LONDON (ShareCast) - (Sharecast News) - Amino Technologies dived on Tuesday after the company reported that full-year profits had slumped amid falling revenue, with macro-economic headwinds continuing into the current year.
For the year ended 30 November, the connected TV specialist reported a profit before tax of £8.2m, down 38% on the year before, as revenue dropped by 7% to £88.9m and its cost of sales remained constant at £51m.

Amino had cash and cash equivalents of £20.3m at the end of the period, up from £17.4m at the same point the year before, while the board recommended a full year dividend of 7.32 pence per share, a 10% increase over the prior year.

The AIM traded company had slashed full-year expectations in October due to higher than anticipated component costs and a drop in orders, which was attributed to macro-economic headwinds from the US-China trade dispute and instability in essential emerging markets, issues that have continued into the new year.

Keith Todd, non-executive chairman, said: "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."

Software and services revenue increased by 19%, which the company said was a reflection of the good progress made by these offerings.

North American revenues, which make up 56% of group revenue, declined by 18% as planned tariffs "created confusion and concern" among customers and delayed orders, while in Latin America, which contributes 10% of group revenue, sales declined by 15% as economic instability in the region impacted the ability of customers to pay in the second half of the year.

Meanwhile EMEA revenues, which make up 32% of group revenue, increased by 25% after a long-standing customer re-commenced orders in the second half of the year and contract wins at T-Mobile Netherlands, Kabelnoord in the Netherlands and Cablevision in Lebanon.

"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," said Todd.

Amino Technologies' shares were down 15.05% at 91.75p at 1243 GMT.

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