27th Nov 2008 07:00
Date: Thursday 27 November 2008
JSJS Designs plc
("JSJS Designs" or "the Company")
First Day of Dealings on the Alternative Investment Market
JSJS Designs plc (AIM:JSJS), specialists in the design, development and manufacture of home automation systems to enable consumers to remotely operate everyday household appliances, such as lighting, heating, air conditioning, door entry, audio, video and security, today announces its first day of dealings of its Ordinary Shares on the Alternative Investment Market ("AIM").
The admission to AIM is by way of an introduction. The Company's opening market capitalisation is £4 million.
WH Ireland Limited is acting as both Nominated Adviser and Broker to the Company.
Overview of the Company:
The Company was founded in 2007 by Chief Executive, John Shermer and Chief Technical Officer, John Sinclair; both of whom have over 20 years of accumulated knowledge and know how of developing home automation systems;
JSJS Designs is targeting the potentially significant mass market as consumers increasingly seek to "retro-fit" Smart Home technologies into their homes. This low-cost bolt-on approach means that the average home can now be automated from as little as £500, enabling the concept of the smart home to be within the reach of the mass consumer market;
In the longer term, the Company is also seeking to target the "Extra Care" residential market where there is demand from the providers of such schemes to enable independent living for the elderly and physically immobile;
In addition, by allowing the user to programme devices to come on at specific times and/or by ensuring that all appliances are completely switched off as opposed to being left on standby, it is estimated that consumers using smart home automation systems could benefit from potential energy savings;
The Company's products are currently sold through its UK distributor's "HomeEasy" range to B&Q, the UK's biggest home improvement retailer;
Since the Company launched its product range in August 2007, it has achieved a turnover of approximately £1 million.
John Shermer, Chief Executive and co-founder of JSJS Designs plc commented:
"With an increasing number of consumers seeking the lifestyle benefits that can be enjoyed through the installation of smart home automation systems, together with the obvious synergies of supplying the Company's products within the Extra Care residential market, JSJS Designs is well placed to further build upon its existing market position.
"As the benefits of smart home automation systems become more established, we believe that our position within the UK will provide a solid platform to support the Company's future growth, which will ultimately focus on the international launch of our products into the rest of Europe and the USA."
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For further information, please contact: |
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John Shermer, Chief Executive |
Tim Cofman |
Katie Dale |
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JSJS Designs plc |
WH Ireland |
Golley Slater |
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Tel: 01922 409 609 |
Tel: 0121 265 6330 |
Tel: 0121 384 9743 |
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Mobile: 07918 716 754 |
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Statistics:
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Number of Ordinary Shares in issue at Admission |
200,000,000 |
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Number of Ordinary Shares in issue following payment of Deferred Consideration |
250,000,000 |
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Existing Ordinary Shares as a % of the Enlarged Share Capital, assuming payment of Deferred Consideration |
80% |
Background information on the Company:
JSJS Designs plc specialises in the design, development and manufacture of home automation systems to enable consumers to remotely operate everyday household appliances, such as lighting, heating, air conditioning, door entry, audio, video and security. The Company is targeting the potentially significant mass market as consumers increasingly seek to "retro-fit" Smart Home technologies into their homes and, in the longer term, the "Extra Care" residential market where there is demand from the providers of such schemes to enable independent living for the elderly and physically immobile.
The Company's primary products are a SMS BaseStation capable of remote operation by mobile telephony and a handheld communication device, the Handset, for use within the home. These products have been designed to interact, through both infra-red and radio, with a broad range of domestic devices made by third parties, such as TV, DVD, central heating controls, automatic door openers and lighting.
The Company has also used its expertise to enable its UK distributor to develop a comprehensive range of compatible and fully integrated peripheral products.
Currently the product range is sold to B&Q through the distributor's "HomeEasy" brand. The Director's believe that the low-cost bolt-on approach, in which the average home can be automated from as little as £500, has enabled the concept of the smart home to be within the reach of the mass consumer market.
Products
Handset
The Handset or the "HomeEasy Ultimate Master Controller" is essentially a small handheld icon based touch screen remote control device that incorporates a radio and infra-red transmitter with a micro-processor and proprietary software. This enables the end user to programme bespoke functions and to train the unit to emulate codes for operating other peripheral devices such as TV, DVD and CD.
