Frontier Smart Technologies Grp Ltd Trading Update (1415V)
January 26 2017 - 2:00AM
UK Regulatory
TIDMFST
RNS Number : 1415V
Frontier Smart Technologies Grp Ltd
26 January 2017
For immediate release 26 January 2017
Frontier Smart Technologies Group Ltd
('Frontier' or the 'Group')
Trading update
"EBITDA positive for 2016"
Frontier (AIM: FST), a pioneer in technologies for Digital Radio
and Smart Audio devices, announces the following trading update for
the year ended 31 December 2016 ('FY 2016') ahead of the
announcement of its full year results.
The Group expects to report an improved financial performance
for FY 2016, achieving a positive Group EBITDA on a continuing
basis, ahead of current market expectations.
Revenue for the financial year is expected to be approximately
GBP32 million and underlying EBITDA(1) is anticipated to be c.
GBP0.7 million (FY 2015: comparative EBITDA loss of GBP0.8
million(2) ), which is ahead of current market expectations. This
is due to improved Digital Radio revenue generation, a decrease in
R&D expenditure, the sale of the loss-making Healthcare
division and foreign exchange tailwinds. The Board expects revenue
and underlying EBITDA to improve in 2017, driven by growth in Smart
Audio. As at 31 December 2016, the Group had a solid cash position
of GBP3.4 million.
During FY 2016, the Group was renamed Frontier Smart
Technologies to reflect the sole focus on DAB and Smart Audio
technologies following the sale of the Healthcare division.
Frontier has maintained a market leading position in Digital Radio
with growth in Germany, the UK and the Netherlands and has been
awarded a number of design wins for its new Smart Audio platform,
Minuet, incorporating Google Chromecast.
Trading in 2017 has started in an encouraging manner across both
business lines.
Anthony Sethill, CEO of Frontier Smart Technologies, said:
"2016 has been a year of transition for Frontier, culminating in
us delivering a positive EBITDA for the full year. Having sold our
loss-making Healthcare division in July, we are now fully focused
on our DAB and Smart Audio technologies and view 2017 with
increased optimism."
The Group expects to publish its full year results for the year
to 31 December 2016 in the first half of April 2017. A further
announcement will be made in due course.
- Ends -
Notes
(1) Underlying EBITDA means earnings before interest, tax,
depreciation, amortisation, and before non-recurring and certain
non-cash items
(2) EBITDA disclosed for the continuing business and prepared on
a consistent basis
(3) This trading update is based upon unaudited management
accounts and has been prepared solely to provide additional
information on trading to the shareholders of Frontier. It should
not be relied on by any other party for other purposes. Certain
statements made in this update 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.
(4) 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 +44 (0) 20
Group Ltd 7391 0630
Anthony Sethill, Chief Executive
Officer
Jonathan Apps, Chief Financial
Officer
Peel Hunt LLP (Nominated Adviser +44 (0) 20
and Broker) 7418 8900
Richard Kauffer/ Euan Brown
+44 (0) 20
Buchanan (Financial PR) 7466 5000
Henry Harrison-Topham/ Steph FST@buchanan.uk.com
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/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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