Final results for the full year ended 31 December 2016
EBITDA ahead of market expectations
Frontier (AIM: FST), a pioneer in technologies for Digital Radio and Smart Audio devices, has published its final results for the full year ended 31 December 2016.
- EBITDA ahead of market expectations, turning positive at £0.7 million (FY 2015: loss1 £0.8 million)
- Steady revenues of £32.1 million (FY 2015: £31.7 million)
- Digital Radio revenues up 8% to £22.3 million (2015: £20.6 million)
- Smart Audio revenues down 11% to £9.8 million (2015: £11.1 million), pending release of Minuet, the Group’s new solution incorporating Google’s Chromecast platform
- R&D expenditure reduced 11% to £6.6 million (FY 2015: £7.4 million)
- Loss-making Healthcare division sold in July 2016 for gross proceeds of £1.3 million plus ten-year royalty agreement
- As of 31 December 2016, the Group’s cash balance was £3.4 million
- Group renamed Frontier Smart Technologies Group Limited in November 2016 to reflect sole focus on consumer audio technologies
- 40 for one share consolidation completed in November 2016
- Design wins secured for Minuet, with several Smart Audio brands, including Harman JBL, the world’s largest manufacturer of speakers; first products from Brookstone already on sale
Commenting on the Final Results, Anthony Sethill, CEO of Frontier, said:
“2016 was a pivotal year for the Group. We sold our loss-making Healthcare business, delivered our first positive EBITDA figure and are now fully focused on our Consumer Audio technology business.
“In Digital Radio we have maintained our market leadership position as international markets for DAB radio continue to develop. With Norway becoming the first country in the world to switch- off its FM signals, the prospects for this business are encouraging.
“2016 was an important year for our Smart Audio business, as we completed the development of our new Minuet solution incorporating Google’s Chromecast platform. The first consumer products using this solution are now available in-store, with more to follow in the coming months. This will help drive Group revenue and EBITDA growth in 2017.”
1 EBITDA means earnings before interest, tax, depreciation, amortisation, and before non-recurring and certain non-cash items. In 2015 EBITDA was adjusted in respect of an exceptional non-cash provision.
Certain statements made in this release are forward-looking statements. Such statements have been made by the Directors in good faith using information available up until the date that they approved this update. Forward-looking statements should be regarded with caution because of the inherent uncertainties in economic trends and business risks.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation. Upon the publication of this announcement via a regulatory information service, this inside information is now considered to be in the public domain.
For further enquiries:
Frontier Smart Technologies Group Ltd
+44 (0) 20 7391 0630
Anthony Sethill, Chief Executive Officer
Jonathan Apps, Chief Financial Officer
Peel Hunt LLP (Nominated Adviser and Broker)
+44 (0) 20 7418 8900
Richard Kauffer/ Euan Brown
Buchanan (Financial PR)
+44 (0) 20 7466 5000
Henry Harrison-Topham/ Steph Watson
About Frontier Smart Technologies
Frontier is a pioneer in software and hardware technologies for Digital Audio devices. The Group has one operating division, Frontier Silicon, which provides solutions for Digital Radio and Smart Audio devices.
Frontier was founded in 2002. Customers include many leading consumer audio brands: Bose, Bowers & Wilkins, Denon, Grundig, harman/kardon (JBL), Onkyo, Panasonic, Philips, Pioneer, Pure, Roberts, Sony, TechniSat, Yamaha, and many more.
The Group is headquartered in London, with engineering, sales and operations teams in Cambridge, Timisoara (Romania), Hong Kong, and Shenzhen. Please visit http://www.frontiersmart.com/