AMO.L Regulatory News (AMO)

9 February 2021 

AMINO TECHNOLOGIES PLC 

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

FULL YEAR RESULTS FOR THE YEAR ENDED 30 NOVEMBER 2020 

Strong financial performance demonstrates software-led strategy delivering results 

Amino 2025 strategy to drive software-led growth and capitalise on the structural shifts in the TV market 

Amino Technologies plc (LSE AIM: AMO), a software-led global media technology company that delivers modern TV experiences, announces its preliminary results for the year ended 30 November 2020.

Donald McGarva, Chief Executive Officer of Amino Technologies plc, said:  

"Despite the impact of COVID-19, in 2020 Amino delivered a strong performance and we maintained our previous financial guidance through the year. All our key metrics tracked ahead, demonstrating that the software-led strategy we are following is delivering results. Like many, our business model has been tested in this challenging year but the financial and operational progress we have made, along with the opportunity we see ahead, give us the confidence to recommend a dividend. I would like to thank our amazing Amino team for seamlessly adapting to remote working, staying close to our customers without missing a beat and continuing to innovate throughout the pandemic.

To position Amino for future success, we recently launched our Amino 2025 strategy to capitalise on the convergence of streaming services, which is where we see the greatest opportunity for growth. COVID-19 has accelerated structural shifts in the TV viewing experience. Modern consumers not only want the 'best of both worlds' - video on demand and live TV working together seamlessly - but they increasingly expect it. Our Amino 2025 strategy is built around making this expectation a reality.

Our business and culture stand stronger today. With a pressing need for the solutions and services we deliver, Amino is trading in line and has started the new financial year from a position of strength. We have a clear strategy to drive software-led growth and to capitalise on real structural shifts, supported by our enhanced visibility and an acute focus on driving recurring revenue and strengthening our long-term customer relationships. We look forward to making further progress in the year ahead."

Financial highlights 

 Financial highlights 

Strategic and operational highlights 

Launch of Amino 2025 strategy to address the convergence of streaming services  

Current trading and outlook 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.

For further information please contact: 

About Amino Technologies plc 

Amino Technologies plc is a software-led, global Media Technology company. We deliver modern TV experiences, the way viewers want them. We do this by creating the solutions that Pay-TV operators, broadcasters and content owners need to make it easy for people to connect to the TV and video they love. 

Our end to end solutions, offer the best of both worlds: video on demand and live TV. By placing all TV and video streaming content in one place, Pay-TV operators, broadcasters and media owners can stay ahead of evolving viewer demand by providing smarter, more cost-effective ways of delivering modern TV and video experiences to consumers.

Amino Technologies plc has two operating companies: 24i, which focusses on streaming video experiences and Amino, which connects Pay-TV to streaming services. Our two complementary companies combine their products and services to create solutions which ensure that people can consume TV and video how and when they want it. Our solutions deliver modern TV and video experiences every day to millions of viewers globally, via our growing global customer base of over 500 service providers.

Amino Technologies plc is listed on the London Stock Exchange Alternative Investment Market (AIM: symbol AMO). Headquartered in Cambridge, UK, the company has over 300 staff located in offices in California, Amsterdam, Helsinki, Madrid, Porto, Brno, and Hong Kong. 

For more details, visit www.aminotechnologies.com

Notes 

Chair's statement:

This has been a successful year for Amino, delivering a strong and resilient trading performance as we continue to execute against our strategy and make progress on driving software growth. Like many businesses our model has been tested and we are pleased to report all key metrics tracked ahead of last year. This is especially commendable given the unprecedented and continuing challenges provided by the COVID-19 pandemic. On behalf of the Board, I would like to thank the Amino team for their ongoing resilience, outstanding delivery for customers and dedication in working to ensure services remained at a high level throughout a challenging year. This strong set of results has been delivered due to their continued commitment to service our customers across the world all while mostly working from home.

