21st Aug 2015 06:58
LONDON (Alliance News) - PhotonStar LED Group PLC on Friday posted a flat pretax loss in the first half of 2015, despite revenue falling, but said it expects revenue to grow in the second half as sales hit a positive trend moving into the latter part of the year.
The smart LED lighting products company said its pretax loss in the half to the end of June was GBP600,000, flat year-on-year, despite its revenue falling by 14% to GBP3.3 million from GBP3.8 million and its gross margin falling to 37% from 39%. This was offset by a decline in administrative expenses in the half, which were down 14%.
The first half of the year was hit in early months by a competitive landscape, PhotonStar said, but revenue growth has been seen going into the latter portion of the half and the group is confident on its second half outlook. Commercial shipments of the HalcyonPRO lighting product have now started and are expected to boost second half revenue, the company said, while it also saw a better-than-expected result from its deal with an unnamed housebuilder signed in the first half.
"Whilst our fixed lighting operations faced a tough competitive landscape in 2014, we have continued to make good progress with our intelligent Halcyon lighting system," said Chief Executive James McKenzie.
"Since April, the business has been adjusted EBITDA positive on a monthly basis, with a rising revenue trend, and the board anticipates that the group will sustain adjusted EBITDA profitability over the next six months as our recently introduced fixed lighting products and intelligent Halcyon lighting system drive revenue growth in the second half of the year and beyond," McKenzie added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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