Software company Frontier Smart Technologies (LON:FST) saw shares rise in early trading, after a strong set of final results led Peel Hunt to increase their target price on the stock.
The group’s earnings for the full year came in ahead of market expectations, turning positive at £0.7 million. This is up from the £0.8 million loss made in 2015.
Revenues also held steady at £32.1 million, with Digital Radio revenues rising 8 percent to £22.3 million.
However revenues in its Smart Audio division fell 11 percent to £9.8 million, in anticipation of the release of Minuet, the Group’s new solution incorporating Google’s Chromecast platform.
Anthony Sethill, CEO of Frontier, called 2016 a “pivotal” year for the group, adding that the sale of the loss-making Healthcare business had led to the first positive EBITDA figure.
“In Digital Radio we have maintained our market leadership position as international markets for DAB radio continue to develop. With Norway becoming the first country in the world to switch- off its FM signals, the prospects for this business are encouraging.
“2016 was an important year for our Smart Audio business, as we completed the development of our new Minuet solution incorporating Google’s Chromecast platform. The first consumer products using this solution are now available in-store, with more to follow in the coming months. This will help drive Group revenue and EBITDA growth in 2017,” he concluded.
In the wake of the strong results, Frontier had its target price upped by stock analysts at Peel Hunt from £0.80 to £1.14 in a research report issued on Friday. The brokerage currently has a “buy” rating on the stock, with the new target price indicating a potential upside of 31.79 percent from the stock’s previous close.
Frontier’s shares are currently down 0.58 percent, after rising over 2 percent in early trading (0929GMT).