AMINO'S VISION AND PURPOSE

Consumers want choice, usability, and convenience. Amino's own research highlights how these three requirements are now shaping what customers need to remain competitive. At Amino, we have a dedicated and amazing team of over 300 staff who are experts in creating software-led solutions to deliver modern TV experiences.

There is a significant opportunity arising from a structural shift in how viewers access and watch TV and video. COVID-19 has accelerated the convergence of traditional TV and modern video streaming - this 'best of both worlds' is what consumers crave. Amino's end-to-end software solutions and services address this market need by providing media and broadcast technology that delivers traditional and modern viewing to all. The Group has worked hard in 2020 to position Amino for future success and has recently launched our 'Amino 2025 strategy' to enable this convergence of streaming services which is where we see the greatest opportunities for growth. Our Amino 2025 strategy is built around our vision of making it easy for people to connect to the TV and video they love.

AMINO'S GROUP STRATEGY TO 2025

The Group has a clear strategy focussed on building a predictable, software-driven growth business, with a proven track record of expanding our addressable market both organically and through targeted M&A. Our strategy is to continue growing margin through value-based investments; to maintain strong levels of cash generation; and deliver appropriate returns to shareholders as well as investment for the future growth of the Company.

Our Group strategy to 2025 is focused on building four key drivers as follows:

ENVIRONMENT, SOCIAL AND GOVERNANCE ("ESG") PROGRESS

Amino's ESG report sets out the commitments we are making, in line with our vision, to support a sustainable future. These have been developed in line with the Japanese concept of Ikigai which means "a reason for being". I feel fortunate to Chair the Board of a Company that has put so much emphasis on investing in its people this year, including launching its first formal graduate programme. Our diversity and inclusion survey conducted in the second half of 2020 showed that Amino is a fun and inclusive place to work with an engaging corporate culture.

The Board has played a key part in fostering diversity and inclusion and during the year commenced a Board observer and mentoring programme which will help develop future talent.

BOARD APPOINTMENT

On 19 January 2021, I was delighted to appoint Steve Oetegenn as a Non-Executive Director. Steve brings a wealth of experience in building and running software companies within Amino's industry and therefore strengthens the Boards experience in this respect.

DIVIDEND

At the beginning of the year the Board took the difficult but necessary decision to suspend the dividend in the light of the global pandemic and associated uncertainty. I would like to take the opportunity to thank shareholders for their support in this regard. Our new dividend policy, to deliver returns to shareholders via growth and income, was announced in December and reflects the Company's growth ambitions. This policy of paying between 33-50% of adjusted EPS in dividend is expected to provide shareholders with a growing income stream whilst allowing the Company to invest in growth.

In line with this policy the Board recommends a dividend of 1.87 pence per share.

Karen Bach

Chair

8 February 2021

Chief Executive's review:

2020 has undoubtedly been an unprecedented year. It has been a year in which we have made clear progress in transforming our quality of earnings, growing software revenues 49% to $19.5m, strengthening Exit ARR1 by 12% to $10.6m and landing new customers as well as expanding existing relationships.

Overall, we have delivered a resilient performance and have made clear progress to position Amino to deliver increasingly predictable software-driven growth and returns by enabling our customers to stay ahead of consumer demands. This achievement has been made possible by the passion of our employees, our innovative software solutions, and the strength of our customer relationships.

COVID-19 has provided all of us with work and personal life challenges. We took early and decisive management action during the onset of COVID-19 and throughout this period we have followed the wisdom that looking after our employees and our employees looking after our customers means our customers will look after the business, and this is reflected in our results.

I'm proud of our talented and dedicated team all of whom have stepped up to service our global customers throughout the pandemic whilst working remotely. We would like to thank them for being agile and adapting quickly to this new normal whilst at the same time continuing to stay close to our customers.

AMINO 2025 STRATEGY

We are at the heart of enabling a structural shift in the soon to be $167bn streaming market. We have identified the customer needs 'the best of both worlds' from streaming and Pay TV. Video on demand and live TV is where we can add the most value, providing a seamless viewer experience. This change is consumer driven and continues to gather pace. We have formulated our 2025 strategy in line with this. We're actively growing our software and services revenues to create an increasingly predictable, visible and resilient model to deliver profitable growth and have made clear progress in 2020.

