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JSJS Designs PLC (JSJS)

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Wednesday 06 June, 2012

JSJS Designs PLC

Half Yearly Report

RNS Number : 7116E
JSJS Designs PLC
06 June 2012
 



JSJS DESIGNS PLC

(AIM: JSJS)

 

Interim Results for the six months ended 31 March 2012

 

JSJS Designs ("JSJS" or "the Company"), the provider of innovative home automation technologies, announces interim results for the six month period to 31 March 2012.

 

CORPORATE HIGHLIGHTS

 

-     Like for like losses significantly reduced by 75%

 

-     Invoice discounting facility of £1m established

 

-     New order secured with QVC home shopping channel

 

-     Commencement of product roll out to significant players in electrical wholesale market and Maplin Electronics Ltd.

 

-     Significant new product in Heating and Security categories under development for launch in second half

 

-     Export business started selling products in the Singapore, Australia and Hong Kong markets

 

 

Commenting, Mike Lord, Chairman & CEO, stated:

 

"I am happy to report six months of further progress in the Company's marketing phase.  During the period orders were received from well known commercial partners such as Siemens, Maplin and CEF.  The Company continues to target the mass market where it believes there will be interest in its product range.

 

It is still early in our market phase and a lot of hard work continues to be performed to convert interest to sales.  I am confident that the quality and range of our products will continue to attract attention"

 

Contacts:

 

Contacts:




JSJS Designs Plc

www.jsjsdesigns.com

Mike Lord, CEO

+44 (0) 1902 500 562 



WH Ireland Limited

www.wh-ireland.co.uk

Marc Davies / Mike Coe

+44 (0) 117 945 3470



Yellow Jersey PR

www.yellowjerseypr.com

Dominic Barretto

Harry Fielder

+44 (0) 7768 537 739

+44 (0) 7747 788 221

 

 



CHAIRMAN & CEO STATEMENT

 

I am pleased to report interim results for the six months ended 31 March 2012.  It has been a period of continued progress in the marketing phase of the Company and has also seen further developments in product development. 

 

There are positive signs of sales traction from existing accounts and we are progressing with leads on new opportunities.  In additional to offering our products to the domestic market, we now offer the Company's products in Singapore, Australia and Hong Kong. While order levels in the international markets are modest, we are hoping that the distribution channels in these and other countries will continue to grow in the foreseeable future.

 

JSJS continues to attend trade and consumer exhibitions to promote our products. The interest in the product range is growing and registered WiFi Link users have more than doubled in the second quarter.

 

As reported in our first quarter results announcement on 23 January 2012, the Company confirmed a first quarter profit primarily due to the receipt of the first license order fee worth £300,000 from Electrium Sales Limited ("Electrium"), It was also announced at this time that Siemens and LightwaveRF™ branded products are available at B&Q outlets.

 

Furthermore, the period also saw the extension of the JSJS product portfolio into eco-and-heating applications, aimed at delivering utility bill savings for consumers in a climate of rising energy prices.  These are being marketed to both the electrical and building wholesale market, as well as utility companies.  Initial interest has been strong.

 

Financial Review

Group losses for the six month period were £88,797 (2011: Loss £358,867), a 75% improvement on the equivalent period last year.  Revenues were down 60% at £847,924 (2011: £2,116,416) reflecting the termination of the loss making chimes business carried out during the second half of 2011. 

 

Gross margin in the period is reported at 56.36% helped by the first £300,000 Siemens royalty in Q1.  Gross margin without the royalty is 32.47%. This was adversely affected by stock provisions and ongoing trading hence gross margin is expected to be over 40% in the final half.

 

We are also pleased to report an invoice discounting credit line has been established with ABN Amro with 85% drawdown on approved debt.  This facility will provide up to £1m in working capital when required.

 

Basic loss per share for the period amounted to 0.00024p (2011: loss per share 0.00142p).  Following receipt of fundraising monies early in the financial year the balance sheet has improved with net assets of £300,479 (2011: net liabilities £653,417).

 

Outlook

The second half of the year has got off to a encouraging start especially with regard to the Company's marketing efforts. Following detailed discussions, the Company has secured an order with QVC Home Shopping Channel ("QVC"). Also during this quarter, the Company agreed terms with Maplin Electronics which is now offering LightwaveRF™  products on its web site and is due to begin a store rollout. Furthermore, in April we announced the commencement of the rollout of our lighting and electrical LightwaveRF™ product range to City Electrical Factors ("CEF").  The rollout will target its 400 CEF branches over the next 18 months.  The Board believes that these agreements demonstrate that there is demand for JSJS' technology and product offering from large and established consumer retailers.

 

The second half also sees the Company investing in its own internal IT structure, with more "cloud based' servers supporting the WiFi links and the implementation of an ERP and CRM system to support the Company's future growth expectations.  Warehousing and shipping operations have also been outsourced  which will allow easier scalability for the future and improve customer service with next day delivery capability.

 

Development of new smart technology products continues and we hope to update the market on these items in due course. At present, the Company's portfolio comprises of over 75 products which is planned to expand to over 100 during the remainder of this year following the introduction of a heating range and the Company's first security products.

 

The Company continues to pursue sales opportunities and the challenge will be to convert leads into firm contracts as soon as possible. I am pleased with how the Company has progressed since this time last year, and look forward to updating the market on further progress in due course.

