AFERIAN PLC

Earnings Release • Feb 7, 2017

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RNS Number : 1688W

Amino Technologies PLC

07 February 2017

7 February 2017

AMINO TECHNOLOGIES PLC

("Amino", the "Company" or the "Group")

FULL YEAR RESULTS FOR THE YEAR ENDED 30 NOVEMBER 2016

Transformation completed driving strong results

Amino Technologies plc (LSE AIM: AMO), the global provider of digital TV entertainment and cloud solutions to network operators, announces audited consolidated results for the year ended 30 November 2016.

Successful integration of the acquisitions made in 2015 has served to increase Amino's scale, broadened its product and service portfolio and helped to fuel strong revenue and profit growth over the past twelve months.

Financial highlights

	Adjusted				Statutory
	2016 £m	2015 £m	Change		2016 £m	2015 £m	Change
Revenue	75.2	41.7	80%		75.2	41.7	80%
Gross profit	32.3	18.6	74%		32.3	18.6	74%
Gross profit margin	42.9%	44.8%	(1.9%)		42.9%	44.8%	(1.9%)
EBITDA(1)	13.5	7.5	80%		8.3	4.7	77%
Operating profit (2)	10.2	5.1	100%		2.9	0.3	867%
Profit before tax(2)	10.2	5.2	96%		2.9	0.3	867%
Basic earnings per share(2)	13.64p	8.57p	59%		3.81p	0.61p	525%
Cash generated from operations(3)	15.8	6.9	129%		12.6	5.8	116%
Net cash	6.2	2.1	195%		6.2	2.1	195%
Dividend per share	6.05p	5.5p	10%		6.05p	5.5p	10%

·    Underlying (4) organic revenue growth of 7%, which is 2% ahead of management's initial expectations of 5%

·     Gross margin decreased to 42.9% as a result of new product launches and larger volume customers offset by the positive impact of additional software and services sold during the year

·     Adjusted profit before tax up 96% to £10.2m

·     Statutory profit before tax up 867% to £2.9m

·     Adjusted cash generated from operations of £15.8m representing 117% of Adjusted EBITDA (2015: 92%)

·     Statutory cash generated from operations was £12.6m representing 149% of EBITDA (2015: 123%)

·     Net cash of £6.2m at 30 November 2016 after paying record dividends of £4.0m

·     Recommended increase in full year dividend to 6.05p per share, up by 10% year on year in line with the Company's stated progressive dividend policy. This is the fifth consecutive year the dividend has been increased since 2011.

(1)    Adjusted EBITDA is a non GAAP measure and is defined as earnings before interest, taxation, depreciation, amortisation, other operating income, exceptional items and share-based payment charges

(2)    Adjusted profit before tax and adjusted earnings per share are non-GAAP measures and exclude amortisation of acquired intangibles, other operating income, exceptional items and share-based payment charges

(3)    Adjusted cash generated from operations excludes cash from exceptional items

(4)    Excluding the impact of acquisitions and foreign exchange

Operational highlights

·      Integration of 2015 acquisitions of Booxmedia and Entone successfully completed, creating a single enhanced portfolio aligned with current and future market trends

·      Strengthened sales team successfully delivered 7% organic revenue growth in 2016, a strong order book and improved sales pipeline visibility into the first half of 2017

·      Continued progress made in Latin America as operators see strong take up for IPTV services

·      EnableTM TV software platform deployed to multiple new customers

o  Contract with Cincinnati Bell Inc, to migrate its legacy IPTV devices to the Enable platform successfully delivered

o  Contract won with PCCW to deploy the Enable platform to deliver new 4K UHD (Ultra High Definition) services

·      New Cloud TV contracts signed with European mobile and fixed line operators

·      New contracts secured with regional operators in North America including the first deployment of the Fusion Home monitoring solution

Commenting on today's results, Keith Todd CBE, Non-Executive Chairman said:

"This has been a very good year for Amino. As a result of our increased focus on sales execution, a broader product portfolio and the rapid integration of the two businesses acquired in 2015, all financial metrics are ahead of the expectations set at the beginning of the year. We now look forward to continuing the positive momentum generated in 2016 and to continue building the Group for further long-term sustainable profitable growth."