HOW, WHEN AND WHERE CONSUMERS WATCH TV IS CHANGING

Amino's vision is to make it easy for viewers to connect to the TV and video they love. At the same time, we make it easy for the people who deliver TV to stay ahead of evolving viewer demands.

The biggest challenge in our industry today is to provide 'the best of both worlds' - video on demand and live TV working together seamlessly. This is what modern consumers want. And at Amino we do just that!

At Amino we simplify the complex to enable greater viewer choice, usability and convenience. Our end-to-end software-led solutions put all TV and video streaming content in one place, just how the viewer wants it. This means we enable our customers: Pay TV operators, broadcasters and media owners - to stay ahead of evolving viewer demands to provide smarter, more cost-effective ways of delivering modern TV and video experiences to their customers.

We are at the forefront of the major shifts in the way the world consumes TV with our end-to-end solutions out mapped to the clear market need. Our belief and knowhow is underpinned by staying close to our customers, consumers and our in-house market research including our Amino Voice of Consumer Survey 2020, which identified that 51% of consumers subscribe to both streaming and Pay TV services and demand advanced features from both.

HOW WE ADDRESS THE MARKET

The Pay TV industry is also forecast by Digital TV Research to grow by 4% to 1.1bn subscribers by 2025 creating further growth opportunities. Given the opportunity to map our solutions to the market need to enable the 'best of both worlds' - Video on demand and live TV, the Group has therefore been developing its focus around two key market opportunities:

We therefore create the media and broadcast technology that delivers traditional and modern viewing to all.

KEY PERFORMANCE INDICATORS

The Group monitors five key performance indicators which underpin our strategic progress, all of which have improved this year.

Strong progress has been made in delivering on our software-led strategy with high single digit total revenue growth and a 49% increase in software and service revenues. Our goal of driving increasingly predictable revenues continues to progress with a double digit increase in exit run-rate recurring revenues in the year and with improved adjusted gross margins maintained against the challenging backdrop of COVID-19. The Group also continues to generate strong operating cash flows.

GROUP COMPANY UPDATES

24i

24i offers a robust technology platform that streams TV and video programming to any type of screen. The company has a 10-year market-leading position and works with customers like NPO, KPN, Delta and Pureflix.

Building on our strong performance in H1, 24i continues to grow. Organic revenues have grown 10% (unaudited) as we have successfully increased business from existing customers and, even allowing for COVID-19 lockdowns and travel restrictions, from new business wins.

COVID-19 has accelerated the need for streaming TV and video on demand across the world and 24i's broadcast and streaming customers all saw significant increases in demand. For example, as theatres around the world went dark, 24i helped customer Broadway HD to achieve record traffic and subscriber sign-ups when partnerships with celebrities like Hugh Jackman, saw social media coordinating global "watch parties" of their content.

In the first quarter of the year we launched our Next-gen Smart Apps platform, enabling our customers to deploy faster and more cost-effectively. Slovak Telekom, part of the Deutsche Telekom group, was our first customer, going live with its Magio Go brand in Slovakia in May. By the end of the year, it had extended use of the 24i platform to launch a second brand in Slovakia and another in the Czech Republic.

Meanwhile in South America our long-term customer Entel launched Chile's first Android TV STB service and a complimentary service on Smart TVs. Sports rights owners continue to show keen interest in the Smart Apps solution. The latest being Caribbean broadband and Pay TV operator CWC which launched its new streaming service, Flow Sports based on an end-to-end solution from 24i.

In the summer, Youfone, a mobile virtual network operator based in the Netherlands, became our first joint deployment with Amino, combining Smart Apps, Smart Video and Amino STBs to create a truly end-to-end Pay TV solution. The Android TV service has resulted in a high-growth customer expanding rapidly.

