LED lighting technology developer PhotonStar LED has secured a substantial exclusive supply agreement with a manufacturer of TV and film lighting.
This will provide a boost to this year’s figures but the size of the contract has not been revealed. PhotonStar LED was formed when PhotonStar reversed into Enfis at the end of 2010. Both companies’ technologies will be used in this contract.
Last month a deal was signed with a UV curing services provider for the inkjet printer industry. It involves the development of high intensity LED arrays emitting light in the UV spectrum for use in various printing and industrial markets. This will also have a material impact for the current financial year.
Revenues grew from £1.56m to £2.72m in 2010 – this is 12 months of PhotonStar and a small contribution from Enfis. The loss increased from £415,000 to £819,000 partly due to costs relating to the reversal transaction.
The company raised £1.6m net at the time of the reversal from a placing at 10p a share, which is the same as the share price before the deal was announced. Net cash was £1.85m at the end of 2010.
The enlarged business will benefit from demand for energy efficiency and legislation changes. This year’s results are expected to be second half weighted.
FinnCap had forecast a similar loss to 2010 this year but the latest contract win has sparked a reduction in the forecast loss to £600,000. Strong growth in revenues in 2012 will lead to a profit of £1.6m.
At 13.5p a share, up 2p, PhotonStar is valued at £11.7m. The shares are trading on less than eight times prospective earnings for 2012.
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