ProPhotonix sees orders increase in solid H2

LED designer and manufacturer Prophotonix told investors on Thursday that trading conditions improved during the second half of 2019, leading to an increase in orders.

Prophotonix recorded orders of approximately $9.3m for the six months ended 31 December 2019, an increase of 30%, while revenues came in at about $7.8m for the period - an increase of 9% year-on-year.

Importantly, the AIM-listed group highlighted that much of the increase in orders came from its larger and more important customers and that overall they had yet to recover to their 2018 run-rate levels.

Prophotonix's second-half performance resulted in total orders placed for the year of $16.5m, up from the $16.1m recorded a year earlier, while revenues came to roughly $14.9m - down from the $16.4m brought in during 2018 but in line with previous guidance.

Chief executive Tim Losik said: "The board is pleased with the rebound in business in the second half of the year following a resumption of orders from the group's largest laser module customer and increases in orders from and shipments to other major customers.

"Despite this improved customer activity, there remain a number of key accounts who have yet to resume their activity to the levels in 2018. However, following recent discussions with many of these other customers, the outlook for 2020 is more positive than 2019."

As of 1340 GMT, Prophotonix shares had shot up 15.13% to 1.78p.