one European operator signed
- First Amino "end-to-end" service delivery deployment
launched
- Market-leading product and solutions for key Android TV
operator trend
-- New board appointments add technical and market expertise, and strength in depth
Current trading
-- Two new contract wins post period end
-- Strong 2018 sales pipeline
Keith Todd CBE, Non-Executive Chairman, said:
"2017 was another year of progress for Amino with strong profit
growth and cash generation. We have continued to innovate and steer
through the changing customer landscape whilst building a broad
product portfolio and customer proposition.
We have large addressable markets and our recent investment in
software, services and the emerging Android TV opportunity, coupled
with a strong backlog and pipeline, supports our confidence in 2018
and beyond."
The information communicated in this announcement contains
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 Ltd (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 Adviser) +44 (0)20 7523 8000
Simon Bridges / Emma Gabriel
FTI Consulting LLP (Financial PR) +44 (0)20 3727 1000
Jamie Ricketts / Alex Le May / Darius Alexander
About Amino Technologies plc
Amino Technologies plc (LSE AIM: AMO) specialises in the
development and delivery of IPTV/OTT solutions. With over nine
million devices sold to 1,000 customers in 100 countries, Amino's
award-winning solutions are deployed by major network operators and
service providers worldwide. Amino Technologies plc is
headquartered near Cambridge, in the UK, and is listed on the AIM
market of the London Stock Exchange. www.aminocom.com
Notes
(1) Adjusted Gross Profit is a non-GAAP measure and is defined
as gross profit before exceptional items
(2) Adjusted EBITDA is a non-GAAP measure and is defined as
earnings before interest, taxation, depreciation, amortisation,
other operating income, exceptional items and share-based payment
charges
(3) Adjusted profit before tax, adjusted operating profit and
adjusted earnings per share are non-GAAP measures and exclude
amortisation of acquired intangibles, other operating income,
exceptional items and share-based payment charges
(4) Adjusted cash generated from operations excludes cash from
exceptional items
Chairman's statement:
The Company has delivered a typically solid performance during
2017. As previously announced, first half performance was excellent
with lower revenues in the second half as expected. The Company
finished the year with strong momentum and important new contract
wins and a strong pipeline to take into 2018.
Revenue for the year at GBP75.3m was broadly the same as the
previous year (FY 2016: GBP75.2m). Profitability was in line with
market expectations, with adjusted operating profit(1) of GBP11.1m
representing a 9% increase over the prior year (FY 2016: GBP10.2m).
Operating profit was 228% higher at GBP9.5m (FY 2016: GBP2.9m) as
there were minimal acquisition related costs in the year. The
Company's ability to generate cash remains strong with the year-end
cash position ahead of market expectations at GBP13.0m (30 November
2016: GBP6.2m).
At its core, Amino develops software. This is integrated with
our device hardware and an extensive partner ecosystem to enable
operators to deliver high quality and secure IP-based pay-TV
services. Our strategic aim is to capitalise on this core expertise
and, via our 150-strong development team, create a wider portfolio
of software solutions to both existing and new markets. The
objective is to create new recurring revenue streams while
deepening customer relationships in conjunction with device sales.
We see good opportunities for growth in the medium term as market
disruption requires incumbent operators to innovate and as cable
operators migrate to IP based services.
This year, we have seen further evidence that this strategy is
the right one for our business. Though device sales have driven the
bulk of our revenues, we now see increasing traction for other key
elements of our offering - including our MOVE video delivery
platform, Engage service assurance solution and Enable virtual
set-top box software. The roll out of our Android TV solution - a
rapidly emerging key industry trend during the year - will
strengthen our position in this growing market into 2018.
During the year, our core operational management strength has
again proved invaluable in largely mitigating industry-wide
component cost increases. This clear focus on cost control within
the supply chain - and the strong relationships we have with key
component providers - are critical in maintaining our
competitiveness and margin position.
The progress we have made this year is testimony to our teams
around the world who continue to innovate and deliver high quality
solutions to our global customer base. On behalf of the Board, I
would like to thank them for their hard work and commitment.
There have also been a number of changes to the Board structure
during the year and post-period end. In October 2017, long-serving
non-executive director Michael Bennett stepped down from the Board,
on whose behalf I would like to thank for his immense contribution
during his tenure of almost eight years. Most recently, in February
2018, two new non-executives were appointed, both of whom will
bring highly relevant technology expertise and insight to the
Board. Steve McKay, formerly Amino's global sales director and CEO
of Entone Inc., joins the Board to take on a strategic project
role. We also welcome Michael Clegg, who has a wealth of senior
executive experience in our market and the wider technology space,
and who has previously worked with Amino in both a management and a
consulting role.
