Toumaz Share Discussion Threads

[life of crime] 22/7/2016 11:03

I am disappointed by the Sensium news. £1.3M is absolute peanuts and TSC have got a steal. I don't see why TMZ could not have done a JV with TSC but it seems clear that the CEO sees the healthcare division as a distraction and if TSC was the only interested buyer, and TMZ were keen sellers, then they were never going to get much money.

Also, if they are only getting 3% then 2% royalties over the next 10 years, then why didn't they negotiate a permanent royalty of 1% because it is clear that it will be in 10 years plus that the patch will become commonplace. All in all it is a lousy deal and suggests TMZ just wanted shot of Sensium. I guess it is a matter of time before the firm changes its name to Frontier Silicon and CT steps down from the BoD.

Looking to the future, at least they can concentrate on the CEO's comfort zone and the prospects for DAB and smart audio do look promising. It is a shame Ed Vaizey was removed from the govt as he seemed a real champion for DAB but I still think it is a matter of time before we get to the 50% threshold and the DAB switchover is announced. Prospects for Google Cast are also promising and that was a major win for the firm. I am going to hang on to the shares and with the firm now more streamlined (as per IMG) and profitable we should see a move north in the share price If Google Cast does really well, we may even see 10p again. At that point I think I will sell most, if not all, of my shares and that is my target for the next 18 months. We can but hope!

[oldyellowhands] 22/7/2016 10:57

comment removed

[varies] 22/7/2016 10:57

The accounts for FY 2015 show sales from Digital Radio of £21 million (v £18m) and from Connected Audio of £11m (v £7.5m), a total for Frontier Silicon of c£32m.
On these sales FS made a loss of c£7 million after R&D £7.4m, impairments of £3.0m and other exceptionals of £1.1m.
Assuming that the impairments and exceptionals will not recur for FS in 2016 and that R&D will halve, FS should move into profit.
Whether the profits from FS will justify a market cap. of £30 million is another matter and I do not feel tempted to add until the dust has settled.
I share the general disappointment with the wretched price obtained for Sensium although it is plain that Toumaz could not afford to take this business any further.

[the drewster] 22/7/2016 10:56

3.5 in the September '15 note

[iamnoone] 22/7/2016 10:34

Mirandaj - I thought it was 3.5p?

[mirandaj] 22/7/2016 10:26

A report released today by Peel Hunt about (LON:TMZ) Toumaz Holdings Ltd holds the target price at 4p

[the drewster] 22/7/2016 09:46

Most R&D is Romania isn't it?

[iamnoone] 22/7/2016 09:40

What I meant by expenditure was purchases of components.

[oldyellowhands] 22/7/2016 09:32

comment removed

[gnnmartin] 22/7/2016 09:31

I'm disappointed, but getting used to that with TMZ. At the AGM Sethill seemed to say that in the second half TMZ would be cash flow positive even with Sensium. I was very surprised, so asked if he really meant that, and he said he did. Hmmm.

Still, TMZ is surely worth more than 2p now. The strong dollar is a worry, but how much of TMZ's costs are really in dollars though? They seem to be moving into software. I hoped the dollar costs might be something our customers faced rather than us. If it hits our customers sales it still hits us, of course, but not a badly as if it squeezed our margins too.

[s0lis] 22/7/2016 09:19

sweenoid

I think you should redo your foreign exchange calculations. If you had $150 before Brexit at US$1.50/£, you had £100. Now post Brexit at US$1.3/£, you have £115, a 15% increase. Think what that will do to profits if all our sales are now in US$.

[trek3] 22/7/2016 08:59

Shocking outcome, just over a mil and a pittance
in royalty payments, was it bad management or bad
luck?

[the drewster] 22/7/2016 08:54

From September broker note: "We see 3.5p value in the Audio business alone and management is now taking steps to maximise the value of the Healthcare business."

[hazl] 22/7/2016 08:52

No point in selling out for me now...worth little but I guess if it at last turns profitable at some point I might as well wait until then.

imo

[juleshoddy] 22/7/2016 08:29

should of seen that coming after Van Schil / TSC bought in feb. I was hoping they'd get us JV with Philips seeing as they're next door to each other. Not exactly a great return from the massive investment spent on Sensium. what did it cost us? 40M or something someone mentioned? More? Good luck to TSC realising the potential for sensium. Looks like it's all on their Googlecast solution to bring home the bacon now.

[sweenoid] 22/7/2016 08:21

It had to happen' but it happened too late after far too many false dawns and broken promises. They were so desperate they literally gave it away, of course they negotiated in some forward potential royalty income but that will be peanuts.

We are left with FS

Unfortunately the very moment they decide to focus on the audio company the devaluation of sterling will literally destroy all its profits. As I see it , the vast bulk of our costs are in $ , we will have to sell 20-30% more product just to stay at the same point £earnings wise

Sensium under this management was never going to work, I only held out because of the potential of a nice sale price, that is now gone, I have no enthusiasm for this company and will eventually use it merely to obviate capital gains elsewhere

S

[chillpill] 22/7/2016 07:43

The revenues from Googlecast should be huge. There are only 3 players and TMZ expect to have >60% market share.

[ridicule] 22/7/2016 07:38

Most of us bought into the Sensium dream and I have lost a lot of money here as a consequence. To blame Sethill though is unreasonable.

The NHS did not embrace the concept, and continually demanded evermore refinements without any significant roll out. The health division died on the R&D rack as a consequence. Lets hope the new owners can do better and that we get some royalty return over the coming years.
I will not be investing in the Dutch company. I cannot afford for the dream to fail a second time.

[spekky] 22/7/2016 07:30

Yes,gutted that it's come to this but it has been looking inevitable.

[rollthedice] 22/7/2016 07:29

Both relieved and disappointed at the same time. Relieved in that financially TMZ was being pulled down by Sensium, disappointed that this potential gold mine was not monetised.

TMZ should now be a cash generative if not particularly exciting company.

[chillpill] 22/7/2016 07:26

Phew! We now have a profitable company.profits always H2 loaded.
Should have ditched Sensium a year ago and saved shareholders £8m.

[megrey] 22/7/2016 07:12

Took Sethill four years to destroy one of the most innovative (At the time) companies in the UK to save his DAB company. He demoralised the Healthcare side of the business from day one removing considerable expertise and allowed it to decline. A very sad day.

[nod] 22/7/2016 00:02

In the 22 March RNS with results, Sethill said: "Our digital radio business is well positioned to exploit the growing opportunities in the DAB market"Yet in the AGM presentation on 17 May, posted above by TD, Sethill seems less enthused about DAB growth opportunities: "not a high growth"We were banking on DAB profits for TMZ to reach break-even.