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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Lightwaverf Plc | LSE:LWRF | London | Ordinary Share | GB00BKJ9BV58 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.625 | 0.25 | 1.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMLWRF
RNS Number : 7609P
LightwaveRF PLC
31 May 2018
31 May 2018
LightwaveRF plc
(AIM: LWRF)
Interim results for the six months ended 31 March 2018
LightwaveRF plc ("LightwaveRF", the "Company" or the "Group"), the leading smart home solutions provider, is pleased to announce its unaudited interim results for the six months ended 31 March 2018.
Financial Highlights
-- Revenue of GBP1.13 million (2017: GBP1.17 million) -- Gross margin of 40.6% (2017: 39.4%) -- Loss before taxation of GBP0.87 million (2017: loss GBP0.33 million)
-- Cash received, net of fees, of GBP4.90 million from the fundraising completed in December 2017
-- Increased investment in research and development of GBP0.62 million (2017: GBP0.35 million) -- Cash as at 31 March 2018 of GBP2.46 million (2017: GBP0.82 million)
Operational Highlights
-- Successful launch of Generation 2 products
-- New and enhanced distribution agreements signed, with John Lewis now stocking Lightwave devices
-- Direct to consumer sales doubled -- Partnership with Apple for imminent launch of Apple HomeKit European device range
Commenting on the results and outlook, Barry Gamble, Chairman said:
"Significant investment has been made in the first half of the financial year to build on our market leading technology position. We are pushing hard to establish the Company as a leader in the rapidly growing smart home market.
The next launch, expected in the coming weeks, will be the Company's European device range, which in partnership with Apple will take our products into a number of new territories."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
A copy of this announcement is available on the Company's website www.lightwaverf.com
For further information:
LightwaveRF plc www.lightwaveRF.com Andrew Pearson, CEO +44 (0) 121 250 3625 Kevin Edwards, CFO Stockdale Securities Limited www.stockdalesecurities.com Tom Griffiths/Edward Thomas +44 (0) 20 7601 6100 Yellow Jersey PR www.yellowjerseypr.com Charles Goodwin/Abena Affum/Katie Bairsto +44 (0) 7747 788 221
About LightwaveRF
LightwaveRF plc ("LightwaveRF" or the "Company") pioneered smart home automation with the introduction of the market's first internet enabled devices in 2008. Today, the Company offers a market leading platform with applications and connected devices. These provide fully integrated remote control and monitoring of lighting, heating and power directly through the Lightwave platform and through Amazon, Apple and Google smart home offerings. We are dedicated to making everyone's lives easier and more fulfilled through world leading smart home technology.
For further information and to sign up for investor news alerts please visit www.lightwaverf.com/corporate/
Chairman's Statement
The Autumn launch of the Generation 2 Apple HomeKit compatible devices, which were initially made available at apple.com, and then on sale in Apple UK stores, was an important milestone for the Company. Additionally, the receipt of the GBP4.90 million, net of fees, from the fundraising completed in December 2017 marked the start of the process to significantly scale the business. We have made important changes to our distribution arrangements, which, with a clearer focus on direct to consumer sales, should now enable us to achieve stronger revenue growth.
For the first six months of the financial year, revenue of GBP1.13 million (2017: GBP1.17 million) was held back by the changes to the distribution arrangements. Losses were higher at GBP0.87 million (2017: GBP0.33 million) as a result of a significant increase in administrative expenses, as the Company accelerated investment in product development, marketing, sales and support. We anticipate that the rate of cash burn will fall as revenue increases, costs decrease and inventories stabilise.
Significant investment has been made in the first half of the financial year to build on our market leading technology position. We are pushing hard to establish the Company as a leader in the rapidly growing smart home market.
The next launch, expected in the coming weeks, will be the Company's European device range, which in partnership with Apple will take our products into a number of new territories.
Barry Gamble
Chairman
31 May 2018
Chief Executive's Review
I have had the privilege of leading LightwaveRF for over a year now. Although progress has been achieved during this time, we still have much work to do to fully exploit the opportunity of smart home, which is now starting to transform the way we all live and work. We have invested in expanding both our technology and commercial teams and there is real energy and excitement within the Company as we work to leverage our market leading technology.
Results
Revenue for the period ended 31 March 2018 was GBP1.13 million (2017: GBP1.17 million). Gross profit was GBP0.46 million (2017: GBP0.46 million) with improved margins of 40.6% (2017: 39.4%) resulting from increased direct to consumer sales. Although first half revenue was held back by the significant restructuring of our distribution arrangements, we believe the changes made now position the Company for future revenue growth.
Administrative expenses were GBP1.57 million (2017: GBP0.91 million), including amortisation of GBP0.24 million (2017: GBP0.15 million). Total research and development costs were GBP0.62 million (2017: GBP0.35 million), of which GBP0.50 million (2017: GBP0.23 million) was capitalised under IAS 38. Investment in marketing, sales, customer support and management all increased. Ensuring compliance with the General Data Protection Regulations (GDPR) and further investment in cyber security also contributed to the rise in administrative expenses. After recognising research and development tax credits as other income of GBP0.23 million (2017: GBP0.12 million), the loss for the period was GBP0.87 million (2017: loss GBP0.33 million). The basic loss per share was 1.73 pence (2017: 1.30 pence).
Cash absorbed by operations for the period increased to GBP1.94 million (2017: GBP0.94 million) reflecting underlying losses, the impact of higher inventories to support direct to consumer sales and on-demand ordering from our new distributors. Trade and other receivables as at 31 March 2018 were GBP0.70 million (2017: GBP0.59 million), following which collections have seen this reduce. Total loans and borrowings as at 31 March 2018 were GBP0.41 million (2017: GBP0.77 million) and cash was GBP2.46 million (2017 GBP0.82 million), before receipt of research and development tax credits due shortly.
Operational Summary
We have continued the development of Generation 2 devices for the UK and variants for European markets. We have added functionality to our Generation 2 mobile app and also made further investments in our cloud platform and product integrations with our partners Amazon, Apple and Google. We continue to sell and support our Generation 1 devices to both new and existing customers. These can be operated by the Lightwave Link Plus, allowing a seamless integration with the further features that the Generation 2 products offer. Important progress has been made over the period with our new distribution agreements. We believe all these developments and the shift in strategy to expand our distribution arrangements will be fundamental to stronger revenue growth.
We have made notable technology advancements with the launch of Generation 2 Apple HomeKit certified devices, now on sale in Apple UK stores. Additionally, our distribution agreement with Exertis has seen our devices go on sale in John Lewis, both online and in-store. These relationships provide real and tangible evidence that our technology is market leading and of significant value to our customers. The commitment that Apple and John Lewis have shown in stocking and promoting our products, together with support from our new distributors, Exertis and West Coast, have opened up a number of new opportunities. We doubled our direct sales in the period to GBP0.5 million (2017: GBP0.22 million) through tele-sales and ecommerce, which is now supported by field-based sales consultants visiting prospective customers in their homes.
We are investing in marketing to extend our brand awareness through digital marketing, press relations activity and selected consumer events. We are also expanding our partnerships with Amazon and Apple in technology, joint marketing and retail promotion, as well as with Google in technology and joint marketing.
Strategy
LightwaveRF is determined to be a leader in the smart home market. Our competitors remain focused on gadgets and single device or single market segment solutions. By contrast, we have a wide range of devices for lighting, heating and power that allows our customers to create a truly integrated smart home operated increasingly through voice control.
Our focus for the second half of 2018 will be to increase revenues and launch the European range of our Generation 2 switches and sockets. This will be marketed in partnership with Apple in about 20 countries, with initial online availability to be followed by Apple stores and selected Apple Premium Reseller stores.
Outlook
We offer market leading smart home solutions that are a result of our deep and long-standing smart home expertise. We are investing in our product range, marketing, support and installation services to ensure that we have the right customer proposition to build a profitable smart home company. We expect to see revenue growth in the second half of this year. With the recent significant investments made, we believe that we have the right strategy in place to deliver value for shareholders.
Andrew Pearson
Chief Executive Officer
31 May 2018
Interim accounts for the six months ended 31 March 2018
The financial information contained within these unaudited accounts has been prepared by the Directors who accept responsibility for the financial information presented below and confirm that it has been properly presented in accordance with applicable law. The interim financial statements were approved by the Board of Directors on 30 May 2018 and have been prepared on the basis of the accounting policies set out in note 1 below. A copy of this announcement is available at www.lightwaverf.com.
Consolidated statement of comprehensive income
Hot Features
Premium
6 Months 6 Months Year Ended
31-Mar-18 31-Mar-17 30-Sep-17
GBP GBP GBP
Note (Unaudited) (Unaudited) (Audited)
--------------- ------------ -------------------
REVENUE 1,131,699 1,173,973 3,032,268
Cost of sales (672,581) (711,700) (1,954,942)
--------------- ------------ -------------------
GROSS PROFIT 459,118 462,273 1,077,326
--------------- ------------ -------------------
Other Income 233,000 124,000 248,000
Administrative expenses (1,565,051) (912,667) (2,121,559)
--------------- ------------ -------------------
OPERATING LOSS (872,933) (326,394) (796,233)
Finance expense (1,614) (6,828) (49,079)
--------------- ------------ -------------------
LOSS BEFORE TAXATION (874,547) (333,222) (845,312)
Taxation - - -
--------------- ------------ -------------------
LOSS AND TOTAL
COMPREHENSIVE INCOME ATTRIBUTABLE
TO EQUITY SHAREHOLDERS OF THE PARENT (874,547) (333,222) (845,312)
--------------- ------------ -------------------
Basic loss per share 2 1.73p 1.30p 2.39p
Diluted loss per share 2 1.73p 1.30p 2.39p.
Group statement of financial position
As at As at As at
31-Mar-18 31-Mar-17 30-Sep-17
GBP GBP GBP
Note (Unaudited) (Unaudited) (Audited)
--------------------------- ------------ ------------
ASSETS
Non-current assets
Intangible assets 3 1,476,203 897,704 1,210,071
Property, plant & equipment 59,503 11,729 25,766
--------------------------- ------------ ------------
1,535,706 909,433 1,235,837
--------------------------- ------------ ------------
Current assets
Inventories 1,235,659 213,126 388,012
Trade and other receivables 702,112 592,567 468,697
Cash and cash equivalents 2,462,602 816,018 221,933
Corporate tax recoverable 481,000 313,000 248,000
--------------------------- ------------ ------------
4,881,373 1,934,711 1,326,642
--------------------------- ------------ ------------
TOTAL ASSETS 6,417,079 2,844,144 2,562,479
--------------------------- ------------ ------------
Equity
Share capital 4 3,578,633 1,938,452 1,938,452
Share premium 8,726,773 5,466,889 5,462,804
Reverse acquisition reserve (100,616) (100,616) (100,616)
Share based payment reserve 78,967 63,566 70,811
Profit and loss reserve (7,024,446) (5,637,809) (6,149,899)
--------------------------- ------------ ------------
Total equity 5,259,311 1,730,482 1,221,552
--------------------------- ------------ ------------
Current liabilities
Trade and other payables 748,777 343,220 752,623
Loans and borrowings 5 408,991 770,442 588,304
--------------------------- ------------ ------------
Total current liabilities 1,157,768 1,113,662 1,340,927
--------------------------- ------------ ------------
Non current liabilities
Loans and borrowings 5 - - -
--------------------------- ------------ ------------
TOTAL EQUITY AND LIABILITIES 6,417,079 2,844,144 2,562,479
--------------------------- ------------ ------------
Group statement of changes in equity
Issued Share premium Reverse Share based
share acquisition payment Profit and
capital reserve reserve loss reserve Total equity
GBP GBP GBP GBP GBP GBP
-------------------------- ---------- -------------- ------------- ------------ -------------- -------------
As at 31 March
2017 1,938,452 5,466,889 (100,616) 63,566 (5,637,809) 1,730,482
-------------------------- ---------- -------------- ------------- ------------ -------------- -------------
Loss for the period
and total comprehensive
income - - - - (512,090) (512,090)
Share based payments - - - 7,245 - 7,245
Share issue costs - (4,085) - - - (4,085)
-------------------------- ---------- -------------- ------------- ------------ -------------- -------------
As at 1 October
2017 1,938,452 5,462,804 (100,616) 70,811 (6,149,899) 1,221,552
-------------------------- ---------- -------------- ------------- ------------ -------------- -------------
Loss for the period
and total comprehensive
income - - - - (874,547) (874,547)
Share based payments - - - 8,156 - 8,156
Shares issued 1,640,181 3,608,398 - - - 5,248,579
Share issue costs - (344,429) - - - (344,429)
-------------------------- ---------- -------------- ------------- ------------ -------------- -------------
As at 31 March
2018 3,578,633 8,726,773 (100,616) 78,967 (7,024,446) 5,259,311
-------------------------- ---------- -------------- ------------- ------------ -------------- -------------
Group statement of cash flows 6 Months 6 Months Year ended
31-Mar-18 31-Mar-17 30-Sep-17
GBP GBP GBP
(Unaudited) (Unaudited) (Audited)
------------- ------------- ------------
Cash flow from operating activities
Loss for the period (874,547) (333,222) (845,312)
Adjusted for:
Depreciation and amortisation 246,763 165,494 323,121
Share based payments 8,156 11,672 49,079
Finance expense 1,614 6,828 18,918
Tax credit in respect of R&D (233,000) (124,000) (248,000)
Foreign exchange profit on convertible
loan - - (11,781)
Increase in inventories (847,647) (110,599) (285,485)
Increase in trade and other receivables (233,415) (273,540) (149,671)
(Decrease) / increase in trade
and other payables (3,846) (285,240) 124,163
------------- ------------- ------------
Cash absorbed by operations (1,935,922) (942,607) (1,024,968)
------------- ------------- ------------
Tax credits in respect of R&D - - 189,000
Finance costs paid (1,614) (6,828) (49,079)
------------- ------------- ------------
(1,937,536) (949,435) (885,047)
------------- ------------- ------------
Cash flows from investing activities
Purchase of property, plant & equipment (43,661) (9,622) (28,533)
Deferred development expenditure (502,971) (228,117) (693,237)
------------- ------------- ------------
(546,632) (237,739) (721,770)
------------- ------------- ------------
Cash flows from financing activities
Proceeds from issue of shares 5,248,579 2,365,256 2,361,172
Costs associated with issue of
shares (344,429) (141,655) (141,655)
Invoice discounting repaid (8,341) (19,311) (45,450)
Repayment of convertible loan note (50,857) (47,971) (69,859)
Repayment of borrowings (120,115) (155,243) (277,574)
------------- ------------- ------------
4,724,837 2,001,076 1,826,634
------------- ------------- ------------
Net increase in cash and cash equivalents 2,240,669 813,902 219,817
Cash and cash equivalents at start
of period 221,933 2,116 2,116
------------- ------------- ------------
Cash and cash equivalents at end
of period 2,462,602 816,018 221,933
------------- ------------- ------------
Notes to the Interim financial statements
1. Accounting policies
Basis of accounting
The financial information covers the six months ended 31 March 2018. There have been no changes to the policies applied and disclosed in the Company's annual financial statements for the year ended 30 September 2017.
This interim report has been prepared in accordance with the recognition and measurement principles that are consistent with International Financial Reporting Standards (IFRSs) as endorsed by the European Union using accounting policies that are expected to be applied for the financial year ending 30 September 2018. The financial information in this interim report does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006.
The financial information for the year ended 30 September 2017 does not constitute the full statutory accounts for that period, but is derived from those accounts. The Annual Report and Financial Statements for 2017 have been filed with the Registrar of Companies. The independent Auditors' Report on the Annual Report and Financial Statements for 2017 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006.
Going concern
The directors, having made suitable enquiries and analysis of the accounts, consider that the Group has adequate resources to continue in business for the foreseeable future. For this reason, the directors continue to adopt the going concern basis in preparing the financial statements. In making this assessment, the directors have considered the group budgets, cash flow forecasts and associated risks and the availability of external finance facilities.
2. Loss per share
6 Months 6 Months Year ended
31-Mar-18 31-Mar-17 30-Sep-17
GBP GBP GBP
(Unaudited) (Unaudited) (Audited)
------------ ------------ ------------
Numerator
Loss used for calculation of basic
and diluted earnings per share 874,547 333,222 845,312
------------ ------------ ------------
The weighted average number of
shares were:
Denominator
Weighted average number of ordinary
shares 50,505,434 25,565,840 35,343,621
------------ ------------ ------------
Loss per share 1.73p 1.30p 2.39p
Diluted loss per share 1.73p 1.30p 2.39p
3. Intangible assets
Deferred Platform
development
costs Total
GBP GBP GBP
FIXED ASSETS - Group
Cost
As at 1 April 2017 214,573 931,073 1,145,646
Additions 84,798 380,322 465,120
------------- ----------- ----------
As at 30 September 2017 299,371 1,311,395 1,610,766
Additions 318,538 184,433 502,971
------------- ----------- ----------
As at 31 March 2018 617,909 1,495,828 2,113,737
------------- ----------- ----------
Accumulated amortisation
As at 1 April 2017 - 247,942 247,942
Charge for the period - 152,753 152,753
------------- ----------- ----------
As at 30 September 2017 - 400,695 400,695
Charge for the period 39,591 197,248 236,839
------------- ----------- ----------
As at 31 March 2018 39,591 597,943 637,534
------------- ----------- ----------
Net book value as at 31 March 2018 578,318 897,885 1,476,203
------------- ----------- ----------
Net book value as at 30 September
2017 299,371 910,700 1,210,071
------------- ----------- ----------
Net book value as at 31 March 2017 214,573 683,131 897,704
------------- ----------- ----------
The Company categorises software development, such as firmware, server software and user apps, as a platform asset essential to support the operation of the full range of hardware devices.
The directors have undertaken an impairment review and have concluded that the value of the intangible assets are supported by the discounted future cash flows forecast by the Group.
4. Share capital
As at As at As at
31-Mar-18 31-Mar-17 30-Sep-17
GBP GBP GBP
Issued share capital (Unaudited) (Unaudited) (Audited)
------------ ------------ ----------
71,572,647 Ordinary shares of 5p
each 3,578,633 1,938,452 1,938,452
------------ ------------ ----------
Allotted, issued and fully paid
Ordinary share capital brought
forward 1,938,452 1,028,738 1,028,738
Issue of ordinary shares for cash 1,640,181 909,714 909,714
------------ ------------ ----------
3,578,633 1,938,452 1,938,452
------------ ------------ ----------
5. Loans and borrowings
The carrying value which is a reasonable approximation to fair value of borrowings is as follows:
As at As at As at
31-Mar-18 31-Mar-17 30-Sep-17
GBP GBP GBP
(Unaudited) (Unaudited) (Audited)
------------- ------------- -----------
Current
Convertible loan note 408,991 493,517 459,848
Invoice discounting loan - 34,480 8,341
Other loan - 242,445 120,115
------------- ------------- -----------
Total loans and borrowings
current 408,991 770,442 588,304
------------- ------------- -----------
The convertible loan note carries an interest rate of 3%.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR FKKDPKBKBDPN
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May 31, 2018 02:00 ET (06:00 GMT)
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