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Amino Technologies intends 10% div hike - seventh consecutive year of dividend increases

Amino Technologies intends 10% div hike - seventh consecutive year of dividend increases

Tue 5 Feb 2019 07:54 by ukcitymedia.co.uk about : operational news, trading updates - 0 Comments - 4651 words


Amino, the global provider of media and entertainment technology solutions to network operators, announces audited consolidated results for the year ended 30 November 2018.

Financial highlights

 

US$m unless otherwise stated

2018

2017

Change

Revenue

Adjusted gross profit

88.9

96.1

-7%

36.5

42.9

-15%

Adjusted EBITDA

16.8

20.4

-18%

Adjusted profit before tax (1)

 

11.2

15.2

-26%

Adjusted operating cash flow

 

14.1

23.7

-41%

Adjusted basic earnings per share (US cents)(1)

 

14.49

20.75

-30%

 

 

 

 

 

Statutory gross profit

 

38.0

45.2

-16%

Statutory profit before tax

 

8.2

13.3

-38%

Statutory operating cash flow

 

14.3

22.2

-36%

Statutory basic earnings per share (US cents)

 

11.25

21.27

-47%

 

 

 

 

 

Net cash

 

20.3

17.4

17%

Dividend per share (GBP pence)

 

7.32

6.66

10%

           

 

Financial highlights

·      2018 results in line with revised consensus market expectations (2)

·      Resilient performance in challenging market conditions

-  As previously announced, H2 performance impacted by significant macro-economic headwinds, particularly in OTT TV vendor hardware

·      Cost saving programme delivered annualised proforma overhead savings of $4.4m

·      Continued strong cash generation and increased year end cash balance of $20.3m

-  Debt-free balance sheet and strong net cash position support dividend policy

·      Recommended dividend up 10%, in line with our previous commitment

-  Seventh consecutive year of dividend increases

-  Ongoing commitment to maintain dividend at current levels until at least FY20

 

Transformation programme to drive higher quality of earnings  

·      Acceleration of strategy to focus on software and services and value-add hardware, to support a more resilient business model with improved operating margins and recurring revenue

·      Exit from low margin, commoditised hardware activities expected to reduce anticipated revenues by c20%, and anticipated adjusted operating profit by 10%, in FY19

·      Further management action to deliver cost savings - additional $5.0m annualised reduction in cost base identified

·      Intention to accelerate software and services growth through organic growth and a focused M&A strategy

·      Simplification of product portfolio to deliver more cost-effective products to customers

·      Programme expected to complete by April 2019

 

Operational and strategic progress

·      Strong growth in software and services, up 19%

·      The Group's three long-term growth drivers continue to make progress: IP / Cloud TV Everywhere; Operator Ready Android TV; and Upcycling legacy devices to next generation TV experiences

·      Traction for SaaS Engage platform - annual recurring run-rate revenues up 36%

·      Launch of innovative ODM programme to licence AminoOS software

 

Current trading and outlook

·      Challenging macro-economic headwinds continuing into 2019

·      Multi-Layer Ceramic Capacitor ("MLCC") cost increases are showing early signs of slowing

·      Memory prices expected to decline slowly from Q2 2019

·      Operators seeing continued pressure from rising content costs and cord cutting and trimming

·      2019 expectations reduced to reflect exit from low margin, commoditised hardware activities and refocused strategy

 

 

Keith Todd CBE, Non-Executive Chairman, said:

"The Board remains confident in the strength and strategic direction of the Company and has committed to continue its dividend policy for this financial year and maintain this dividend level for at least two years thereafter. The diversity and depth of change in our industry this year has created difficult trading conditions in the short term, however the Company remains well positioned to take advantage of the all IP future, and remains profitable and cash generative.

 

2018 presented Amino with unprecedented macro-economic headwinds which, together with continued industry transformation, impacted our performance.  Amino delivered a resilient performance in this context, with excellent cash generation supporting a net cash position and strong balance sheet.  Swift and decisive management action on cost protected group margins.  Amino continues to make good progress with its three long-term growth priorities: IP / Cloud TV Everywhere, Operator Ready Android TV and Upcycling legacy devices to next generation TV experiences.

 

To support a higher quality of earnings and de-risk the business, we are accelerating our strategy to improve growth in recurring revenues from software and services, reinforce our focus on value-add hardware, and remove our exposure to low margin hardware activities.  This will increase the quality of our earnings and our resilience going forward."

 



These articles are summaries / highlights and dont always include all financial news updates. Check at company website INVESTORS INFORMATION for full published results.


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