Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

ProPhotonix shares plunge on declining profits and margins

A competitive market environment and higher component costs have contributed to ProPhotonix's decline in earnings
LED lights
ProPhotonix's profit margin fell to 39% from 44% a year ago

ProPhotonix PLC (LON:PPIX) shares plunged on Friday after the designer and manufacturer of LED lights said its underlying first-half earnings and margin had declined.

The AIM-listed company said in a trading update that its underlying earnings (EBITDA) would drop to around $0.2mln from $0.7mln in the first six months of 2018 due to a competitive market environment, revenue mix and higher component costs. The group said its gross profit margin fell to around 39% during the period, compared to 44% a year ago.

Very optimistic about 2019 and beyond​

The company said first-half revenue was expected to come in at around $8.8mln, an increase of 4%, but below management expectations.

"Whilst revenue recognised has been slower than expected in this first half of 2018, our opportunity pipeline for laser and LED OEM products and UV LED product sales is stronger than at any time,” ProPhotonix’s CEO Tim Losik said in a statement, adding that he was very optimistic about 2019 and beyond.

Shares in ProPhotonix were 32.7% down at 7.40p in early morning trade.

View full PPIX profile View Profile

ProPhotonix Timeline

Newswire
March 17 2016

Related Articles

Picture of Malaysian city
May 09 2018
The group’s ability to provide benefits to the retail sector was demonstrated in 2017.
chrome pipes
June 20 2018
Another change recently was for Tharisa to take over the running of the mine, which involved it buying the fleet from its contractor
picture of oilfield
March 14 2018
Svetlana Mendesh, Chief Financial Officer, said 2016 results were in line with its projections and local market trends.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use