Revs fall in 2012 but Amino announces added profit and margin growth
Joseph O'Halloran | 28-01-2013
The results of a focus on high-margin, cash-generative business have become clear for Amino Technologies in its 2012 financial results which have seen added profits and margin mitigate against falling revenues.
This dynamic was apparent across 2012, and for the year ended 30 November, the IPTV, online TV and connected home multimedia distribution technology supplier revealed a 6.1% year-on-year fall in revenues to £41.7 million, yet still posted an operating profit of £2.8 million which compared with a loss of £600,000 a year earlier. Gross profit rose 20.8% to £17.5 million and underlying gross margins climbed 9.3 percentage points to 42.0%.
Analysing the year’s performance, Amino said that the results were a vindication of the strategy to build profitable growth by a focus on cash generation and stronger operational execution, based on a more focused product range. In terms of operational performance, Amino claims that over 2012, lead times for product delivery have been reduced and cost reductions achieved and that this has led in turn to margin growth.
Commenting on the results, non-executive chairman, Keith Todd, said: "Amino has performed strongly in 2012, and we have seen significant increases in both profit and cash flow, alongside material improvements in its operational execution. This has allowed us to sharply increase shareholder returns. Moving into 2013, we will continue to target growth which is both high-margin and cash-flow generative, leveraging off a simplified supply chain and more targeted product range. Whilst exercising a suitable degree of caution, we are well positioned to meet its expectations for the financial year ahead."