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JSJS Designs PLC (JSJS)

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Monday 10 March, 2014

JSJS Designs PLC

Final Results

RNS Number : 9132B
JSJS Designs PLC
10 March 2014
 



10 March 2014

 

JSJS DESIGNS PLC

 (AIM: JSJS)

 

Preliminary Results for the Year Ended 30 September 2013

 

JSJS Designs Plc ("JSJS" or "the Company"), British specialists in Radio Frequency technologies which enable households and business to remotely operate and control household applications including lighting, heating and security through smartphones and other web-based applications, is pleased to announce its Final Results for the year ended 30 September 2013.

 

 

 

CORPORATE HIGHLIGHTS

 

· Acceptance of our products by Maplin Electronics now in over 120 stores throughout the UK

 

· Appointment of Megaman UK as Master distributor in UK

 

· Further new products brought to market

 

· Working with the Technology Strategy Board and Warwick University in their research on energy conservation using our products

 

· Increased penetration of products into UK market via on-line retailers and trade superstore Maplin

 

· Year closes on $1.8m of forward orders and post balance sheet order for heating products of $828,000

 

· Successful fundraising of £500,000.

 

 

 

 

 

 

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/Ed Allsopp (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 2013 will be sent to shareholders today and will be available on the Company's website: www.jsjsdesigns.com



CHAIRMAN & CHIEF EXECUTIVE OFFICER REPORT

 

I am pleased to report on the Final Results for the Company, a period which has seen a much improved acceptance of our products in the market place. With the appointment of Megaman as a Master Distributor

for the UK, the trading subsidiary company can now concentrate on the technical aspects and have more

resources to further develop the existing product range as well as R & D into new products.

 

The period under review has continued to see JSJS evolve , through our acclaimed brand LightwaveRF, into a credible brand supported by leading high street names and major financiers of energy research. See our website at www.jsjsdesigns.com and lightwaveRF.com.

 

Financials

Sales for the year amounted to £1,053,735 which when compared on a like for like basis (excluding £527,761 of one off revenues relating to Siemens Royalty and B&Q stocking order) with FY2012 represents an 81% increase in revenue. This underpins the continued improvement in sales traction reported in the interims.

 

Like for like overheads were reduced in the year to £985,731 (FY12 £1,090,353) a saving of £104,622 or

over 10%. Focus on overhead remains high on our agenda with further savings expected in FY14 in warehousing costs as a result of the distribution agreement with Megaman operational, allowing more funds to be freed to accelerate new product rollout.

 

Whilst cost control remains a priority we intend to accelerate product and App development over time to maintain our market leadership and increase product breadth as well as sophistication of our App and Cloud services by switching spend into these areas. It remains our policy to expense new product development costs.

 

Losses for the year were up by £47,231 to a loss of £808,674 (FY12 £761,443).

 

A fundraising of £500,000 was completed in the year to finance the business alongside a debt repayment agreement with our key supplier Veda Holdings.  This, together with the working capital reduction due to the new distribution model, the much improved trading position during the first quarter of FY14 and the large forward order book together provided the necessary long term finance requirements for the business.

 

Financial Outlook

The financial outlook for the business is now much more positive and the business expects to show a profit in the current financial year. The current order book is £2.1m. Our current order book alone, together with first quarter invoicing of £759,000, will result in a minimum turnover of £2.6m in FY2014, a 147% increase on FY13. The business is now set to start to fulfil its potential in this market of the future.

 

Company Structure

As the business now looks set for a healthy and profitable future we turn our attention to ensuring we have

the right company structure to deliver our future success.

 

The LightwaveRF brand now is beginning to be well recognised in the UK plumbing and Electrical sectors

and has shown the start of some consumer recognition. We therefore believe this is the right time to rename the company to LightwaveRF Plc which will be proposed at the AGM in March.

 

With effect from 7 March 2014 we are reorganising the Plc Board with just Michael Lord and Frank Tiller continuing out of the existing Directors, as respectively Executive Chairman and Finance Director. In addition, with effect from 1 April 2014, Barry Gamble has agreed to join this Board as an independent Non-Executive Director. We feel that Barry, who took part in the 2013 fundraising, with his significant board and governance experience, will be a valuable addition to the company at this stage of its development.

 

We have also welcomed Tom Sykes to the Board as Chief Operations Officer. Tom who is a chartered accountant comes with a wealth of experience in the home improvements sector. He was instrumental in negotiating the Megaman deal in 2013 and has already added significant weight to the business.