Dividend
The Board is pleased to recommend the continuation of its
progressive dividend policy with a full year dividend of 6.66 pence
per share, an increase of 10% on 2016. This is the sixth successive
year of dividend increase since 2011 and underlines the Board's
commitment to shareholder value. The Board also intends to increase
the dividend by no less than 10% in 2018.
Notes
(1) Adjusted operating profit is a non-GAAP measure and is
defined in the Chief Financial Officer's review below
Reporting currency
The Board is currently undertaking a review of the Group's
reporting currency and the currency in which dividends are paid.
Since the revenues, profits and cash flows of the business are
primarily generated in US dollars, changing the reporting currency
and dividend to US dollars may allow for greater transparency of
the underlying performance of the Group and reduce the impact of
movements in foreign exchange rates. This review will be completed
during H1 2018 and the Board will update shareholders in due
course.
Outlook
Amino has made a promising start to 2018 and has a solid order
book and sales pipeline visibility to the end of the year, with a
return to our normal seasonality in terms of a stronger second half
financial performance. With this positive momentum and clear
portfolio and positioning, the Board expects the Company to deliver
sustainable profitable growth in the coming year.
Keith Todd
Chairman
5 February 2018
Chief Executive's Review
Growing the Amino proposition in line with evolving customer
needs
We operate in an industry undergoing constantly evolving change
as pay-TV operators face critical technology and strategic choices
in shaping their future direction. Disruptive market entrants have
rapidly re-shaped the market, challenging incumbent operators to
respond with enhanced and competitive multiscreen offerings.
Amino has aligned itself closely with this dynamic market with a
clear go-to-market strategy built around our MOVE video delivery
platform, our View IPTV devices, our Transform software
capabilities and our Engage service assurance solution.
Strengthening our MOVE video delivery platform
Built on the Booxmedia platform acquired in 2015, we continue to
strengthen the capabilities of our MOVE video delivery platform to
support multiscreen, both inside and out of the home. Early in 2017
we transitioned a major Finnish operator from our mobile only
service to our multiscreen Android-based TV service. The project
was the first of its kind globally and exemplifies the complex
nature of software-based projects we are now undertaking for
customers.
In the second half of the year we completed another project to
enable Dutch operator DELTA to deliver a similar service which was
launched post period end in early 2018. This marked our first ever
"end-to-end" service deployment with our MOVE platform managing the
entire process from content ingestion through to delivery to
multiple mobile devices including Amino 4K UHD devices in the
home.
Further developing our range of our View IPTV devices
We have continued to develop our range of devices to provide
advanced functionality - including 4K UHD capabilities. During the
year we successfully launched our Kamai and Aria 7 range of 4K UHD
devices. Two significant contracts for these devices were secured
during the second half of the year - in Europe and North America -
highlighting continued strong demand from operators for these
advanced TV devices. These contracts delivered revenue in 2017 and
added to our backlog for 2018.
Traditionally Amino TV devices have been developed on a Linux
operating system. However, there is also now growing traction for
Android TV based devices. We have taken a leadership position with
our Kamai and Amigo 7 dual mode devices that allow operators to
move between the traditional Linux and new Android operating
systems as they launch new services. We also launched a new
standalone Android TV device during the year and have developed our
own "operator class" Android TV solution which includes all of the
features required by operators to deliver a fully managed IPTV
service in today's TV 2.0 world.
Building our "transformation" software capabilities
We have continued to build on our core software capabilities,
not only to support our device development roadmap but also as a
standalone solution under the Enable brand. Marketed as a
standalone solution during the year, Enable has attracted strong
industry interest and won multiple industry awards at IBC, a major
industry event held in Amsterdam in September 2017. At its core
Enable allows operators to upcycle legacy devices to deliver
advanced pay-TV user experiences, thereby saving the significant
cost of replacing them.
During 2017, we secured a major contract with leading Chilean
operator GTD to transform and upgrade an installed base of devices
using Enable. This is the third contract of this kind we have
delivered and builds on our previous Enable contracts delivered to
PCCW in Hong Kong and Cincinnati Bell in North America.
Providing operators with the tools to manage their IPTV service
efficiently
Developed in-house, our Engage service assurance solution
provides operators with a range of software tools to manage devices
installed in customers' homes. We have seen growing traction for
this solution in the year with 9 new contracts secured -
increasingly as a value-added sale alongside devices. We initially
sold to operators in North America but have recently added two new
major European and Latin American operators in the second half of
the year. Although modest in revenues at this stage in its
development, this demonstrates our abilities to translate software
innovation into a recurring revenue model and aids customer
retention.
