Last checked at 7 Aug 2015 07:00
7 August 2015 Dialight plc ("Dialight" or the "Company") Cost reduction actions
Dialight today announces actions on costs which involve a redundancy programme to reduce global headcount by approximately 130, representing around 12% of the Group's total workforce, excluding direct labour. The roles expected to be made redundant span all of the Group's countries of operation and consultation with employees has now begun. As previously outlined at our Interim Results in July, the Group experienced a downturn in profitability in the first half of 2015 due to operational inefficiencies and excess costs. We are therefore taking swift action to address these excess costs to improve profitability and better position Dialight in its key growth markets. The redundancy programme will, on a run rate basis, reduce operating costs by more than £3.0m million per year. It will save more than £1.0 million in the current financial year, although this will be offset by cash costs of approximately £1.0 million. Michael Sutsko, Group Chief Executive, said: "I believe that we have a huge opportunity ahead and Dialight is well positioned to capture significant value in our rapidly growing markets. However, as sales continue to grow, the business has taken on excess costs which have resulted in our poor first half performance. We firmly believe that our team can deliver continued growth with future resources being added in line with our strategy. This action is a key part of our plans to transform our business in the short term whilst realigning to deliver profitable growth going forward. As previously indicated, we will report back with the findings of our strategic review in October." Contacts: Dialight PLC Michael Sutsko - Group Chief Executive Fariyal Khanbabi - Group Finance Director Tel: 01638 778641
Canaccord Genuity Limited Simon Bridges / Guy Marks Tel: +44 (0) 20 7523 8000
FTI Consulting Nick Hasell +44 (0)20 3727 1340 About Dialight plc The Group comprises the following business segments:
Lighting which addresses the increasing demands for Energy Efficient Lighting solutions for industrial/hazardous locations;
Signals that covers Traffic, Transportation and Obstruction signals; and
Components whose sales are primarily to Electronics OEMs for status indication.
The company is headquartered in the UK with operating locations in Australia, Brazil, Denmark, Germany, Malaysia, Mexico, Singapore, UAE, the UK and the USA. More information is available at www.dialight.com. |