The information communicated in this announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

For further information please contact:

Amino Technologies PLC	+44 (0)1954 234100
Donald McGarva, Chief Executive Officer
Mark Carlisle, Chief Financial Officer
finnCap Ltd (NOMAD and Joint Broker)	+44 (0)20 7220 0500
Matt Goode / Carl Holmes / Simon Hicks (Corporate Finance) Simon Johnson / Tim Redfern (Corporate Broking)
Canaccord Genuity Limited (Joint Broker and Financial Adviser)	+44 (0)20 7523 8000
Simon Bridges / James Craven / Emma Gabriel
FTI Consulting LLP (Financial PR)	+44 (0)20 3727 1000
Chris Lane / Alex Le May / Darius Alexander

About Amino Technologies plc

Amino Technologies plc specialises in the development and delivery of IPTV/OTT solutions. With over eight million devices sold to 1,000 customers in 100 countries, Amino's award-winning solutions are deployed by major network operators and service providers worldwide. Amino Technologies plc is headquartered near Cambridge, in the UK, and is listed on the AIM market of the London Stock Exchange (AIM: symbol AMO). www.aminocom.com 

Chairman's statement:

This has been a very good year for the Company. We have successfully completed the rapid integration of the two companies acquired in the previous year; executed on a challenging sales plan and strengthened the management team. As a result, the Company has delivered results ahead of market expectations as well as securing a solid order backlog.

All financial metrics are ahead of market expectations set at the beginning of the year. Revenue for the year was £75.2m (FY 2015: £41.7m) and included solid organic growth of 7%. Adjusted operating profit of £10.2m increased by 100% over the prior year (FY 2015: £5.1m). Operating profit was £2.9m (FY 2015: £0.3m). The Company continues to turn profit into cash which is reflected in the year-end cash position of £6.2m (30 November 2015: £2.1m).

At the start of the year, the Board set out a clearly defined direction, identifying two key drivers for future growth and shareholder value, namely hybrid TV - that is, TV delivery both via the Internet and via other multimedia channels such as satellite and cable - and cloud services. This strategy is shaped by the industry-wide move towards Internet Protocol (IP) as the key enabler for all media and services to be delivered on-demand from the cloud to any device, anytime and anywhere.

Four key objectives were set for the year. Firstly, to increase revenue and market share in IPTV, Amino's traditional core market. Secondly, to exploit the migration of cable TV operators to an all-IP cloud future. Thirdly, to target and scale up Amino's cloud TV offering to mobile network operators and content owners. Finally, to launch an "Internet of Things" (IoT) offering focused on home monitoring to provide cable TV and IPTV operators with a point of difference to enable them to gain customer traction.

Substantial progress has been made against all of these objectives. Amino's customer proposition is closely aligned with market trends and the revitalised sales team is performing well across key regional markets and in Latin America and North America in particular. Customer value is increasingly driven by our deep software expertise; speed of responsiveness and our ability to provide software solutions that deliver a high quality unified end-user experience across both new and legacy devices within an operator's network.

Amino has now successfully re-positioned itself as a global solutions provider for a new exciting era in entertainment service delivery. The broader and deeper portfolio, underpinned by extensive software expertise, has enabled the Company to successfully target a wider market with encouraging traction across its entire product range.

It is testimony to the staff across the Group that these transformative changes have been achieved in a short space of time, delivering positive results and a new confidence in the business both internally and externally. On behalf of the Board, I would like to thank them for their hard work and commitment.

Dividend

In line with the Company's progressive dividend policy the Board is pleased to recommend a full year dividend of 6.05p, a 10% increase on 2015. This is the fifth consecutive year that the dividend has been increased since 2011. The Board also intends to continue the Company's dividend policy of no less than 10% growth per annum for the year ending 30 November 2017.

Subject to shareholder approval at the annual general meeting to be held on 29 March 2017, the dividend will be payable on 28 April 2017, to shareholders on the register at 7 April 2017, with a corresponding ex-dividend date of 6 April 2017.

Outlook

Amino enters 2017 with a strong order book and sales pipeline providing good visibility of revenue and profits for the first half. The Board expects the positive momentum gained in 2016 to continue and result in sustainable profitable growth in 2017.

Keith Todd

Chairman

6th February 2017

Chief Executive's review:

Growing the Amino proposition in line with evolving customer needs

Amino is well positioned to capitalise on significant changes in the way entertainment is delivered to the consumer. Network operators and service providers can no longer deliver just linear television - where viewers must be in front of their televisions to watch entertainment at a given time. Today's consumer demands content at anytime, anywhere and on their choice of device, be it the television, tablet or mobile phone. This growing trend has disrupted traditional operator service delivery models and the technology enablers that have been in place for many decades.

Increasingly, operators are using Internet Protocol (IP) - the data delivery mechanism that underpins the Internet - to ensure consumers enjoy an "on demand" and always available entertainment experience, whilst at the same increasing efficiency and streamlining service delivery. The growth in consumer take up of "OTT" services, such as Netflix and Amazon Prime, which are delivered over the open Internet, has acted as a further catalyst for this trend.

