LONDON (ShareCast) - AIM-listed 'smart home' technology provider LightwaveRF has issued a profit warning three months before its year-end due to sales being hit by customer relationship wrangling, saying sales and profit would be flat.
The company said it had continued to make progress with existing and new customer relationships and its sales proposition but that "some of these have required modifications and developments to enhance product capability, which in the short term is holding back revenue".

As a result, LightwaveRF now expects "short term revenues to be constrained relative to current market expectations".

The company, which has developed a 'smart home' platform and product range to enable households and businesses to remotely operate and control household applications such as lighting, heating and security using smartphone apps and via Apple's Homekit development, said revenue and losses for the year to 30 September are now anticipated to be broadly similar to last year.

Looking for positive news, LightwaveRF, which was floated on AIM in 2008 as JSJS Designs, pointed out that it had recently signed an early-stage deal with India-based electrical company, Havells, to integrate the smart home platform into a cooling, lighting and power product range before the end of 2015.

Chief executive Mike Lord said "Although these short term revenue constraints are holding back our financial progress this year the opportunities for the business are more numerous than ever our confidence for the future progress of the business remains strong."

Interim results in May showed a maiden profit of £118,355 post tax, when Lord said the significant sales pipeline led management to "fully expect these to result in much increased sales traction in the short and medium term".

Shares in the company were down 23% to 28.15p by 10:00 on Wednesday.

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