Dialight plc (LON:DIA), the global leader in LED lighting for heavy industrial applications, has published a trading update for the 10-month period ended 30 October 2022.
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.
Dialight will publish its full year results for the year ending 31 December 2022, on 27 March 2023.