Trading Update
Dialight plc
(“Dialight” or “the Group”)
Trading Update
In our November Interim Management Statement, Dialight noted that the Group’s financial results for 2013 would be weighted towards the seasonally-strong fourth quarter, and that the precise timing of Industrial Lighting orders remained difficult to predict.
Industrial Lighting sales grew by 50% (£23m) in the year. The late receipt of almost £3m of Lighting orders that will now be delivered in 2014 and decisions by certain US customers in December to defer Lighting orders will result in a shortfall against our previous expectations.
We have previously stated that the performance of our Obstruction business during the year had been affected by the transition in our business model in this market and that this would directly impact Group revenues and profitability compared to 2012. In addition, the combined performance of the Traffic business in both the USA and Europe was also down £3m in revenues on the prior year. We now expect underlying profit before tax from continuing operations to be not less than £14.5m.
Over the latter part of 2013, we have been in discussions with Philips to join their LED Luminaire Licensing Programme. These were concluded at the end of December and will give Dialight access to a broad range of Philips’ Intellectual Property relating to Luminaires.
Cashflow
The Group’s net cash at 31st December 2013 was £7m (2012: £15m)
Outlook
With the Industrial Lighting market remaining buoyant and Dialight continuing to hold its market leading positions, the Board remains confident of delivering renewed profitable growth in 2014 and beyond.
The Group will publish its preliminary results for the 12 month period ended 31 December 2013 on 24 February 2014.
For further information:
Dialight plc
Roy Burton – Group Chief Executive
Mark Fryer- Group Finance Director
Tel: +44 (0) 1638 778640
Canaccord Genuity Limited
Simon Bridges
Tel: +44 (0) 20 7523 8000
FTI Consulting
Nick Hasell
+44 (0)20 7269 7191
About Dialight plc
The Group comprises the following business segments:
Lighting which addresses the increasing demands for Energy Efficient Lighting solutions for industrial/hazardous locations;
Signals that covers Traffic, Transportation and Obstruction signals; and
Components whose sales are primarily to Electronics OEMs for status indication.
The company is headquartered in the UK with operating locations in Australia, Brazil, Denmark, Germany, Japan, Malaysia, Mexico, Russia, Singapore, UAE, the UK and the USA. More information is available at www.dialight.com.
Cautionary statement
This announcement contains certain statements, statistics and projections that are or may be forward-looking. The accuracy and completeness of all such statements, including, without limitation, statements regarding the future financial position, strategy, projected costs, plans and objectives for the management of future operations of Dialight plc and its subsidiaries is not warranted or guaranteed. These statements typically contain words such as ‘intends’, ‘expects’, ‘anticipated’, ‘estimates’ and words of similar import. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Although Dialight plc believes that the expectations will prove to be correct. There are a number of factors, many of which are beyond the control of Dialight plc, which could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements