AGM trading update

RNS Number : 0982L

Dialight PLC

17 April 2018

 

17 April 2018

Dialight plc

("Dialight" or the "Group")

AGM trading update

Dialight, the world's leading industrial LED lighting technology company, today publishes a trading

update for the year ending 31 December 2018, ahead of its Annual General Meeting taking place later today.

Since the Group's full year results announcement on 26 February 2018, the Group has continued to focus on addressing its operational issues. These arose from an incompatibility of our contract manufacturer's internal systems and the needs of our product portfolio.

We have provided significant support from our most experienced supply chain and production teams at the plant in Guadalajara, Mexico. We have made progress in the early identification of material shortages and we continue to take corrective action to relieve these shortages, as well as other measures to improve efficiency.

The second step involved the transfer of the more complex product lines back to our Ensenada, Mexico facility, where we have retained assembly capabilities, to help the overall production throughput. During this period of transfer we will be holding higher inventory levels to support the business. The production of the complex product lines commenced in February 2018 and this will be extended to produce High Bays by June 2018.

As expected, these actions are yet to yield significant results in the fulfilment of outstanding orders, although we have made progress in service levels of our smaller product lines. We are confident of an overall significant improvement in our operations over the coming months. The Board continues to expect the Group's results for 2018 to be heavily weighted to H2 reflecting the successful resolution of the issues.

We have the right products and a market with good growth prospects; when the current operational issues are behind us we will maximise the opportunities for growth available to the Group.

The Group's interim results for the six months ending 30 June 2018 are expected to be released on 30 July 2018.

Contacts:

Dialight Plc

Martin L Rapp - Group Chief Executive

Tel: [phone]

Fariyal Khanbabi - Group Finance Director

Tel: [phone]

MHP Communications

Tim Rowntree

James White

Tel: [phone]

About Dialight:

Dialight (LSE: DIA.L) is a global leader in sustainable LED lighting for industrial applications. Dialight's LED products are providing the next generation of lighting solutions that deliver reduced energy consumption and create a safer working environment. Our products are specifically designed to provide superior operational performance, reliability and durability, thereby reducing energy consumption and ongoing maintenance and achieving a rapid return on investment.

The company is headquartered in the UK with operations in the USA, UK, Denmark, Germany,

Malaysia, Singapore, Australia, Mexico and Brazil. www.dialight.com.

This Trading Update is based on unaudited management accounts information and has been prepared solely to provide additional information to the shareholders of Dialight plc. It should not be relied on by any other party, for other purposes. Forward-looking statements have been made by the Directors in good faith using information available up until the date that they approved this statement. Forward-looking statements should be regarded with caution because of the inherent uncertainties in economic trends and business risks.

 

END

 

 

TSTIFMMTMBTBTIP