Trading update

1 August 2014

Toumaz Limited

Trading update

Toumaz Limited (AIM: TMZ, 'Toumaz', or the 'Group'), a pioneer in ultra-low power wireless semiconductor technology, has published its trading update ahead of its half year results for the six months ended 30 June 2014. 

The Group has traded in line with the Board's expectations with revenues up 32% at £10.8m (£8.2m in H1 2013) and an EBITDA loss unchanged at £5.6m (£5.6m in 2013). As at 30 June 2014, the cash balance was £13.2m.

In Healthcare, the Group's wireless patient vital signs monitoring system, SensiumVitals®, continues to make very good progress.

Sales and distribution networks for SensiumVitals® are now established in 19 territories, with South Africa being the latest addition - joining the US, Canada, Mexico, the UK, France, Germany, Italy, Portugal, Sweden, Norway, Denmark, Australia, New Zealand, and five Middle East markets (in total, accounting for 64% of global healthcare spend).

Deployments of the system in Hurley Medical Center, Flint, Michigan and Spire Healthcare's Montefiore Hospital, Brighton are both receiving positive feedback from clinicians. The first NHS hospital is expected to deploy the system in Q3 2014. Internationally, several other markets are also likely to see their first deployments this year.

In July, BBC TV aired a positive story about the deployment of SensiumVitals® in Brighton (http://www.bbc.co.uk/news/health-28415753) - generating interest from several potential customers in the UK and internationally. A week later, Sensium Healthcare, working with the University of Leicester, was awarded £250,000 by the UK's innovation agency, the Technology Strategy Board, to support development of future enhancements of SensiumVitals®.

In Consumer Audio, revenues have been in line with expectations. The Group has maintained its strong leadership position in digital radio, where market growth has been driven by strong performances in Germany and Norway (the latter with Digital Switchover due in 2017). Connected Audio revenues have similarly benefited from growing consumer demand for Wi-Fi enabled audio devices.

The Group's two next generation silicon programmes for Digital Radio and Connected Audio are both progressing within budget and to plan. As previously reported, first revenues are expected in the fourth quarter of 2014 and second half of 2015 respectively.

Anthony Sethill, CEO of Toumaz said:

"The Group continues to make positive progress in its two key business areas.

"In Healthcare, feedback from the first UK and US deployments of SensiumVitals® is encouraging. In the coming months, we expect to see hospitals in several markets adopting the system. In the UK, our first evaluation by an NHS hospital is due to begin this quarter.

"In Consumer Audio, we are benefiting from market growth in both Digital Radio and Connected Audio. Our next generation silicon projects will significantly enhance our proposition to customers. Both projects are progressing to plan."

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About Toumaz (www.toumaz.com)

Toumaz Limited is a pioneer in low-power, wireless semiconductor and software technologies for healthcare and consumer audio. The company has two divisions, Sensium Healthcare and Frontier Silicon. Sensium Healthcare develops wireless solutions for patient monitoring. Frontier Silicon provides chips, modules and software for digital radio and connected audio devices.