(Alliance News) - Amino Technologies PLC on Tuesday posted a far smaller profit for the first half of its financial year due to platform investment and customer order delays.
Shares in Amino were down 4.9% at 125.99 pence in London on Tuesday morning.
The Cambridge-headquartered media and entertainment company's pretax profit for the six months ended May 31 was USD485,000, less than a quarter of the previous year's GBP2.1 million profit.
Although revenue was 9.8% higher at USD38.0 million from USD34.6 million the prior year, operating expenses jumped 34% to USD18.5 million from USD13.8 million to give an operating profit of only USD697,000 compared to USD2.2 million previously.
Adjusted operating profit, which excludes amortisation of acquired intangibles, exceptional items and share-based payment charges, fell 11% to USD4.2 million from USD4.7 million.
Amino said the adjusted profit decline was expected and result from "ongoing investment into 24i next generation platform and delays to some customer orders due to Covid-19 lockdown conditions".
The company said visibility of orders and its sales pipeline support its annual revenue expectations for financial 2020, but there is a possibility that new business wins in the second half could be hurt by additional Covid-19 damage to the global economy. This could result in possible knock-on damage to Amino's customers and supply chain.
No interim dividend was declared, compared to a 1.68p per share dividend the year before.
Non-Executive Chair Karen Bach said: "Amino has a clear strategy: in the long term, to focus on software-led business, and in the near term, to place the needs and wellbeing of customers and employees above all else. This has supported a resilient performance during Covid-19, with significant growth in software-led and recurring revenues, and an excellent improvement in gross margins given the macro backdrop.
"Our goal is to provide our operator, broadcast and media customers with enabling technologies that fulfil and anticipate consumer-led expectations and requirements. The board is confident that Amino has the right foundation to meet its goals, and expect to make further progress in the second half of the year."
By Anna Farley; annafarley@alliancenews.com
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