Lightwave RF (LON:LWRF) have updated the market with a disappointing update for shareholders.
Lightwave is Europe’s leading supplier of installed home automation technology.
The firm offers products that offer convenient automation, control and monitoring of lighting, heating and power via its app, Apple HomePod, Amazon Alexa or Google Assistant.
Lightwave said that it experienced a shortage of “certain lines of stock” in December following a record Black Friday and Cyber Monday performance.
“As announced by the Company on 11 December 2019, following a challenging final quarter of FY 2019, held back by a number of one-off issues, trading during Q1 2020 demonstrates a near return to the sales levels experienced during the first quarter of FY 2019”.
“Following a successful first two months of this financial year, which included Black Friday and Cyber Monday, the Company has continued to make progress. The focus for FY 2020 remains to build revenues within the professional channels, electrical installers, contractors and selected wholesalers.”
In the three months to December 31, LightwaveRF’s like-for-like revenue was £1.1 million, down 8.3% from £1.2 million.
Telesales revenue in Q1 2020 was up 72.1% on the corresponding period last year to £394,000 (2019: £229,000) and e-commerce revenue in Q1 2020 was up 5.5% on the corresponding period last year at £307,000 (2019: £291,000)
Jason Elliott, Chief Executive of Lightwave, commented:
“We are pleased to see our overall sales performance returning almost to 2019 levels. Our initiative to build revenues within the professional channels is progressing well and we are now seeing traction with improved trade sales, supported by our Telesales team. We also continue receive supportive reviews on Lightwave products and our approach in mainstream trade publications such as Professional Electrician.
“Our continued focus on the end customer is now also being reflected in an overall 4.5 star status on Trustpilot from 387 reviews. We anticipate Trustpilot may hit 5 stars in the next half, a true reflection of the quality of product and services offered by Lightwave.”
Lightwave grow from November
The firm in November announced expectations of an annual loss.
LightwaveRF, which made a loss of £2.54 million for the year to 30 September 2018, said it had expected its full-year revenue to double following the first three quarters of the year.
However, following “one-off” issues in the fourth quarter to 30 September, the AIM listed business said its “substantial progress” had been “nonetheless been held back”.
In a statement the business said: “In order to meet the working capital, marketing and development needs arising from the revenue growth in the first three quarters referred to above, the company had hoped that it would have raised funds by the issue of further equity under the then existing authorities, granted at the company’s last annual general meeting, and signed the inventory finance facility with ESCS earlier than was the case.
Shares in Lightwave trade at 4p (+1.80%). 20/1/20 15:08BST.
