Last checked at 13 May 2009 11:30
Date: Embargoed until 11.30 am, Wednesday 13 May 2009
Contacts:
Roy Burton - Group Chief Executive
Cathy Buckley - Finance Director
Dialight PLC
Tel: 01480 447490
Simon Bridges
Canaccord Adams Limited
Tel: 020 7050 6500
Kirsten Molyneux
Kreab Gavin Anderson
Tel: 020 75541400
Email: dialight@gavinanderson.co.uk
DIALIGHT PLC
AGM and Interim Management Statement
Dialight plc, the UK based leader in Applied LED Technology, today publishes its Interim Management Statement relating to the period from 1 January 2009 until 30 April 2009.
Dialight consists of two business segments:-
Signals/Illumination which includes Traffic and Rail Signals, Obstruction Lights and Solid State Lighting Components comprising Light Emitting Diode ("LED") Indication Components and Electomagnetic Disonnects ('smart' meter disconnect switches)Current trading
We are pleased to report that demand for our Indication Components products has stabilised over the last four months at the previously reported level. Although volumes are at a significantly lower level than last year the business continues to be both profitable and cash generative.
Products in the Signals/Illumination segment have been less affected by the current economic turbulence. Whilst orders and sales volumes are down modestly year on year, sales values have increased due to currency factors. We are continuing to see a tightening of capital funding in Europe which has slowed the growth in the adoption of our traffic lights. In the US we have yet to see significant investment from the government stimulus packages which should benefit demand for Dialight products, however the Board's level of confidence is unchanged for this segment for both the half and the full year.
We are very pleased with the progress that the new White Strobe product is making and adoption by operators of Cellular Phone Towers is increasing. We expect strong growth in this product line in the second half of the year.
Demand for Architectural Lighting products has been badly affected due to the discretionary nature of these potential purchases but Dialight continues to pursue its strategy of penetrating the Hazardous and Industrial Lighting markets and developing further new products to service that segment.
In the early part of the year, staffing levels were reduced significantly in response to lower volumes. Costs continue to be monitored closely and cost reduction programmes are being aggressively pursued whilst at the same time, strategic investments in both people and the tooling associated with new products are ongoing. A major part of our manufacturing is carried out in the Group's plant in Ensenada, Mexico, which fortunately has been only minimally impacted by the actions of the Mexican Government to contain the spread of swine flu.
The Group maintains a strong balance sheet with a significant cash balance at the end of April. Trading remains in line with the Board's expectations at the time of the preliminary announcement on 2 March and the Board remains confident in the prospects for the current year.
Board Changes
As previously announced Bill Whiteley will retire from the Board at the AGM and we thank him for his significant contributions over the last eight years.
We are pleased to announce the appointment of two Non-Executive Directors who will join the Board on 14 May 2009. Bill Ronald is currently Chairman of Bezier Group, a Non Executive Director of Halfords Group plc, and a Non Executive director of Alfesca HF and had previously spent many years with the Mars Group. He brings significant experience in marketing and product branding to the Board, a key element of Dialight's strategy in the lighting industry.
Richard Stuckes who is currently CEO of AkzoNobel (UK and Ireland), was formerly in a senior position with Philips Lighting and his experience in the lighting industry will be of great benefit to the Company.
There is no other information to be disclosed for the purposes of Rule 9.6.13 of the Listing Rules.
Harry Tee CBE , Chairman of the Board said "I am delighted to welcome our two new members to the Board and am confident that their wide experience will be a great addition to the Board's resources as we continue to develop and refine the Group's strategy in solid state lighting".
Notes
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.