Lightwaverf Share Discussion Threads

[whoppy] 02/6/2016 10:04

Go into my local B&Q and they are still trying to sell the old JSJS products. All the boxes are old and dusty and have a small space on the bottom shelf. They even have the old radiator valves. Doesn't look good. They have plenty of other home automation brands which looks much better.

[clocktower] 02/6/2016 07:59

Apple due to announce more on HomeKit etc on 13th June 2016 so you may hear something soon after. Still LWRF need more meat on the bones before anything becomes exciting now.

[buggy] 02/6/2016 07:58

I take it today's news is an admission that the LWRF heating range is not the preferred option for customers. In other words you can use the Nest heating products but we will sell you your light and socket fittings and you can control all with our app.

From experience, LWRF has great products within the Lighting and power sockets range. As for their heating products , I do not use but it has been panned by those that use them. It is thus a good idea that the company is recognising this gap and is attempting to provide an app that can control both sides. A customer can choose the best of breed in each product range and control all with one app.

Good idea , but again this will all hinge on the effectiveness of the LWRF control app. Currently the rating on the app store does not scream GREEAT must have app, but small steps in the right direction.

DISCLAIMER:
Not a holder but still watching on the side-lines to judge if I should dip back in. The above is just my initial ramblings on the news and not meant as an advice either for or against.

[jmf69] 02/6/2016 07:53

Nest integration only with the android app

[clocktower] 31/5/2016 18:29

District of Future:

Scroll down the pages and it looks like LWRF products are being used in the ZEB homes.This looks like another 43 on top of those few done in 2014.



hTTtp://www.electriccorby.co.uk/projects/zeb/the-zeb/




ENERGY EFFICIENCY & RENEWABLE ENERGY
CONFERENCE, 5 April 2016, Bulgaria

I wonder if this was the place the contracts were picked up with the recently announced heating supplier?
------------------------------------------------------

[clocktower] 26/5/2016 16:54

Looks smug to me!

[buggy] 26/5/2016 16:30

Bentley43

Santander would not pull the plug, why would they. There is minimal risk to them. They are lending money on a confirmed invoice, so at most it would only be about 30 days before the client pays up. They will only be allowing LWRF to draw down a certain percentage of the total value of the invoice.
Santander are now the company's banker so once the money hits LWRF accounts they will recoup the money advanced as well as any interest.

No confirmed invoice , no draw down so.. there minimal risk...... Only risk is if the client defaults and did not pay up after receiving the goods from LWRF.

It is free money for them so I do not see any reason that they would pull the working facility. The crux of the matter is that LWRF have to make a sale before they can access this facility ....no sale no draw down. [ Drawdown and amount tied to confirmed invoice amount].

Since Santander would only advance a fraction of the total sales value, if last results is repeated with Sales of about £800K, then the maximum working capital they could have accessed, over the last half of the year, would be about £480K, (assuming that Santander is open to advancing up to 60% of the invoice amount).

[clocktower] 26/5/2016 15:46

Years ago the Chairman of CRU put his hand in his pocket and provided the company with a loan at very reasonable rates (that worked out well for all concerned), maybe the directors here should dig deep and do the same here to show confidence in the company. Maybe £500k over 3 years at 1% which is about the return they would get from National Savings.

[whoppy] 26/5/2016 15:23

They blew £771,000 on admin expenses. Is that on top of their wages? They need to take a cut in salary for this abysmal performance. As ML would say, "it's all about the longterm growth"..

[clocktower] 26/5/2016 15:13

One and all are very negative here but very oddly so far there seems to be buyers in the wings and on the face of it more buys than sells showing so far.

Maybe someone is ready to put up fresh sums like happened at SGI be it at a huge discount, or could the likes of Havells be waiting in the wings.

Better out than in for now if a new investor most seem to agree.

[sinkyj] 26/5/2016 15:06

Understand Buggy, actually I didn't read it too carefully. But even invoice discounting is hard to get these days, even if it is very expensive money. At face value they have 6 months of the money raised left, nobody would extend any form of credit unless there is more going on.

If you look at the cash in hand figure, you can see why it's needed. The money will be needed for working capital no matter how it is secured. The key point is it's outside the megaman zero capital deal, which means it's either: on the bright side , new deals with new distributors or too much for Megaman to underwrite or on the dark side........

As I said, if I was out I'd stay out.

[pugugly] 26/5/2016 14:54

buggy:> Many thanks for that clarification - I had not spotted. Even worse than I had suspected - Certainly off BUY watch list but I will keep an eye on the coy to see if my predictions are right.

[buggy] 26/5/2016 14:46

Sinkyj,

Unfortunately Santander is not giving them any of their money on trust. They are providing a line of credit which they can tap into based on confirmed order invoice. In other words if LWRF invoices a client for an order; Santander can allow them to draw down some money ahead of receiving payment from the customer. LWRF can draw money against confirmed invoice.. which they will promptly repay together with interests once they receive payment.

That is not exactly a vote of confidence, you get as much and even better from a pay day loan, where you can cash in a fraction of you payday check ahead of you receiving the money.

I am not expressing an opinion either way as I have been out for a while and just keeping a watchful eye in case there is a genuine turn around. However I am just clarifying the type of credit facility that they have managed to secure although they tried their best to obfuscate it in the RNS. They should just have called it invoice discounting line of credit that everyone is familiar with, rather that trying to go around the subject......"facilities include both discreet invoice financing and trade financing ..."

[sinkyj] 26/5/2016 14:37

Agree Gozo, there are things to be announced yet that Santander obviously have knowledge of. This is a facility for working capital to fund the manufacturing orders necessary to make product for these deals. Until now Megaman have funded that, but these must be outside that arrangement.

To double the share price from here wouldn't take much, a good stocking order from somewhere. But to turn the company permanently round into profit before the rest of the cash is burned is a much bigger ask. There's a long way to go from here, So you invest with that in mind.

It's disappointing to say the least. But I'm not selling now, out of frustration because they've burned a bit too much or not announced anything today. After all, 800k was exactly what was expected. Equally, if I was not holding I don't think anything would tempt me to invest.

I wouldn't look to Mike Lord, I'd look to committed capital to protect their investment. They've already replaced the Finance Director with their own man.

[gozo] 26/5/2016 14:08

Well time will tell of course Clock....new distributors and orders more likely imo.GR has alluded to this being mentioned at the agm together with a Nest update.

[clocktower] 26/5/2016 13:43

gozo - it is possible that it has been put to Santander that someone is willing to bail out the company and put a couple of million in at say 5p for example, and pay off the bank.Just a thought.

[gozo] 26/5/2016 13:29

Agree with the majority of the above posts. Management have it all to prove....Mike Lord's success with Minivator seems like a distant memory now....I just hope he hasn't forgotten how to replicate it.Despite the very bad numbers I'm not selling yet - as sinkyj mentions Santander must have some confidence in the forward order book to offer the facility. Hoping for positive news flow in the near term.

[clocktower] 26/5/2016 12:07

Your right Nar1, If you looked back on earlier posts I just put down a small marker at 14p and then added a few here and there as I was waiting for better news than what we have today before taking any serious position, having taken a loss as previously stated when I was buying at around 24p that I sold on the bounce towards 19p.

I will continue to follow and if things change in the next six months or there is another fund raising to deal with sharp sales increases and lack of cash, I may buy in again.

[nar1] 26/5/2016 11:43

Clocktower- you wasn't holding a lot then going my the sells today lol

[sinkyj] 26/5/2016 11:37

Santander wouldn't be extending 1.1M in working capital unless there was more in the pipeline than shown here. Obviously, they need money to fund some of the deals that are outside the Megaman distribution arrangement.

But, boy, that's a terrible set of numbers. Just burning too much money for too little progress. It better be a bumper 2nd half.

They could make products compatible for other platforms, like Hive and burn a lot less on 3 year software developments that are almost out of date as they arrive. Maybe they are. Who knows? The communication to stakeholders is worse than that to consumer.

Maybe the consumer market is too big an ask for such a small cap firm, there are specialist and un exploited areas suitable for a higher quality product. The link with a heating manufacturer than installs 200,000 systems is no bad thing. Too keep with the metaphor , Leyland trucks is still in existence.

[nar1] 26/5/2016 11:24

Agree Loobrush that's the line that caught my eye - more waiting again. fed up of seeing the share price slipping