Email Facebook Twitter

Tech company Mporium delivers an outstanding set of Q1 results says CEO De Groot
IronRidge Resources CEO hails spectacular lithium project and money making potential for gold

ShareCast News

Materials supply and pension changes a concern for Dialight

Thu, 6th Dec 2018 11:10

(Sharecast News) - Industrial LED lighting company Dialight updated the market on its trading for the year ending 31 December on Thursday, reporting that it had made "considerable progress" since the termination of its contract manufacturing partner arrangements.

The London-listed firm said that at the time of the termination, it had 50% of final assembly of lighting products in-house.

That had now increased to more than 90%, and was anticipated to be at 100% in the coming weeks.

Dialight said production at its own facility had been ramping up well, but had been hampered by the inability to obtain raw material supplies from its manufacturing partner on a timely basis.

The delays in raw material supplies adversely impacted November results, the board claimed.

Performance in December was "critical" to delivering the company's year-end results, and would require a further planned ramp-up in production coupled with continuity of raw material supply.

Dialight also noted that on 26 October, the High Court reached a judgment in relation to Lloyds Banking Group's defined benefit pension schemes which concluded that schemes should equalise pension benefits for men and women as regards to guaranteed minimum pension benefits.

Should that outcome be upheld, Dialight said it was working with the trustees of its pension schemes, and its actuarial and legal advisers, to understand the extent to which the judgment would crystallise additional liabilities for its pension schemes.

It said its current guidance excluded any potential impact on the income statement related to the equalisation.

"The relocation of final assembly of our products to our own facilities is essentially complete," said Dialight group chief executive Marty Rapp.

"As we ramp up our new facilities in Mexico and Malaysia early in 2019, we will begin to see the full impact of transition to a hybrid manufacturing model.

"We would have preferred to make these changes outside our peak selling season, but these are the right actions for the business and coupled with our expanded new product development actions will result in a stronger and faster-growing Dialight."

Dialight said its full-year results for the year ending 31 December would be announced on 25 February next year.

Related Shares:

Back to ShareCast News

Share Price, Share Chat, Stock Market news at
FREE Member Services
- Setup a personalised Watchlist and Virtual Portfolio.
- Gain access to LIVE real-time Regulatory News (RNS).
- View more Trades, Directors' Deals, and Broker Ratings.
Share Price, Share Chat, Stock Market news at

Datafeed and UK data supplied by NBTrader and Digital Look. While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.