Nuheara posts positive results

Local tech firm Nuheara has posted positive half-year results, with significant growth in revenue and its gross profit margin as the company continues to expand internationally.

Perth-based Nuheara, which won the 2017 Business News Rising Star award, has developed a range of wireless noise-cancelling headphones that enable users to control certain sound levels in noisy environments.

The company recorded revenue of $1.96 million for the half year, with a 49 per cent increase in units sold compared to the second half of the 2017 financial year.

With operating expenses at $4.04 million and cost of sales of $1.43 million for the period, Nuheara lost $4.27 million overall.

The company said it had turned its gross profit margin from -26 per cent last year to 27 per cent this year.

“This result is a real milestone for our company that has importance beyond the fantastic sales growth we experienced,” chief executive Justin Miller said.

“The cost efficiencies we were able to achieve in manufacturing and logistics are just as important to the long-term viability of any business.

“As such, our growth in sales, reduction in cost of goods sold and the increase in gross profit margins, are all very positive signs for a rapidly maturing business.”

Nuheara said its sales had been affected by a slower than expected uptake of new retailers in Europe and the Middle East.

“Over the past six months, the company has invested heavily in building our brand, sales channel, marketing, digital assets and the development of two new products,” Mr Miller said.

“These investments will provide considerable ongoing benefit to Nuheara and as we continue to address a very large target market.”

Nuheara shares dipped 4.7 per cent today to finish at 6 cents each.