Amino Technologies trading at 'record' levels, margins narrowing

Digital television entertainment and cloud solutions Amino Technologies updated the market on its trading for the six months to 31 May on Tuesday, saying it entered the period with a “strong” order backlog and continued its “solid” sales execution driven by “consistent demand” for IP devices.

The AIM-traded firm said that as a result, trading for the period was at record levels, in line with management's expectations.

Revenue for the period was expected to be approximately £40m, representing 21% growth over H1 2016 revenue of £33m.

At constant currency with revenue translated at last year's average exchange rates, that would represent revenue growth of around 5%.

Margins in the period had been strong, the board said, but it anticipated that they would be lower in the second half of the year as the product mix shifted towards new product lines.

As is typical with the launch of new products, those would be lower margin, optimising over time as scale is reached.

As a result, the board confirmed expectations for the full year remained unchanged.

Net cash at 31 May was £13.1m, up from £3.1m year-on-year, and was positively impacted by the timing of delivery of larger orders which were completed well in advance of the period end.

“The momentum we saw in 2016 has continued into the first half of this year,” said non-executive chairman Keith Todd.

“Strong sales execution and growing traction for our wider portfolio positions the Group well to meet expectations for the full year.”

The company said its interim results would be announced on 11 July.