The company, which produces technology allowing household lighting, heating and security systems to be operated remotely using smartphones, tablets or computers, reported a pretax loss of
It also said it expects its full-year sales to be about
"We are now also turning our attention to international markets to seek to create similar distribution arrangements to Megaman in the
The company said average margins in the first half fell to 29%, due to the transfer of existing stocks to Megaman and continued supply to existing customers at reduced margins due to the change in distribution strategy. However, it's expecting margins to recover "significantly" in the second half.
The company's cost of sales rose steeply due to the changes and revenue rise, but it cut administrative expenses by 7%.
"We plan on further switching this spend to accelerate our product development and away from general administration. We plan to further develop our expertise in Radio Frequency with more software and hardware capability. This will enable the business to have a
It said it isn't yet able to pay a dividend as it doesn't yet have reserves it can distribute, and for the time being is focused on turning the business around.
"The management team believe strongly in reinvesting in the company's technology and brand at this stage in the companies evolution. While we are fully focussed on underlying profit and cash generation from our revenues we expect to make significant commitment to continued product development investment. The year should see a turnaround in the previous losses suffered by the business," it said in an outlook statement.
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