We now have a portfolio fully aligned with market dynamics to
take into 2018 with the transformational capabilities of our Enable
software offering in addressing operators' legacy operations at its
core. Our limited exposure to the Internet of Things ("IoT")
market, via the Fusion home monitoring solution, has been reviewed
and further development paused in what has proved to be a
challenging marketplace for network operators.
Current customers and markets
In 2017 Amino continued to grow in its largest market, North
America where revenue grew by 22%. Sales through distributors to
smaller tier two and three operators were strong with a good uptake
of our new 4K UHD devices. There has also been consistently solid
demand for more traditional HD devices, largely due to their
excellent performance and reliability.
Growing consumer demand for 4K TVs - and the availability of
ultra-high definition content - is driving operator demand for our
IPTV devices. The growing sophistication of major tier one operator
offerings is also re-shaping demand with consumers now expecting a
mix of linear and on demand content delivery.
In addition, the migration of cable TV networks to IP-based TV
services, often over new fibre infrastructure, has opened up a new
market where we have a highly relevant product offering and
capabilities. During the year, we secured a contract from US
regional operator, Muscatine Power and Water, as a direct result of
this migration.
Latin America remains a significant market opportunity with new
operators coming to market selecting IPTV. During the year we
secured a contract with Chilean operator GTD, for a mix of devices
and Enable software for legacy device transformation. Post period
end, we secured a significant new contract from Bolivian
state-owned operator Entel for devices in conjunction with the
Engage service assurance solution that was deployed in the year.
This again highlighted our ability to bring together our hardware
and software offerings into a compelling package.
Market conditions in Europe were challenging in the first half
of the year, with market consolidation and a change in ownership of
a key customer impacting timing of orders. It is pleasing to report
that orders have now restarted and we have signed a long-term
multi-year contract with this customer in the Netherlands to
include 4K UHD devices. In addition, we secured an important
initial order of devices with Deutsche Glasfaser, the largest
provider of fibre-to-the-home (FTTH) networks in Germany, which is
rolling out its own IPTV service and providing a "white label"
service to other operators.
While contributions from our sales activities in the Middle East
and Asia Pacific remain small at this stage, we are stepping up our
marketing to target a number of opportunities in both operator and
enterprise markets.
Operational structure
As highlighted in the Chairman's review, there have been a
number of changes to the Board and also the executive team. With
our former Global Sales Director stepping up to the Board, David
Perez takes over the sales leadership role. David has a proven
track record in managing and driving global sales teams in the
telecoms industry with Reliance Globalcom (now Global Cloud
Xchange), where he served as Senior Vice President for North
America. Most recently, he was CEO at Intamac Systems, a leading
IoT SaaS provider. Joachim Bergman also joined Amino in September
2017 as Senior Vice President of Cloud Services, taking
responsibility for Amino's MOVE platform. Joachim has more than 20
years' experience in the telecoms and media sector, principally at
Ericsson where he held a variety of senior roles in video service
delivery for major operators.
Future growth opportunities
We see three clear growth opportunities for Amino in the medium
to long term.
First, "upcycling" - leveraging an operator's existing assets,
including their installed base of TV devices, to deliver new
content and consumer experiences to the home. New market entrants,
such as Netflix and Amazon, are re-shaping the way TV is consumed
and experienced and operators need to deliver competing services if
they are to retain and attract customers. In Amino MOVE, Enable and
Android TV we already have in place the software tools and skillset
to help them do this and a proven track record of successful
project delivery with sizable pay TV operators.
Second, the emergence of Android TV as a credible service
delivery choice for pay-TV operators has been a key trend in 2017.
The ability to provide a rich user experience - with value added
content - and new features like personalisation, content
recommendation and voice control is a compelling proposition with
industry analysts predicting strong operator take up in the year
ahead. We are at the forefront of Android TV developments, with the
launch of both standalone devices and dual mode Android/Linux
devices during the year. In addition, we have developed our
"operator class" Android TV solution which includes key features
required to deliver a fully managed IPTV service.
Third, the substantial global cable TV market is moving to
IP-based service delivery to ensure they have the capacity and
capability to provide the latest TV experiences. Major operators
are already making the transition, but we see a sizeable
opportunity amongst tier-2 and 3 service providers where we believe
our skills are highly relevant. Initial traction in North America
with local and regional operators has been achieved and we will be
actively marketing our capabilities in this key sector in the
coming months.
The Board continues to review opportunities to further
strengthen Amino's offering and geographical coverage through new
product development and value adding acquisitions. The Group is
well positioned to make further progress in 2018 and continues to
trade in line with expectations with good cash generation.
