logo-loader

Toumaz sells off failing healthcare arm

Published: 10:49 22 Jul 2016 BST

Doctor treating a woman
The dip was due to a decline in revenue brought in by the healthcare arm.

Ailing audio tech group Toumaz (LON:TMZ) has shed its healthcare division Sensium for around £1.3mln to Dutch medical supplier The Surgical Company, as revenues weakened.

For the half year, revenues fell to £13.7mln from £14mln the same period last year.

The group said the sale followed a strategic review which concluded it was the “best option” to avoid further losses. Proceeds from the sale would go towards working capital to support growth.

"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,” said Toumaz.

The dip in revenue was mainly due to a decline in revenue brought in by the healthcare arm.

Stripping out healthcare, revenues remained steady at £13.7mln compared to £13.8mln last year.

Cash balances however almost halved from £7.7mln to £3.8mln.

Adjusted earnings (EBITDA) improved by 35% to a loss of £3.6mln, which was attributed to a reduction in research and development expenditure.

As planned, R&D spending was decreased from £6.3mln to £4.5mln in the first half.  

The group said no new silicon development programmes were currently planned.

For the full year, the group said it expects its digital audio division to be earnings positive by the end of the year.

Chesnara reports strong 2023 results with improved cash generation and...

Chesnara PLC (LSE:CSN) chief executive Steve Murray discusses the company's full-year results for 2023 with Proactive's Stephen Gunnion, describing them as strong and particularly highlighting £53 million in commercial cash generation and a dividend coverage of around 150%. The company has...

1 hour, 20 minutes ago