 

 

 

 

John Shermer, Managing Director, John Sinclair, Technical Director and Simon Lane, Sales Director, remain critical to the future of the business. They will make up the JSJS Designs Europe Ltd (soon to be renamed LightwaveRF Technology Ltd) board together with myself, Tom Sykes, Frank Tiller and Mike Hughes (our current Plc Non-Executive Director). We believe that this new structure separates out the corporate affairs and finance from the technology drive and operational issues freeing the individuals to play to their strengths and become ever more effective.

 

 

Mike Lord

Chairman & CEO

 

10 March 2014



Extracts from the Strategic Review set out in the Report and Accounts

 

Distribution

The current product range has now become more established and familiar in the trade marketplace and is gaining some considerable attention from well known brands in addition to those who are already committed to the product. The main restraining factor in the companies development so far has been our inability to provide the service levels required to capitalise properly on these relationships. This situation has changed dramatically over the past 6 months due to the relationship with Megaman with our UK customers now set to receive a service level and sales and marketing support much more fitting to the market leading products we have developed.

 

Our strategy is to replicate this model with Megaman and others now across the global market. The business will now focus on recruiting in country distributors capable of maintaining stocks and managing logistics and well as driving the channel sales and marketing. This will keep the business focused on technology development rather than operations and allow a more rapid global expansion.

 

UK market penetration has been very strong over the past 12 months with the continued development with B&Q business as well as well as the rollout to Maplin. As a result the product is now displayed at over 300 retail outlets nationwide. During 2014 these retail relationships will be consolidated in to Megaman as the previous distribution agreements fall away. We still expect further retail presence in the UK from well known retailers.

 

Our online presence also continues to develop although to date this has not been as successful as was hoped. We believe this has been mainly down to supply issues which are now a thing of the past and as a result we expect these channels to develop faster in 2014/15.

 

We are now also focused on gaining additional credibility with providing data on our products ability to perform and the Technology Strategy Board sponsored project with Warwick University is we hope the first of many. This will support the launch of our heating products in to the UK for which there is already very Significant interest. We believe that this launch will provide the mass market platform we need and will provide much better home heating control than the British Gas Hive and Google Nest products recently heavily reported.

 

Operations

With our new distribution model our internal operations will become much more simple as we focus on Product Development, Product Integration and Technical Support.

 

The company's new IT infrastructure is now in place and given the changes in the distribution model are fit for purpose for a number of years to come. We see no further investment in this area for some considerable time.

 

As we have scaled back our trading involvement in the hand over to Megaman this reduces the operational burden on the business. We will exit our warehousing facilities by the half year and we have accordingly reduced the account management staff already. We would expect that any further sales support or merchandising staff will be reassigned or replaced as we gear up to focus our attention on increased new product development and speed to market on both product and App deployment to keep ahead of the market.

 

We will also build our technical support capabilities both on line and telephone as a second stage support to Megaman and new international distributors that come on stream.

The organisation will be kept slim with reliance on in house technical experts and project management supported by sub contracted software and hardware engineers. This will allow the fixed overhead cost structure to remain at a minimum whilst having the ability to scale resource when needed and ensure specialist expertise is available where necessary. We have spent considerable time in selecting and trialling various technical subcontractors over the past year and have now established good relationships with sector experts.

 

Operations are now simplified with reduced fixed costs.

 

Extracts from the Product Review set out in the Report and Accounts

 

This has once again been a very successful year for the introduction of new products with a total of 14 new products being launched taking the total to 92 individual products now being available in our range.

 

The product rollout has been supported with the introduction of our new IOS and Android Apps which have been exceptionally well received in the market. This is all supported by the LightwaveRF Cloud Services which allow the remote access to the home which have made great strides during the year.

 

We continue to differentiate ourselves by providing the end to end service of App to Switch whilst others remain focused on creating the Cloud and App platform only. Our use of the LightwaveRF radio protocol has also proven to be both superior in communication results and more cost effective than the limited wifi based systems developed by others.

 

a) Lighting and Electrical

The lighting and electrical product range increased dramatically during the year with the addition of 14 new products some of which have now become the best sellers in our range.

 

The lighting and electrical range is now exceptionally comprehensive and leads the market in wireless control in the home. LightwaveRF market leading wireless Lighting and Electrical range now provides consumers and businesses alike with the ability to control any electrically powered device remotely or routinely using the LightwaveRF cloud services and apps. This could be as simple as dimming the lights from the comfort of your favourite armchair or providing security lighting when away from home or a complex set of instructions for your home to be done in a timed sequence. This product range includes an attractive range of sockets and switches as well as inline relays to operate items like curtain openers or garage doors.

