AGM and Interim Management Statement
07/05/2008
Dialight plc, the UK based leader in Applied LED Technology, today publishes its Interim
Management Statement relating to the period from 1 January 2008.
Dialight consists of two business segments:-
- Signals/Illumination which includes Traffic and Rail Signals, Obstruction Lights and the new product area of Solid State Lighting
- Components comprising Light Emitting Diode (“LED”) Indication Components and Electromagnetic Disconnects (‘smart’ meter disconnect switches)
Highlights
- Orders for Signals/ Illumination showing continued double digit growth
- Strong order intake for Meter Disconnect product
- Indication Components continues to perform well
- Sale of Indication Business on track
- Margins stable in spite of inflationary pressure
- Overall trading in line with expectations
Current trading
Dialight has had an encouraging start to 2008. Orders for the Signals/Illumination segment
are robust and would support continued double digit growth across each of our product
lines. In particular, our European Traffic business has had a strong start to the year and
the North American Traffic business is benefitting from shipments of the previously
announced contract for Miami Dade County in Florida. Sales of Obstruction Lights into the
North American Wind Tower market continues to gain momentum.
Our LED Indication product lines have shown good solid performance with order intake at
a similar rate to the second half of 2007. In spite of the talk of recession in the North
American market, sentiment from our customers and distributors is that business is still
cautiously positive.
The Dialight BLP Meter Disconnect business has had a good start with the $4,000,000
blanket order received in the first quarter from one major US meter manufacturer and
production orders received from another US meter manufacturer. This segment should
exhibit significant growth in the second half of 2008.
While the much published price pressures on commodities have been apparent in our
purchased materials, cost reduction is an ongoing activity within Dialight and in spite of
those pressures, we have been able to maintain and in some cases to improve our
margins.
In March we announced that we would pursue the possible sale of our LED Indication
business and have commenced a formal sale process with our financial advisors. The
process is progressing in line with our intentions.
In summary, Dialight has had a good start to the year and trading is in line with
expectations. The Board remains confident in the prospects for the current year.
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.
Contacts:
Roy Burton - Group Chief Executive
Cathy Buckley - Finance Director
Dialight PLC
Tel: 01480 447490
Neil Johnson
Canaccord Adams Limited
Tel: 020 7050 6500
Alistair Mackinnon-Musson
Nicola Savage
Hudson Sandler
Tel: 020 7796 4133
Email: dialight@hspr.com