Business Weekly - Cambridge, UK

The Huntingdon-based firm reduced its pre-tax profit estimate by around £1.3m, citing a disappointing order intake in its components division, as well as a slippage in implementing cost saving measures.

It said that its core signals and illumination business was performing in-line with management expectations and showing excellent growth prospects.

The order levels of the components division were below those of 2006, the firm said, a trend which it expects to continue for the rest of the year. It added that a group-wide move to reduce the cost of materials had seen some slippage, but is now on track to deliver savings in the second half.

Dialight's announcement saw 22 per cent stripped from its share price, dropping 46p to 161p.