27th Mar 2014 11:06
LONDON (Alliance News) - PhotonStar LED Group PLC Thursday posted a narrowed pretax loss in 2013, as a weaker first half was offset by strong growth in the second half.
It also said it had been trading in line with expectations in the first quarter of 2014, ahead of the previous year.
The LED lighting company posted a pretax loss of GBP728,000, narrower that the GBP836,000 loss it booked in 2012, as revenues rose to GBP9.4 million, from GBP8.7 million, offset somewhat by higher sales costs and administrative expenses.
Although the first half was quite weak, as the company addressed operational challenges including the transition of its financial officer and the development of its ChromaWhite colour-tuneable light technology, it saw revenue rise in the second half by 18%. It was also cash neutral in the second half.
As a result of its strong second half, the company said it starts 2014 in a "much stronger financial position".
"We have continued to make good progress, particularly in the second half of this year, and the business is now stronger and more stable. We continue to invest in developing and updating our technology and have the cash flow to support further investment and growth," Chief Executive James McKenzie said in the statement.
The company is looking to launch its home Circadian lighting product, Halycon, during 2014. The product is designed to emulate the changing colour and intensity of natural daylight, which can be used for health purposes. It also taps into the growing 'internet of things' trend, as it will be able to be controlled using smart phones.
"The lighting market is changing rapidly towards LED lighting and PhotonStar is well positioned to take advantage of this transition," McKenzie said.
Shares in PhotonStar were trading down 20% at 6.03 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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