12 Nov 2009 07:00
Date: Thursday 12 November, 2009
DIALIGHT PLC
Interim Management Statement
Dialight plc, the UK based leader in Applied Light Emitting Diode ("LED") Technology, today publishes its Interim Management Statement relating to the period from 1 July 2009 until 12 November 2009, in accordance with FSA Disclosure and Transparency Rule 4.3.
"Trading on track for full year"
Dialight consists of two business segments:
Signals/Illumination which includes Traffic and Rail Signals, Obstruction Lights and Solid State Lighting
Components comprising LED Indication Components and Electromagnetic Disconnects ('smart' meter disconnect switches)
Signals/Illumination
The Board is pleased to report another good performance by the Signals/Illumination segment which is showing a strong revenue increase over the first half of 2009. Highlights of the trading performance are as follows:
European traffic has made a strong recovery in the second half of the year after a tough start to 2009 and volumes have returned to a similar level to the second half of last year. US traffic has seen some improvement over the first half of the current year but overall volumes are below last year due to the exceptional performance in 2008.
Demand for our obstruction lights in the US continues to show a significant increase, driven by sales of the white strobe to the Telecommunication market together with some recovery in the wind turbine market.
Sales of our Safesite Hazardous Location Lights continue to show growth and lighting revenue has also increased with sales of new white lighting product to the industrial market. Demand for architectural lighting product has stabilized but continues at levels well below last year.
Components
In our trading statement of 27 July, we noted that there were the early signs of recovery in the Indication market. We are pleased to report that the market demand has shown some recovery during the third quarter of the year from a very low base. However, there remains some uncertainty in predicting trends and we do not expect the market to recover to 2008 levels in the short term.
Within the electromagnetic components segment, shipments have commenced under the recently announced supply contract for the 'smart' switches for the US meter market and taken with sales of the 'smart' switches to other meter manufacturers, this segment will show good growth over the first half.
Gross margin
The ongoing programmes to reduce the material costs of product lines through re design and re-engineering are resulting in higher margins.
Cashflow
The Group maintains a strong balance sheet and cash generation is in line with expectations.
Outlook
Dialight continues to implement its strategy for driving growth through the provision of energy efficient and environmentally friendly lighting products.
Based on the continued good progress of the Signals/Illumination segment in revenue together with an improved margin and the stabilization of activity levels in the Components segment, the Board is confident in maintaining its current outlook on trading for 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 7074 1800
Email: dialight@kreabgavinanderson.com
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.
Dialight (DIA)