Amino Technologies (AMO:AIM)

95.3p

Gain to date: 11.4%

Real revenue growth remains annoyingly out of reach for Amino Technologies (AMO:AIM) but last week’s half-year trading update (5 Jun) at least shows management is doing the right things to change that. Investment in the product set is expanding the company’s set-top boxes beyond just TVs, and will incorporate digital home management in time, while its important US arm continues to make encouraging progress.

North America is a big market for Amino and while competition is fierce, it is less so serving mid-tier telecoms and broadcast suppliers which Amino targets. Net cash, a key attraction noted by us when we flagged the counter at 85.5p (see Plays, Shares, 13 Jun), stands at £19.7 million, or 37.5% of the £52.4 million market cap.

It is great news that the firm has committed to grow the dividend by at least 15% per year through to 2016, not least given that the implied yield for this year to November stands at 4.2% based on the 4p forecast. Dividends should therefore increase to 4.6p and 5.3p in the two years following.

Offers excellent income and value as it trades on a sales (2014 forecast) to enterprise value (£32.8 million) discount of around 10%.