Whereas most universal controllers only operate a small number of infrared controlled devices the Handset is designed to control up to 32 individual RF commands, each of which may control a number of devices, such as central heating, lighting and door locks. Furthermore, the Handset has greater functionality than most universal controllers. For example, the Handset has four "mood" settings for lighting, which can be pre-set according to the end users preferences - for instance to switch all lights off in the house or dim lights in a certain room, instantaneously at the touch of a single button. In addition, the Handset has multiple seven day timers, which by enabling end users to operate devices at specific times of the day or at random whilst they are away from home, provides greater security.
Also, by allowing the user to programme devices to come on at specific times when they are needed and/or by ensuring that all appliances are completely switched off as opposed to being left on standby, the HomeEasy range ensures that the home is more energy efficient, offering potential energy savings to the end user.
SMS BaseStation
The SMS BaseStation is essentially a radio transmitter coupled with a microprocessor, proprietary software and a SMS interface, allowing it to communicate with mobile telephones.
With the exception of the infrared control, the BaseStation has similar functionality to the Handset with the added advantage that it can be operated by most mobile phones, enabling home appliances to be linked and operated remotely anywhere in the world where there is mobile coverage. In order to provide security of operation the SMS BaseStation matches the callers automated recognition identity number with the unique set up authorisation code provided on installation. It would therefore be difficult for anyone to either operate or disable the SMS BaseStation without the users consent.
Both the Handset and SMS BaseStation are CE Marking approved for use throughout the European Union ("EU") and countries within the European Free Trade Association ("EFTA"). Where the Company's products are sold outside the EU or EFTA the Company will seek to ensure that it's products are compliant with the relevant approval.
Third Party Peripherals
The Company's products are designed to interface easily with third party remote controlled devices, such as door locks and curtain openers. In addition, and in order to provide broader functionality, the Company has assisted its distributor in designing a range of compatible products, including radio controlled plugs and dimmer switches.
Product Development
The Company is continuing to develop its products and has in hand projects both to extend the utility offered by the products and establish a branded range and style appropriate to other geographic markets. In addition, as sales volumes increase, the Directors will seek to outsource production to China.
The Market
The Consumer Market
Until recently, the concept of "intelligent" or "smart" homes, which give individuals remote control over their domestic environment such as lighting, heating, air conditioning, blinds, door entry, audio, video and security, at the touch of a button, seemed futuristic or at the very least out of the financial reach of many, with high-end state of the art home automation systems costing tens of thousands of pounds. However, as the technology required to implement these systems has developed elements of the Smart Home are becoming increasingly common, especially within the new build housing sector, with a number of housebuilders seeking to install some of the ideals of the Smart Home into their new build schemes. The Company is seeking to extend this concept into the existing housing stock with its products which are designed so they can be DIY, retro-fitted at affordable prices.
In addition to lifestyle benefits, it is estimated that consumers using smart home automation systems could make significant savings on their energy costs. The Directors believe that, as the benefits of Smart Home systems become established, the UK will provide a good platform for the international launch of its consumer products into the rest of Europe and the USA.
The Extra Care Market
The UK's population is ageing and it is estimated that by 2016 there will be 11.8 million people over the age of 65. The Director's believe that the Company's product range will also appeal to the elderly and in particular to those who are in general less mobile and will enable them to live independent lives for longer. Additionally, the core base products can be set up to enable care staff to manage the less independent remotely, thereby enabling them to remain in the wider community for longer.
Competition
At the top end of the market there are the very expensive Smart Home systems such as those provided by US based Crestron Controls, where limited audio systems alone can cost in excess of $50,000.
At the bottom end of the market there are the universal controllers and individual control devices, costing as little as £30 for an universal controller used to control domestic appliances such as TV, DVD, CD etc but with limited functionality.
The Company's products occupy the middle ground, offering a greater range of utility, functionality, remote access and control with prices starting at £89.99 for a handset. In this sector of the market and at this price, competition is scarce. The Director's believe that the Company's nearest competitor is X-10 Wireless Technologies Inc whose X-10 products are successfully marketed in the US and which operate through radio and power line signalling.
Distribution Agreement
The Company has an agreement with CH Byron, a UK distributor of electrical accessories and lighting products under which the Handset and SMS BaseStation are distributed as part of CH Byron's HomeEasy range. In 2007 Byron won a multi-million pound contract to supply B&Q with the HomeEasy home automation products. B&Q, which with 330 stores nationally, is the UK's biggest home improvement retailer, launched the products on 17 September 2007.
Under the agreement, the Company's subsidiary, JSJS Designs (Europe) Limited, has agreed to design and develop the Handset for integration with CH Byron's home automation range. The agreement also grants CH Byron a sole exclusive worldwide licence to commercially exploit the Handset and the SMS BaseStation for a two year period expiring in August 2009.
Strategy
CH Byron has recently launched the HomeEasy range in Germany and Southern Ireland and is expected shortly to launch the range in Holland and France. In addition, the Company, through its distributor, will seek to sell the range to other independents and retailers in the UK.
Directors
Howard Cleveley Marshall (Non-executive Chairman, aged 65, British)
Howard is a graduate mathematician and holds a Masters Degree in Business Administration from London Business School. He is a Non Executive Director of Hill & Smith Holdings plc, a British infrastructure group and Non Executive Chairman of Imaginatik plc, a UK based innovation software company. His current appointments also include a governorship of Birmingham City University, Chairman of Orchestra of the Swan and Director of LJM Consultancy Ltd.
Formerly from 1989 until 2000 he was Managing Director and later Chief Executive of Ash & Lacy plc and from 2001 until 2003 he was Chief executive & Chairman of Bullough plc which were both active in the wider engineering sector.
John Thomas Shermer (Chief Executive, aged 52, British)
In 1984 John established the Centre of Access Technology as a resource centre operated by Birmingham local authority which offered expertise and training on technology and disability to other local authorities within the United Kingdom and overseas agencies. During this time he led the development of software for training and innovative methods for working with people with disabilities.
Since 1989, John has acted as a consultant to various local education and social services authorities, providing advice on the procurement and implementation of computer hardware and software and equipment to benefit people with disabilities. He has also acted as adviser on the interface between disability and technology to the Department of Trade & Industry and the Department of Education between 1989 and 1992.
He established SRS Technology Group plc in 1991 where he held various senior executive and Board positions until his resignation in 2006, following the sale of SRS's only trading subsidiary to a competitor.
From 1992 until 1994 he assisted in the management of a spinal injuries clinic at Southport Spinal Injuries Hospital and was a consultant to the European Commission from 1992 to 1996 advising on the implementation of computer technology prospects for the benefit of people with disabilities. A noted speaker at various national and international conferences and seminars, he has also acted as an expert witness in various legal cases.
Frank Barry Tiller, (Non-Executive Finance Director, aged 55, British)
Frank is a Chartered Accountant with over thirty-eight years of professional and senior management experience. After obtaining his accountancy qualification, Frank spent a further three years in the profession before moving into industry. He joined Waterline Group Plc (then known as Holloway Furniture Company Limited) in 1980 as Finance Director. Frank remained with Waterline until 2005 and saw turnover grow from £400,000 to almost £75 million per annum with over 250 staff worldwide. He was instrumental in establishing management and reporting systems for the geographically diverse group and worked on the Waterline's successful admission to AIM.
Since leaving Waterline Plc, he has joined the board, as Finance Director, of GEM BioFuels Plc, a company admitted to AIM in 2007. Frank also provides corporate finance consultancy to other multi million pound turnover private companies. Frank is responsible, with assistance from external advisers, for the compliance of the Company with financial regulations.
John Scot Sinclair (Chief Technical Officer, aged 42, British)
John has been writing software professionally for over 25 years. In 1989 he established Tetra Systems Ltd, initially developing telephony and front of desk management systems for the hotel sector, later developing RF, infra-red remote home control systems and working with John Shermer in the development of computer interfaces for patients at the spinal injuries clinic at Southport Spinal Injuries Hospital. In 2001 John joined SRS Technology Group plc as Director of Technology and was instrumental in the development of SRS's product suite of advanced environmental controls for the severely physically impaired.
Directors' Interests
The Directors' aggregate interests in Ordinary Shares following Admission will amount to 104,500,000 Ordinary Shares representing approximately 52 per cent. of the issued share capital of the Company.
John Shermer, John Sinclair and certain other shareholders have agreed not to dispose of any interests in the securities of the Company within a period of 12 months following Admission, save subject to specified circumstances.
Significant Shareholders
|
Name |
Ordinary Shares at the date of Admission |
% of the share capital on Admission |
No of Ordinary Shares following issue of Deferred Consideration |
% of Enlarged Share Capital |
|
John Thomas Shermer |
50,000,000 |
25.0 |
75,000,000 |
30.0 |
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John Scot Sinclair |
50,000,000 |
25.0 |
75,000,000 |
30.0 |
|
Suzanne Green |
15,000,000 |
7.5 |
15,000,000 |
6.0 |
|
Richard Chilvers |
10,000,000 |
5.0 |
10,000,000 |
4.0 |
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