BOU.L Regulatory News (BOU)

29 October 2014

PhotonStar LED Group plc

Trading update and senior management appointments

PhotonStar LED Group plc (AIM: PSL, "PhotonStar" or "the Group"), the British designer and manufacturer of smart LED lighting solutions, announces a trading update for the year to 31 December 2014 and the appointments of a COO and Business Development Director.

As announced with the interim results on 11 August 2014, weather related delays in the new build market had resulted in an element of revenues slipping into the second half of the year. This will result in the full year's results being more second half weighted than in prior years.

The Group now expects sales of fixed white lighting products for the year to be lower than indicated, due to several large lighting domestic and export contracts being delayed into 2015.

The light engines business has also experienced a slow-down in sales with pressure on margins. The Board has now decided to commit no further development resources to this area of business and focus its efforts on expanding the Halcyon product range more rapidly. The Board believes this strategy will offer a greater return on investment in 2015.

The Board now expects that revenues for the year ended 31 December 2014 will be below market expectations which will result in a loss for the year.

As part of this reinforced focus on the Halcyon product range, the Group has appointed David McTurk as interim Chief Operating Officer. David brings significant operational and operational change experience, most recently as CEO with OWL Intuition Limited, a manufacturer of wireless and cloud based energy monitoring and heating control systems for domestic and small business applications. He was previously COO of Nasdaq and LSE listed Bookham Technologies - now known as Oclaro, Inc.

The Group has also recently appointed Bryan Lawrence as Business Development Manager: Intelligent Systems & Solutions for connected applications of Halcyon. Bryan was formerly working at ARM Ltd, Cambridge as Segment Marketing Manager and has substantial experience of technology licencing.

Neither David nor Bryan will join the Board of PhotonStar.

As announced on 22 October 2014, PhotonStar is now shipping the HalcyonPro lighting system - the first wave of Halcyon products (servers, lamps and sensors). The Group is seeing significant demand for its connected lighting products and is realigning its sales partners and channels to reflect this. The formal launch of the Halcyon system with additional products, accessories and connectivity needed to deliver a fully connected lighting platform will take place at Lux live on 19 November 2014.

James McKenzie, Chief Executive of PhotonStar, said:

"The appointments of David and Bryan reinforce our focus on expanding our Halcyon product range. Both have a strong background and track record in the development of connected products that will contribute significantly to our future growth.

"We believe that the intelligent, energy saving and data-centric applications of our unique Halcyon technology offer the potential to address a broad range of significant future business opportunities and markets."

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