Donald McGarva
Chief Executive Officer
5 February 2018
Chief Financial Officer's review
Revenue for the year was GBP75.3m (FY 2016: GBP75.2m). Adjusted
operating profit (as defined below) was GBP11.1m (FY 2016:
GBP10.2m), representing a 9% increase from the previous year.
Operating profit was 228% higher at GBP9.5m (FY 2016: GBP2.9m) as
there were minimal acquisition related costs in the year. In line
with its progressive dividend policy the Board has recommended a
full year dividend 6.655 pence per share, a 10% increase over the
prior year. The Group has a strong balance sheet with net cash of
GBP13.0m (30 November 2016: GBP6.2m) and is debt free.
Revenue
We have set out below revenue by type on an 'as reported' and
'constant currency' basis (with 2017 revenue translated using 2016
average exchange rates). In 2017 approximately 95% (FY 2016: 95%)
of the Group's revenue and cost of sales were transacted in US
Dollars. Excluding the impact of foreign exchange revenue decreased
by 7% as a result of a change in product mix.
As reported Constant currency
2017 2016 Growth 2017 2016 Growth
GBPm GBPm GBPm GBPm
------- ------- ------- -------
Recurring 3.3 2.4 38% 3.1 2.4 29%
One-off 2.8 5.7 (51)% 2.6 5.7 (54)%
Software and services 6.1 8.1 (25)% 5.7 8.1 (30)%
Devices including
software 69.2 67.1 3% 64.2 67.1 (4)%
------- ------- ------- -------
Revenue 75.3 75.2 -% 69.9 75.2 (7)%
The Group sells its software integrated with its devices as well
as on a standalone basis. In 2017 and 2016 the Group sold all its
View devices pre-installed with the Group's Enable or Aminet
software. Software and services sold on a standalone basis in 2017
and 2016 comprised the Group's proprietary:
-- Enable virtual STB software installed on third party devices;
-- Engage service assurance software platform;
-- Support and maintenance ("Entourage"); and
-- MOVE multiscreen video service delivery platform.
As expected, revenue from software and services decreased by 30%
as one-off revenue from a large contract delivered in the prior
year did not repeat. However, in 2017 software and services revenue
from recurring software and support contracts increased by 38% to
GBP3.3m (2016 GBP2.4m). On a constant currency basis this
represents annual growth of 29%.
The Group's revenues are globally distributed as follows:
As reported
2017 2016 Growth
GBPm GBPm
------ ------
North America 47.4 38.9 22%
Latin America 8.4 12.9 (35)%
Europe 18.1 22.5 (20)%
Rest of World 1.4 0.9 67%
------ ------
Revenue 75.3 75.2 -%
In North America, revenue growth of 22% over 2016 was driven by
a strong performance by our distribution channel to tier 3 and 4
telecoms operators. In Latin America, sales to our largest customer
in the region decreased significantly as they continued to use up
inventory purchased in the previous financial year. In Europe, the
year on year decrease primarily resulted from the change of
ownership of a key customer impacting the timing of orders.
However, this was partially offset by significant growth from a key
customer in southern Europe.
Amino continues to sell its products directly to tier 2
customers and to tier 3 and 4 customers via distributors. The Group
has three customers each having more than 10% of total Group
revenue, of which two are distributors.
Gross profit
Excluding the impact of a one off GBP1.8m credit in respect of
royalty costs recognised in prior years which have subsequently
been renegotiated, adjusted gross profit increased by 4% to
GBP33.5m (FY 2016: GBP32.3m). Adjusted gross margin increased to
44.5% (FY 2016: 42.9%) despite increases in memory prices, which we
expect to continue into H1 2018, due to a good operational
performance and product mix.
Including the impact of the one off GBP1.8m credit described
above gross profit increased by 9% to GBP35.3m (FY2016:
GBP32.3m).
Operating expenses
As reported
2017 2016 Growth
GBPm GBPm
------ ------
R&D 5.6 5.8 (3)%
SG&A 12.5 13.0 (4)%
Share-based payment
charge 0.8 0.3 167%
Exceptional items 0.3 4.8 (94)%
Depreciation and amortisation 6.5 5.5 18%
------ ------
Operating expenses 25.7 29.4 (13)%
The Group continues to invest in research and in the development
of new products and spent GBP10.0m on R&D activities (FY 2016:
GBP9.5m) of which GBP4.4m was capitalised (FY 2016: GBP3.7m).
Similar to the prior year, the Group's R&D and SG&A
costs were denominated 44% in US and HK Dollars, 45% in British
Pounds and 11% in Euros.
Exceptional items
Exceptional items within cost of sales comprised a one off
GBP1.8m credit in respect of royalty costs recognised in prior
years which have subsequently been renegotiated.
