Amino’s positive trading update for the six months to May ’16 gives us confidence that the group is back on track after the sales execution issues experienced at the back end of FY’15. Revenue and adjusted PBT are in-line with expectations, with strong cash generation resulting in net cash of £3.1m at the end of the period. The acquisitions of Entone and Booxmedia have been successfully completed with synergies achieved in excess of original expectations. The newly restructured sales team is performing well and the group has an encouraging order backlog going into the traditionally stronger second half. We are not making any changes to our forecasts at this stage but believe our full year expectations are well underpinned. Trading on 5.3x FY’16 EV/EBITDA with a 6% yield the shares are attractive. Buy.
