Dr James McKenzie, chief executive of PhotonStar LED Group PLC (LON:PSL) is “really quite excited” by the application opportunities for the firm’s internet-of-things (IoT) building services platforms after getting its first letter of intent for a commercial deal.
PhotonStar shares soared over 250% higher today after it told investors that it has received a letter of intent setting out a proposed roll-out from a UK-based student accommodation group.
The AIM-listed company said some 50,000 of its halcyonPRO2 and CloudBMS systems intelligent lighting and building control platforms will be installed by the group following trials for nine months from July 2016 across a total of 167 rooms at one of its sites.
READ: PhotonStar LED shares surge on roll-out internet of things system for student accommodation
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In an interview with Proactive Investors after the news, McKenzie said the student accommodation firm – which he declined to name – has around 125-130 sites, located across 24 UK cities and it will be evaluating other possible uses for the IoT platforms.
The PhotonStar boss said the platforms’ usage is all about “taking the man out of the loop” reducing costs and site visits for the customer and intrusion for the students from ‘traditional’ engineer visits.
Deal “is a great first indicator of where we can go"
McKenzie said this deal “is a great first indicator of where we can go, and what can be done”.
He added that with the systems running many other applications can be added to the platforms, for example automatic door and window closing, all operated by cloud-based monitoring.
READ: The investment case for PhotonStar
The group said the roll-out to each site will see separate purchase orders rather than a single formal contract covering all the installations.
McKenzie said: “The site by site installation of halcyon is expected to take approximately 18 months and we are excited at the opportunity to evaluate other cost saving opportunities that exist for the customer.”
PhotonStars’ chief executive also pointed out that the group has around 8 or 9 other trials running for its IoT platforms currently, in sectors such as heathcare and banking.
McKenzie said all of the trials are at different stages but are “coming along”, and PhotonStar is learning together with the companies just what its platforms can do.