Exceptional items included within operating expenses in 2017
comprised:
-- GBP0.8m contingent post-acquisition remuneration in respect of the Entone acquisition; and
-- GBP0.5m net credit of deferred contingent consideration in
respect of the Booxmedia acquisition not becoming payable.
Depreciation and amortisation
Excluding amortisation of intangibles recognised on acquisition,
depreciation and amortisation increased to GBP4.3m (FY 2016:
GBP3.3m). Amortisation of intangibles recognised on acquisition was
GBP2.2m (FY 2016: GBP2.2m).
Operating profit
Adjusted operating profit excluding share-based payment charges,
exceptional items and amortisation of intangibles recognised on
acquisition was GBP11.1m (FY 2016: GBP10.2m). Operating profit
increased by 228% to GBP9.5m (FY 2016: GBP2.9m) as there were
minimal acquisition related costs in the year.
Adjusted operating profit is a non-GAAP company specific measure
which is considered to be a key performance indicator for the
financial performance of the Group. A reconciliation of adjusted
operating profit to operating profit is set out as follows:
2017 2016
GBPm GBPm
------ ------
Adjusted operating profit 11.1 10.2
Share-based payment charge (0.8) (0.3)
Exceptional items 1.4 (4.8)
Amortisation of acquired
intangibles (2.2) (2.2)
------ ------
Operating profit 9.5 2.9
Taxation
The tax credit of GBP1.5m comprises:
-- a GBP0.3m current tax charge relating to current year profits;
-- a GBP1.3m exceptional current tax credit relating to the
partial release of a tax provision held to cover prior year
exposures identified on the acquisition of Entone Inc.; and
-- a GBP0.5m 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 was GBP11.1m (FY 2016: GBP2.7m).
Earnings per share
After adjusting for exceptional items, share-based payment
charges and amortisation of intangibles recognised on acquisition,
basic earnings per share increased by 12% to 15.27 pence (FY 2016:
13.64 pence). Basic earnings per share was 15.49 pence (FY 2016:
3.81 pence).
Cash flow
Adjusted cash flow from operations was GBP16.9m (FY 2016:
GBP15.8m) and represented 110% of adjusted EBITDA (FY 2016: 117%).
Exceptional cash flows in 2017 totalled GBP1.2m in respect of
Entone deferred consideration treated as remuneration. Including
these exceptional cash out-flows cash generated from operations was
GBP15.8m (FY 2016: GBP12.5m).
During the year the Group spent GBP0.2m (FY 2016: GBP0.7m) on
capital expenditure in respect of fixed assets, and capitalised
GBP4.5m of research and development costs and software licenses.
The Group paid GBP0.4m deferred consideration in respect of the
Booxmedia acquisition and paid dividends of GBP4.4m in the
year.
Financial position
The cash balance at 30 November 2017 was GBP13.0m (30 November
2016: GBP6.2m). The Group also has a GBP15.0m multicurrency working
capital loan facility which runs to August 2020 and was undrawn at
the year end.
At 30 November 2017 the Group had equity of GBP54.6m (30
November 2016: GBP45.9m) and net current assets of GBP10.7m (30
November 2016: GBP1.9m). 70% of trade receivables were insured (30
November 2016: 39%) and debtor days were 26 days (30 November 2016:
42 days).
Dividend
The Board has recommended a full year dividend of 6.655 pence
per share, a 10% increase over the prior year. The Board also
intends to continue the Company's dividend policy of no less than
10% growth per annum for the year ending 30 November 2018. Subject
to shareholder approval at the annual general meeting to be held on
27 March 2018, the dividend will be payable on 27 April 2018, to
shareholders on the register at 6 April 2018, with a corresponding
ex-dividend date of 5 April 2018.
Mark Carlisle
Chief Financial Officer
5 February 2018
Consolidated income statement
For the year ended 30 November 2017
Year to 30 November 2017 Year to 30 November 2016
GBP000s GBP000s
Notes
Revenue 2 75,303 75,178
Cost of sales (40,024) (42,890)
__________ __________
Gross profit 35,279 32,288
Operating expenses (25,735) (29,433)
_________ _________
Operating profit 9,544 2,855
Adjusted operating profit 11,101 10,226
Share-based payment charge (780) (297)
Exceptional items 3 1,472 (4,825)
Amortisation of acquired intangibles
assets (2,249) (2,249)
__________ __________
Operating profit 9,544 2,855
Finance expense (3) (10)
Finance income 76 6
__________ __________
Net finance income/(expense) 73 (4)
__________ __________
Profit before corporation tax 9,617 2,851
Tax credit/(charge) 1,513 (170)
__________ __________
Profit for the period from continuing operations attributable
to equity holders 11,130 2,681
__________ __________
Basic earnings per 1p ordinary share 4 15.49p 3.81p
Diluted earnings per 1p ordinary share 4 15.17p 3.77p
All amounts relate to continuing activities.
