Loss-making tech firm abandons sale process
LightwaveRF, the Birmingham-based provider of smart home solutions, has pulled the plug on plans to sell the company.
The company said BDO, its financial adviser, has received approaches and had discussions with a number of parties but these have not led to any viable offers being received.
Lightwave said: “As such, the company is not in discussions with any third party in relation to a corporate transaction, such as a merger with or a sale of the company. As a result, the board with BDO has determined that the formal sale process part of the strategic review has now concluded. Therefore, the company is no longer deemed to be in an offer period.”
Lightwave said that while the final outcome of its strategic review, announced in November, has not yet been reached, its largest shareholder Committed Capital has agreed to lead a new equity funding round.
The company said: “The board believes that the proposed investment from Committed Capital will further assist in accelerating the growth of the business.
“The board considers that the company is well positioned as the only UK company offering fully integrated products that enable in-home control, monitoring and automation of lighting, heating and power.”
In January, the firm posted a revenue rise of almost 50% but saw losses widen in its 2019 results and announced it was to seek shareholder approval for the cancellation of its listing on AIM as part of the strategic review.
The company reported revenue of £4.09m (2018: £2.81m), up 46%, but said it experienced a challenging last quarter, which prompted a profit warning in November, with revenue held back mostly due to working capital and reduced digital marketing spend and revenue slippage.
The company reported a loss before and after taxation £3.61m (2018: £2.54m) but Lightwave said that although the loss increased, cash absorbed by operations decreased significantly to £1.94m (2018 £2.95m).
