(Alliance News) - Dialight PLC on Tuesday said its operational "recovery" continues to improve, but earnings are expected to decline in 2019.
The stock was trading 20% lower in London in morning trade at 240.00 pence a share.
The LED lighting company said it remains in "recovery" mode with a strong focus on "rebuilding" customer and distributor confidence, and continued investment in products.
During the period, the company said it has continued to increase finished goods inventory to demonstrate its operational recovery to customers.
However, Dialight said its Signals & Components business has had a "difficult" year. The company had previously expected some recovery in this unit in the second half of the year, but market conditions remained weak, Dialight highlighted, and now recovery is not anticipated until the second half of 2020.
Dialight explained that it is now difficult to predict the timing of orders after "very weak" results in October. Therefore, the company said it now expect its full-year earnings before interest and taxes to be in the range of GBP5 million to GBP8 million after adjustment for non-underlying costs. In 2018, Dialight reported underlying Ebit of GBP8.5 million.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Dialight (DIA)