Broadening the addressable market

Amino's core market remains IPTV - where operators use a managed broadband connection into the home to deliver a TV entertainment service. However, the acquisitions of Booxmedia and Entone, both of which were completed in 2015, have broadened Amino's portfolio to address adjacent sectors such as the cable TV industry. Here operators are now turning to IP to enable new levels of interactivity and multiscreen delivery, either moving to a pure IPTV delivery model or deploying "hybrid" devices which combine cable TV and IP delivery, much as Sky now deploys hybrid devices delivering satellite and IP delivery. Likewise, we now provide mobile operators with the capability to deliver TV services to mobile devices and tablets.

We are now better positioned to address this wider market and, based on our skillset and portfolio, help operators migrate to an all IP future, where services are delivered on demand via the cloud to any device. At the same time, using our software expertise, we are now helping operators maximise their existing legacy assets, including already deployed devices, to deliver new advanced services across their entire customer base.

The enhanced portfolio launched during the first half of the year encompasses four key elements:

·      VIEW: hybrid TV devices to deliver any content across any network to any device. This is underpinned by the Enable TV software platform

·      MOVE: initially focused on mobile operators but now with increasing relevance to our broader customer base as an end-to-end entertainment service delivery platform

·      ENGAGE: quality of service network management tools

·      FUSION: a simple, easy to deploy Internet of Things (IoT) home monitoring solution

The breadth and depth of this offering has served to deepen our relationships with customers and has resulted in growing traction for both device and software sales to operators. In particular, our ability to support customers who are migrating TV services to an IP and cloud-based delivery model while extracting value from existing deployed systems and devices is a key differentiator in our markets.

Industry analysts IHS in May 2016 forecast continued growth in IP-connected pay TV devices from 107 million units in 2014 to over 175 million units by 2019. The transition by cable TV operators to IP is set to expand over the same period - representing a sizeable market that Amino is now addressing.

Current customers and markets

The provision of hybrid TV devices remains a core element of the business, however during the year we also delivered encouraging growth in the provision of software and cloud-based solutions to both existing and new customers.

Demand for high quality IPTV devices remains strong with excellent growth in key target regions. In Latin America, there have been substantial contract wins with both new and existing customers. Market de-regulation and the rollout of fibre networks across the region continues to help drive the market with operators seeking to deploy value-added entertainment services alongside their more traditional broadband offerings.

North America is a more mature market in which Amino has a substantial presence. Continued good growth in device sales to the tier 3 market has been complemented by a substantial contract win with leading regional tier 2 operator Cincinnati Bell, which was announced in the first quarter of the year.

The Company successfully migrated Cincinnati Bell's legacy IPTV devices to Amino's Enable™ TV software platform in a perfect demonstration of the capabilities of both the solution and the skillset within the Amino team. The challenge that Cincinnati Bell faced was to deliver an enhanced and uniform user experience across their full range of new and already installed devices. Solving this challenge for operators is a key part of the Amino offering.

In August, it was announced that Hong Kong-based Tier 1 operator PCCW would deploy the Enable platform to deliver new 4K UHD services to its customers, further underlining the increasing complexity of projects we are now able to successfully deliver for larger customers.

The changes within the cable TV industry represent an important growth opportunity for Amino as the market transitions to IP. During the year, key sales hires have been made to bring in additional industry expertise, alongside an enhanced product set, to target this market.

Market traction in cloud TV has been encouraging, with new contracts signed with European mobile and fixed line operators and content owners. We have also seen revenue from Booxmedia, our Move platform, more than doubling year-on-year.

We continue to build on our ability to deliver a wider range of complementary solutions to deepen relationships with customers. During the year, several customers - particularly in North America - purchased both IP devices and the Engage™ quality of service network management solution.

The launch of the Fusion™ IoT home monitoring solution in the second half of the year is further evidence of the innovation within the Company. Whilst sales volumes are low, operator response has been good, with several North American operators now actively deploying as a new value added service layer to their broadband and entertainment offerings.

New 4K Ultra High Definition (UHD) hybrid TV devices were also launched during the year to support operators who are now progressing their plans for 4K service deployment. Further, the Company announced a "world first" device that combines Android TV capability alongside the existing Enable™ software platform.  Part of the Kamai range of devices, it has been designed for operators who require traditional TV, multiple cloud video services and a rich application framework that leverages the massive global Android development community.

