News Column

PhotonStar LED Raises GBP2.2 Million In Placing As Revenue Falls

July 18, 2014

Anthony Tshibangu

LONDON (Alliance News) - Photonstar LED Group Friday said it has conditionally raised around GBP2.2 million through a placing of 31.4 million new shares at a price of 7 pence per share, as it lamented a fall in first-half revenue caused in part by contract delays.

PhotonStar shares were quoted down 13% at 6.50 pence Friday morning.

The designer and manufacturer of smart LED lighting solutions said it will use the proceeds of the placing to maximise the commercial opportunities of its Halcyon system. Halcyon is a wireless retrofit lighting system that includes sensors and is controlled wirelessly by a powerful, low cost server.

The placing, which will represent approximately 21.9% of the company's issued share capital, was conducted by Mirabaud Securities LLP.

In a trading statement Friday, the company also said group revenue in the first half fell to GBP3.8 million, from GBP4.3 million a year earlier.

PhotonStar said it has seen robust growth from its wholesaler and housebuilder contracts. However, as in prior years "the group will experience seasonality in other revenue streams, which are expected to be second half weighted as a consequence."

In addition, several large new-build construction projects which were expected to be completed in the first half have been delayed into the second half, primarily due to adverse weather conditions.

Despite the reduction in first half sales, the company said it maintained adjusted earnings before interest, taxation, depreciation and amortisation through a focus on product margins and continued tight cost control. Adjusted EBITDA held steady at a GBP300,000 loss.

Looking ahead, the company said it is "very comfortable that the full-year results will be in line with expectations."

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Source: Alliance News

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