29th May 2015 09:04
LONDON (Alliance News) - PhotonStar LED Group PLC Friday posted a wider pretax loss for 2014, as both of its businesses were hit by competitor price reductions, but said it had made good progress with its new Halcyon connected light platform.
The company said it expects to achieve earnings before interest, tax, depreciation and amortisation profitability over the next six months on the back of its recently launched expanded range of fixed white light LED fixture products, and the launch of Halcyon.
PhotonStar posted a pretax loss of GBP1.6 million for 2014, widened from a pretax loss of GBP728,000 in 2013 as revenue fell to GBP7.2 million from GBP9.4 million.
In its LED fixtures business sales fell 18% due to increasing market competition and price pressures, and the light engines business also saw a slow-down in sales and pressure on margins.
Halcyon is a so-called 'internet of things' product, which produces 'circadian' lighting that changes throughout the day to simulate daylight. It was launched last November.
The company said it has been working to reduce the cost of its goods and operating expenses, and said it has been able to reduce its fixed cost base.
"We enter 2015 as a much stronger business, with a stable management team in place, a significantly reduced cost base and a growing suite of commercially available intelligent lighting systems. We are also maintaining our clear focus on further expanding the Halcyon product range," said Chief Executive Officer James McKenzie in a statement.
Shares in Photonstar are trading down 0.1% at 2.62 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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