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JSJS Designs PLC (JSJS)

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Thursday 28 March, 2013

JSJS Designs PLC

Final Results

RNS Number : 0746B
JSJS Designs PLC
28 March 2013
 



JSJS DESIGNS PLC

("JSJS" or "the Company")

(AIM: JSJS)

 

Preliminary Results for the Year Ended 30th September 2012

 

The Board of JSJS the provider of innovative home automation technologies, announces today Final Results for the year ended 30th September 2012.

 

 

 

Contacts:




JSJS Designs Plc

www.jsjsdesigns.com

Mike Lord, CEO

+44 (0) 1902 500 562 



WH Ireland Limited

www.wh-ireland.co.uk

Mike Coe (Corporate Finance)

+44 (0) 117 945 3470

Jasper Berry (Institutional Sales)

+44 (0) 20 7220 0473



 

The Company confirms that the Annual Report and Accounts for the year ended 30 September 2012 will be sent to shareholders today and will be available on the Company's website: www.jsjsdesigns.com



CHAIRMAN & CHIEF EXECUTIVE OFFICER REPORT

 

Financials

The Group's financials for the period reflect sales from its new innovative product range only and consequently show a much improved margin at 48.5% (2011: old discounted product range 4.4%).  The increase in overheads reflects both ongoing significant product and App development costs but also increase in cost due to market entry.  Measures have been taken to reduce the ongoing level of overhead expenditure by replacing fixed costs with sales dependent variable costs. These measures along with the new innovative product range sets a strong platform for the Group moving into 2013.

 

Turnover for the period was £1,109,305 (2011: £2,219,891) and gross profit margin was 48.5% (2011: 4.4%). Loss before tax was £761,443 (2011: £869,196). Cash in bank amounted to £ 28,194 at 30 September 2012 (2011: £14,409). Total assets at the year end were £ 800,703 (2011: £860,090).

 

The Group raised additional funds of 0.5 million (gross) reflecting the second tranche of funding following a conditional placing on 17 October 2011 at a placing price of 1p per Ordinary Share. The conditional placing consisted of 50,000,000 ordinary shares.

 

 

Operating & Product Review

 

The JSJS product portfolio now extends to over 75 devices operating through the LightwaveRF protocol. The Company's leading edge Radio Frequency product range, through LightwaveRF, now addresses the core issue facing UK households and businesses - cost and energy saving. Through our product range consumers can remotely operate and control lighting, heating, air conditioning and security through their smartphones and the Cloud in order to ensure settings are at an optimum, limiting time, energy output and day to day costs.

 

The JSJS LightwaveRF system is now established in the market. Success so far has been in the lighting and electrical sector as well as Eco monitoring. These products have been enhanced further already during the current financial year with the additions of in line relays and wireless dimmer switches.

 

Significant resource has been dedicated to further enhancement to the LightwaveRF cloud services through a new range of Smartphone Apps as well as the development of our much anticipated heating products. These products will launch during the last half of the current financial year followed by a more comprehensive range of security products. Whilst development of these new products has been a little slower than anticipated the Company believes they will transform the market expeditions in Home Automation.

 

Distribution

 

Considerable progress has been made in acquiring major new distribution partnerships during the year. The beginning of the year saw the launch into B&Q in partnership with Siemens followed subsequently by their Kingfisher partner Screwfix.

 

In addition Maplin began web selling and the product was well received in the electrical wholesale market.  Other products have created other offerings under the LightwaveRF brand with building success alongside other specialist resellers.  The strategy has evolved into focusing on our channel partners to help develop the wide variety of distribution opportunities for the product range and key retail relationships from the centre. This has proved very successful in recent months.

 

Operations

 

Our strategy has been to lower central fixed overheads by investing in IT and outsourcing logistics. This will not only achieve significant overhead cost savings during 2012/13 but will allow the business to scale more quickly as additional distribution and products are added.  The strategy is expected to deliver greater flexibility as the business grown whilst allowing the management team to focus on our core skills of technology and distribution development.

 

Outlook

 

Most of the significant investment into innovative product ranges and capabilities is complete and our partnership approach in creating distribution partnerships continues at a pace facilitated by our flexible variable cost based operations.  The directors of the Group are confident that the investment will begin to reap rewards towards the end of the financial year 2013 and more significantly during the financial year 2014.

 

This is further supported by the recently announced fund raising which is expected to raise £535,000, subject to the forthcoming GM and, inter alia, the agreement of a debt repayment schedule with a major supplier. Our partner supplier has been key in both developing the product line and providing considerable support to ensure the mutual success of the Group particularly over the last 12 months. The relationship remains strong and key to future development

 

2012 has been a period of progression at JSJS; one which has seen the development of the Group in terms of product portfolio, partner distribution agreements, a successful capital raising and move into the market phase.

