17th Jan 2019 11:04
LONDON (Alliance News) - Shares in Frontier Smart Technologies Group Ltd rose Thursday after company said it expects rise in annual revenue due to an improved second half.
Shares in the radio technology company were trading 12% higher at 33.74 pence each on Thursday.
Revenue for 2018 is expected to be no less than USD41.0 million, in line with the year before, however earnings before interest, taxes, deprecation and amortisation is forecast to be USD1.4 million, down from USD1.9 million the prior year.
Frontier's Digital Radio segment saw positive cashflows in the year, although it was lower than 2017, benefiting from the Norwegiand digital switch over, and underpinned by the continued development of European Digital Audio Broadcasting markets.
The Smart Audio has continued to be loss making, however losses for the second half of 2018 is expected to be substantially lower compared to previous periods.
With the securing of its first customer for its new Licensing business, revenue from the new business line is expected to build gradually during 2019.
"In the second half of 2018, the group delivered a significantly improved financial performance based on a recovery in sales and the implementation of our targeted cost reduction programme. Our Digital Radio business continues to generate strong positive cashflows. In Smart Audio, our Licensing business has secured its first revenues and established a healthy pipeline of potential customers," saud Chief Executive Anthony Sethill.
Frontier Smart Technologies will publish its annual results in March.
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