Back in October, the AIM company slashed its forecasts after being hit by a double whammy of higher than expected component prices and lower than anticipated orders.
It put the lack of orders down to “intensification of external macroeconomic headwinds”, including US-China trade war tensions and the general instability in the economies of certain emerging markets in which it operates.
As a result of the multitude of issues, revenue fell 7% to US$88.9mln in 2018, down from US$96.1mln a year earlier.
Pre-tax profits took a bigger hit, though, slumping by a third to US8.2mln in 2018, (2017: US$13.3mln). Even excluding a few one-off costs, adjusted pre-tax profits still fell by 26% to US$11.2mln (2017: US$15.2mln).
“2018 presented Amino with unprecedented macro-economic headwinds which, together with continued industry transformation, impacted our performance,” said chairman Keith Todd.
“Amino delivered a resilient performance in this context, with excellent cash generation supporting a net cash position and strong balance sheet.”
2019 to be difficult as well
Worryingly for investors, there seems to be no let-up, and Amino has already slashed its guidance for the year ahead.
Macro headwinds have continued and costs are still rising, although they are at least showing signs of slowing down.
To try to limit the damage, Amino is exiting its lower-margin hardware business in favour of “higher quality, recurring revenues” in its software and services division.
Divi maintained, though
That will put a dent in revenues though, and the company now expects to see its top line drop by around 21% in 2019, while profits will drop 10%.
If there is anything for shareholders to hang on to, it is that the dividend is apparently not in danger and will be maintained while the company rides out the rough year ahead.
“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,” added Todd.
Investors weren’t so confident, though, and the stock tumbled by 16% to 91p. It had been as low as 81p earlier in the session.