The accompanying notes are an integral part of these condensed
consolidated financial statements.
Consolidated statement of comprehensive
income
For the year ended 30 November 2017
Year to Year to
30 November 30 November
2017 2016
GBP000s GBP000s
Profit for the year 11,130 2,681
__________ __________
Items that may be reclassified subsequently
to profit or loss:
Foreign exchange difference arising on
consolidation 173 (327)
__________ __________
Other comprehensive income/(expense) 173 (327)
__________ __________
Total comprehensive income for the financial
year attributable to equity holders 11,303 2,354
__________ __________
The accompanying notes are an integral part of these condensed
consolidated financial statements.
Consolidated statement of financial position as at 30 November 2017
As at As at
30 November 2017 30 November 2016
Assets Notes GBP000s GBP000s
Non-current assets
Property, plant and equipment 592 757
Intangible assets 45,286 46,950
Deferred income tax assets 560 560
Trade and other receivables 5 305 384
_________ _________
46,743 48,651
_________ _________
Current assets
Inventories 3,198 5,569
Trade and other receivables 5 11,205 14,301
Corporation tax receivable 5 165 -
Cash and cash equivalents 12,977 6,218
_________ _________
27,545 26,088
_________ _________
Total assets 74,288 74,739
_________ _________
Capital and reserves attributable to equity holders of the business
Called-up share capital 749 747
Share premium 20,854 20,510
Capital redemption reserve 6 6
Foreign exchange reserves 664 491
Merger reserve 16,389 16,389
Retained earnings 15,896 7,712
_________ _________
Total equity 54,558 45,855
_________ _________
Liabilities
Current liabilities
Trade and other payables 6 16,793 23,665
Corporation tax payable 19 524
_________ _________
16,812 24,189
_________ _________
Non-current liabilities
Trade and other payables 6 - 628
Provisions 1,534 2,233
Deferred tax liabilities 1,384 1,834
_________ _________
2,918 4,695
_________ _________
Total liabilities 19,730 28,884
_________ _________
Total equity and liabilities 74,288 74,739
_________ _________
The accompanying notes are an integral part of these condensed
consolidated financial statements.
Consolidated statement of cash flows
For the year ended 30 November 2017
Year to Year to
Notes 30 November 30 November
2017 2016
GBP000s GBP000s
Cash flows from operating activities
Cash generated from operations 7 15,758 12,481
Corporation tax (paid)/received (540) 97
_________ _________
Net cash generated from operating activities 15,218 12,578
_________ _________
Cash flows from investing activities
Purchases of intangible assets (4,509) (3,715)
Purchases of property, plant and equipment (203) (681)
Proceeds on disposal of property, plant - -
and equipment
Net interest received/(paid) 73 (4)
Acquisition of subsidiaries (396) (360)
_________ _________
Net cash used in investing activities (5,035) (4,760)
_________ _________
Cash flows from financing activities
Proceeds from exercise of employee
share options 346 225
Dividends paid (4,438) (3,964)
Repayment of borrowings - (1,000)
New bank loans raised - 1,000
_________ _________
Net cash used in financing activities (4,092) (3,739)
_________ _________
Net increase in cash and cash equivalents 6,091 4,079
Cash and cash equivalents at beginning
of year 6,218 2,094
Effects of exchange rate fluctuations
on cash held 668 45
_________ _________
Cash and cash equivalents at end of
year 12,977 6,218
_________ _________
The accompanying notes are an integral part of these condensed
consolidated financial statements.
