LONDON (Alliance News) - Toumaz Ltd Tuesday reported a narrowed pretax loss for the first half of 2016 ahead of its planned rename and share consolidation.
The digital radio and audio technology firm reported a pretax loss of GBP2.0 million, narrowed from a pretax loss of GBP7.4 million the previous year, mostly as a result of lower research and development costs and having recorded a GBP3.0 million impairment the prior year due to the company opting to cease development of its own silicon product.
Revenue dipped slightly to GBP13.7 million from GBP13.8 million.
The company opted to sell its Healthcare division following a strategic review late last year, deciding that a significant investment would be needed to see the business through to break-even, and therefore a sale was the best option.
With this done, the company has opted to focus solely on its radio and audio technology, and to reflect this, Toumaz plans to change its name to Frontier Smart Technologies Group Ltd from November 2.
Furthermore, it has proposed a 40 to one share consolidation in order to enable a more "consistent valuation" and reduce volatility in its share price.
Looking ahead, it expects to see single figure growth in revenue for 2016, with Digital Radio revenue broadly flat but its Smart Audio revenue improved in the second half.
It noted that the UK accounts for around one third of its revenue, and Toumaz expects its revenue to benefit from the depreciation of sterling in the wake of the Brexit vote.
"Having sold Healthcare and eliminated the associated losses and cash burn, we have created a solid platform for profitable growth. The group is now fully focused on Digital Audio, where our established leadership in Digital Radio provides a platform from which to develop our position in Smart Audio," said Chief Executive Officer Anthony Sethill in a statement.
Shares in Toumaz were down 13% at 2.62 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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