5 May 2017 07:00
For immediate release | 5 May 2017 |
Frontier Smart Technologies Group Ltd
('Frontier' or the 'Group')
Trading update
Frontier (AIM: FST), a pioneer in technologies for Digital Radio and Smart Audio devices, announces the following trading update.
The Board is pleased to report that the Group has continued to build on the momentum achieved in the second half of 2016, with H1 revenues significantly ahead of last year. Taking a prudent view of H2 trading across the Group, the Board expects full year EBITDA1 profit to be materially ahead of expectations2.
The Group's established Digital Radio and Smart Radio business lines are both performing well. Digital Radio is benefiting from strong underlying growth in continental Europe, boosted by the switching-off of analogue radio in Norway. H1 sales have also received an up-lift from the forthcoming introduction of the EU RED Directive in July 2017, which has encouraged customers to bring forward orders. Smart Radio is ahead of expectations due to better than expected growth in Germany. Margins in Digital Radio and Smart Radio are also ahead of plan.
In Smart Audio, the Group has recently announced several design wins for speakers using Google's Chromecast built-in technology. Trading in Smart Audio is currently broadly in line with expectations, but it will be early in the second half before the full year performance of this business line will be known.
Anthony Sethill, CEO of Frontier Smart Technologies, said:
"The performance of our Digital Radio and Smart Radio businesses in the opening months of the year has been encouraging and reflects our market leadership in both sectors. Our Smart Audio business is still at an early stage of development, but our recently announced design wins provide grounds for confidence."
Notes
1. EBITDA means earnings before interest, tax, depreciation and amortisation and non-cash share based payments.
2. Current market expectations for the year ending 31 December 2017 for the Group's EBITDA was approx. £1.0 million prior to this statement.
The announcement contains information which, prior to its disclosure, was inside information for the purposes of the Market Abuse Regulation.
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 | FST@buchanan.uk.com |
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: Altec Lansing, Bose, Bowers & Wilkins, Brookstone, Denon, Grundig, harman/kardon (JBL), Jensen, 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/