Frontier Smart Technologies Grp Ltd Trading Update (8439C)
January 25 2018 - 2:00AM
UK Regulatory
TIDMFST
RNS Number : 8439C
Frontier Smart Technologies Grp Ltd
25 January 2018
For immediate release 25 January 2018
Frontier Smart Technologies Group Ltd
('Frontier' or the 'Group' or the 'Company')
Trading update
"Strong financial performance in 2017"
Frontier (AIM: FST), a pioneer in technologies for Digital Radio
and Smart Audio devices, announces the following unaudited trading
update for the year ended 31 December 2017 ('FY 2017') ahead of the
announcement of its full year results.
The Group expects to report a strong financial performance for
FY 2017, with revenue growth and EBITDA in line with current market
expectations.
Revenue for the financial year is expected to be up c. 28% at c.
GBP41.2 million (FY 2016: GBP32.1 million) and underlying EBITDA is
anticipated to be c. GBP1.9 million (FY 2016: GBP0.7 million). In
constant exchange rates, revenues are expected to be up 23% to
approximately US$53.2 million (FY 2016: US$43.4 million). As at 31
December 2017, the Group had a solid cash position of GBP5.8
million (FY 2016: GBP3.4 million) and a net cash position of GBP2.9
million (FY 2016: GBP0.7 million).
The improvement in EBITDA has been driven by growth in the
Group's established Radio business and the Group's first material
revenues from its Smart Audio division.
The Radio business continued to generate positive cashflows in
2017. Frontier maintained its sector leadership and market volumes
benefited from the switch-off of FM in Norway and underlying growth
in other European markets. In Smart Audio, the Group has secured
numerous design wins for its Minuet platform. To date, 20 models
have been released and, since the year-end, the Group has announced
its first voice-enabled design wins, which are expected to reach
mass production in the first half of 2018.
The Group continues to expect modest growth in revenues and
EBITDA for FY 2018. As previously indicated, Radio is likely to
plateau following the completion of Norway's FM switch-off. In
Smart Audio, while initial indications are encouraging, the market
for third-party voice-enabled speakers remains early-stage, and the
division remains in a development phase with plans in 2018 for a
slight increase in R&D expenditure. This is to finalise the
development of Frontier's SmartSDK, the Group's voice-enabled
streaming software solution, and enable it to address the three
major eco-systems of Google Voice Assistant (GVA), Alexa Voice
Services (AVS) and Apple Airplay 2.
Anthony Sethill, CEO of Frontier Smart Technologies, said:
"2017 was a good year for Frontier with revenues performing well
and EBITDA more than doubling. Our strategic objectives for 2018
are to maintain the positive cashflows delivered by Radio, whilst
investing in software engineering for the Smart Audio division in
order to cement Frontier's position as the leading multi-ecosystem
voice-enabled solution provider."
The Group expects to publish its full year results for the year
to 31 December 2017 in March 2018. A further announcement will be
made in due course.
- Ends -
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.
For further enquiries:
Frontier Smart Technologies +44 (0) 20
Group Ltd 7391 0630
Anthony Sethill, Chief Executive
Officer
Jonathan Apps, Chief Financial
Officer
N+1 Singer (Nominated Adviser +44 (0) 20
and Broker) 7496 3000
Shaun Dobson / James Hopton
+44 (0) 20
Buchanan (Financial Communications) 7466 5000
Henry Harrison-Topham / Steph FST@buchanan.com
Watson / Gemma Mostyn-Owen
About Frontier Smart Technologies
The Frontier Smart Technologies Group is a pioneer in
technologies for digital audio devices. The original company,
Frontier Silicon, was incorporated in 2001. Customers include many
leading consumer audio brands: Bose, Denon, Grundig, harman/kardon,
Hama, JBL, Marshall, Onkyo, Panasonic, Philips, Pioneer, Pure,
Roberts, Sony, TechniSat, UrbanEars, Yamaha, and many more. The
Company is headquartered in London, with engineering, sales and
operations teams in Cambridge, Timisoara (Romania), Hong Kong, and
Shenzhen.
For more information, see: www.frontiersmart.com
This information is provided by RNS
The company news service from the London Stock Exchange
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