Amino Technologies plc (LSE AIM: AMO), the global provider of media and entertainment technology solutions, announces a trading update for the six months ended 31 May 2020 ("H1 2020").
Our transformation to a software-led business has provided the Group with improved resilience during this COVID-19 period. Whilst we have experienced challenges in the supply chain and delayed orders, we have also seen increased viewing on our streaming platforms. The Group is well-diversified and continues to secure new business, particularly in OTT streaming. We have good visibility of orders and sales pipeline to meet revenue expectations for the financial year. However, it is still too early to quantify the potential negative impact of the current economic situation and therefore the outcome remains uncertain.
As outlined in our update on 30 March 2020, the safety of our people, business partners and customers remains our highest priority.
H1 2020 revenues are expected to be approximately $38.1m (H1 2019: $34.6m) of which approximately $9.8m relates to software and services (H1 2019 $3.6m) and $28.3m relates to devices including integrated software (H1 2019: $31.0m). We continue to manage liquidity carefully, with $3.7m of gross cash, drawn credit facilities of $2.0m and undrawn credit facilities of $13.0m at 31 May 2020.
We have continued to invest in product development to support long-term profitable growth as we focus on our software-led strategy. COVID-19 has accelerated the usage of streaming services globally. We have therefore experienced increased business levels with existing customers; however, we anticipate that new business wins may be delayed in the second half of the financial year.
The Board remains confident that the Group's strategy, and focus on higher margin software, has built a strong platform to deliver future growth, notwithstanding uncertainty for the remainder of this financial year due to ongoing disruption from COVID-19.
Donald McGarva, Amino Chief Executive Officer, said:
"Our transformation to a software-led business positions us strongly to drive long-term profitable growth, and manage the challenges presented by COVID-19 in the short-term. We have a robust balance sheet and liquidity, and a well-diversified business that continues to deliver strong margins. Whilst we are seeing challenges arising from COVID-19, the underlying strength of our business model and strategy support our confidence for further progress going forward."