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