 

Significant effort has been made to build a complementary network of distribution channels, both directly and with partners in contact with consumers, electrical wholesalers and contractors to house builders, e-tailers, heating and kitchen trade distributors in the UK, and also to establish international opportunities.  The Group hopes to add consistent underlying sales as well as further major blue chip contract wins during 2013.

 

I would like to take this opportunity to thank not only shareholders who supported the capital raising for their continued support and belief in the Company's leading-edge technology, but also the management team who have worked tremendously hard during a period of evolution.

 

 

 

Mike Lord

Chairman & CEO

 

27 March 2013



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 YEAR ENDED 30 SEPTEMBER 2012

 

CONTINUING OPERATIONS

Notes

Year ended

Year ended



30-Sep-12

30-Sep-11







£

£





REVENUE


 1,109,305

 2,219,891

Cost of Sales


(571,330)

(2,121,656)





GROSS PROFIT


 537,975

 98,235





Administrative expenses


(1,297,733)

(959,501)





LOSS ON OPERATIONS


(759,758)

(861,266)





Finance expense


(28,170)

(7,942)

Finance income


26,485

12





LOSS FOR THE YEAR BEFORE INCOME TAX


(761,443)

(869,196)





Tax charge/(credit) on loss on ordinary activities


 -  

-





LOSS FOR THE YEAR FROM CONTINUING OPERATIONS ATTRIBUTABLE TO EQUITY SHAREHOLDERS OF THE PARENT


(761,443)

(869,196)





Other comprehensive income


-

-





LOSS AND TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO EQUITY SHAREHOLDERS OF THE PARENT


(761,443)

(869,196)













Basic & Diluted loss per share

2

0.207p

0.341p

 

 

 

                                                                                   



GROUP STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2012

                                                                                                                       


Year ended

Year ended


30-Sep-12

30-Sep-11


£

£

ASSETS



Non-current assets



Property, plant & equipment

12,567

 3,625





 12,567

 3,625

Current Assets



Inventories

 469,263

276,231  

Trade & Other Receivables

290,049

 565,825

Cash and cash equivalents

 28,194

 14,409





 787,506

 856,465




TOTAL ASSETS

 800,073

 860,090




Equity & Liabilities






Equity



Issued share capital

 369,440

 305,233

Unissued share capital

 -

 5,000

Share premium account

 2,165,929

 1,593,067

Reverse acquisition reserve

(100,616)

(100,616)

Retained losses

(3,278,478)

(2,509,931




Total Equity

(843,725)

(707,247)




Current liabilities



Trade & other payables

 1,153,670

 1,567,337

Loans and borrowings

476,103

 -




Total current liabilities

 1,629,773

 1,567,337




Non current liabilities



Loans and borrowings

14,025

 -




Total non current liabilities

14,025

-




Total Equity & Liabilities

800,073

860,090

 



COMPANY STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2012

 


Year ended

Year ended


30-Sep-12

30-Sep-11


£

£

ASSETS



Non-current assets



Investments

100,620

 100,620





100,620

 100,620

Current Assets






Other receivables

 2,223,332

 1,490,725

Cash at cash equivalents

 460

 72





 2,223,792

 1,490,797




TOTAL ASSETS

 2,324,412

 1,591,417




Equity & Liabilities






Equity



Issued share capital

 369,440

 305,233

Unissued share capital

 -  

 5,000

Share premium account

 2,165,929

 1,593,067

Retained Losses

(730,957)

(588,976)




Total Equity

 1,804,412

 1,314,324




Current liabilities



Trade & other payables

89,448

 277,093

Loans and borrowings

430,552

-




Total current liabilities

 520,000

 277,093




Total Equity & Liabilities

 2,324,412

 1,591,417

 



GROUP STATEMENT OF CASHFLOWS

YEAR ENDED 30 SEPTEMBER 2012

 


Year ended

Year ended


30-Sep-12

30-Sep-11


£

£




Cash flow from operating activities



Loss before tax

(761,443)

(869,197)




Adjusted for:



Depreciation

 4,833

 3,750

Loss on disposal of property, plant and equipment

 -

4,000  

Investment income

(89)

(12)

Exchange gains

(19,294)

-

Interest expense

28,170

 7,942

Increase in inventories

(193,032)

(276,231)  

Decrease/(increase) in trade and other receivables

278,148

351,373

(Decrease)/increase in trade and other payables

 497,909

 660,787

Exchange rate variance

14,492

-


(7,104)