In 2021, we are investing in our sales, marketing and products to build our pipeline. Our focus is to prioritise driving recurring revenues from our video platforms. Partnership is also an important area of focus and we launched our Smart eco-system partnership program with pre-integrated partners such as Cleeng, Vionlabs, Xroad Media, Jump and Century Link. We are delighted to welcome Verizon Media to partner with 24i for an end-to-end solution to deliver faster and more profitable streaming services.

Amino

Amino seamlessly connects Pay TV to streaming services and provides the features required in a multiscreen entertainment world. The company has a 20-year heritage with customers like PCCW, Cincinnati Bell, T-Mobile Netherlands and Entel Bolivia.

Amino continues to deliver excellent results in revenue and margin. Device revenues have remained stable along with gross margins.

Supply chain management capability has yet again enabled us to deliver in a challenging economic environment especially given the shut down in China in February and March owing to lockdown restrictions. At the end of the year we overcame component shortages arising from scarcity of certain material and longer lead times on some key components. One of our silicon chip providers have significantly increased lead times. As a result, we have been working closely with our customers to secure orders early and investing in inventory to lead the sector in time to product. We believe we are well placed to maintain our supply chain performance into 2021.

There has been a significant rise in revenue in EMEA (20%) and LATAM (7%) due to demand from our larger scale customers and our regional distributor selling strongly in the period. The increase in sales was offset by a reduction in sales in North America (-19%) caused by a decline in hospitality projects due to COVID-19. In addition, sales of higher cost DVR devices are being replaced with lower cost Android devices, as we had forecasted, lowering our average selling price.

Engage, our SaaS Service Management platform, has seen significant volume growth in the period due to improved customer success programs and sales focus. The number of devices managed by this service has increased by 69% in the period. This product is a key focus for sales in 2021 as we build ARR.

ENVIRONMENT, SOCIAL AND GOVERNANCE ("ESG")

ESG is a focus for the company and we have set out our policies and goals in more detail in the ESG section of the annual report. During the year we have continued to empower our teams to put sustainability on the agenda throughout the Group. I would like to highlight a few active projects that illustrate our commitment to make ESG a central part of our day-to-day operations:

CURRENT TRADING OUTLOOK

Throughout this unprecedented year our employees globally have really pulled together and I firmly believe our business and culture stand even stronger today. We have delivered a robust performance in a challenging year with a clear strategy for growth as we look to execute our Amino 2025 strategy.

The Group has traded in line with its expectations as we continue to focus on growing software and services, profits, year to date ARR and strengthening long term relationships. We have a strong balance sheet, no debt and continue to assess M&A that will help drive the business forward to its long-term goals.

COVID-19 has accelerated the need for streaming TV and video on demand across the world. Amino is positioned to capture this opportunity, making it easy for people to connect to the TV and video they love. To keep pace with this change, the owners and distributors of TV programming need to rapidly evolve their business models and our technology and solutions make this evolution possible. We have positioned Amino in 'the best of both worlds' - it is this convergence of streaming services where we see a great opportunity for growth. There is a clear need for the solutions and services that we deliver through our software-led solutions which gives us confidence as we enter a new financial year.

We enter 2021 with enhanced visibility and quality of earnings and our Amino 2025 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.

Donald McGarva

Chief Executive Officer

8 February 2021

Notes 

Chief Financial Officer's review

Overview

In line with the Group's strategic priorities set out last year, the financial results of 2020 reflect the expansion of the Group's addressable market and growth in Group margins as a result of high margin software growth and strong levels of operating cash generation.

Total revenue increased by 7% to $82.7m (2019: $77.2m) which reflects organic growth from expanded markets and the acquisition of 24i in July 2019.

High margin software revenues increased by 49% to $19.5m (2019: $13.0m) which included organic growth and the impact of the acquisition of 24i. Software and services adjusted gross profit represented 40% of total adjusted gross profit in the year, an increase from 31% in 2019. Adjusted gross margin therefore also increased to 48% (2019: 46%). In addition, the visibility of the Group's revenues increased as exit run rate Annual Recurring Revenues (ARR) increased to $10.6m (2019: $9.5m).

