11th Nov 2014 10:40
LONDON (Alliance News) - PhotonStar LED Group PLC Tuesday gave more details about its financial expectations in the wake of its recent profit warning caused by delays in several large orders for fixed white lighting products, saying it expects 2014 revenue to decline by up to 23% on the year.
The company, which makes smart LED lighting, warned in August that weather-related delays in the new-build market would meant an element of its revenue would slip into the second half, meaning its full year would be more weighted to the second half than previously. Then, in late October, PhotonStar said expected sales for fixed white lighting products for the full year would be lower than indicated due to a number of large lighting domestic and export contracts being delayed to next year.
It said it would now focus on its Halcyon "intelligent" circadian wireless lighting system, which allows users to control lights through sensors or mobile devices, dropping further development of its light engines business.
On Tuesday, the company said it expects revenue for 2014 to be between GBP7.2 million and GBP7.6 million, as it diverts resources and investment into the Halcyon product ranges for launch later this month. It also expects to report an adjusted loss before interest, tax, depreciation and amortisation of between GBP800,000 and GBP1.1 million.
PhotonStar reported an adjusted Ebitda loss of GBP0.1 million in 2013 on revenue of GBP9.4 million.
The company said it thinks it still has sufficient working capital for the foreseeable future. It expects to have about GBP1.0 million of cash at the bank at the end of 2014 and about GBP0.8 million of invoice financing debt out of a total facility of GBP1.3 million.
PhotonStar appointed David McTurk as its interim chief operating officer from November 3 and he has taken on full operational management responsibility for the company.
"He is applying his significant operational experience to the operations of PhotonStar, with clear goals and action plans in place to further reduce the costs of the Group whilst continuing the drive towards profitability," it said.
"Whilst we are disappointed to have experienced delays in several of our large contracts, with David now in post as interim COO, the senior management team is fully focused on further extending opportunities for the Halcyon product range," Chief Executive James McKenzie added.
PhotonStar LED shares were flat at 3.25 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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