 

Mike Lord

Chairman & CEO

6 June 2012

 

 



 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME







 

For the Six Months Ended 31 March 2012







 




Note

6 Months 31/03/12 (Unaudited)


6 Months 31/03/11 (Unaudited)


Year Ended 30/09/11 (Audited)





£


£


£

TURNOVER



 847,924


 2,116,416


 2,219,891

Cost of sales



(370,008)


(2,045,019)


(2,121,656)

GROSS PROFIT



 477,916


 71,397


 98,235

Administrative expenses


(555,896)


(424,929)


(959,502)

LOSS FROM OPERATIONS


(77,980)


(353,532)


(861,267)

Net Finance (Expense)/Revenue



(10,817)


(5,335)


(7,930)

LOSS BEFORE INCOME TAX


(88,797)


(358,867)


(869,197)

Income tax



 -


 -


 -  

RETAINED LOSS FOR THE PERIOD


(88,797)


(358,867)


(869,197)










Basic loss per share


1

(0.00024)


(0.00142)


(0.00341)










Diluted loss per share

1

(0.00024)


(0.00142)


(0.00341)

 

 



 

GROUP STATEMENT OF FINANCIAL POSITION

6 Months 31/03/12 (Unaudited)


6 Months 31/03/11 (Unaudited)


Year Ended 30/09/11 (Audited)

As at 31 March 2012















£


£


£

ASSETS









Non-current assets







Property, plant and equipment


 15,414


 8,750


 3,625





 15,414


 8,750


 3,625

Current assets








Inventories



 319,748


 73,474


 276,231

Trade and other receivables


 396,197


 71,827


 565,825

Cash and cash equivalents


 133,934


 260,650


 14,409





 849,879


 405,951


 856,465










Total assets



 865,293


 414,701


 860,090










EQUITY AND LIABILITIES







Equity









Issued share capital



 369,440


 255,233


 305,233

Unissued share capital


 -  


 -  


 5,000

Share premium account


 2,165,929


 1,191,567


 1,593,067

3% Convertible Loan



 464,452


 -  


 -  

Reverse acquisition reserve


(100,616)


(100,616)


(100,616)

Retained losses



(2,598,727)


(1,999,601)


(2,509,931)

Total equity



 300,479


(653,417)


(707,247)










Current liabilities







Trade and other payables


 564,814


 1,068,118


 1,567,337

Total liabilities



 564,814


 1,068,118


 1,567,337










Total Equity and Liabilities


 865,293


 414,701


 860,090










 

 



 

GROUP STATEMENT OF CASHFLOWS


6 Months 31/03/12 (Unaudited)


6 Months 31/03/11 (Unaudited)


Year Ended 30/09/11 (Audited)

For the Six Months Ended 31 March 2012













£


£


£

Cash flow from operating activities







Profit/(Loss) before taxation



(88,797)


(353,532)


(869,197)










Adjusted for:








Depreciation




 1,986


 2,625


 3,750

Loss on disposal of property, plant and equipment

 -  


 -  


 4,000

Investment Income



(83)


-


(12)

Interest Expense



 10,900


-


 7,942

Increase in inventories



(43,517)


(73,474)


(276,231)

Decrease in trade and other receivables


 169,628


 393,871


 351,373

(Decrease)/Increase in trade and other payables


(1,002,523)


 261,569


 660,787

Convertible Loan Note



 464,452


-


-

EFG Loan Repayment



 -  


(100,000)


 -  

Decrease in Unissued share capital


 5,000


(50,000)


 -  

Cash absorbed by operations


(482,954)


 81,059


(117,588)

Finance costs




(10,900)


(5,348)


(7,942)

Other Operational Income



-


-


 -  

Income Tax Set-Off/(Paid)



 -


 -


 -  

Net cash outflow from operating activities

(493,854)


 75,711


(125,530)










Cash flows from investing activities







Purchase of property, plant and equipment


(13,775)


 -  


 -  

Finance Revenue



 83


 12


 12

Net cash outflow from investing activities

(13,692)


 12


 12










Cash flows from financing activities







Proceeds from issue of shares



 680,570


 45,000


 -  

Expenses of share issues



(53,500)


 -


 -  

Net cash used in financing activities


 627,070


 45,000


 -  










Net decrease in cash and cash equivalents

 119,525


 120,723


(125,518)

Cash and cash equivalents at start of period

 14,409


 139,927


 139,927

Cash and cash equivalents at end of period

 133,934


 260,650


 14,409










 

 



Notes to the financial information

 

1.   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.

 





6 Months 31/03/12 (Unaudited)


6 Months 31/03/11 (Unaudited)


Year Ended 30/09/11 (Audited)






















The weighted average number of shares were;






Weighted average number of ordinary shares


363,124,982


253,311,721


255,104,018

Effect of outstanding options shares


 (12,579)


208,955


(91,503)










Adjusted weighted average number of ordinary shares

363,112,404


253,520,677


255,012,515










Basic loss per share



(0.00024)


(0.00142)


(0.00341)

Diluted loss per share



(0.00024)


(0.00142)


(0.00341)

 

 

2.   While the financial information included in this announcement has been computed in accordance with International Financial Reporting Standards (IFRS), this announcement does not itself contain sufficient information to comply with IFRS. The full financial statements of the Company will be prepared in accordance with IFRS, International Accounting Standards and their interpretations issued or adopted by the International Accounting Standards Board as adopted for use in the European Union.

 

3.   The financial information shown for the six month period ended 31 March 2012 and the six month period ended 31 March 2011 has not been audited or reviewed by the auditors, or extracted from audited information. The financial statement does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985.

 

4.   The directors have not declared a dividend for the period ended 31 March 2012.

        

Copies of this statement will be available free of charge from the Company's Registered Office at The Birmingham Science Park Aston, Faraday Wharf, Holt Street, Birmingham B7 4BB 11-15 William Road, London NW1 3ER and the Company's website (www.jsjsdesigns.com).

 

The directors of JSJS Designs plc accept responsibility for this announcement.


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