Operational structure

A number of changes were made earlier in the year to better align the business with the new strategy and portfolio. Critically, the issues around sales execution towards the end of the previous year were effectively resolved with the creation of a new integrated sales team under Steve McKay, the former CEO of Entone and now President, Sales and Business Development within Amino. Dedicated teams were created for all key target regions and the year-end financial results are testimony to the successful sales execution across the business.

A global research and development team has also been established with operations in the UK, Hong Kong and Finland, improving scale and capabilities to drive innovation and met the needs of a wider set of customers.

Future growth

As a result of the positive momentum generated in 2016 by Amino's broader product portfolio, strong sales execution and a solid order backlog, the Board expects further positive progress to be made in 2017.

Donald McGarva

Chief Executive Officer

6 February 2017

Chief Financial Officer's review

Revenue for the year increased by 80% to £75.2m (2015: £41.7m) as a result of organic growth, the acquisitions of Entone and Booxmedia in 2015 and the impact of foreign exchange. Adjusted operating profit was £10.2m (2015: £5.1m). Operating profit was £2.9m (FY2015: £0.3m). In line with its progressive dividend policy the Board has recommended a full year dividend 6.05 pence per share, a 10% increase over the prior year. The Group has a strong balance sheet with cash of £6.2m (2015: £2.1m) and is debt free.

Revenue

Set out below is revenue by type on an 'as reported' and 'constant currency' basis (with 2016 revenue translated using 2015 average exchange rates). Pro-forma revenues have also been presented on a constant currency basis and have been calculated as if Booxmedia and Entone had been part of the Group for the whole of 2015. In 2016 approximately 95% of the Group's revenue and cost of sales were transacted in US Dollars. Excluding the impact of acquisitions and foreign exchange, underlying organic revenue growth was 7% which is 2% ahead of management's initial expectations of 5%.

	As reported				Constant currency				Constant currency pro-forma
	2016 £m	2015 £m	Growth		2016 £m	2015 £m	Growth		2016 £m	2015 £m	Growth
Software and services	8.1	2.3	252%		7.4	2.3	222%		7.4	38.3	95%
Devices	67.1	39.4	70%		59.1	39.4	50%		59.1	58.3	1%
Revenue	75.2	41.7	80%		66.5	41.7	50%		66.5	62.1	7%

Software and service revenues in 2016 include £5.7m of non-recurring perpetual licence and development revenue. Going forward, it is Amino's intention to focus on growing recurring revenue licence contracts rather than selling perpetual licences which will consequently impact on gross margin going forward. Booxmedia revenue grew organically by approximately 42% in 2016.

The Group's revenues are globally distributed as follows:

	As reported
	2016 £m	2015 £m	Growth
North America	38.9	21.0	85%
Latin America	12.9	4.4	193%
Europe	22.5	15.2	48%
Rest of World	0.9	1.1	(18%)
Revenue	75.2	41.7	80%

Amino continues to sell its products directly to tier 2 customers and to tier 3 customers via distributors. The Group has four customers each having more than 10% of total Group revenue, of which three of these customers are distributors.

Gross profit

Gross profit increased by 74% to £32.3m (2015: £18.6m). Gross margin decreased to 42.9% (2015: 44.8%). The decrease results from the impact of new product launches and larger volume customers offset by the positive impact of additional software and services sold in the year.

Operating expenses

	As reported
	2016 £m	2015 £m	Growth
R&D	5.8	4.5	29%
SG&A	13.0	6.6	97%
Share-based payment charge	0.3	0.1	200%
Exceptional items	4.8	4.7	2%
Depreciation and amortisation	5.5	3.2	72%
Operating expenses	29.4	19.1	54%

In May 2016, the Group undertook a significant restructuring programme to realise synergies identified following the acquisition of Entone which resulted in £2.0m annualised cost reductions realised in the second half of the year. The Group continues to invest in research and in the development of new products and spent £9.5m on R&D activities (2015: £7.7m) of which £3.7m was capitalised (2015: £3.2m). Share based payment charges totalled £0.3m (2015: £0.1m).

In the second half of the year the Group's R&D and SG&A costs were denominated 51% in US and HK Dollars, 39% in British Pounds and 10% in Euros.

Exceptional items

Exceptional items included within operating expenses in 2016 comprised:

·      £3.6m contingent post-acquisition remuneration in respect of the Entone acquisition;

·      £0.4m post acquisition integration costs which included additional travel and contractor costs resulting from activities to integrate the enlarged Group; and

·      £0.8m redundancy and associated costs.

Depreciation and amortisation

Excluding amortisation of intangibles recognised on acquisition, depreciation and amortisation increased to £3.3m (2015: £2.4m) and is expected to increase further in 2017 as further research and development costs are capitalised. Amortisation of intangibles recognised on acquisition was £2.2m (2015: £0.8m).