 

Further development of this range is now on-going with focus on dimming technology and power monitoring where we hope that patented technology could be possible. In addition work is required to achieve internationalisation of the range as we begin to push in to new markets.

 

(b) Heating

There have been several technical obstacles which have delayed the new range of heating products. These products are now being installed and due for volume shipping. The range will consist of boiler control, electrical heating control, thermostat and a TRV radiator valve. All of this equipment will for the first time have two way communication allowing feedback on temperature on a device by device basis.

 

The range will make it possible to control heating on a room by room basis and will we believe save consumers up to 30% off their energy bills. This will mean that consumers can enjoy heat in say their lounge without having to heat other rooms not being used. This together with the ability to schedule heat by room on a minute by minute basis and to override the schedule remotely will give consumers and businesses unrivalled control of their energy consumption at affordable prices.

 

The system is currently on test at Warwick University with a rollout installation to over 200 rooms being completed by early March.

 

(c) Eco

With the launch of the new range of heating LightwaveRF Eco credentials now become well established. This is supplemented by the already existing electrical Eco meter which provides "real-time" feedback on current electricity usage to any Internet enabled device allowing interaction with the home to save both on household bills and the environment.

 

Further development will take place allowing more specific energy consumption monitoring. We believe the harvesting of the global data we can now track on the LigtwaveRF cloud can provide valuable information both to the consumer but also to energy companies to better manage power consumption, impact environmental changes and plan power generation needs.

 

(d) Security

We can already help with simple security measures through control of lighting and electrical devices enabling users to "be at home" when they are not. We are working on the next steps of integration into security systems as well as the ability to in App view of IP cameras when triggered to do so by a doorbell ringing or a window being opened. We hope to see our first security integration in 2014.

 

We are very excited about these opportunities both in terms of revenue generation but also widening the net of consumers introduced to the LightwaveRF world.

 

(e) Product Integration, Licensing and Data Mining

This leads naturally in to the next stage in our development which will see us embark on creating a mechanism for 3rd party products to join the LightwaveRF cloud. This will see the licensing of the Lightwave

 

Protocol and provision of cloud services to other consumer electronics businesses from white goods to Wireless sound systems allowing both remote access and integration to other home devices.

 

We are already in talks with alarm manufacturers and Wireless sound system manufacturers as well as a number of commercial building control suppliers. This integration and licensing we believe will significantly accelerate our penetration and brand traction and place us as the leading edge provider of smart home technology with the broadest offering in the market.

 

Our cloud services and App development continues at pace now to create an ever improving and intuitive way to manage the modern home. This will provide both the scheduled and reactive home automation allowing our homes to learn and adapt to our lifestyles whilst always leaving us the ability to change things as we go from wherever we are in the world.

 

The mining of macro data will be crucial we believe for energy producers, consumer electronic businesses and home builders of the future, as this leads to significant data capture as we begin to profile not only lifestyle habits but energy consumption and household electronics usage on a global scale.



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 YEAR ENDED 30 SEPTEMBER 2013

 

CONTINUING OPERATIONS

Notes

Year ended

Year ended



30-Sep-13

30-Sep-12







£

£





REVENUE


 1,053,735

 1,109,305

Cost of Sales


(606,219)

(571,330)





GROSS PROFIT


 447,516

 537,975





Administrative expenses


(1,212,379)

(1,297,733)





LOSS ON OPERATIONS


(764,863)

(759,758)





Finance expense


(43,839)

(28,170)

Finance income


29

26,485





LOSS FOR THE YEAR BEFORE INCOME TAX


(808,674)

(761,443)





Tax charge/(credit) on loss on ordinary activities


 -  

 -  





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


(808,674)

(761,443)





Other comprehensive income


-

-





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


(808,674)

(761,443)













Basic & Diluted loss per share

2

0.179p

0.207p

 

 

 

                                                                                   



GROUP STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2013

                                                                                                                       


Year ended

Year ended


30-Sep-13

30-Sep-12


£

£

ASSETS



Non-current assets



Property, plant & equipment

7,748

12,567





 7,748

 12,567

Current Assets



Inventories

 395,478

 469,263

Trade & Other Receivables

398,866

290,049

Cash and cash equivalents

 43,286

 28,194





 837,630

 787,506




TOTAL ASSETS

 845,378

 800,073




Equity & Liabilities






Equity



Issued share capital

 547,774

 369,440

Share premium account

 2,496,645

 2,165,929

Reverse acquisition reserve

(100,616)

(100,616)

Retained losses

(4,087,152)

(3,278,478)




Total Equity

(1,143,349)

