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JSJS Designs PLC (JSJS)

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Thursday 17 February, 2011

JSJS Designs PLC

Final Results

RNS Number : 3708B
JSJS Designs PLC
17 February 2011
 



JSJS DESIGNS PLC

(AIM: JSJS.L)

 

Preliminary Final Results for the Year Ended 30th September 2010

 

JSJS Designs Plc ("JSJS Designs" or "the Company"), specialists in the design, development and manufacture of home automation systems to enable consumers to operate remotely everyday household appliances, such as lighting, heating, air conditioning, door entry, audio, video and security, announces its Preliminary Final Results for the financial year ended 30 September 2010.

 

CORPORATE HIGHLIGHTS

 

-     Successful development and testing of next generation of home automation 'Room Control' and 'Eco Management' products;

-     Strategic repositioning to become an IP-holding design partner that will de-risk the company operationally and 
simplify/streamline ongoing negotiations with potential partners.

-     Two share placings successfully completed at a premium to the share price during the period;

-     Key appointments of Non-Executive Chairman and Sales & Marketing Director;

-     Siemens-branded doorchimes orders fulfilled with products on sale in approximately 200 B&Q stores UK-wide.

 

CHAIRMAN'S STATEMENT

 

I was delighted to join the business late in the financial year at an exciting stage in its development.  The business has a proven record in product development, which we are sure, will capture the consumer's imagination.  The important stage we have reached is the cementing of commercial relationships and of a flexible approach to getting product to market.  Whilst focus continues on future products the emphasis is currently in turning the existing products to profitable sales.

 

The move to a strengthen further the operational board to support this phase of the company's development has been key in the latter stages of the year.  This investment will be fundamental to success in the future.

 

Michael Lord

Chairman

 

 

Contacts:




JSJS Designs Plc

www.jsjsdesigns.com

John Shermer, CEO

+44 (0) 1902 500 562 



WH Ireland Limited

www.wh-ireland.co.uk

Mike Coe / Marc Davies

+44 (0) 117 945 3470



SVS Securities Plc

www.svssecurities.com

Ian Callaway / Alexander Mattey

+44 (0) 20 7638 5600



Yellow Jersey PR

www.yellowjerseypr.com

Dominic Barretto

+44 (0) 20 8980 3545

 



CHIEF EXECUTIVE'S REPORT

 

This year has been an intensive but productive one for JSJS Designs, and one that has seen the Board strengthened, two share placings successfully completed and further product development. The Company has remained focused on the design, development and manufacture of home automation systems to enable consumers to operate remotely everyday household appliances, such as lighting, heating, air conditioning, door entry, audio, video and security.

 

Strategic Positioning:

 

In light of challenges during the year, characterised by delays stemming from the very nature of negotiating complex long-term contracts with large multinationals, the Board carried out a review.  The outcome of this review resulted in a decision for JSJS Designs where appropriate to become an IP-holding design partner of our customers and allow them to manage the supply chain. This change has required a lot of renegotiation between all parties involved and is now coming to a conclusion.

 

We continue to build our relationships with our Asian partners and there is genuine confidence on both sides in our collective ability to continue to bring new or enhanced designs forward as has been demonstrated in this year.

 

Product Portfolio:

 

At the forefront of the Company's activity has been the development of the next generation of home automation 'Room Control' and 'Eco Energy Management' products.

 

The new LightwaveRF range of products is the result of several years of intensive research and development by the founders of JSJS Designs. JSJS Designs has built on its experience producing sophisticated environmental control devices in the medical sector and has previously supplied the Home Easy range of radio frequency ("RF"), control devices to B&Q.

 

During the year the Company has developed a new offering in Smart Home Control that combines high level functionality, quality and desirability, ease of setup and use and, most importantly, affordability.  The products are compatible with other products in the range, are consumer installable, modular and wireless.  The versatility of LightwaveRF has applications for solutions for heating, lighting, power, security and even energy management. A broadband connection will allow you to control any LightwaveRF devices remotely from a smartphone via an Internet connection signal. The portfolio currently comprises of around 20 different products.

 

Review of Activities:

 

The order for Siemens-branded doorchimes , announced in October 2009 totalled US$ 3 million. These doorcimes use RF, which will be able to interact with other RF - controlled devices that are currently being considered for development.  These orders have now been fulfilled and products are on sale in approximately 200 B&Q stores UK-wide with early demand exceeding expectations.

 

During the year, the Board has been able to progress discussions with a number of other potential customers interested in both door chimes and room control products - both in the UK and abroad - notably in Europe and the USA. Some of these discussions are well advanced. .