Operating profit

Adjusted operating profit excluding share-based payment charges, exceptional items and amortisation of intangibles recognised on acquisition was £10.2m (2015: £5.1m). Statutory operating profit was £2.9m (2015: £0.3m).

Taxation

The tax charge of £0.2m comprises a £0.7m current tax charge and £0.5m credit relating to the unwind of the deferred tax liability recognised in respect of the amortisation of intangible assets recognised on acquisition.

Profit after tax was £2.7m (2015: £0.4m).

Earnings per share

After adjusting for exceptional items, share-based payment charges and amortisation of intangibles recognised on acquisition, basic earnings per share increased by 63% to 13.64 pence (2015: 8.37 pence). Basic earnings per share was 3.81 pence (2015: 0.61 pence).

Cash flow

Adjusted cash flow from operations was £15.8m (2015: £6.9m) and represented 117% of adjusted EBITDA (2015: 92%). Exceptional cash flows in 2016 totalled £3.3m and comprised £1.7m paid in respect of Entone deferred consideration treated as remuneration and £1.6m of restructuring and integration costs. The final Entone deferred consideration payment of US$1.5m (£1.2m) is due to be paid in August 2017. After these exceptional cash out-flows cash generated from operations was £12.6m (2015: £5.8m).

During the year the Group spent £0.7m (2015: £0.1m) on capital expenditure, primarily related to the new office in Hong Kong and capitalised £3.7m of research and development costs. The Group paid £0.4m deferred consideration in respect of the Booxmedia acquisition and paid dividends of £4.0m in the year.

Financial position

The cash balance at 30 November 2016 was £6.2m (2015: £2.1m), ahead of management's expectations. The Group also has a £15.0m multicurrency working capital loan facility which runs to August 2020 and was undrawn at the year end.

At 30 November 2016 the Group had equity of £45.9m (2015: £45.1m) and net current assets of £1.9m (2015: £3.4m). 39% of trade receivables were insured (2015: 36%) and debtor days were 42 days (2015: 52 days).

Dividend

The Board has recommended a full year dividend of 6.05 pence per share, a 10% increase over the prior year. The Board also intends to continue the Company's dividend policy of no less than 10% growth per annum for the year ending 30 November 2017. Subject to shareholder approval at the Company's AGM on 29 March 2017, the final dividend of 4.659 pence per share will be payable on 28 April 2017 to shareholders on the register on 7 April 2017. The ex-dividend date is 6 April 2017.

Mark Carlisle

Chief Financial Officer

6 February 2017

Consolidated income statement For the year ended 30 November 2016
		Year to 30 November 2016	Year to 30 November 2015
		£000s	£000s
	Notes
Revenue	2	75,178	41,660
Cost of sales		(42,890)	(23,016)
		__________	__________
Gross profit		32,288	18,644
Other operating income		-	744
Operating expenses		(29,433)	(19,131)
		_________	_________
Operating profit		2,855	257
Adjusted operating profit		10,226	5,095
Other operating income	3	-	744
Share-based payment charge		(297)	(116)
Exceptional items	3	(4,825)	(3,386)
Exceptional amortisation charge	3	-	(1,292)
Amortisation of acquired intangible assets		(2,249)	(788)
		__________	__________
Operating profit		2,855	257
Finance expense		(10)	(3)
Finance income		6	68
		__________	__________
Net finance (expense)/income		(4)	65
		__________	__________
Profit before corporation tax		2,851	322
Corporation tax (charge)/credit		(170)	34
		__________	__________
Profit for the period from continuing operations attributable to equity holders		2,681	356
		__________	__________
Basic earnings per 1p ordinary share	4	3.81p	0.61p
Diluted earnings per 1p ordinary share	4	3.77p	0.60p

All amounts relate to continuing activities.

Consolidated statement of comprehensive income For the year ended 30 November 2016
		Year  to 30 November 2016 £000s	Year  to 30 November 2015 £000s
Profit for the year		2,681	356
		__________	__________
Items that may be reclassified subsequently to profit or loss:
Foreign exchange difference arising on consolidation		(327)	234
		__________	__________
Other comprehensive (expense)/income		(327)	234
		__________	__________
Total comprehensive income for the financial year attributable to equity holders		2,354	590
		__________	__________