-




Cash absorbed by operations

(171,902)

(117,588)




Finance costs

(13,410)

(7,942)





(149,382)

(125,530)




Cash flows from investing activities



Purchase of property, plant & equipment

(13,775)

-

Finance revenue

 89

 12





(13,686)

12




Cash flows from financing activities



Proceeds from issue of shares

500,000

 -

Proceeds from bank borrowing

25,000

 -  

Repayment of bank borrowings

Interest paid on borrowings

Interest paid on convertible loan note

Repayment of convertible loan note

(3,997)

(678)

(8,332)

(335,411)

-

-

-

-





176,582

 -




Net increase / (decrease) in cash and cash equivalents

(22,416)

 (125,518)




Cash and cash equivalents at 1 October 2011

 14,409

 139,927




Cash and cash equivalents at 30 September 2012

(8007)

 14,409

 



COMPANY STATEMENT OF CASHFLOWS

YEAR ENDED 30 SEPTEMBER 2012

 

 


Year ended

Year ended


30-Sep-12

30-Sep-11


£

£




Cash flow from operating activities



Loss before tax

(134,877)

(167,800)




Adjusted for:



Investment income

(88)

(12)

Exchange gains

Interest expense

(19,294)

14,209

-

62

Decrease/(increase) in trade and other receivables

52,649

(190,074)

Decrease/(increase) in trade and other payables

 

 (61,325)

 

 219,742

Gains in liabilities settled in shares

(7,104)  

 -




Cash absorbed by operations

(155,830)

(138,082)




Finance costs

(127)

(62)





(155,957)

(138,144)




Cash flows from investing activities



Finance revenue

 88

 12





 88

 12




Cash flows from financing activities



Proceeds from issue of shares

500,000

 -

Interest paid on convertible loan note

(8,332)

 

 -  

Repayment of convertible loan note

(335,410)

-





156,258

 -




Net increase / (decrease) in cash and cash equivalents

 

388

 

(138,132)




Cash and cash equivalents at 1 October 2011

 72

 138,204




Cash and cash equivalents at 30 September 2012

460

 72



STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER 2012

 

GROUP

 Issued 

 Unissued


 Reverse

 Retained



 Share 

 Share

 Share

 Acquisition

 Earnings/

 Total


 Capital 

 Capital

 Premium

 reserve

 (Losses)

 Equity


£

£

£

£

£

£








 As at 1st October 2011

 305,233

 5,000

 1,593,067

(100,616)

(2,509,931)

(707,247)















 Loss for the year and total comprehensive income

  -   

 -  

 -  

  -   

(761,443)

(761,443)

 Shares Issued

 64,207

(5,000)

 572,862

  -   

(7,104)   

 624,965








 As at 30th September 2012

 369,440

-  

 2,165,929

(100,616)

(3,378,478)

(843,725)

 

 

COMPANY

 Issued 

 Unissued


 Retained



 Share 

 Share

 Share

 Earnings/

 Total

 


 Capital 

 Capital

 Premium

 (Losses)

 Equity


£

£

£

£

£







 As at 1st October 2011

 305,533

 5,000

 1,593,067

(588,976)

 1,314,324













 Loss for the year and total comprehensive income

  -   

 -  

 -  

(134,877)

(134,877)

 Shares Issued

 64,207

(5,000)

 572,862

(7,104)   

 624,965







 As at 30th September 2012

 369,440

 -  

 2,165,929

(730,957)

1,804,412

 



STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER 2011

 

 

GROUP

Issued

Unissued


Reverse

Retained



Share

Share

Share

Acquisition

Earnings

Total


Capital

Capital

Premium

reserve


Equity


£

£

£

£

£

£








 As at 1st October 2010

 252,533

 50,000

 1,149,2670

(100,616)

(1,640,735)

(289,551)








Loss for the year and total comprehensive income

-

-

-

-

(869,196)

(869,196)

 Shares Issued

 52,700

(45,000)  

 443,800

 -  

 -  

 451,500








 As at 30th September 2011

 305,233

 5,000

 1,593,067

(100,616)

(2,509,931)

(707,247)

 

          

COMPANY

Issued

Unissued


Retained



Share

Share

Share

Earnings

Total


Capital

Capital

Premium


Equity


£

£

£

£

£







 As at 1st October 2010

 252,533

 50,000

 1,149,267

(421,175)

 382,683







Loss for the year and total comprehensive income

-

-

-

(167,801)

(167,801)

 Shares Issued

 52,700

(45,000)  

 443,800

 -  

 451,500







 As at 30th September 2011

 305,233

 5,000

 1,149,267

(588,976)

 1,314,324



NOTES

 

1.  Basis of Preparation

 

The principal accounting policies adopted in the preparation of the financial statements are set out below.  The policies have been consistently applied to all the years presented, unless otherwise stated.

