Frontier Smart has released its FY’18 results showing group revenues down 21% versus a strong comparative. FY’18 contains two contrasting halves: H1 sales were adversely impacted by Norwegian DSO overstocking issues, whilst H2 saw strong recovery. The group delivered FY’18 trading EBITDA of $0.8m, having posted a $2.1m EBITDA loss in H1. Outlook looks more positive, with modest growth expected in DAB (regulatory-driven) and Smart IoT (licencing and non-audio). Valuation remains attractive at 0.4x FY’19 EV/sales, with our SOTP implying an intrinsic value range of 73p – 103p.
