Science Group makes royalty settlement for Frontier subsidiary

Science Group updated the market on its acquisition of Frontier Smart Technologies on Monday, which it purchased in 2019.

The AIM-traded firm said the original technology used by Frontier was developed by Imagination Technologies, with Frontier paying licence royalties to Imagination on a quarterly basis.

For the year ended 31 December 2020, such royalty payments totalled $1m.

“As part of the Frontier strategy review, agreement has now been reached with Imagination to settle all future royalties associated with the use of the licensed technology in consumer electronics, including DAB radio broadcast, for a single payment of $6m,” the board said in its statement.

“This agreement is effective 1 July, and is anticipated to be earnings-enhancing in the second half of the current year and beyond.”

Science Group said it would release its results for the six-month period ended 30 June on 26 July.

At 1250 BST, shares in Science Group were down 0.24% at 409p.