FeONIC sounds out increased sales
INNOVATIVE audio technology company FeONIC has cut its losses after seeing its sales leap by 170%.
The Hull-based company is hoping to further increase its customer base after seeing sales in the country rise.
FeONIC posted sales of £259,899 in the year to July 31. Gross profit increased by 173% to £171,759 which contributed to the company’s total loss dropping by more than £200,000 to £371,472.
The company’s technology allows its audio products to turn virtually any surface or structure into a high quality loudspeaker with evenly distributed sound.
Its products can be used in environments that range from station platforms to shop windows.
Chairman Brenda Hopkins said FeONIC’s largest markets continued to be in both Asia and the UK.
FeONIC is hoping its sales in the United States would be further strengthened by sales into the hospitality sector as its Japanese partner has connections with US hotel chains.
“We are still awaiting the outcome of the trials presently being carried out in Asia on platform doors to help with crowd control,” Ms Hopkins said.
“We are very heartened by the continued level of investment into the Company by both new and existing shareholders. This added investment has proved to be beneficial in strengthening the balance sheet.”
She said the biggest financial challenge for the business was to contain the increasing cost of manufacture of its products in China.
“We also have to operate on the basis of a 100% payment before the product is delivered to us and also remain subject to significant minimum order quantities.
“This does put a great deal of strain on the cash flow which continues to be supported by the Directors taking no salaries.”
She added that FeONIC was concerned that its valuation on the PLUS market was not a true reflection of the company’s worth but is optimistic that sales will continue to rise.
