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Frontier Smart Technologies doubles profits in 2017
Digital radio and 'smart' audio technology specialist Frontier Smart Technologies saw a strong financial performance throughout the 2017 financial year that carried revenue growth and profits in line with market expectations.
The Cayman Islands-based group reported a 28% jump in revenue for the year ended 31 December to £41.2m, bringing earnings before interest, tax, depreciation and amortisation up to £1.9m, more than double the £700,000 reported twelve months earlier.
Frontier said the improving EBITDA was driven by growth in the group's digital radio business and first material sales of its Smart Audio units.
As of 31 December, the group had a solid cash position of £5.8m, up from £3.4m at the end of the previous trading year, and posted a net cash position that had moved ahead from £700,000 to £2.9m.
Frontier expects modest revenue and EBITDA growth EBITDA for the 2018 financial year.
Anthony Sethill, chief executive, 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."
As of 1200 GMT, FST shares, having grown around 150% since the start of 2017, dropped back 7.38% to 169.50p.
Analyst Jamie Constable at N+1Singer noted that the core Digital Radio business enjoyed a strong year, boosted by the FM switch-off in Norway, and continues to generate positive cash flows.
"Initial sales of Smart Audio units have been achieved in the year and we believe the group is very well placed to secure a crucial place in the highly attractive emerging Smart Audio ecosystem.
"Execution remains key however we believe the shares remain attractive, despite the recent strong performance, with significant medium term value being created."