 

Although market entry was delayed due to the complexity of both supplier and customer relationships, the business has ended the year in a stronger position having developed the ability to operate as both a product supply as well as product development/licensing business dependent on customer circumstances.

 


Financials:

 

Turnover for the period was £443,854 (2009: £157,519). Loss before tax was £853,124 (2009: £936,000). Cash at bank stood at £139,927 at year end (2009 £5,462). Total assets at the year end were £1,087,976 (2009: £416,257).

 

As previously announced, in September 2010 the Company raised £300,000 through a placing of new ordinary shares.  It was the second placing during 2010 that was carried out a premium to the prevailing share price.

 

There remains a requirement for further working capital to enable the Group to fulfil anticipated orders for all products, from both existing and new customers, in the short term. An injection of capital will continue to help to move our new products towards commercial roll-out, a position we had hoped to be in by this stage.  As a result, we have engaged our broker, SVS Securities Plc, to undertake a placing for this purpose.  It is expected that further details will be announced within the next couple of months.

 

At the annual general meeting, to be held by the end of March, the Directors will request additional Directors' authority to allot new Ordinary Shares generally and on a non pre-emptive basis.  The level of authority will enable the Directors to complete the expected placing and provide the flexibility for the Company to move quickly to take advantage of potential opportunities which may have a working capital requirement.

 

Appointments

 

Mike Lord was appointed as Non-Executive Chairman in September, following his participation in that month's share placing. Mike has a proven track record in delivering fast profitable growth for investors growing his previous business turnover from £5 million to £50 million in a decade.  He has the strategic management skills to help shape the business for the future as well as strong operational and financial understanding. We are delighted to have attracted someone of such high calibre to the Board, and welcome him to the management team.

 

Further strength to the executive team has also been made with Frank Tiller moving from Non-Executive to Executive responsibility for finance.  In addition Mr Simon Lane was recently appointed Sales and Marketing Director.  The Board sees this a major boost to the management of the business as JSJS Designs moves from development phase to roll-out and sales phase. Simon's twenty years of blue chip retail sales experience will position the Company well with this major target customer group.  In addition, he also has a track record and relationships across the international markets particularly in North America and Central Europe.

 

Outlook:

 

Looking ahead, we are in discussions with a number of well known retail operators regarding our range of Room Control and Eco Management products. The Board sees this as testament to the potential of the product range and believes there are opportunities for our products to succeed in other markets, both geographically and for new applications of the technology.

 

Further additions to the existing heating control products are currently under development which will see the Company's offering in the ECO energy-efficiency market expanded, bringing a product range that delivers comfort, convenience and the ability to save energy, to a wide range of consumers.

 

Having learnt from the delays and frustrations of last year, our new positioning as an IP-holding design partner should ensure an exciting period of rapid sales growth in this coming year. The Company looks forward to exhibiting at The Gadget Show Live, the UK's ultimate consumer electronics event, which is being held at the NEC, Birmingham in April. We would be delighted if you are able to visit us at stand C17.

 

 

John Shermer

CEO



PRELIMINARY FINANCIAL RESULTS

 

CONSOLIDATED INCOME STATEMENT

YEAR ENDED 30 SEPTEMBER 2010

 



Unaudited


Audited


Note

Year


14 Months



ended


ended



30-Sep-10


30-Sep-09



£ GBP


£ GBP

Turnover


 443,854


 157,519






Gross Profit


 3,526


 51,648






Other operating Income


 75,000


 -  






Administrative expenses


(923,550)


(988,113)






Operating Loss


(845,024)


(936,465)






Net Finance (Expense)/Revenue


(8,099)


 242






Loss on ordinary activities before Taxation


(853,123)


(936,223)






Loss on Ordinary Activities after Taxation


(825,605)


(909,723)






Basic & Diluted loss per share (pence)

1

(£0.00366)


(£0.00529)






                                                                                   

CONSOLIDATED BALANCE SHEET

AS AT 30 SEPTEMBER 2010

                                                                                                                       



Unaudited


Audited



Year


14 Months



ended


ended



30-Sep-10


30-Sep-09



£ GBP


£ GBP






Fixed Assets


 11,375

    

 13,250

Current Assets





Trade & Other Receivables


 465,698


 38,823

Cash at bank and in hand


 139,927


 5,462

Net Current Assets


 605,625


 44,285






Total assets


 617,000


 57,535

Equity & Liabilities





Called up share capital


 252,533


 200,000

Unissued Share Capital


 50,000


 20,000

Share Premium Account


 1,149,267


 411,800

Reverse Acquisition Reserve


(100,616)


(100,616)

Retained Losses


(1,640,735)


(815,130)

Total Equity


(289,551)


