Frontier Smart Technolog... Share Discussion Threads

[knowing] 07/12/2018 16:12

But FST is loss making

[john09] 07/12/2018 16:11

MI CHELVERTON U.K. EQUITY GROWTH FUND

A new UK small and mid-cap fund investing in highly cash generative companies with strong market positions that are expected to grow faster than UK GDP. Aims to deliver progressive long-term capital growth with no income.

Our Approach
In common with other Chelverton managed funds, we look to invest in companies which are listed in the UK, but which fall outside the top 100 UK equities. Our aim is to deliver capital growth to investors over the longer term and we do this by concentrating on companies that have particular qualities. We are looking for companies that are highly cash generative, which enables them to fund their own growth. Typically, they will have some form of sustainable competitive advantage, such as a unique product or a dominant position in a particular market, leading to high margins and thus, generating surplus cash. We like sensible, pragmatic management teams, who have a clear idea of how to push the business forward without diluting shareholder returns through unnecessary equity issuance, or off-piste excursions into unrelated activities. The portfolio contains companies at various stages of their development, but all have potential which has yet to be fully recognised by the market.

Our Investment Process
Our starting point is to use a formal quantitative screening process, which we have designed to look for certain characteristics, or put another way, the companies have to pass some tests before we will look at them in any detail. These include the ability to convert 75% of operating profit in to free cash flow from gross margins higher than 20%. We also test the balance sheet to see that debt is not too burdensome and that the amount of working capital is not too high. Whilst the screening of 1,200 stocks is reviewed monthly, in practice it evolves on a daily basis. Initially, this will generate some 150 ideas which qualify for further assessment, and approximately half of those will make it into the portfolio. In the second stage, we are seeking to gain a far better understanding of the company beyond the bald statistics; we want to know what makes it ‘tick’. We start by looking at sales, to what extent they are repeatable, and how broad the customer base is. We then look at the margins and how likely it is that they are sustainable.

[knowing] 07/12/2018 16:00

How cheap is cheap? 20p

[p1nkfish] 07/12/2018 15:46

As for the insti that increased - take a look at their AUM and portfolio and make up your own mind as to whether they are worth following.

Won't post my opinion, dyor.

[p1nkfish] 07/12/2018 15:45

The interesting thing is not all the reviews look like from people that have left.

Anyway, if cheap enough worth a punt but not yet imho.

[john09] 07/12/2018 15:36

Sounds like desperate people trying to ramp it down

[knowing] 07/12/2018 15:33

Shame the technology is not on the "wanted list". Sounds like some desperate people trying to ramp it up

[john09] 07/12/2018 13:28

6 of the 11 do approve.

And the last review posted has a headline of “good company, good people”

Yawn . More filters

[john09] 07/12/2018 13:26

Seems to be lots of experts on the internal HR workings of FST here. They saved millions in cost earlier in year. That unfortunately related in redundancy . Some of the comments about them only being focussed on profit whilst I’m sure upsets disgruntled ex employees , it’s music to my ears .

You can do a search on any company on glass door and get such reviews. Keyboard warriors that have been sacked. Not the upwardly mobile who have moved on by their own volition.

[john09] 07/12/2018 09:12

Sorry you got fired birkenhead

[footloose2] 07/12/2018 09:08

Nod

You are a premier user so you could start your own thread and filter anyone.
The only problem being with john90 making a pest of himself on other threads, we would stay on here and so would he. He is the problem and i am afraid he is the only one that can stop the madness.

[birkenhead] 07/12/2018 08:59

Very disturbing glassdoor.co.uk reviews summing up Mumbles Sethill and Johnny Appetites ruining FST and robbing shareholders:

3 Dec 2018 Former Employee

"Incompetence sums up the management"
Cons: Incompetent management

Atrocious road map decisions cause huge disruption to work but historically has only served to chase failure after failure.

Arrogant attitudes of the few in charge without the mettle to back it up.


9 Oct 2018 "Awful management with ideas above their capabilities"
Cons: Constant mushroom management leading to unmotivated staff.

No dialogue with staff over plans at all until presented as a fait accompli, regardless of the significance of any decisions made.

It's amazing things get produced at all with the constant direction and priority changes.

Advice to Management

Accept that as a management team you lack the vision and capability to branch out into the bigger picture / capture share of markets already dominated by organisations leaps and bounds ahead in their respective fields and with much deeper pockets.

You have been successful in your core business but failed in every step outside and now appear to be flailing around clutching for the magic straw that will make the big leap for Frontier.

