CONTINUED STRONG PERFORMANCE FOR ENERGY EFFICIENT LIGHTING
("Dialight" or "the Company")
Interim Management Statement
8th November 2012
Continued strong performance for Energy Efficient Lighting
Dialight plc (LSE: DIA.LN), the UK based leader in Applied Light Emitting Diode ("LED") Technology, today publishes its Interim Management Statement relating to the period from 1 July 2012 until 8 November 2012, in accordance with Disclosure and Transparency Rule 4.3.
Dialight plc is leading the change in the status quo for industrial lighting users across the world. Applying leading edge LED technology it produces lighting fixtures designed specifically for hazardous and industrial locations, obstruction lighting and traffic signals to deliver significant reductions in maintenance and energy consumption.
Following continued growth in industrial lighting the Board announces that, beginning with the final results for the year ending 31 December 2012, Dialight will report through three new segments; Industrial Lighting, Signal Lighting and Components.
Industrial Lighting will include those applications developed for industrial/hazardous uses whilst Signal Lighting will include obstruction, traffic and transportation products. Components will comprise LED indication components and legacy electro-magnetic products. Dialight will also report on the discontinued Electromagnetic Components segment.
Industrial Lighting segment
The Board is pleased to report that the Industrial Lighting segment is performing well and is trading in line with our expectations. Our investment in sales channel is paying off. Sales resource is the key to continuing to grow the business. By the end of 2012, we will have more than doubled our direct sales heads focused on Industrial Lighting compared to the end of 2011. We continue to introduce new products, improve designs and drive improved customer payback. Industrial Lighting sales for the full year are expected to exceed the level of 65% growth achieved at the half year to June 2012.
Signal Lighting segment
The Signal Lighting segment is trading below our expectations due to the delay in the award of a significant new contract for obstruction lighting. For 2013 we expect the level of growth in obstruction lighting to return to that achieved in prior years. The other products in this segment are trading in line with expectations.
The performance of the segment is ahead of the run rate of the latter months of 2011 and is therefore in line with expectations.
Discontinued - Electromagnetic Components
The Group has signed conditional agreements to dispose of its utility disconnect switch business. The sale of intellectual property rights has been completed with upfront consideration of ?3.1m and a further ?3.1m payable for inventory anticipated in December 2012. The profit on the sale is expected to be approximately ?1m after costs of the transaction, redundancy and the one time amortisation of previously capitalised development expenditure.
The Group maintains a strong balance sheet and cash generation is in line with expectations. Our net cash balance at the end of the third quarter was ?6.3m compared with ?5.3m at the same stage in 2011.
The Group has seen strong worldwide order intake for Lighting and the Board is confident in the growth strategy for both Industrial Lighting and Signal Lighting, meeting expectations for 2012 and of continuing good progress into 2013.
For further information:
Roy Burton - Group Chief Executive
Mark Fryer- Group Finance Director
Tel: 44 (0) 1638 778640
Canaccord Genuity Limited
Tel: 44 (0) 20 7523 8000
Kreab Gavin Anderson
Tel: 44 (0) 20 7074 1800
About Dialight plc
The Group comprises the following business segments:
Industrial Lighting which addresses the increasing demands for Energy Efficient Lighting solutions for industrial/hazardous locations;
Signals Lighting that covers Traffic, Transportation and Obstruction Lights; and
Components whose sales are primarily to Electronics OEMs for status indication.
The company is headquartered in the UK with operating locations in Australia. Denmark, Germany, Japan, Malaysia, Mexico, Singapore, UAE, the UK and the USA. More information is available at www.dialight.com.
This Interim Management Statement contains certain forward-looking statements which have been made by the Directors in good faith using information available up until the date they approved the statement. Forward-looking statements should be regarded with caution as by their nature such statements involve risk and uncertainties relating to events and circumstances that may occur in the future. Actual results may differ from those expressed in such statements, depending on the outcome of these uncertain future events