Consolidated statement of changes in equity
For the year ended 30 November 2017
Equity Foreign Capital Profit
Share Share Merger reserve exchange redemption and
capital premium reserve GBP000s reserve reserve loss Total
GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s
Shareholders' equity
at 30 November 2015 744 20,193 16,389 665 818 6 6,235 45,050
_______ ________ _________ ____ ___ _________ ______ ___ ____ ____
___ _
Profit for the year - - - - - - 2,681 2,681
Other comprehensive expense - - - - (327) - - (327)
_______ ________ ________ ________ _________ ________ ________ _______
Total comprehensive income
for the year attributable
to equity holders - - - - (327) - 2,681 2,354
_______ ________ ________ ________ _________ __________ ________ _______
Share based payment charge - - - - - - 297 297
Exercise of employee
share options - - - - - - 225 225
Issue of share capital 3 317 - - - - - 320
Equity to be issued - - - (665) - - - (665)
Treasury shares used - - - - - - 2,238 2,238
Dividends paid - - - - - - (3,964) (3,964)
________ ________ ________ ________ _________ ________ ________ _______
Total transactions with
owners 3 317 - (665) - - (1,204) (1,549)
_______ ________ ________ ________ _________ __________ ________ _______
Total movement in
shareholders'
equity 3 317 - (665) (327) - 1,477 805
_______ ________ ________ ________ _________ __________ ________ _______
Shareholders' equity
at 30 November 2016 747 20,510 16,389 - 491 6 7,712 45,855
_______ ________ _________ ____ ___ ____ ___ ______ ___ ____ ____
___ _
Profit for the year - - - - - - 11,130 11,130
Other comprehensive income - - - - 173 - - 173
_______ ________ ________ ________ _________ ________ ________ _______
Total comprehensive income
for the year attributable
to equity holders - - - - 173 - 11,130 11,303
_______ ________ ________ ________ _________ __________ ________ _______
Share based payment charge - - - - - - 780 780
Exercise of employee
share options - - - - - - 346 346
Issue of share capital 2 344 - - - - - 346
Treasury shares used - - - - - - 366 366
Dividends paid - - - - - - (4,438) (4,438)
_______ ________ ________ ________ _________ ________ ________ _______
Total transactions with
owners 2 344 - - - - (2,946) (2,600)
_______ ________ ________ ________ _________ __________ ________ _______
Total movement in
shareholders'
equity 2 344 - - 173 - 8,184 8,703
_______ ________ ________ ________ _________ __________ ________ _______
Shareholders' equity
at 30 November 2017 749 20,854 16,389 - 664 6 15,896 54,558
_______ ________ _________ ________ _________ __________ ________ _______
Notes
For the year ended 30 November 2017
1 Basis of preparation
The financial information set out in this preliminary
announcement for the year ended 30 November 2017 has been prepared
in accordance with International Financial Reporting Standards,
International Accounting Standards and interpretations
(collectively IFRS) as adopted by the EU and with those parts of
the Companies Act 2006 applicable to companies reporting under
IFRS. The accounting policies adopted in these preliminary results
have been consistently applied to all the years presented and are
consistent with the policies used in the preparation of the
financial statements for the year ended 30 November 2017. The
principal accounting policies adopted are unchanged from those used
in the preparation of the statutory accounts for the period ended
30 November 2016. New standards, amendments and interpretations to
existing standards, which have been adopted by the Group, have not
been listed since they have no material impact on the financial
statements.
The financial information set out in this document does not
constitute the Group's statutory financial statements for the year
ended 30 November 2017 or 30 November 2016. The annual report and
financial statements for the year ended 30 November 2017 were
approved by the board of directors on 5 February 2018 along with
this preliminary announcement. The financial statements for the
year ended 30 November 2017 have been reported on by the
Independent Auditor. The Independent Auditor's report on the
financial statements for 2017 was unqualified and did not draw
attention to any matters by way of emphasis.
2 Geographical external customer revenue analysis
Year to 30 Year to 30
November November
2017 2016
GBP000s GBP000s
USA 46,043 38,252
Canada 1,342 697
_________ _________
Subtotal North America 47,385 38,949
Costa Rica 772 4,429
Chile 3,639 2,809
Rest of LATAM 3,949 5,645
_________ _________
Latin America 8,360 12,883
Netherlands 6,475 13,641
Rest of Europe 11,631 8,858
_________ _________
Subtotal Europe 18,106 22,499
Rest of the World 1,452 847
_________ _________
75,303 75,178
_________ _________
For this disclosure revenue is determined by the location of the
customer.
3 Exceptional Items
Exceptional items within cost of sales and operating costs
comprise:
Year to 30 Year to
November 30 November
2017 2016
GBP000s GBP000s
Credit in respect of royalty costs
recognised in prior years and subsequently
renegotiated (1,800) -
_________ _________
Subtotal cost of sales (1,800) -
Expensed contingent post-acquisition
remuneration in respect of the acquisition
of Entone Inc. 828 3,600
General post acquisition integration
costs - 443
Release of deferred contingent consideration
(conditions not met) (628) -
Redundancy and associated costs 128 782
_________ _________
Subtotal operating expenses 328 782
_________ _________
Total exceptional items (1,472) 4,825
_________ _________
In addition, an exceptional tax credit of GBP1,263,000 has been
recognised in the year relating to the partial release of a tax
provision held to cover prior year exposures identified on the
acquisition of Entone, Inc. (2016: GBPnil).