Consolidated statement of financial position as at 30 November 2016 (continued)
Assets			Notes	As at 30 November 2016 £000s	As at 30 November 2015 £000s
Non-current assets
Property, plant and equipment				757	553
Intangible assets				46,950	46,342
Deferred income tax assets				560	560
Trade and other receivables				384	162
				_________	_________
				48,651	47,617
				_________	_________
Current assets
Inventories				5,569	3,651
Trade and other receivables			5	14,301	11,673
Corporation tax receivable				-	601
Cash and cash equivalents				6,218	2,094
				_________	_________
				26,088	18,019
				_________	_________
Total assets				74,739	65,636
				_________	_________
Capital and reserves attributable to equity holders of the business
Called-up share capital				747	744
Share premium				20,510	20,193
Capital redemption reserve				6	6
Foreign exchange reserves				491	818
Merger reserve				16,389	16,389
Equity reserve				-	665
Retained earnings				7,712	6,235
				_________	_________
Total equity				45,855	45,050
				_________	_________
Liabilities
Current liabilities
Trade and other payables			6	23,665	14,338
Corporation tax payable				524	321
				_________	_________
				24,189	14,659
				_________	_________
Non-current liabilities
Trade and other payables			6	628	1,775
Provisions				2,233	1,869
Deferred tax liabilities				1,834	2,283
				_________	_________
				4,695	5,927
				_________	_________
Total liabilities				28,884	20,586
				_________	_________
Total equity and liabilities				74,739	65,636
				_________	_________

Consolidated statement of cash flows For the year ended 30 November 2016
		Notes	Year to 30 November 2016	Year to 30 November 2015
			£000s	£000s
Cash flows from operating activities
Cash generated from operations		7	12,481	5,836
Corporation tax received			97	1
			_________	_________
Net cash generated from operating activities			12,578	5,837
			_________	_________
Cash flows from investing activities
Purchases of intangible assets			(3,715)	(3,201)
Purchases of property, plant and equipment			(681)	(118)
Proceeds on disposal of property, plant and equipment			-	9
Net interest (received)/ paid			(4)	65
Acquisition of subsidiaries			(360)	(38,776)
			_________	_________
Net cash used in investing activities			(4,760)	(42,021)
			_________	_________
Cash flows from financing activities
Proceeds from exercise of employee share options			225	574
Proceeds from issue of new shares			-	19,858
Dividends paid			(3,964)	(2,924)
Repayment of borrowings			(1,000)	(5,100)
New bank loans raised			1,000	5,166
			_________	_________
Net cash used in financing activities			(3,739)	17,574
			_________	_________
Net increase/(decrease) in cash and cash equivalents			4,079	(18,610)
Cash and cash equivalents at beginning of year			2,094	20,758
Effects of exchange rate fluctuations on cash held			45	(54)
			_________	_________
Cash and cash equivalents at end of year			6,218	2,094
			_________	_________

Consolidated statement of changes in equity For the year ended 30 November 2016
	Share capital £000s	Share premium £000s	Merger reserve £000s	Equity reserve £000s	Foreign exchange reserve £000s	Capital redemption reserve £000s	Profit and loss £000s	Total £000s
Shareholders' equity at 30 November 2014	579	126	16,389	-	584	6	8,113	25,797
	________	________	_________	____  ___	_________	______  ___	____  ___	____  ___
Profit for the year	-	-	-	-	-	-	356	356
Other comprehensive income	-	-	-	-	234	-	-	234
	________	________	________	________	_________	________	________	________
Total comprehensive income for the period attributable to equity holders	-	-	-	-	234	-	356	590
	________	________	________	________	_________	__________	________	________
Share option compensation charge	-	-	-	-	-	-	116	116
Exercise of employee share options	-	-	-	-	-	-	574	574
Issue of share capital	165	21,318	-	-	-	-	-	21,483
Transaction costs on issue of share capital	-	(1,251)	-	-	-	-	-	(1,251)
Equity to be issued	-	-	-	665	-	-	-	665
Dividends paid	-	-	-	-	-	-	(2,924)	(2,924)
	________	________	________	________	_________	________	________	________
Total transactions with owners	165	20,067	-	665	-	-	(2,234)	18,663
	________	________	________	________	_________	__________	________	________
Total movement in shareholders' equity	165	20,067	-	665	234	-	(1,878)	19,253
	________	________	________	________	_________	__________	________	________
Shareholders' equity at 30 November 2015	744	20,193	16,389	665	818	6	6,235	45,050
	________	________	_________	____  ___	____  ___	______  ___	____  ___	____  ___
Profit for the year	-	-	-	-	-	-	2,681	2,681
Other comprehensive expense	-	-	-	-	(327)	-	-	(327)
	________	________	________	________	_________	________	________	________
Total comprehensive income for the period attributable to equity holders	-	-	-	-	(327)	-	2,681	2,354
	________	________	________	________	_________	__________	________	________
Share option compensation charge	-	-	-	-	-	-	297	297
Exercise of employee share options	-	-	-	-	-	-	225	225
Issue of share capital	3	317	-	-	-	-	-	320
Equity to be issued	-	-	-	(665)	-	-	-	(665)
Treasury shares used	-	-	-	-	-	-	2,238	2,238
Dividends paid	-	-	-	-	-	-	(3,964)	(3,964)
	________	________	________	________	_________	________	________	________
Total transactions with owners	3	317	-	(665)	-	-	(1,204)	(1,549)
	________	________	________	________	_________	__________	________	________
Total movement in shareholders' equity	3	317	-	(665)	(327)	-	1,477	805
	________	________	________	________	_________	__________	________	________
Shareholders' equity at 30 November 2016	747	20,510	16,389	-	491	6	7,712	45,855
	________	________	____________	________	_________	__________	________	________

