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Toumaz sells Healthcare division, H1 revenues slip

22 July 2016 07:44

Toumaz has agreed the sale of Sensium to Netherlands' The Surgical Company (TSC) for about £1.3m, plus agreed royalties. Toumaz also said its H1 revenues were marginally lower at £13.7m, from £14.0m.

"The sale (of Sensium) follows a strategic review which concluded that this was the best option for the Group," Toumaz said, noting sale proceeds would go to working capital to support its growth and development.

"The sale eliminates any further cash losses associated with Healthcare - in H1 2016, the EBITDA loss for Sensium was £3.9m - and will allow the Group to focus on its Digital Audio division, Frontier Silicon, where the Board sees significant growth opportunities."

Referring to its trading, Toumaz said the revenue's slip was due mainly to a decline in that contributed by Healthcare. Excluding Healthcare, revenues were steady at £13.7 million (£13.8 million in H1 2015) ahead of the launch of the Group's next generation smart audio product in H2.

Group EBITDA improved by 35% to a loss of £3.6 million in H1 2016 (£5.5 million loss in H1 2015).

"This is largely attributable to the reduction in the Group's research and development ('R&D') expenditure, which as planned decreased from £6.3 million in H1 2015 to £4.8 million in H1 2016," the company said.

"Excluding Healthcare, the loss improved from £1.8 million in H1 2015 to £35,000 in H1 2016 as R&D expenditure fell from £4.7 million in H1 2015 to £2.6 million in H1 2016.

"R&D expenditure is now focused primarily on software, with no new silicon development programmes currently planned. The Board anticipates that the Digital Audio division will be EBITDA positive for FY 2016.

"As at 30 June 2016, the cash balances stood at £3.8 million (31 December 2015: £7.7 million)."

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Related Company: TMZ

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