Fresh frontiers as Science Group completes acquisition
Science Group is closing Frontier Smart Technologies’ Sawston site and London office and moving the acquired business into its Cambridge facility at Harston Mill.
Frontier’s staff will be transferred to Harston Mill. Its Romania operations are being closed as planned when the acquisition is complete.
Trading of Frontier’s shares on AIM will be cancelled by October 21 and settlement of the consideration payable to qualifying shareholders is anticipated shortly thereafter.
Frontier's Advanced Technology Group and IoT infrastructure will be integrated with Science Group subsidiary Sagentia Limited.
Science Group will repay the Frontier bank facility in October to eliminate the risks associated with the bank covenants and continue the realignment of supplier credit/payment profiles.
The restructuring will result in a substantial reduction in the cost base of Frontier and should provide a platform for the future development of the business.
Most of the changes will be completed this year and Frontier will be focused on audio technologies supplying modules, chips and associated designs/development from operations in Cambridge, Hong Kong and Shenzhen.
Anthony Sethill, founder and CEO of Frontier, has decided that this is an appropriate time to leave the company but will be assisting in a smooth transition. He will leave at the end of November. CFO Jonathan Apps will also leave the company after a transition period.
Science Group says it is now apparent that Frontier revenue in 2019 will be lower than previously indicated. It is anticipated to report an operating loss in Q4 2019 in the order of £1 million.