Notes

For the year ended 30 November 2016

1   Basis of preparation

The preliminary announcement for the year ended 30 November 2016 has been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and interpretations (collectively IFRS) as adopted by the EU and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

The financial information set out above, which was approved by the Board on 6 February 2017, is derived from the full Group accounts for the year ended 30 November 2016 and does not constitute the statutory accounts within the meaning of section 434 of the Companies Act 2006. The Group accounts on which the auditors have given an unqualified report, which does not contain a statement under section 498(2) or (3) of the Companies Act 2006 in respect of the accounts for 2016, will be delivered to the Registrar of Companies and posted to shareholders in due course. 

2   Geographical external customer revenue analysis

	Year to 30 November 2016 £000s	Year to 30 November 2015 £000s
USA	38,252	19,402
Canada	697	1,546
	_________	_________
Subtotal North America	38,949	20,948
Costa Rica	4,429	113
Chile	2,809	2,122
Rest of LATAM	5,645	2,106
	_________	_________
Latin America	12,883	4,341
Netherlands	13,641	7,959
Rest of Europe	8,858	6,815
	_________	_________
Subtotal Europe	22,499	14,774
Rest of the World	847	1,597
	_________	_________
	75,178	41,660
	_________	_________

For this disclosure revenue is determined by the location of the customer.

3   Exceptional Items

There were no exceptional items within other operating income in the year ended 30 November 2016.  A final rebate of £744k in respect of duties paid on previously recognised international product sales was received following the favourable ruling with respect to duties rebate at a tax tribunal in January 2015.

Exceptional items within operating costs comprise:

			Year to 30 November 2016 £000s	Year to 30 November 2015 £000s
Acquisition costs in respect of Booxmedia Oy			-	295
Acquisition costs in respect of Entone Inc			-	1,064
Expensed contingent post-acquisition remuneration in respect of the acquisition of Entone Inc			3,600	1,310
General post acquisition integration costs which includes additional travel and contractor costs resulting from activities to integrate the new enlarged Group			443	272
Development project costs resulting from the rationalisation of the new Group's product roadmaps			-	103
Exceptional amortisation charge			-	1,292
Redundancy and associated costs			782	342
			_________	_________
			4,825	4,678
			_________	_________

4   Profit per share

		Year  to 30 November 2016	Year  to 30 November 2015 Restated
Profit attributable to ordinary shareholders		£2,680,941	£356,206
Profit attributable to ordinary shareholders excluding other operating income exceptional items, share-based payments and amortisation of acquired intangibles and associated taxation		£9,602,524	£5,036,552
		_________	_________
Weighted average number of shares (Basic)		70,401,918	58,799,386
		_________	_________
Weighted average number of shares (Diluted)		71,131,763	59,128,979
		_________	_________
Basic earnings per share		3.81p	0.61p
		________	________
Diluted earnings per share		3.77p	0.60p
		_________	_________
Adjusted basic earnings per share		13.64p	8.57p
		________	________
Adjusted diluted earnings per share		13.50p	8.52p
		________	________

The calculation of basic earnings per share is based on profit after taxation and the weighted average of ordinary shares of 1p each in issue during the year. The Company holds 3,092,018 (2015: 4,139,898) of its own shares in treasury and these are excluded from the weighted average above. The basic weighted average number of shares also excludes 380,673 (2015: 962,816) being the weighted average shares held by the EBT in the year.

For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares.  The Group has only one category of dilutive potential ordinary shares; those share options where the exercise price is less than the average market price of the Company's ordinary shares during the year.

The profit attributable to ordinary shareholders excluding exceptional items is derived by adding back exceptional items, share-based payment charges and amortisation of acquired intangibles of £7,371,412 (2015: £5,581,593) and subtracting the tax effect thereon £449,829 (2015: £157,681) and the exceptional duties rebate of £nil (2015: £743,565) disclosed on the face of the income statement, within other operating income.

Adjusted basic and diluted earnings per share have been restated for 2015 to exclude share based payment charges and amortisation of acquired intangibles, net of tax effects, as detailed above.

5              Trade and other receiveables

			As at 30 November 2016 £000s	As at 30 November 2015 £000s
Current assets:
Trade receivables			12,959	10,124
Less: provision for impairment of receivables			(223)	(111)
			_________	_________
Trade receivables (net)			12,736	10,013
Other receivables			68	88
Corporation tax receivable			-	601
Prepayments and accrued income			1,497	1,572
			_________	_________
			14,301	12,274
			_________	_________
Non-current assets:
Other receivables			384	162
			_________	_________

6   Trade and other payables

			As at 30 November 2016 £000s	As at 30 November 2015 £000s
Current liabilities
Trade payables			7,549	4,187
Social security and other taxes			605	830
Other payables			121	112
Accruals			12,823	7,053
Deferred income			1,244	922
Deferred and contingent consideration			1,323	1,234
Corporation tax payable			524	321
			_________	_________
			24,189	14,659
			_________	_________
Non-current liabilities:
Accruals			-	36
Deferred income			-	335
Contingent consideration			628	1,404
			_________	_________
			628	1,775
			_________	_________

7   Cash generated from operations

		Year to 30 November 2016 £000s	Year to 30 November 2015 £000s
Operating profit		2,855	257
Amortisation charge		5,000	4,262
Depreciation charge		495	190
Loss on disposal of property, plant and equipment		14	8
Share-based payment charge		297	116
Exchange differences		31	163
(Increase)/decrease in inventories		(1,919)	3,044
Increase in trade and other receivables		(2,849)	(1,264)
Increase/(decrease) in trade and other payables		8,557	(940)
		_________	_________
Cash generated from operations		12,481	5,836
		_________	_________

Adjusted operating cash flow before exceptional cash outflows was £15.8m (2015: £6.9m).

		Year to 30 November 2016 £000s	Year to 30 November 2015 £000s
Adjusted operating cashflow		15,795	6,937
Duties rebate		-	744
Acquisition costs		-	(1,359)
Redundancy and associated costs		(1,150)	(111)
Integration costs		(443)	(272)
Development project costs		-	(103)
Contingent post-acquisition remuneration		(1,721)	-
		_________	_________
Cash generated from operations		12,481	5,836
		_________	_________

8   Acquisition of subsidiaries

Entone Inc.

On 11 August 2015, the Group acquired 100% of the issued share capital of Entone Inc., obtaining control of Entone Inc..  Entone Inc. is a provider of broadcast hybrid TV and connected home solutions.  Entone Inc. was acquired to increase Amino's global footprint and scale and to consolidate a director competitor.

The fair value adjustments in respect of the acquisition of Entone Inc. during the year ended 30 November 2015 were provisional adjustments made using information available at that point and should have been described as such.

Since that time, an additional fair value adjustment of £1,883k has been made to non-current trade and other payables as these values have been further refined during the integration process, which has resulted in a corresponding increase in goodwill.

The revised identifiable assets acquired and liabilities assumed are as set out in the table below:

	Book value	Fair value adjustment	Fair value
	£000s	£000s	£000s
Property, plant and equipment	198	-	198
Identifiable intangible assets	-	10,805	10,805
Inventory	4,432	-	4,432
Current financial assets
Trade and other receivables	2,992	-	2,992
Cash and cash equivalents	6,867	-	6,867
Non-current trade and other receivables	77	-	77
Current financial liabilities
Trade and other payables	(4,835)	(3,163)	(7,998)
Non-current trade and other payables	(360)	-	(360)
Non-current provision	(1,419)	-	(1,419)
Deferred tax liability	-	(1,905)	(1,905)
Total identifiable assets	7,952	5,737	13,689
Goodwill			27,442
Total consideration			41,131
Satisfied by:
Cash			41,131
Total consideration transferred			41,131

9   AGM / Annual Report

Pursuant to AIM Rule 20, the Annual Report and Accounts for the financial year ended 30 November 2015 ("Annual Report") is available to view on the Group's website: www.aminocom.com and will be posted to shareholders shortly. Amino will hold its AGM on 29 March 2017.

This information is provided by RNS

The company news service from the London Stock Exchange

END

FR UNAKRBAAURAR