4 Profit per share
Year to Year to
30 November 30 November
2017 2016
Profit attributable to ordinary shareholders GBP11,129,817 GBP2,680,941
Profit attributable to ordinary shareholders
excluding other operating income exceptional GBP10,973,816 GBP9,602,524
items, share-based payments and amortisation
of acquired intangibles and associated taxation
_________ _________
Weighted average number of shares (Basic) 71,851,262 70,401,918
_________ _________
Weighted average number of shares (Diluted) 73,352,663 71,131,763
_________ _________
Basic earnings per share 15.49p 3.81p
________ ________
Diluted earnings per share 15.17p 3.77p
_________ _________
Adjusted basic earnings per share 15.27p 13.64p
________ ________
Adjusted diluted earnings per share 14.96p 13.50p
________ ________
The calculation of basic earnings per share is based on profit
after taxation and the weighted average of ordinary shares of 1p
each in issue during the year. The Company holds 2,253,123 (2016:
3,090,418) of its own shares in treasury and these are excluded
from the weighted average above. The basic weighted average number
of shares also excludes 140,433 (2016: 380,673) being the weighted
average shares held by the EBT in the year.
For diluted earnings per share, the weighted average number of
ordinary shares in issue is adjusted to assume conversion of all
dilutive potential ordinary shares. The Group has only one category
of dilutive potential ordinary shares; those share options where
the exercise price is less than the average market price of the
Company's ordinary shares during the year.
The profit attributable to ordinary shareholders excluding
exceptional items is derived by adding back exceptional items,
share-based payment charges and amortisation of acquired
intangibles of GBP293,828 (2016: GBP7,371,412) and subtracting the
tax effect thereon GBP449,829 (2016: GBP449,829).
5 Trade and other receivables
As at 30 As at 30
November November
2017 2016
GBP000s GBP000s
Current assets:
Trade receivables 10,114 12,959
Less: provision for impairment of receivables (173) (223)
_________ _________
Trade receivables (net) 9,941 12,736
Other receivables 199 68
Corporation tax receivable 165 -
Prepayments and accrued income 1,065 1,497
_________ _________
11,370 14,301
_________ _________
Non-current assets:
Other receivables 305 384
_________ _________
6 Trade and other payables
As at 30 As at 30
November November
2017 2016
GBP000s GBP000s
Current liabilities
Trade payables 6,005 7,549
Social security and other taxes 576 605
Other payables 104 121
Accruals 9,754 12,823
Deferred income 354 1,244
Deferred and contingent consideration - 1,323
________ ________
Subtotal 16,793 23,665
Corporation tax payable 19 524
_________ _________
16,812 24,189
_________ _________
Non-current liabilities:
Contingent consideration - 628
_________ _________
- 628
_________ _________
Contingent cash consideration in respect of the acquisition of
Booxmedia Oy, of GBP396,000 was paid during the year; the remaining
balance of GBP628,000 was credited to profit and loss (presented
within exceptional items in the income statement) as conditions
were not met.
The final deferred consideration cash payment in respect of the
acquisition of Entone Inc. (accounted for as remuneration) of
GBP1,115,000 (US$1,500,000) was paid on 11 August 2017.
7 Cash generated from operations
Year to Year to
30 November 30 November
2017 2016
GBP000s GBP000s
Profit before tax 9,617 2,851
Interest (received)/paid (73) 4
3)
Amortisation charge 6,172 5,000
Depreciation charge 330 495
Loss on disposal of property, plant and
equipment - 14
Share-based payment charge 780 297
Exchange differences (367) 31
Decrease/(increase) in inventories 2,371 (1,919)
Decrease/(increase) in trade and other
receivables 3,174 (2,849)
(Decrease)/increase in trade and other
payables (6,246) 8,557
_________ _________
Cash generated from operations 15,758 12,481
_________ _________
Adjusted operating cash flow before exceptional cash outflows
was GBP16.9m (2016: GBP15.8m).
Year to Year to
30 November 30 November
2016 2016
GBP000s GBP000s
Adjusted operating cashflow 16,913 15,795
Redundancy and associated costs - (1,150)
Integration costs - (443)
Contingent post-acquisition remuneration
(see note 6) (1,155) (1,721)
_________ _________
Cash generated from operations 15,758 12,481
_________ _________
8 AGM / Annual Report
Pursuant to AIM Rule 20, the Annual Report and Accounts for the
financial year ended 30 November 2017 ("Annual Report") is
available to view on the Group's website: www.aminocom.com and will
be posted to shareholders shortly. Amino will hold its AGM on 27th
March 2018.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UVVKRWAAURAR
(END) Dow Jones Newswires
February 06, 2018 02:00 ET (07:00 GMT)
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