Last checked at 23 Nov 2022 07:00
Dialight plc
("Dialight" or the "Group")
Trading update
Dialight plc (LSE: DIA.L), the global leader in LED lighting for heavy industrial applications, today publishes a trading update for the 10-month period ended 30 October 2022 (the "Period").
The Group has seen positive overall trading momentum continue into the second half, with Group revenue in the Period up 35% (CCY 23%) over the prior year comparator. This continues to be driven by the Lighting business where revenues for the first 10 months of the year are up 40% (CCY 29%). Lighting order intake has remained positive. Signals & Components has also continued to see growth in the second half, contributing to a revenue increase of 23% (CCY 11%) in the Period, although order levels into Q4 are reflecting the softer worldwide demand in the opto-electronic market.
The Group has continued to mitigate, successfully, market-wide availability issues for electronic components and castings, including through inventory investment. There has been further inflation in both component and freight costs during the second half, which have been partially mitigated by pricing and increased operating leverage.
As the Group's revenue and costs are predominantly transacted in US Dollars, the Group has redenominated its existing revolving credit facility to $34 million, from £25 million. Full year net debt is expected to be similar to the half year, reflecting both the growth delivered in the year, as well as the short-term tactical inventory investment. The Group expects leverage to be at a comfortable level at the full year with capacity to support continued growth.
Expectations for the full year remain unchanged. The Board remains very mindful of the current economic backdrop and continuing supply chain disruptions, with the final two months of the year being a seasonally important trading period for the Group.
The Group has a leading position and product offering in markets which are underpinned by long term sustainability, safety and regulatory drivers. As a result, there is significant opportunity for further growth, led by an enhanced commercial strategy and continued product innovation, which provides confidence in the Group's longer-term prospects.
The Group will publish its full year results for the year ending 31 December 2022, on 27 March 2023.
Contacts:
Dialight plc
Tel: +44 (0)203 058 3542
Fariyal Khanbabi - Group Chief Executive
Clive Jennings - Chief Financial Officer
About Dialight:
Dialight (LSE: DIA.L) is a global leader in sustainable LED lighting for industrial applications. Dialight's LED products are providing the next generation of lighting solutions that deliver reduced energy consumption and create a safer working environment. Our products are specifically designed to provide superior operational performance, reliability, and durability, reducing energy consumption and ongoing maintenance, and achieving a rapid return on investment. The company is headquartered in the UK with operations in Australia, Dubai, the EU, Malaysia, Mexico, Singapore, the UK, and the USA. www.dialight.com.
Notes:
Cautionary Statement. This announcement may contain certain statements, statistics and projections that are or may be forward-looking. The accuracy and completeness of all such statements, including, without limitation, statements regarding the future financial position, strategy, projected costs, plans and objectives for the management of future operations of Dialight Plc and its subsidiaries is not warranted or guaranteed. These statements typically contain words such as 'intends', 'expects', 'anticipated', 'estimates' and words of similar import. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Although Dialight Plc believes that the expectations will prove to be correct. There are a number of factors, many of which are beyond the control of Dialight Plc, which could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements.