Photonstar posts lower FY losses but margins fall

27th Mar 2014 12:34

Lighting manufacturer Photonstar reported lower annual losses, but gross margins fell and costs rose.Photonstar, which combines LED lights, sensors and controls in intelligent lighting for commercial and architectural uses, said it had a particularly strong second half after a difficult first six months of the year.In the first half, the group faced challenges including a change of finance chief, continued development and improvement of its ChromaWhite colour-tuneable light technology and generally low activity in the European building industry.However, it said things improved in the second half and it started this financial year in a much stronger financial position."The group looks forward to further growth as the case for LED lighting continues to strengthen, reinforced by further regulation in the market," it said.Full-year revenues increased by 8% to £9.4m against a year ago and annual adjusted pre-tax earnings before interest, depreciation and amortisation improved to a loss of £100,000 in 2013 from a loss of £300,000 in 2012. The group's pre-tax loss for the year was £0.73m versus a loss of £0.84m in 2012.However, gross margins slightly reduced to 38.3% from 39.5% in 2012 and non-cash costs such as depreciation, amortisation and share-based payments included in administrative expenses increased from £510,000 in 2012 to £590,000 in 2013, representing increased investment.The company said 2014 first quarter trading matched budgets and topped the first quarter of 2013. It expects growth to come particularly in lighting fixtures as partnerships with electronic control specialists result in more projects and as export growth rises. Chief Executive James McKenzie said: "The group enters 2014 as a much stronger business, with a stable management team in place, reduced costs and the cash flow to support further growth." Shares fell 1.25p or 16.7% to 6.25p at 12:55 in London.PW