 

These financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRSs) issued by the International Accounting Standards Board (IASB) and its committees, as adopted by the European Union ("adopted IFRSs"). The financial statements have also been prepared in accordance with those parts of the Companies Act 2006 applicable to companies preparing financial statements in accordance with IFRS.

 

The preparation of financial statements in compliance with adopted  IFRS requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the company's accounting policies. The areas where significant judgements and estimates have been made in preparing the financial statements and their effect are disclosed in the note below.

 

The financial information set out above does not constitute the Company's statutory accounts for the years ended 30 September 2012, but is derived from those accounts.  Statutory accounts for 2011 have been delivered to the Registrar of Companies and those for 2012 will be delivered shortly. 

 

Going concern

 

Further information on future trading and liquidity risk is included in the Chairman's statement. Based on their current expectations of the intentions and support of key investors in the Company the directors have a reasonable expectation that the Group will be able to raise additional funding in the share issue planned for April 2013. Based on their current expectations of the progress of the product development the directors have a reasonable expectation that revenue will be generated in line with the forecasts during this year and will be available to underpin the cash flows of the Group. In the event that this revenue is not generated the directors consider it likely that additional funding can be raised from shareholders or a further share placing at the appropriate time.

 

Furthermore, based on their expectations of their ability to manage the payments of the Group and the expected receipt of funds from the share placing, the directors consider that the group will have adequate funding resources to continue in operational existence for the foreseeable future. The forecasts indicate that the group is only a going concern if required funds to be obtained from the share issue planned for April 2013 are received. The disclosures also indicate that the Group is only able to continue as a going concern for at least the twelve month period from the signing of these financial statements if the cash flow expected from product sales is generated or, in the event that such sales are not generated, that additional funding is able to be obtained from a further share issue at an appropriate time. The directors consider that these conditions indicate the existence of material uncertainties which may cast significant doubt over the group's ability to continue as a going concern.

 

In addition, the company has held talks with its lenders about its future borrowing needs and no matters have been drawn to their attention that suggest that renewal may not be forthcoming on acceptable terms.

 

Accordingly the directors continue to adopt the going concern basis in preparing the annual report and accounts.

 

The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern.

 

 



Basis of consolidation

 

The financial statements have been prepared using the reverse accounting provisions of International Financial Reporting Standard 3 (as issued in 2004).

 

Reverse accounting has been determined to be required in accounting for the business combination of the Company and JSJS Designs (Europe) Limited because following the business combination, the Parent company is effectively controlled by the Board and the former shareholders of JSJS Designs (Europe) Limited.  In effect, the transaction is accounted for as though JSJS Designs (Europe) Limited was the acquiring company rather than the acquired and JSJS Designs plc has been treated as a subsidiary. The reverse acquisition reserve consists of amounts arising from the adjustment made to the equity instruments of the legal acquiree in reverse acquisition accounting.

 

The financial statements consolidate the accounts of JSJS Designs Plc,  JSJS Designs (Europe) Limited and its non-trading subsidiary, undertaking at 30th September 2012. Intercompany balances and transactions are eliminated in full.

 

2.   Loss per share

 

The basic loss per share is calculated by dividing the loss for the financial year attributable to shareholders by the weighted average number of shares in issue. The remaining securities in issue are not dilutive as at 30 September 2012.

 


Year ended

Year ended


30-Sep-12

30-Sep-11


Number

Number




Numerator



Loss used for calculation of basic and diluted EPS

761,443

869,196




Denominator



Weighted average number of ordinary shares used in basic and diluted EPS

367,286,223

 255,104,018




Basic and diluted loss per share

0.207p

0.341p

 

At 30 September 2012, there were 2,000,000 (2011: 2,000,000) of potentially issuable shares which are anti-dilutive; such shares may become dilutive in future periods.

 

 

3.  Annual Report and Annual General Meeting

 

The Annual Report will be available from the Company's website www.jsjsdesigns.com and will be posted to shareholders on 28 March 2013.  The Annual Report contains notice of the Annual General Meeting of the Company which will be held at 10 a.m. on Wednesday 24th April 2013 at Birmingham Science Park Aston, Faraday Wharf, Holt Street, Birmingham B7 4BB. 

 

 

 


This information is provided by RNS
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