Frontier Smart Technologies warns on profits
Home software manufacturer Frontier Smart Technologies warned investors on Thursday that it had swung to a loss as a result of higher competition, weak legacy sales, and the ramp-up of its new business.
Frontier now expects to post an adjusted loss before interest, taxation, depreciation and amortisation of "no worse than" $900,000 - a marked reversal from the $1.4m positive EBITDA turned in a year earlier.
The AIM-listed group also anticipates that full-year sales will come to roughly $36.6m in 2019, down from the $41.8m in revenues posted twelve months prior.
Chief executive Anthony Sethill acknowledged the short-term trading outlook for the group was challenging, highlighting headwinds to its performance in the form increased competition, but said Frontier's fundamentals were solid and that he expects market volumes to grow "in the medium term".
Frontier also noted the timing of the ramp-up for its new smart audio and internet-of-things licensing business had weighed on profits.
"In light of the current trading conditions, we will continue to monitor our progress closely to ensure that the group's cash position remains secure," said Sethill.
As of 1330 BST, Frontier shares had dived 41.74% to 12.23p.