# Amino Technologies Strong financial performance and new 2025 strategy

- Link: https://www.directorstalkinterviews.com/amino-technologies-strong-financial-performance-and-new-2025-strategy/412959910
- Published: 2021-02-09T07:59:37+00:00
- Author: Giles

**Amino Technologies plc** ([LON:AMO](https://www.directorstalkinterviews.com/company/amino-technologies-plc/afrn.l)),
a software-led global media technology company that delivers modern TV experiences,
has announced its preliminary results for the year ended 30 November 2020. 

> **Donald McGarva, Chief Executive Officer of Amino Technologies plc, said: ** 
> “Despite the impact of COVID-19, in 2020 Amino delivered a strong performance 
> and we maintained our previous financial guidance through the year. All our key
> metrics tracked ahead, demonstrating that the software-led strategy we are following
> is delivering results. Like many, our business model has been tested in this challenging
> year but the financial and operational progress we have made, along with the opportunity
> we see ahead, give us the confidence to recommend a dividend. I would like to 
> thank our amazing Amino team for seamlessly adapting to remote working, staying
> close to our customers without missing a beat and continuing to innovate throughout
> the pandemic. 
> To position Amino for future success, we recently launched our Amino 2025 strategy
> to capitalise on the convergence of streaming services, which is where we see 
> the greatest opportunity for growth. COVID-19 has accelerated structural shifts
> in the TV viewing experience. Modern consumers not only want the ‘best of both
> worlds’ – video on demand and live TV working together seamlessly – but they increasingly
> expect it. Our Amino 2025 strategy is built around making this expectation a reality.
> Our business and culture stand stronger today. With a pressing need for the solutions
> and services we deliver, Amino is trading in line and has started the new financial
> year from a position of strength. We have a clear strategy to drive software-led
> growth and to capitalise on real structural shifts, supported by our enhanced 
> visibility and an acute focus on driving recurring revenue and strengthening our
> long-term customer relationships. We look forward to making further progress in
> the year ahead.”

**Financial highlights** 

| **_US$m unless otherwise stated_**  | **2020**  | 2019  | 
| Revenue 
Adjusted gross profit ^((1)) Adjusted operating profit ^((2)) Adjusted operating cash flow ^((3)) Adjusted basic earnings per share (US cents)^((4))  | 82.7 39.7 10.5 18.2 10.07  | 77.2 35.7 10.2 17.2 11.00  | 
| Statutory gross profit Statutory operating profitStatutory operating cash flow Statutory basic earnings per share (US cents) | 40.7 5.1 16.8 4.06  | 37.2 4.3 13.8 4.04   | 
| Net cash Dividend per share (GBP pence)  | 9.5 1.87  | 1.41.68 |

**Financial highlights**

· Achieved growth across all five Key Performance Indicators

· Improved quality of earnings and enhanced visibility

o High margin software revenue up 49% to $19.5 million (2019: $13.0million), total
now 24% of Group revenues

o Exit run rate Annual Recurring Revenue (“ARR”) (5) up 12% to $10.6 million (2019:
$9.5million)

· Strong balance sheet with significantly strengthened net cash position

· New dividend policy to provide shareholders with an income return as well as targeting
capital growth

· Board recommends a dividend of 1.87p

**Strategic and operational highlights**

· Transition to software and services led business model progressing as planned

· Continued innovation and stayed close to our customers throughout the pandemic,
while also expanding addressable market by landing new customers

o New business wins at Slovak Telecom, CWC, Broadway HD and Topic

· Key implementations for multiscreen video at YOUFONE, a Netherlands based MVNO(
6)

· Deployment of our Android Pay TV+ solution with GO and CABLENET to add a new modern
user experience and leading streaming services for their subscribers

· Impressive employee engagement with NPS score at 26%

· Introduced global graduate recruitment programme to drive industry innovation 
and attract talent

**Launch of Amino 2025 strategy to address the convergence of streaming services**

· Our ambition is to triple Group revenues and drive recurring revenue as a percentage
of Group software revenues to 70% by 2025

· Traditional TV and content streaming are converging, driven by consumer needs

· ‘Best of both worlds’ is video on demand and live TV working together seamlessly

· Streaming market set to double to $167 billion by 2025 according to Digital TV
Research

· This provides the greatest opportunities to drive software-led growth and capitalise
on the structural shifts in the TV market to:

o Improve our quality of earnings through increased recurring revenue

o Drive higher margin solutions through growth in software and services revenues

o Deliver the technology to revolutionise viewer choice, usability and convenience

o Use actionable data to drive outcomes for our customers and their viewers

· We continue to assess M&A that will help drive the business forward and speed 
time to market

· Amino Technologies is well positioned to capture this opportunity, making it easy
for people to connect to the TV and video they love

**Current trading and outlook**

· Amino entered 2021 with a solid order book, enhanced visibility and increasing
quality of earnings

· Current trading is in line with the Board’s expectations

· Focused on growing software and services, ARR and strengthening long term relationships

· Amino 2025 strategy aims to deliver significant revenue and profit growth over
the medium term

· Growth is expected to be delivered both organically, and via selective M&A opportunities

· Board strengthened with the appointment of Steve Oetegenn

Notes 

| (1)      | Adjusted gross profit is a non-GAAP measure and excludes exceptional items.  Further details of these adjustments are set out in note 4. | 
| (2)      | Adjusted operating profit is a non-GAAP measure and excludes amortisation of acquired intangibles, exceptional items and share-based payment charges.  Further details of these adjustments are set out in note 4. | 
| (3)      | Adjusted operating cash flow is a non-GAAP measure and excludes exceptional items.  Further details of these adjustments are set out in note 10. | 
| (4)      | Adjusted basic earnings per share is a non-GAAP measure and excludes amortisation of acquired intangibles, exceptional items and share-based payment charges.  Further details of these adjustments are set out in note 6. | 
| (5)      | Exit run rate ARR is annual run-rate recurring revenue as at 30 November 2020. | 
| (6)      | Mobile Virtual Network Operator |

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