(“Sandal or the “Company”)
28 NOVEMBER 2018
At the Annual General Meeting (“AGM”) of Sandal plc, the designer, developer and manufacturer of electronic products, being held today, the Company’s CEO, Alan Tadd will make the following statement:
“Trading during the current financial year has seen revenue for the five months ended 31 October 2018 exceed the comparative period in 2017, driven by strong sales in the PowerConnections division which increased 11.8%.
“Energenie MiHome has seen increases in the number of gateways and devices added to the system in the current period with the number of connected devices as at 31 October 2018 being 95% higher than a year earlier. Device growth is being driven by lighting products, with heating products also showing a significant gain in connected devices. However, the Energenie MiHome sales figures do not fully reflect this growth due to a significant stock overhang in an important customer that overstocked in the last financial year. Consequently the move to a 50/50 sales split between the two Sandal divisions which the Board anticipated in the current financial period, has not yet been achieved.
“During the current financial year the following have listed Energenie MiHome products: Primaflow F&P, Expert Electrical (Ireland), JTF, Plumb Nation, Renuvo, Box.co.uk and Utilita Energy.
“The Board still believes that the growth in the consumer market will be driven by voice activated devices principally from Amazon and Google with whose systems the Energenie MiHome products are already integrated. These two systems continue to dominate the market and the Board does not consider the market penetration of either Apple Homekit or Windows Cortana sufficient to warrant product development at this stage.
“Current product development is focused on increasing functionality of the Energenie MiHome products and app, cost reduction of existing products as well as new Wi-Fi products that will feature on the app.
“The current financial year has seen the launch of the installer programme which offers consumers the opportunity of having Energenie MiHome products professionally installed at a fixed price. These installers will be linked into the growing network of electrical and plumbing wholesalers to drive sales through these outlets. The Board believes there is great potential in the ”Done For Me” market as the smart home sector expands away from the “early adopter” phase.
“Aside from the organic growth in the consumer market, the Directors are also seeing signs of greater market interest from housebuilders for a cost effective proven solution as well as more trials in the social care space in which Sandal continues to participate. During 2019 the Board will be looking into opportunities outside of the UK with both existing and new partners.
“The Directors continue to be excited about the growth opportunities for Energenie MiHome but recognise that these will only be fully achieved with additional capital for both further product development and increased marketing spend. The Board is therefore pursuing the possibility of raising further equity or debt for this purpose.”
This announcement contains information which, prior to its disclosure, was inside information for the purposes of Article 7 of EU Regulation 596/2014.
The directors of Sandal Plc accept responsibility for the contents of this announcement.
Sandal Plc 01279 422022
Alan Tadd, CEO
Oliver Tadd, Director
Cairn Financial Advisers LLP
David Coffman/Jo Turner 020 7213 0880
Maxine Barnes 07860 489571
Notes to editors:
Sandal plc commenced business in 1996 and joined NEX in March 2015. The Company designs, develops and manufactures consumer electronics products. Its business is divided into two distinct product groups, PowerConnections, a long established wholesaler and reseller of a successful and patented range of converter plugs and power cables, and Energenie, which sells a newer product range that includes energy saving products, portable charging devices and the Energenie MiHome range of products aimed at the "Home Automation" and "Internet of Things" marketplace.
The range of Energenie MiHome home automation products makes the remote operation of everyday household appliances and energy monitoring more accessible through integration with smartphone and tablet connectivity. The Energenie MiHome range is also integrated with the major players in the home automation market including Google Nest and Amazon Echo.
Energenie MiHome products are available through a number of mainstream retailers including Amazon, Robert Dyas, Target Components, Grahams Plumbers Merchants, Plumb Nation, Box.co.uk, Screwfix and Wickes.
In addition, Energenie also offers Eco and electrical, travel and energy saving products for homes and offices, reducing energy usage and the Home Automation sector. It has store listings for its current products with several large retailers including Amazon, Argos, and Screwfix.
PowerConnections is a supplier to customers in the UK and abroad, of single-phase electrical connection products. The products are manufactured in three partner factories in the Far East and have distributors worldwide for its range of patented converter plugs. The Company's product portfolio consists of International Power Leads, Rewireable Plugs, Converters and Connectors. These products are stocked in the Far East, Australia and UK.