(Alliance News) - Amino Technologies PLC on Tuesday said it has decided to reintroduce dividends under a new policy given it now expects to report higher revenue and improvements on other metrics in 2020.
Shares in Amino were up 4.8% at 120.50 pence in London in midday trading.
The Cambridge-headquartered media and entertainment company expects to post total revenue of around USD83 million for its financial year ended November 30, which would be approximately 7.5% higher than its USD77.2 million financial 2019 revenue figure.
It is also expecting to report an adjusted operating profit slightly exceeding the prior year's figure of USD10.2 million. This figure excludes amortisation of acquired intangibles, other operating income, exceptional items and share-based payment charges.
It is also forecasting improved quality of earnings, with higher margin software revenue of about USD20 million, an approximately 50% increase over financial 2019.
It also expects to have enhanced visibility with an exit run rate annual recurring revenue of around USD11 million compared to USD9.5 million at the end of November 2019. Its net cash position is also predicted to be higher at USD9.4 million November 30 versus USD1.4 million the year before.
Amino said: "All key metrics are expected to have tracked ahead of the prior year, demonstrating a resilient trading performance. Consequently, the board has decided to reintroduce dividends under a new dividend policy."
The new policy involves targets payment of an annual dividend of between 33% and 50% of adjusted annual earnings per share, depending on Amino's investment requirement each year, in addition to targeting capital growth from share price appreciation. The company's policy is to pay out one third of the full year dividend as an interim and the other two thirds as a final dividend.
"The board expects to recommend a final dividend for FY20 under this policy at the lower end of the payout range alongside its full year results, expected to be published in February 2021 with the dividend expected to be paid in April 2021, following approval by shareholders at the annual general meeting in March 2021," Amino explained.
The company will provide additional details when it publishes it annual results, currently expected on February 9, 2021.
Chief Executive Donald McGarva said: "Looking to the year ahead, in light of our robust performance, cash generation and balance sheet strength, the board has announced a new dividend policy in order to target delivering shareholder value from both capital growth and income.
"We enter the new financial year with enhanced visibility and quality of earnings and a clear strategy to enable the structural shifts in the TV market through innovative software with the aim of delivering significant revenue and profit growth over the medium term. This growth is expected to be delivered both organically, and from the execution of selective M&A opportunities."
By Anna Farley; annafarley@alliancenews.com
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