Private punter6 Jun 2015 23:57
An overdue word on AMINO TECHNOLOGIES, which has been an often commented subject here, where I also have an interest in the shares.
Amino has been a good performer for me, although like others I have often aired my own thoughts on just what the company might do with its bulging cash pile.
While it has often been suggested by some that a one-off extra dividend would be paid, it was not a message that CEO Donald McGarva conveyed to me in the past. While that notion was effectively dismissed outright, potential acquisitions by contrast were not, although McGarva had stated it would very much have to be the right fit.
So, having duly announced just a few weeks back that it was acquiring Finland based Booxmedia for an initial 7.9m Euro’s, one can perhaps conclude that it is a strategically sound move.
Booxmedia will add a platform to the wider Amino business that will allow it to expand into new areas of media and entertainment which will include mobile operators, media companies and various broadcasters.
While that announcement came last month, just last week Amino has delivered a positive Trading Update to the market, which has seen the share price nudge up to £1.43p.
The company stated that it anticipates a return to revenue growth in the first half of the year to May, although as is usual with Amino it expects a second half weighting.
Although such wording can, as I have often mentioned before be a prelude to a subsequent warning, It is a familiar theme with the Cambridge based business, so it isn’t something that I am concerned with.
Indeed the company added that it is confident of meeting market expectations for the full year.
Additionally, the interim dividend is being increased to 1.26p against the previous 1.15p continuing a progressive theme.
With further progress being made in the familiar trading regions of N. America and Western Europe, Amino added that it was also enjoying momentum within Africa and the Middle East.
The company has really come good over the last couple of years where as I said at the outset the shares have been a solid performer for me.
However, there appears to be some decent momentum and drive within the company where its profile now looks set for a further boost with the appointment of Canaccord Genuity as joint Broker With FinnCap.
I shall endeavour to take a view at its opening note where currently FinnCap has pre-tax profits of £4.8m lined up for next year and EPS of 9p.
The forward PER of 15 looks worthy of ongoing consideration to me, given the continued strong net cash position and a growing dividend.