News Column

PhotonStar LED Group First-Half Revenue Takes A Hit On Weather Delays

August 11, 2014

Alice Attwood

LONDON (Alliance News) - PhotonStar LED Group PLC said Monday it remains confident that its full-year results will be in line with expectations, despite reporting a first-half revenue drop as weather-related delays in the new build market pushed some revenue into its second-half.

In its half-year results for the six months to June 30, 2014, PhotonStar LED recorded a pretax loss of GBP0.6 million, flat on the GBP0.6 million reported in the comparable period as revenue took a 13% hit, down to GBP13.8 million from GBP4.3 million last year.

PhotonStar LED is comprised of two divisions; LED lighting fixtures and LED light engines.

In the LED lighting fixtures business, first-half revenue was down 8% to GBP3.59 million from GBP3.92 million in the first-half last year. PhotonStar said the revenue drop was mainly due to delays in new build projects as a result of severe adverse weather, including wide spread flooding across the UK and continental Europe. However, its wholeslae product sales grew significantly, it said.

The company also said that it saw a first-half increase in store and retail lighting trials, which are expected to develop into "meaningful sales orders" throughout the remainder of the year and beyond.

In LED lighting engines, first-half revenue was 53% lower at GBP0.2 million from GBP0.4 million last year, primarily due to delays in the requalification of a UV product by one of its major customers, said PhotonStar, causing orders and sales to slip into the second half of the year. This requalification is now complete, it added.

In July the British designer and manufacturer of smart LED lighting solutions conditionally raised around GBP2.2 million through a placing of 31.4 million new shares at a price of 7 pence per share, with the proceeds to be used 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 company said Monday that Halycon domestic systems are now shipping in beta form, expected to contribute to revenues in the second-half of the year and further boost the group's prospects into 2015 and beyond.

Looking ahead to its full-year results, PhotonStar LED said that revenue is expected to be concentrated in its second-half due in part the first-half delays which will accentuate the second-half weighting in revenues - already experienced by the group - driven by seasonal increases in construction activity in domestic and export markets.

Despite the weather related slowdown experienced in the first-half, the group has continued to make progress, it said, and expects this progress to continue into the second-half.

Chief Executive James McKenzie said that the company remains confident that full-year results will be in line with expectations.

Shares in PhotonStar LED Group were Monday quoted at 6.5 pence per share, untraded.

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Source: Alliance News

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