With the current resourcing and particularly management this is extremely unlikely to happen.

10 Sep 2018 Current Employee

Cons: Employees sometimes feel unheard or mislead by upper management decisions

31 Jul 2018 "No leadership, no future, avoid"
Current Employee - Software Developer in Cambridge
Cons

There are far too many executive grades, too many greedy snouts in the feeding trough leaving little investment in staff or tools.
The CEO has no idea how to run a profitable business or take responsibility for poor decision making. They reward each other and pat each other on the back as they drive Frontier off the cliff as far as investors are concerned.

Advice to Management

The best thing to happen to this company would for whole greedy lot to be fired. Hopefully the new chairman will have the b a l l s to do this...avoid this company

23 May 2018 Current Employee - Software Engineer in Sawston
Cons

Not sure the CEO knows what most of the products do or particularly cares about his employees. Product range is confused

[adventurous] 07/12/2018 07:51

Outlook

-- Digital Radio EBITDA is expected to improve in H2-2018 as sales volumes recover in line with underlying market growth

-- Smart Audio EBITDA losses are expected to reduce sharply in H2-2018 due to lower R&D expenditure and operational costs

-- The Board anticipates an improved second half and the achievement of full year market expectations for EBITDA

////////-- As part of its Group strategy, Frontier has already implemented a cost rationalisation programme, resulting in annualised savings of US$3.4 million.

My Note: 3.4m is the H1-18 -v- H1-17 reduction, so based on the above, breakeven, but maybe H2 being slightly better. Licensing to the likes of Amazon, will drive up in 2019.

[nod] 07/12/2018 02:12

John, because I have a tiny investment left here. I had a modest investment in Toumaz which became a minuscule investment after Sethill and Apps took over.

[john09] 07/12/2018 01:01

I know. So why are you here?

[nod] 07/12/2018 01:00

John, H2 would need to be stellar to recover from the appalling H1. H1 revenues were down nearly 8 million compared with the previous year, resulting in a significant H1 loss this year. This had been after a lot of encouraging news about partnerships and contracts last H2. This H2 we have heard nothing. No trading update, no news.

[p1nkfish] 07/12/2018 00:37

Will wait for next trading update as I suspect it will become weaker before stronger.

[p1nkfish] 07/12/2018 00:36

Take a look at the glassdoor.co.uk reviews.
Interesting opinions from current and past employees.

[john09] 07/12/2018 00:33

All good points and that’s why it’s 45 p 👍🏼

[p1nkfish] 07/12/2018 00:30

They partnered with NXP. NXP could buy FST with pocket change, > $9Bn revenue, and can find no media release from NXP mentioning FST at all.

NXP portfolio lines up well with FST. The fact they appear to have little interest in buying FST is telling.

This could become a screaming buy, but where is close to bottom?
Financials look awful.

Not de-ramping but very curious.

Chart looks poor too.

[knowing] 07/12/2018 00:02

No positives here

Financial Review

H1-2018 revenues of US$17.0 million were down 32% year-on-year (H1-2017: US$25.0 million). EBITDA loss for H1-2018 was US$2.1 million (H1-2017: EBITDA of US$1.4 million). The decline in EBITDA was due to a halving of Digital Radio EBITDA to US$3.0 million (H1-2017: US$6.4 million), which was directly attributable to the impact of FM switch-off in Norway.

Smart Audio returned an unchanged EBITDA loss of US$4.7 million (H1-2017: US$4.7 million).

The Group achieved gross margin of US$7.1 million (H1-2017: US$10.2 million). In percentage terms, gross margin rose slightly from 41% to 42% of revenues, due to a small improvement in Smart Audio margins.

R&D expenditure increased by 28% to US$ 4.6 million (H1-2017: US$ 3.6 million) due to an increase in spending on Smart Audio. This was partially offset by a reduction in the Group's sales and administrative expenses to US$4.7 million (H1-2017: US$5.2 million).

[john09] 06/12/2018 23:59

Nod - Try this

Prospects

“The Digital Radio business is expected to generate strong positive cashflows for the foreseeable future. In the second half of 2018, sales volumes are expected to return to more normalised patterns, i.e. a stronger performance than in H1-2018. The key engine of growth is continental Europe, where growth is being driven by Germany, Netherlands, France, Belgium, Italy and Denmark. Switzerland is the next country to switch off its FM signals, which is expected in 2020-24. R&D expenditure for Digital Radio will be tightly managed and will continue to be focused on retaining the Group's market leadership and sustaining strong positive cashflows.”