SANDAL PLC
("Sandal" or the "Company")
AGM STATEMENT
23 NOVEMEBER 2017
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 financial year to date has been broadly in line with the Board's expectation for both Energenie and Power Connections. However, it is encouraging to report that year on year sales for Energenie MiHome have tripled since September 2016 with the number of Gateways being installed monthly in Q4 of 2017 being over three times the monthly rate in Q4 of 2016. In addition, the average device attach rate has increased from 4 to 6 per Gateway, demonstrating that customers are expanding their systems beyond their initial purchase.
"The current sales split between Power Connections and Energenie is currently 70/30 in favour of Power Connections but we anticipate this split to be closer to 50/50 by the end of 2018 as the market for Energenie MiHome products and home automation in general continues to expand. Energenie MiHome products are now sold and listed by Homebase/Bunnings, Argos, Screwfix, Ocado, Sainsbury's, Amazon and Graham's to name but a few.
"Today is Black Friday, now a firm fixture in the UK retail calendar and we are delighted that our products have again been selected for inclusion in this promotional event by Amazon and some of our other retail partners.
"The Board remains of the opinion that the growth in the consumer market will be driven by the proliferation of the home automation platforms. To date the Amazon Echo platform is by far and away the market leader with over 3m devices sold, vindicating our decision to focus on working with Amazon as a partner and by the end of this month, we will also be live with the Google Home platform. Apple Homekit and Windows Cortana are both currently at low levels of market penetration but have potential for significant future growth - we intend to commence the necessary development to make our products Homekit compatible in the near future and will review the opportunities around Cortana integration as this platform develops.
"We are continually striving to innovate in terms of our product range and the features that they offer so that we can capitalise on our market position as the sector moves into a faster growth phase. The sector growth will inevitably attract new entrants to the market but we believe our early-mover advantage along with our technological capabilities will prove crucial in achieving future success.
"In addition to the growth in the B2C market, we are now developing exciting B2B opportunities with Intellisant/EDF and Samsung and see the area of Social Care as having very strong potential for the future. We are currently in early stage dialogue with a number of local authorities and other providers in this market and we are also seeing growing interest from the house building sector too.
"We are excited about our prospects in the coming period and look forward to reporting on our further progress in the Interim statement."
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.
Ends
Enquiries:
Sandal Plc 01279 422022
Alan Tadd, CEO
Oliver Tadd, Director
www.sandal-plc.co.uk
Cairn Financial Advisers LLP
David Coffman/Jo Turner 020 7213 0880
MB Communications
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 new 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, Argos and Sainsbury's. 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 Homebase, Maplin, Amazon, Screwfix, Toolstation and ASDA.
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.