Amino Technologies has shot up on news it will hit full-year results and is to introduce a progressive dividend policy, starting with a 3p full year dividend.
In a trading update for the full year ended November 30th, the set-top box maker said it would deliver "a profit for the year in line with market expectations" following a focus on operational performance and improvements in gross margins.
Revenues, however, are expected to be below consensus at about £41m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Consensus estimates for the full year had previously been for pre-tax profits of £2.72m on turnover of £44.71m.
Amino Technologies said that cash conversion for the period had been strong with an improved net cash balance of £17.1m (2011: £14.1m) even after a £1.0m dividend payment.
As part of its focus on operational performance it plans to concentrate R&D at its Cambridge headquarters and will close its Swedish office early in 2013. A move it said would deliver "net cost savings as well as productivity improvements".
The company also said it will be introducing a progressive dividend policy, starting with a 3p full year dividend, 50% up year on year. Not only will it introduce an interim dividend but the company plans to grow its dividend by "no less than 15% per annum for each of the next two years".
Broker commentsBroker Northland Capital reiterated its 'buy' recommendation with a price target of 75p.
It commented: "Management has focused on gross profit/margin progression and cash generation to support a progressive dividend policy. Business remains very well capitalised and offers good exposure to a dynamic sector."
Amino Technologes will announce its full year results on Monday, January 28th 2013.
The shares were up approximately 15% to 65.75p by 12.00.
CM
-
Older renters £2,000 worse-off than homeowners – the risks of renting in retirementThere are financial risks to renting in your golden years, research suggests
-
Waspi women targeted in fake compensation scamThe Waspi campaign has warned of a steep rise in fraudulent websites which claim compensation is available for 1950s-born women affected by state pension age changes
