Interim Management Statement

RNS Number : 5801B

Dialight PLC

18 April 2012

 



Dialight plc

("Dialight" or "the Company")

Interim Management Statement

18 April 2012

Continued strong performance for Energy Efficient Lighting

Dialight plc (LSE: DIA.L), the UK based leader in Applied Light Emitting Diode ("LED") Technology, today publishes its Interim Management Statement relating to the period from 1 January 2012 until 18 April 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.

Signals/Illumination

The Board is pleased to report that the Signals/Illumination segment is performing very well and is trading in line with our expectations.  The major growth engines Obstruction Lighting and White Industrial Lighting continue to drive strong growth in this segment as our investment in sales channel is paying off. We continue to introduce new products and improve designs, and are benefitting from further price reductions in LED components. Sales resource is the key to continuing to grow the business. At the end of the first quarter 2012 we have more than doubled our direct sales heads focused on white lighting compared to the same time last year and will continue to expand this sales force.

LED Indication Components

The performance of the segment is consistent with the run rate of the latter months of 2011 and is therefore in line with expectations.

Electromagnetic Components

In our Preliminary Results for 2011, we stated that we were investigating the potential for selling this business. We have received offers but we do not believe that we will conclude a transaction in the first half of this financial year. In the meantime we will continue to run the business and explore ways of maximising its value.

Financial position

The Group maintains a strong balance sheet and cash generation is in line with expectations, albeit that this quarter seasonally sees a large cash outflow as working capital builds ahead of our peak summer months. Our net cash balance at the end of the first quarter was £6.2m compared with £6.3m at the same stage in 2011. 

Outlook

Dialight continues to drive its strategy for generating strong growth through the provision of energy efficient and environmentally friendly lighting products that provide a strong and immediate value proposition to its customers. Based on the continued excellent progress of the Signals/Illumination business, the Board is confident in maintaining its positive outlook for significant growth in both sales and earnings for 2012. Our expectations are that the greatest growth over the coming years will be driven by adoption of White Lighting for regulated Industrial and Hazardous applications. We have previously given guidance as to growth projections and, as in previous years, expect the financial results to be weighted to the second half but nontheless remain confident in meeting market expectations.

For further information:

Dialight plc

Roy Burton - Group Chief Executive

Mark Fryer- Group Finance Director

 Tel:[phone]

Canaccord Genuity Limited

Simon Bridges

Tel:[phone]

Kreab Gavin Anderson

Robert Speed

Tel: [phone]

 Email: [e-mail]

About Dialight plc

The Group comprises the following business segments:

Signals/Illumination which addresses the increasing demands for Energy Efficient Lighting solutions through the use of high brightness LEDs and utilisation of a number of associated technologies.  Areas of business include Traffic and Obstruction Lights and Solid State Lighting products.

Indication whose sales are primarily to Electronics OEMs for status indication; and

Electromagnetic components which supplies smart meter disconnect switches which are used by utility companies to manage remotely electrical supply to residential and business premises.

The company is headquartered in the UK with operating locations in the UK, USA, Denmark, Germany, Mexico, Japan and Australia. More information is available at www.dialight.com.

Cautionary statement

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.

 

END

 

 

IMSIPMMTMBMBBMT