AIM-listed tech firm saw revenues increase 21%, with a significantly improved cash position

Companies: Aferian plc

Amino Technologies shares fell 4% on Tuesday despite the AIM-listed firm releasing a positive trading update showing a 21% jump in first-half revenues, and a significantly improved net cash position. 

N+1 Singer said Amino had released a good trading update, showing strong momentum having delivered four upgrades in a row in FY’16: 

"This strong momentum has been maintained, with revenue expected to be c.£40m in H1’17 (48% of our FY expectations, versus a traditional 45:55 weighting). Net cash is significantly ahead of our expectations at £13.1m (N+1se: £9.1m). We expect the strong performance to continue into H2’17, but with new products expected to lower margins in the short term, we prudently leave our forecasts unchanged at this time."

Singer's said the shares remained attractive for a highly cash generative business which is well placed to meet the changing demands of its markets.

"We increase our target price to 243p (from 215p) and retain our Buy recommendation. Amino has released a good trading update for the six months to May’17."

Revenue is forecast to be around £40m, 21% higher than in the first half of 2016, primarily thanks to a currency boost post-Brexit. On a constant currency basis, revenues grew by a more modest 5%.


The Group said margins had been healthy, adding that the Board anticipates they will be lower in H2 due to the product mix shifting towards its new product lines.

"As is typical with the launch of new products these will be lower margin, optimising over time as scale is reached. As a result, expectations for the full year remain unchanged."

Net cash increased by £10m to £13.1m, after benefitting from the timing of some larger orders that were completed before the end of the period.


Non-Executive Chairman Keith Todd said the momentum of 2016 had continued into the first half, with strong sales execution and growing traction for the Group's wider portfolio.

The information contained within this post is based on personal experience and opinion and should not be considered as a recommendation to trade nor financial advice.