(843,725)




Current liabilities



Trade & other payables

 1,413,948

 1,153,670

Loans and borrowings

570,104

476,103




Total current liabilities

 1,984,052

 1,629,773




Non current liabilities



Loans and borrowings

4,675

14,025




Total non current liabilities

4,675

14,025




Total Equity & Liabilities

845,378

800,073

 



COMPANY STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2013

 

 


Notes

Year ended

Year ended



30-Sep-13

30-Sep-12



£

£

ASSETS




Non-current assets




Investments


 100,620

 100,620







 100,620

 100,620

Current Assets




Other Receivables


 2,600,542

 2,223,332

Cash at cash equivalents


 7,115

 460







 2,607,657

 2,223,792





TOTAL ASSETS


 2,708,277

 2,324,412





Equity & Liabilities








Equity




Issued share capital


 547,774

 369,440

Share premium account


 2,496,645

 2,165,929

Retained Losses


 (884,432)

 (730,957)





Total Equity


 2,159,987

 1,804,412





Current liabilities




Trade & other payables


 123,149

 89,448

Loans & borrowings


 425,141

 430,552





Total current liabilities


 548,290

 520,000





Total Equity & Liabilities


 2,708,277

 2,324,412



GROUP STATEMENT OF CASHFLOWS

YEAR ENDED 30 SEPTEMBER 2013

 



Year ended

Year ended


Notes

30-Sep-13

30-Sep-12



£

£





Cash flow from operating activities




Loss before tax


 (808,674)

 (761,443)





Adjusted for:




Depreciation


 3,757

 4,833

Loss on disposal of property, plant and equipment


 1,062

 -  

Investment income


 (29)

 (89)

Exchange gains


 (250)

 (19,294)

Interest expense


 43,839

 28,170

(Decrease)/Increase in inventories


 73,785

 (193,032)

(Increase)/Decrease in trade and other receivables


 (108,817)

 278,148

Increase in trade and other payables


 260,278

 497,909

Gains on liabilities settled in shares


 -  

 (7,104)





Cash absorbed by operations


 (535,049)

 (171,902)





Finance costs


 (43,839)

 (13,410)







 (578,888)

 (185,312)

Cash flows from investing activities




Purchase of property, plant & equipment


 -  

 (13,775)

Finance revenue


 29

 89







 29

 (13,686)





Cash flows from financing activities




Proceeds from issue of shares


 509,050

 500,000

Proceeds from bank borrowings


 -  

 25,000

Repayment of bank borrowings


 (9,350)

 (3,997)

Interest paid on borrowings



 (678)

Interest paid on convertible loan note


 -  

 (8,332)

Repayment of convertible loan note


 (5,161)

 (335,411)







 494,539

 176,582





Net  increase / (decrease) in cash and cash equivalents


 (84,320)

 (22,416)





Cash and cash equivalents at 1 October 2012


 (8,007)

 14,409





Cash and cash equivalents at 30 September 2013


 (92,327)

 (8,007)



 

 

 

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER 2013

 

GROUP

 Issued 


 Reverse

 Retained



 Share 

 Share

 Acquisition

 Earnings/

 Total


 Capital 

 Premium

 reserve

 (Losses)

 Equity


£

£

£

£

£







 As at 1st October 2012

 369,440

 2,165,929

 (100,616)

 (3,278,478)

 (843,725)







Loss for the year and total comprehensive income

  -   

 -  

  -   

 (808,674)

 (808,674)

 Shares Issued

 178,334

 356,666

  -   

 -  

 535,000

 Share Issue Costs


(25,950)



 (25,950)







 As at 30th September 2013

 547,774

 2,496,645

 (100,616)

 (4,087,152)

 (1,143,349)

 

 

 



 

 

 

 

          

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 2013, but is derived from those accounts.  Statutory accounts for 2012 have been delivered to the Registrar of Companies and those for 2013 will be delivered shortly. 

 

 

 

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 2013.

 


Year ended

Year ended


30-Sep-13

30-Sep-12


Number

Number




Numerator



Loss used for calculation of basic and diluted EPS

808,674

761,443




Denominator



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

452,487,626

 367,286,223




Basic and diluted loss per share

0.179p

0.207p

 

At 30 September 2013, there were 2,000,000 (2012: 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 10 March 2014.  The Annual Report contains notice of the Annual General Meeting of the Company which will be held at 11 a.m. on 2 April 2014 at Birmingham Science Park Aston, Faraday Wharf, Holt Street, Birmingham B7 4BB. 

 

 

 


This information is provided by RNS
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