Lighting group PhotonStar PLC (LON:PSL) has been hit by the disruption and uncertainty in the construction sector post-Brexit.
Business in its commercial light fittings business slowed towards the end of 2016 and has remained subdued into 2017 so far, the group said.
Photonstar has developed a new intelligent lighting system, halycon, as part of a move away from light fittings and the next results will also bear some of the costs of this.
Group revenue for 2016 was approximately £5.4mlm (2015:£6.9mln) with an after tax loss of £1.3mln including the halycon investment.
Trials for halcyon are ongoing with a number of customers and Photonstar said as a result of these it has made changes to the product.
James McKenzie, chief executive, said good progress had been made changing the focus towards intelligent light systems, but growth in traditional lighting that had been expected in the fourth quarter did not materialise.
“Significant delays in construction projects due to uncertainty caused by Brexit and margins were also affected due to increasing costs associated with buying many key components in USD, Euros and RMB.
“In Q4 we further restructured the Group in order for this area of the business to be profitable at the lower revenue levels we are now experiencing and to position the Group to deliver on the growth opportunities afforded by halcyon IoT projects and paid for trials, which could lead to the roll out of significant new contracts.”