8th Oct 2018 11:13
LONDON (Alliance News) - Amino Technologies PLC shares plunged Monday as reported it has received lower-than-anticipated orders and paid higher-than-expected prices for the components that it uses in the second half of the year.
Shares in Amino Technologies were down 29% at 149.92 pence each.
As a result of these "external macroeconomic headwinds" the media & entertainment technology company expects its pretax profit for the year ending November to be about GBP11.5 million.
In 2017, the digital television video services provider reported pretax profit of GBP9.6 million.
Amino Technologies said "customer decisions" on orders have been "delayed" in the second half due to instability in the certain emerging markets where it operates and the US trade tariffs.
While the US tariffs do not impact Amino's products "directly", the "confusion" they have created has led to delays.
Amino also expects the increased cost of component prices seen in the second half to continue to rise.
Amino Technologies, however, maintained its commitment to increase its annual dividend by "no less" than 10%, and confirmed its intention to maintain that level, in absolute terms, for two more years.
The technology company said this reflects its confidence in its cash generation, market position, and growth drivers.
In 2017, Amino Technologies recommended a full year dividend of 6.655 pence per share.
Non-Executive Chairman Keith Todd said: "The board remains confident in the strength and strategic direction of the company and has committed to continue its dividend policy for this financial year and maintain this dividend level for at least two years thereafter.
"The diversity and depth of change in our industry this year has created difficult trading conditions in the short term, however the company remains well positioned to take advantage of the all IP future, and remains profitable and cash generative."
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