Dialight (DIA)

Sector:

Electronic and Electrical Equipment

Index:

FTSE Small Cap

250.00p
   
  • Change Today:
    -8.00p
  • 52 Week High: 340.00
  • 52 Week Low: 160.00
  • Currency: UK Pounds
  • Shares Issued: 32.56m
  • Volume: 3,499
  • Market Cap: £81.41m
  • RiskGrade: 190

Dialight sees dark times for LED lighting sales

By Oliver Haill

Date: Tuesday 27 Oct 2015

LONDON (ShareCast) - (ShareCast News) - Shares in Dialight dimmed on Tuesday as the LED lighting group's new chief executive, Michael Sutsko, revealed his new strategy but also warned of much slower sales growth and increased uncertainty for the rest of the year.
The FTSE Smallcap company said lighting revenue had slowed to 5% in the third quarter to 30 September, a vast deceleration from the 24% in the first half of the year and 46% last year.

The company said this was due to further weakness in the oil and gas sector and reduced levels of industrial capital expenditure, particularly in North America.

At the half-year stage, Sutsko, who was appointed in June, had put in place cost-reduction plans, which were said to be on track to deliver their targeted reduction in operating costs, with management also encouraged by the strength of the order book.

"However, with market conditions more challenging during the third quarter, and Dialight's financial performance weighted as usual to the seasonally-strong fourth quarter, the group faces an increased level of uncertainty in the remainder of the current financial year," the company said.

Sutkso added that his strategic review had confirmed his view that the company can grab "significant value" in the LED lighting market.

As part of his new strategy, he plans to grow into new sectors and geographies and create a sales model based on strategic global accounts, with more "scalable and efficient" manufacturing operations.

By the end of 2018, Sutsko has set Dialight a target of achieving at least: 25% annual revenue growth, 40% gross margin, 15% EBIT margin and 80% cash conversion.

"The group has a differentiated position in a market that benefits from long-term structural growth and our focus now is to build on Dialight's expertise in LED lighting technology to diversify into new sectors and geographies, develop a more effective sales model and ensure that our manufacturing operations are scalable and efficient," he said.

"The board is confident that the strategy set out today will provide the platform for the group to deliver sustainable profitable growth."

Dialight shares were down 13.6% at 577p by 1300 GMT on Tuesday.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Dialight Market Data

Currency UK Pounds
Share Price 250.00p
Change Today -8.00p
% Change -3.10 %
52 Week High 340.00
52 Week Low 160.00
Volume 3,499
Shares Issued 32.56m
Market Cap £81.41m
RiskGrade 190

Dialight Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
0.83% above the market average0.83% above the market average0.83% above the market average0.83% above the market average0.83% above the market average
23.08% above the sector average23.08% above the sector average23.08% above the sector average23.08% above the sector average23.08% above the sector average
Price Trend
22.06% below the market average22.06% below the market average22.06% below the market average22.06% below the market average22.06% below the market average
58.97% below the sector average58.97% below the sector average58.97% below the sector average58.97% below the sector average58.97% below the sector average
Income Not Available
Growth
72.15% below the market average72.15% below the market average72.15% below the market average72.15% below the market average72.15% below the market average
83.78% below the sector average83.78% below the sector average83.78% below the sector average83.78% below the sector average83.78% below the sector average

Dialight Dividends

  Latest Previous
  Final Interim
Ex-Div 30-Apr-15 03-Sep-14
Paid 02-Jun-15 06-Oct-14
Amount 9.80p 5.20p

Trades for 30-Nov-2020

Time Volume / Share Price
16:35 1 @ 250.00p
10:19 1,917 @ 258.88p
09:38 613 @ 258.93p
08:11 968 @ 254.28p

Dialight Key Personnel

Chair David Blood

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