ENF Enfis Group

 

TIDMENF 
 
RNS Number : 2509H 
Enfis Group PLC 
17 February 2010 
 

Enfis Group Plc 
("Enfis" or the "Group") 
Trading Update and Strategic Review Results 
On 30 November 2009 the Group announced a trading update for the year to 31 
December 2009 and a strategic review of its business. The results of the 
strategic review and a further update on current trading are set out in this 
announcement. 
Trading 
The Group confirms that its sales for the year ended 31 December 2009 were in 
excess of GBP700,000 and that its year-end cash balance was in excess of GBP1m. 
Total borrowings at the year-end were GBP58,000. 
Since the 30 November 2009 update the Group has reduced its cash burn through 
closure of its North American office and rationalisation of its UK and Shanghai 
premises. As a result of the strategic review, additional engineering effort and 
technical sales support have been recruited. The ongoing costs of new staff 
recruitment in key areas have been more than matched by payroll cost reductions 
elsewhere in the business. Several new and exciting opportunities have been 
identified, and the change of sales and marketing focus is already beginning to 
bear fruit. The Solid State Lighting market continues to grow strongly and with 
clear focus and an increasingly cost effective product portfolio, the Group is 
well placed to increase its market penetration strongly. 
Strategic Review Outcome 
The Board has performed a comprehensive review of the business and corporate 
strategy, the key conclusions of which can be summarised as follows: 
·      The market opportunity for LED based Solid State Lighting (SSL) continues 
to be large and growing strongly as a result of powerful energy saving 
initiatives across the globe, driven by political and economic imperatives 
·      The Group's products and technology remain state of the art, and address 
directly the markets for intelligent, high power colour changing applications, 
such as architectural, entertainment, medical and high end retail 
·      Lower cost product engineering would enable larger sectors of these 
markets to become immediately accessible to the Group 
·      Sales and marketing resource should be targeted at value add resellers 
and key direct customer engagement, rather than through non value add 
distribution channels 
·      The Group's cash balances are sufficient for the Group's working capital 
requirements as envisaged in the forward business plan 
·      The Group will seek strong customer and supply partnerships to further 
build its product portfolio, and thereby gain access to increasingly larger 
sectors of the SSL marketplace 
Markets 
The overall market for Solid Sate Lighting (SSL) continuesto grow, driven by the 
increasing focus on efficient use of energy as a result of global warming and 
reduction in carbon emissions, and the rapidly increasing efficiency gains in 
LED chips. The growing lighting market for architectural, entertainment and 
medical markets demands powerful and intelligent lighting solutions, which in 
time will also be demanded by the general lighting market as a result of 
occupancy and movement sensing for additional energy saving. The Board has 
decided to concentrate the Group's resources on the high power lighting sector 
incorporating highly intelligent monitoring and sensing solutions, for which the 
Group has powerful IP and know how. The Board considers the Group to have a 
strong position in this area. 
The key markets now being targeted fall within the following lighting and 
application sectors and include: 
·      Entertainment lighting (e.g. film and TV production, concert and 
theatre); 
·      Medical lighting; 
·      Exterior and interior architectural lighting; 
·      High end retail lighting; and 
·      Medical and industrial applications (e.g. using ultraviolet light for 
industrial and medical curing processes). 
Products 
The Board has concluded that the Group's Uno, Uno Plus and Quattro Mini products 
are attractive to the intelligent high power lighting markets, placing a premium 
on one or more of: 
·      Very compact high power light source; 
·      Exceptional colour quality; 
·      Exceptional colour control; and 
·      Built in intelligence for sensing, control and communication. 
The Board has decided to concentrate its efforts on the light engine part of the 
value chain, allowing a large range of end user applications to be developed by 
continuing to strongly engage in partnerships with leading lighting fixture 
companies. 
Following the recent recruitment of an experienced Head of Engineering and 
Manufacturing, significant development effort is now being focused on materially 
reducing the cost and enhancing both the functionality and flexibility of 
current and next-generation products. It is expected that part of these 
development costs will be funded through access to government and EU grants. 
The current strategy of working closely with highly competitive outsource 
manufacturing partners will continue. 
Prospective Customers and Channels to Market 
The Board has decided that targeting high quality lighting fixture and original 
equipment manufacturers ("OEMs") selling branded products in the above 
identified markets to be the most effective sales strategy. This requires 
working directly with value added re-sellers in conjunction with direct selling 
to key accounts. 
Such customers can require significant up-front product development and 
integration support. The end market opportunities are large and the time/cost to 
market sustainable. The Group is taking steps to expand its distribution network 
of value-added re-sellers in North America, Europe and Asia. It is also 
investing time and resource into improving the Group's product knowledge of its 
existing re-sellers. These re-sellers have technically qualified staff capable 
of providing high quality support to their customers in the use and integration 
of the Group's products. 
At the same time the Group has expanded its internal technical sales support 
resource to provide enhanced support to value added re-sellers and key direct 
accounts. 
IP 
The Group will continue to pursue its strategy of developing a portfolio of 
strong IP through patents and know how, thus enhancing its competitive position 
in the marketplace. 
Partnerships 
In addition to developing powerful partnerships directly with customers and 
value added re-sellers, the Group will pursue a policy of developing technology 
partnerships with other companies in the lighting food chain in order to further 
enhance and diversify the Group's product range and technology base. 
Conclusions 
The sales cycle for OEM sales is not short but delivers long term value; 
Once designed in, the Group has the potential to lock-in substantial sales over 
extended periods; 
The Group is actively re-aligning its resources to fully focus on the 
significant opportunities in its selected markets. 
Following the strategic review, the Board believes that the strategy set out 
above offers shareholders the best opportunity for significant growth in the 
value of their existing investment in the Group. 
Ends 
+----------------------------+------------------+ 
| For further information,   |                  | 
| call:                      |                  | 
+----------------------------+------------------+ 
| Enquiries                  |                  | 
+----------------------------+------------------+ 
| Enfis Group plc            | Tel: +44 (0)     | 
| (www.enfis.com)            | 1792 485660      | 
| Ceri Jones, Chief          |                  | 
| Executive                  |                  | 
| Giles Davies, Chief        |                  | 
| Financial Officer          |                  | 
| Drew Nelson, Non Executive |                  | 
| Chairman                   |                  | 
|                            |                  | 
+----------------------------+------------------+ 
| Execution Noble & Company  | Tel: +44 (0) 20  | 
| Limited                    | 7456 9191        | 
| John Llewellyn-Lloyd / Sam |                  | 
| Reynolds                   |                  | 
+----------------------------+------------------+ 
 
About Enfis 
Enfis Group Plc (AIM: ENF) designs, manufactures and markets intelligent, 
high-power, 'tunable' LED arrays and light engines with a focus on providing 
cutting-edge solutions that can be easily integrated into luminaires, fixtures 
and custom projects. The company's expertise covers semiconductor technology, 
packaging, thermal management, optics, electronic design, software and volume 
manufacturing. 
Enfis 'smart' LED array technology offers luminaire and fixture manufacturers 
unsurpassed light output quality. Their ultra-bright, multi-watt, 
multi-wavelength 'smart' LEDs are designed so that each wavelength can be 
individually controlled and monitored. Each Enfis 'smart' LED array has active 
colour temperature and heat-sensing components that control, calibrate and 
regulate the light output of each wavelength on the array for the lifetime of 
the component. 
More information about the company's LED array and light engine products can be 
found at www.enfis.com. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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