The Group continued to generate strong operating cash flows. Adjusted operating cash flow before restructuring and acquisition costs was $18.2m (2019: $17.2m) representing an adjusted EBITDA cash conversion of 110% (2019: 114%). Operating cash flow was $16.8m (2019: $13.8m).

The Group had net cash of $9.5m at 30 November 2020 (2019: $1.4m). The Group maintains a $15m multicurrency revolving credit facility with Barclays which is currently undrawn runs to November 2022.

Revenue and gross profit

Software and services revenues represent revenues from our 24i division, our AminoOS software (sold independently from devices), as well as support for our Amino Devices.

Software and services revenues increased by 49% in the year after the first full year following the acquisition of 24i Unit Media BV in July 2019. Including proforma revenue for 24i in H1 2019, organic growth in software and service revenues for the Group was 8% (unaudited). Software and services revenues are now 24% of total revenues for the period (2019: 17%). At 30 November 2020 annual run-rate recurring revenues increased to $10.6m (2019: $9.5m).

Segment result

The segment result shown above is in accordance with those shown to the Chief Operating Decision Maker. Segment result has been calculated as Adjusted EBITDA for each segment; the Adjusted EBITDA for the year ended 30 November 2020 was $16.7m (2019: $14.8m). Adjusted EBITDA is a company specific measure which is calculated as operating profit before depreciation, interest, tax, amortisation, exceptional items and employee share-based payment charges. This is consistent with the way the financial performance of the Group is presented to the Board and Chief Operating Decision Maker.

The result of implementing IFRS16 Leases has been to move $1.2m of costs in 2020 from operating expenses into depreciation and interest.

The Directors believe that this provides a more meaningful comparison of how the business is managed and measured on a day-to-day basis.

24i segment result

The 24i segment comprises the results of 24i Unit Media BV Group, acquired in July 2019, and the results of the Amino Communications Oy company that was contributed to the 24i division at that time. Amino Communications Oy runs the Smart Video service.

Amino segment result

The Amino segment comprises the results of the sales of Amino devices, related support as well as the AminoOS middleware and Amino Engage device management platform.

Amino continues to sell its products directly to Tier 2 customers and to Tier 3 and 4 customers via distributors. The Group has two customers which each have more than 10% of total Group revenue, both of whom are Amino customers and are distributors.

Central costs

Central costs comprise the costs of the Board, including executive directors, as well as costs associated with the Company's listing on the London Stock Exchange.

Adjusted EBITDA

Adjusted EBITDA for the year to 30 November 2020 was $16.7m (2019: $14.8m). Adjusted EBITDA is a non-GAAP company specific measure. It is presented here consistently with the way the financial performance of the Group is presented to the Board and Chief Operating Decision Maker. The Directors believe that this provides a more meaningful comparison of how the business is managed and measured on a day-to-day basis.

The Group continues to invest in research and in the development of new products and spent $16.1m on R&D activities (2019: $12.8m) of which $5.5m was capitalised (2019: $4.1m).

A reconciliation of Adjusted EBITDA to operating profit is provided as follows:

Exceptional items

Exceptional items within cost of sales in 2020 comprised a $0.9m credit in respect of royalty costs recognised in prior years which have subsequently been renegotiated.

Exceptional items included within operating expenses in 2020 comprised:

Depreciation and amortisation

Excluding amortisation of intangibles recognised on acquisition, depreciation and amortisation increased to $6.2m (2019: $4.6m) as a result of the implementation of IFRS 16 Leases which required the recognition of and subsequent depreciation of right of use assets. More details on this can be found in note 10. Amortisation of intangibles recognised on acquisition was $4.2m (2019: $4.1m).

Taxation

The tax charge of $1.7m comprises:

Profit after tax was $2.7m (2019: $2.9m).

Cash flow

Adjusted cash flow from operations was $18.2m (2019: $17.2m) and represented 110% of adjusted EBITDA (2019: 114%). Exceptional cash flows in 2020 comprised one-off costs of $0.3m and $1.1m payment of deferred consideration, both related to the acquisition of 24i.

Including these exceptional cash out-flows cash generated from operations was $16.8m (2019: $13.8m).

During the year the Group spent $0.3m (2019: $0.1m) on capital expenditure in respect of tangible fixed assets and capitalised $5.5m of research and development costs and software licenses. The Group paid dividends of $nil in the year (2019: $6.9m).

The Group generated free cash flow of $9.3m (2019: $8.5m) in the year. Free cash flow is cash flow from operations, excluding acquisition-related remuneration, less capital expenditure, IFRS 16 lease payments, taxation and net interest.

Financial position

The cash balance at 30 November 2020 was $9.5m (2019: $8.6m). The Group also has a $15m multicurrency revolving credit facility which expires in November 2022, of which $nil was drawn at 30 November 2020 (2019: $7.2m).

At 30 November 2020 the Group had equity of $89.1m (2019: $82.6m) and net current assets of $0.5m (2019: net current liabilities $2.3m). 51% of trade receivables were insured (2019: 70%) and debtor days were 23 days (2019: 27 days).

Dividend

The Board has recommended a full year dividend of 2.39 US cents (1.87 pence) per share. Subject to shareholder approval at the annual general meeting to be held on 18 March 2021, the dividend will be payable on 23 April 2021, to shareholders on the register on 6 April 2021, with a corresponding ex-dividend date of 1 April 2021.

Mark Carlisle

Chief Financial Officer

8 February 2021

Consolidated income statement

For the year ended 30 November 2020

All amounts relate to continuing activities.

The accompanying notes are an integral part of these condensed consolidated financial statements.

Consolidated statement of comprehensive income

For the year ended 30 November 2020

The accompanying notes are an integral part of these condensed consolidated financial statements.

Consolidated statement of financial position as at 30 November 2020

The accompanying notes are an integral part of these condensed consolidated financial statements.

Consolidated statement of cash flows

For the year ended 30 November 2020

The accompanying notes are an integral part of these condensed consolidated financial statements

Consolidated statement of changes in equity

For the year ended 30 November 2020

The accompanying notes are an integral part of these condensed consolidated financial statements.

Notes to the condensed consolidated financial statements

For the year ended 30 November 2020

1 Basis of preparation

The financial information set out in this document does not constitute the Group's statutory accounts for the years ended 30 November 2020 or 2019. Statutory accounts for the years ended 30 November 2020 and 30 November 2019, which were approved by the Directors on 8 February 2021, have been reported on by the Independent Auditors. The Independent Auditors' Reports on the Annual Report and Financial Statements for each of 2020 and 2019 were unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

Statutory accounts for the year ended 30 November 2019 have been filed with the Registrar of Companies. The statutory accounts for the year ended 30 November 2020 will be delivered to the Registrar in due course, and will be available from the Company's registered office at Botanic House, 100 Hills Road, Cambridge, England, CB2 1PH and from the Company's website www.aminotechnologies.com.

The financial information set out in these results has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations in conformity with the requirements of the Companies Act 2006. The accounting policies adopted in these results have been consistently applied to all the years presented and are consistent with the policies used in the preparation of the financial statements for the year ended 30 November 2019, except for those that relate to new standards and interpretations effective for the first time for periods beginning on (or after) 1 December 2019. The new standard impacting the Group that has been adopted in the annual financial statements for the year ended 30 November 2020 is IFRS 16: Leases, further details of which appear in Note 7 below. Other new standards, amendments and interpretations to existing standards, which have been adopted by the Group have not been listed, since they have no material impact on the financial statements.

2 Going Concern

The consolidated financial statements have been prepared on a going concern basis. The ability of the Group to continue as a going concern is contingent on the ongoing viability of the Group. The Group meets its day-to-day working capital requirements through its cash balances and wider working capital management.

