(Alliance News) - Dialight PLC on Monday said it swung to an interim loss in line with falling revenue, while it announced the immediate resignation of its chief financial officer.
Shares in Dialight slumped 15% to 198.88 pence each in London on Monday after midday.
In the six months that ended June 30, the London-based electronics company specialising in LED lighting said it swung to a pretax loss of GBP4.2 million from a GBP1.6 million profit a year earlier.
This was in line with revenue falling to GBP73.2 million from GBP80.8 million. This offset falling administrative expenses to GBP12.0 million from GBP13.3 million, cost of sales down to GBP51.5 million from GBP52.6 million and distribution costs down to GBP12.5 million from GBP12.6 million.
Net debt also increased to GBP22.7 million from GBP20.2 million, which the company said was driven by the loss during the period.
Looking ahead, Dialight said current trading and its full-year 2023 outlook was below its prior expectations.
"However, the board expects an improved second half trading performance when compared to the first half and the prior year period driven by a solid order book in the seasonally strongest period, lower component costs coming through and cost savings. Expected to deliver progress in 2024," the company said.
Dialight said the board has undertaken a "detailed" review of its operations and strategy, led by new Chair Neil Johnson, who took the post in May after the company's annual general meeting.
The review concluded that Dialight has "significant" opportunities within its core LED lighting market, with the potential to deliver increased growth and "materially improved" profitability.
It said its transformation plan is set to begin in the second half of 2023, focusing on streamlining the group to focus on its core LED lighting business, resetting and realigning its cost base and accelerating growth in key lighting markets.
"It has been a pleasure working with the new board to create our transformation plan, which we believe will make Dialight a more focused, leaner organisation that is better able to capitalise on the opportunities presented by structural growth trends in the industrial LED lighting market," said Chief Executive Officer Fariyal Khanbabi.
"Combined with a reduced cost base and investment in improved manufacturing productivity, this should enable the group to achieve higher underlying profitability over the medium term. With the group's markets remaining challenging the Board is focused on driving execution of the transformation plan, with initial restructuring actions to be taken in the second half of 2023."
Dialight also announced the resignation of Chief Financial Officer Clive Jennings with immediate effect.
The company said it will commence a search for a successor in "due course".
By Greg Rosenvinge, Alliance News reporter
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Dialight (DIA)