AMO management confirmed the company is trading ahead of expectations
Companies: Aferian plc
Cambridge-based Amino Technologies (LSE: AMO) has given a strong trading update this morning with management saying the Group is trading ahead of expectations driven by "record" orders in August.
The digital entertainment provider expects revenue for the full-year to be ahead of current market expectations, with adj EBITDA and PBT both beating consensus. The results are primarily due to record orders and favourable forex effects due to the weakening of pound after the EU Referendum.
Two brokers covered today's results, with finnCap saying it revealed that strong trading had continued and that it is now apparent that FY results will comfortably exceed expectations:
"Alongside favourable FX effects, record orders in August have led to improvement in revenue and profitability both in the current year and the year ahead. We improve revenue forecasts +6% in FY16 & FY17, EBITDA +7%, and adjusted PBT and adj EPS +9%..."
Broker N+1 Singer struck a similar tone, saying trading in the first half of the year had remained strong, with the group seeing record orders in August:
"This trading momentum, combined with a robust order book and an FX tailwind is driving performance ahead of expectations for the full year."
Singers upgraded its forecasts at the interim results in July and says it expects to put through a further c.10% PBT upgrade on the back of today’s announcement:
"Amino has embraced the transition to the cloud and is now well placed to benefit from current market trends. Post the upgrades the group is trading on c.11x FY’16 PER with a 4%+ dividend yield. We believe the shares are highly attractive..."
AMO's share price was up 9% this morning and is currently trading at a P/E of 16.3, with the forecast P/E of 12.3.