Dialight Regulatory News (DIA)

Dialight plc

("Dialight" or the "Group")

Full Year trading update

Notice of results

Dialight plc (LSE: DIA.L), the global leader in LED lighting for heavy industrial applications, today publishes a full year trading update for the year ended 31 December 2022 ("FY22"). All figures are unaudited.

For the full year, Group revenue increased by 29% to around £169m (constant currency (CCY) of 17%); with Lighting up 34% (CCY 22%) and Signals & Components up 18% (CCY 6%). However, revenue was significantly below our expectations in December, reflecting seasonal demand being below historic levels as well as several strategic customers deferring anticipated orders., Due to the lower-than-expected December revenue, the Group now anticipates reporting FY22 underlying operating profit of at least £5m (2021: £4.5m) which is below the Board's previous expectations. For reference, the Group traditionally generates a significant proportion of its operating profit in December.

Net debt closed at £20.9m, (June 2022: £20.2m) reflecting higher inventory built in anticipation of seasonal demand. The Group will focus on working capital reduction in 2023. The Group balance sheet remains strong.

There is no update on the Sanmina litigation and the Group will provide an update when possible. Within non-underlying items, the Group will include £1.2m for the ongoing Sanmina costs in 2022. Additionally, the Group has decided to utilise third party components in a new Obstruction product suite, rather than Dialight developed technology, and this is likely to result in a non-cash impairment of £1.2m.

While the FY22 outturn is disappointing 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 growth, underpinned by product innovation, continuing to provide confidence in the Group's longer-term prospects.

Notice of results

The Group will publish its audited full year results for the year ended 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

CERTAIN INFORMATION CONTAINED IN THIS ANNOUNCEMENT WOULD HAVE CONSTITUTED INSIDE INFORMATION (AS DEFINED BY ARTICLE 7 OF REGULATION (EU) NO 596/2014), AS IT FORMS PART OF DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018) ("MAR") PRIOR TO ITS RELEASE AS PART OF THIS ANNOUNCEMENT AND IS DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF THOSE REGULATIONS.

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.