LONDON (Alliance News) - Amino Technologies PLC shares plummeted on Tuesday after it warned its full year profit will be below expectations because of a shortfall in revenue from its "core" business during the second half of the year, calling its sales efforts unsatisfactory.
Amino shares were down 23% to 120.50 pence per share on Tuesday morning.
The UK-based digital entertainment company said although profit before tax and exceptional items will be lower than expected, it will be "in line" with profit from the previous financial year.
"The company has identified that its sales execution efforts in the second half have not been satisfactory. Whilst 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," said Amino.
To address its sales issues, the company said it has implemented a "series of targeted actions" across the business, but did not divulge any further details.
"In spite of this expected trading outcome, the board reconfirms its commitment to the company's progressive dividend policy and expects net cash balances at the period end to remain in line with current expectations," it said.
On a brighter note, the company said the cost synergies and revenue derived from its acquisition of Entone Inc earlier this year are "tracking ahead of plan" and "integrating well".
Amino will post a full trading update for the financial year ending on November 30 on December 3.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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