LONDON (Alliance News) - Toumaz Ltd, a pioneer in ultra-low-power wireless semiconductor technology, reported a slightly widened pretax loss in 2014 due to heavy investments it is making, but said its revenue continues to grow as its healthcare and digital products make progress.
The group reported a pretax loss of GBP13.5 million for the year ended December 31, compared with a loss of GBP13.3 million in 2013. However, it said that revenue was up 20% at GBP26.2 million, compared with GBP21.9 million, and said that its healthcare business generated its first significant revenue of GBP750,000, up from GBP60,000 in 2013. Digital audio revenue grew 16% to GBP25.5 million from GBP21.9 million.
Toumaz said that is still in a "relatively heavy investment phase" having spent GBP11.8 million on research and development - equivalent to 45% of revenue - but said that this proportion is expected to shrink in 2015 and to be below 20% of sales from 2016.
"In the next two years, we expect to see a significant uplift in revenue. The group is nearing the end of a period of significant R&D investment and therefore expects to deliver positive cash flow in the first half of 2016," Chief Executive Anthony Sethill said in a statement.
In digital radio, sales in rest of world territories exceeded those in the UK for the first time, the company said, adding that its two major digital audio chip developments are "progressing well". The fourth generation digital radio chip saw its first shipments at the end of 2014.
In addition, the group said its connected audio solutions are "selling well" and its next generation connected audio chip is due to launch in the second half of 2015.
"We expect digital radio and connected audio sales to continue in line with recent trends. Whilst we remain confident about the prospects for Healthcare, the pace at which revenues ramp up is yet to be proven," Sethill said.
Toumaz's SensiumVitals, a wearable vital signs monitoring system, has been deployed in 16 hospitals in the UK, US, France, Germany, Italy, Portugal and Australia as of March 31.
SensiumVitals is a wireless system which takes readings of heart rate, respiration and temperature every two minutes with the data sent wirelessly to clinicians via hospital IT systems.
Toumaz said that it terminated its distribution agreement with Nant Health in North America in March in order to establish its own US business development team to introduce SensiumVitals to key accounts and work with senior management to shape the group's long-term strategy for the region.
In a separate statement, Toumaz said that SensiumVitals will be trialled by the Queen Elizabeth Hospital Birmingham. It said it will be installed and fully integrated with the hospital's IT systems in April with the trial due to start in May. The trial is expected to last for about two months and over 100 patients will be monitored by the system.
"It is a significant development for us to be deploying SensiumVitals in one of the UK's leading NHS hospitals," Sethill said.
"Our early trials with other hospitals in the US and the UK have shown that SensiumVitals improves patient care, shortens hospital stays and reduces healthcare costs," he added.
Shares in Toumaz were trading up 1.8% at 4.58 pence Tuesday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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