LightwaveRF expecting revenue uptick despite investments

Smart home solutions provider LightwaveRF updated the market on its trading for the financial year ended 30 September on Wednesday, saying it anticipated that revenue will have “more than doubled” from the prior year’s £1.44m figure.

The AIM-traded company said its gross margin was also expected to have “materially increased” from the 32.5% measures last year.

Capital expenditure on both the company's second generation Apple HomeKit-certified product range, and further product developments, increased over the year, the board explained.

Additionally, investments in revenue-generating activity as well as administrative expenses had increased.

“Even after these increases, the company expects losses before tax for the year … to be broadly in line with those of the prior year,” the board said, referring to 2016’s losses of £0.84m.

“The company's recently announced electrical wholesale distribution agreement with Deta Electrical is now being implemented, and its second generation product range has been released.

“Distribution through Apple online and in retail stores is expected to follow shortly.”

LightwaveRF said it was expecting to release its final results for the year to 30 September in early December.