TIDMTMZ
RNS Number : 5036M
Toumaz Limited
21 January 2016
21 January 2016
Toumaz Limited
Year-end trading update
Toumaz Limited (AIM: TMZ, 'Toumaz', or the 'Group'), a pioneer
in ultra-low power wireless semiconductor technology, has published
its trading update for the year ended 31 December 2015.
Highlights
-- Group revenues up 22.3% to GBP32.1 million (2014: GBP26.2 million)
o Digital Audio revenues up 24.5% to GBP31.8 million (2014:
GBP25.5 million) - up 15.3% at constant exchange rates
o Healthcare revenues: GBP300,000 (2014: GBP750,000)
-- R&D expenditure of GBP11.3 million (2014: GBP11.8 million)
-- EBITDA loss GBP7.8 million (2014: loss GBP9.8m)
-- As at 31 December 2015, the Group's cash balance was GBP7.7 million
Anthony Sethill, CEO of Toumaz, said:
"Our Digital Audio business, Frontier Silicon, had another
successful year with digital radio revenues up 14.8% and connected
audio up 48.1%.
"Digital Audio is well positioned to make strong progress in
2016. Development of our fourth generation digital radio chip was
completed in April and is now shipping in significant volumes. Our
next generation connected audio solution, incorporating Google
Cast, is due for release in the middle of 2016. This project
represents a major opportunity, as Frontier Silicon is one of a
very small number of system integrators to be working with Google
in connected audio.
"In Healthcare, the Board appointed advisors to assess the best
option for exploiting SensiumVitals(R) and its IP. This work is now
under way and is expected to complete in the middle of 2016."
Overview
Group revenues were up 22.3% to GBP32.1 million (2014: GBP26.2
million), driven by Digital Audio. Group EBITDA losses were reduced
by 20% to GBP7.8 million (2014: loss GBP9.8m).
Digital Audio is expected to see continued strong growth in
2016.
In Healthcare, the Board has appointed advisors to help assess
options for the business. The assessment is expected to be
completed in the middle of 2016.
As of 31 December 2015, the Group had cash of GBP7.7 million,
having drawn down its GBP5 million debt facility. R&D
expenditure peaked in H1 2015. The Board expects the Group to be
cash-flow positive in mid-2016.
Digital Audio
Frontier Silicon, the Digital Audio business, performed well in
2015. Revenues were up 24.5% to GBP31.8m (2014: GBP25.5 million)
with its two units, digital radio and connected audio, both
achieving healthy growth.
The business has been EBITDA positive, before the allocation of
central overheads, since April 2015 and for the year as a
whole.
Digital radio
Digital radio revenues were up 14.8% to GBP20.7 million (2014:
GBP18.0 million) - driven by unit sales growth of 15.3% to 4.4
million (2014: 3.8 million).
The Group has retained its strong market leadership position and
has benefited from healthy growth in key territories - especially
in Norway, Germany and the Netherlands.
Major R&D expenditure in digital radio is complete. The
Group's fourth generation chip is shipping in volumes and
delivering improved margins to the business. Prospects for the
digital radio business in 2016 are favourable.
Connected audio
Connected audio revenues were up 48.1% to GBP11.1 million (2014:
GBP7.5 million), reflecting a combination of design wins and high
market growth. Unit shipments grew by 34.4% to 0.8 million (2014:
0.6 million).
The Group's next generation solution incorporating Google Cast
is due for release in mid-2016. This will target the mid/high end
segments of the wireless speaker/soundbar market. Frontier Silicon
is one of a very small number of system integrators working with
Google on the Cast project.
Frontier Silicon's value-add is in software, system integration
and its close working relationship with the Google Cast team.
Silicon for the project is provided by Marvell Technology
Group.
Customer interest in Frontier Silicon's next generation
connected audio solution, incorporating Google Cast software, is
positive.
Healthcare
A reassessment of the financial prospects for Sensium Healthcare
in 2015 resulted in the Board initiating a review of strategic
options for the business. Advisors have been appointed with a remit
to engage with potential financial or strategic investors. This
process is under way and the outcome is expected in the middle of
2016.
The business remains focused on securing commercial trials of
the SensiumVitals(R) system - with the goal of delivering
compelling evidence of the system's ability to improve patient
outcomes and enhance healthcare economics for hospitals.
Trials are currently under way in three NHS hospitals, including
St James's University Hospital, Leeds and the Queen Elizabeth
Hospital, Birmingham.
The business appointed a new US-based Chief Commercial Officer
in September. Several new commercial trials in Europe and North
America are expected to start in the coming months.
Balance sheet
The Group ended the year with cash of GBP7.7 million (2014:
GBP12.5 million) having drawn down its GBP5.0 million debt
facility. With R&D expenditure past its peak, the Group is
expected to be cash-flow generative in mid-2016.
The Group expects to publish its full year results for the year
to 31 December 2015 in the second half of March 2016.
Enquiries
+44 (0) 207 391
Toumaz Limited 0630
Anthony Sethill, Chief Executive
Officer
Jonathan Apps, Chief Financial
Officer
Peel Hunt LLP (Nominated Adviser +44 (0) 207 418
and Broker) 8900
Richard Kauffer/Euan Brown
+44 (0) 207 457
Instinctif Partners 2020
Adrian Duffield/Chantal Woolcock
About Toumaz (www.toumaz.com)
Toumaz Limited is a pioneer in low-power, wireless semiconductor
and software technologies for digital audio and healthcare. The
company has two divisions, Frontier Silicon and Sensium Healthcare.
Frontier Silicon provides chips, modules and software for digital
radio and connected audio devices. Sensium Healthcare develops
wireless solutions for patient monitoring.
This information is provided by RNS
The company news service from the London Stock Exchange
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