(283,946)






Creditors: Amounts Falling Due Within One Year


 906,551


 341,481






Total Equity & Liabilities


 617,000


 57,535















GROUP CONSOLIDATED CASH FLOW STATEMENT

AS AT 30TH SEPTEMBER 2010

 



Unaudited


Audited



Year


14 Months



ended


ended


Notes

30-Sep-10


30-Sep-09



£ GBP


£ GBP






Cash flow from operating activities





(Loss)/profit before interest and income tax


(920,025)


(936,465)






Adjusted for:





Depreciation


 4,875


 4,750

Charge in respect of share based payments


 -  


 26,887

Decrease in inventories


 -  


 58,643

(Increase) in trade and other receivables


(426,875)


(28,927)

Increase in trade and other payables


 565,070


 204,293

Unissued share capital

 30,000


 20,000





Cash absorbed by operations


(746,955)


(650,819)

Finance costs

(8,131)


(656)

Other operating Income


 75,000


-

Income tax set-off/(paid)

 27,518


(3,928)








(652,568)


(654,403)






Cash flows from investing activities





Purchase of property, plant & equipment


(3,000)


(6,000)

Purchase of subsidiary undertakings


 -  


(620)

Finance revenue


33


898








(2,967)


(5,722)






Cash flows from financing activities





Proceeds from issue of shares


 790,000


 550,000

Expenses of share issues



(38,200)







 790,000


 511,800











Net (decrease)/increase in cash and cash equivalents


 134,465


(149,325)






Cash and cash equivalents at 1 October 2009


 5,462


 154,787






Cash and cash equivalents at 30 September 2010


 139,927


 154,787



CONSOLIDATED STATEMENT OF CAHNGES IN EQUITY

FOR THE YEAR ENDED 30TH SEPTEMBVER 2010

 










 Issued 

 Unissued


 Share

 Reverse

 Retained



 Share 

 Share

 Share

 Based

 Acquisition

 Earnings/

 Total


 Capital 

 Capital

 Premium

 Payment

 reserve

 (Losses)

 Equity









 As at 1st August 2008 

 4

      -

 -  

 -  

 -  

 67,706

 67,710









 Shares Issued

 200,000


 450,000

 -  

 -  

 -  

 650,000

 Shares Unissued


 20,000

 -  

 -  

 -  

 -  

 20,000









 Expenses of Issue

 -  


(38,200)

 -  

 -  

 -  

(38,200)









 Reverse Acquisition 

(4)



 -  

(100,616)

 -  

(100,620)

 Share based payments




 26,887

 -  

 -  

 26,887

 Loss for the Period

 -  



 -  

 -  

(909,723)

(909,723)

 Transfer to P & L reserve

 -  



(26,887)

 -  

 26,887

 -  

















 As at 30th September 2009

 200,000

 20,000

 411,800

 -  

(100,616)

(815,130)

(283,946)









 Shares Issued

 52,533

 -  

 737,467

 -  

 -  

 -  

 790,000

 Shares Unissued

 -  

 30,000

 -  

 -  

 -  

 -  

 30,000

 Loss for the Period

 -  

 -  

 -  

 -  

 -  

(825,605)

(825,605)

















 As at 30th September 2010

 252,533

 50,000

 1,149,267

 -  

(100,616)

(1,640,735)

(289,551)

 

 



 

NOTES

 

1.   The financial information set out in this preliminary announcement does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006 (the "Act").

 

The auditors have not yet completed their audit of the annual results, however the auditors have reviewed the preliminary financial information set out in this preliminary announcement.

 

2.   The basic loss per share is calculated by dividing the loss for the financial period attributable to shareholders by the weighted average number of shares in issue.  The remaining securities in issue are not dilutive as at 30 September 2010.

 

                                                                                                                         Year Ended        14 Months Ended

                                                                                                                        30 Sept 2010               30 Sept 2009

                                                                                                                         Number                      Number

 

The Weighted average number of shares were:                                                    

 

Weighted average number of ordinary shares                                                         225,752,511                 169,294,228

Effect of outstanding option shares                                                                             726,790                     1,352,941

Adjusted weighted average number of ordinary shares                                            226,479,301                 170,647,169

 

 

                                                                       

 

Basic and diluted loss per share                                                                             £(0.00366)                      £(0.0053)

 

 

3.   The Directors have not declared a dividend for the period.

 

4.   Copies of the 2010 Annual Report and Accounts will be posted to shareholders in March and will be available on the Company's website at www.jsjsdesigns.com.

 

 

THE DIRECTORS OF THE ISSUER ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT


This information is provided by RNS
The company news service from the London Stock Exchange
 
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