In March 2020, the World Health Organisation declared a global pandemic due to the COVID-19 virus that has spread across the globe, causing different governments and countries to enforce restrictions on people movements, a stop to international travel, and other precautionary measures. In the short term this affected the Group's supply chain operations, as well as employees throughout the Group having to work remotely from home. The Group implemented efficient and appropriate measures to limit the impact of COVID-19 on the results of the business and its future operations, and the directors believes that the business is able to navigate through the impact of COVID-19 due to the strength of its customer proposition, its balance sheet, its cash position and its available working capital. Specifically, cash resources of $9.5m as at 30 November 2020 (2019: $8.6m) and a multicurrency working capital facility of $15.0m, of which $nil was drawn at 30 November 2020 (2019: $7.2m). This facility expires on 25 November 2022.

The current global economic conditions continue to create uncertainty, and specific to the Group, recognising the strength and flexibility of the Group's software-led strategy, there are potential risks that the Group will be impacted by decisions further up our supply chain. This could lead to delays in contract negotiations and deferring or cancelling of anticipated sales, and that sales and settlement of existing debts are impacted too. In respect of this going concern assessment, the Directors considered the foreseeable future, a period extending 12 months from the date of approval of the annual report. The Directors have considered a number of scenarios, taking account of possible further impact from the pandemic on the business, as noted above. However, even in the material downside scenario, the Directors are satisfied that the Group has sufficient cash resources over the period and will be able to operate within its existing working capital facilities. On that basis, the Directors therefore continue to adopt the going concern basis when preparing its consolidated financial statements.

3 Geographical external customer revenue analysis

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

4 Exceptional items

Exceptional items within cost of sales and operating costs comprise the following charges/(credits):

5 Net finance expense

Interest payable and receivable relates to the Group's bank balances, loss on debt modification during the year and extended credit terms offered to one customer, in accordance with IFRS 15 Revenue from contracts with customers.

Interest payable and similar costs comprises:

6 Earnings per share

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 2,021,058 (2019: 2,039,647) of its own shares in treasury and these are excluded from the weighted average above. The basic weighted average number of shares also excludes 242 (2019: 242) being the weighted average shares held by the EBT in the year.

The number of dilutive share options above represents the share options where the exercise price is less than the market price if the Company's ordinary shares.

7 Leases

All leases are accounted for by recognising a right-of-use asset and a lease liability except for:

IFRS 16 was adopted 1 December 2019 without restatement of comparative figures.

Nature of leasing activities (in the capacity as lessee)

The group leases a number of properties in the jurisdictions from which it operates. In some jurisdictions it is customary for lease contracts to provide for payments to increase each year by inflation or and in others to be reset periodically to market rental rates. In some jurisdictions overseas property leases, the periodic rent is fixed over the lease term. The group also leases certain items of plant and equipment.

Right of Use Assets

Lease liabilities

8 Trade and other receivables

Other receivables due in more than one year comprise rent deposits. The carrying value of trade and other receivables classified at amortised cost approximates fair value. The Group does not hold any collateral as security.

9 Trade and other payables

The carrying value of trade and other payables classified as financial liabilities measured at amortised cost approximates fair value.

10 Cash generated from operations

Adjusted operating cash flow before exceptional cash outflows was $18.2m (2019: $17.2m).

11 Cautionary Statement

This document contains certain forward-looking statements relating to Amino Technologies plc (the "Group"). The Group considers any statements that are not historical facts as "forward-looking statements". They relate to events and trends that are subject to risk and uncertainty that may cause actual results and the financial performance of the Group to differ materially from those contained in any forward-looking statement. These statements are made by the Directors in good faith based on information available to them and such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

12 AGM / Annual Report

Pursuant to AIM Rule 20, the Annual Report and Accounts for the financial year ended 30 November 2020 ("Annual Report") is available to view on the Group's website: www.aminotechnologies.com and will be posted to shareholders shortly. Amino will hold its AGM on 18th March 2021.