Amino Technologies slumps on profit warning

The digital entertainment company said it expects profit before tax and exceptional items to be below expectations but in line with that achieved in the previous financial year.

Still, Amino said it remains committed to its progressive dividend policy and expects net cash balances at the period end to remain in line with current expectations.

The company said it has identified that its sales execution efforts in the second half have not been satisfactory.

It said that while a small proportion of the trading shortfall is due to the consolidation of certain customers and delays to some orders where the customer is considering the transition to 4K Ultra High Definition services, sales execution is the primary factor for the shortfall in revenue.

“As a consequence, and in order to rapidly improve sales planning and conversion, the company has implemented a series of targeted actions across the business.”

Also on Tuesday, the group confirmed that revenue and cost synergies arising from its recent acquisitions of Entone Inc. and Booxmedia Oy are tracking ahead of plan and both the teams and product lines of each acquired company are integrating well.

At 1230 GMT, Amino shares were down 28% at 113p.