Dialight on course for profits bounceback
Cambridge LED lighting technology specialist Dialight has lifted revenues by 13 per cent to £182.2 million for the year to December 31.
The business has nibbled a small chunk out of its pre-tax loss figure (£3.8m down from £3.9m year-on-year) and chief executive Michael Sutsko says Dialight’s three-year plan to return to sustainable profit growth is well on track.
He said: “2016 was a year of change for Dialight. We are making good progress with our three-year plan to return to sustainable profit growth.
“Phase one of the plan, to rebuild our operating model, is largely complete. The sustainability benefits of reduced energy usage, lower carbon emissions, reduced maintenance and improved safety offer real value to our customers. This progress underpinned our encouraging financial performance in challenging market conditions.
“Phase two of the plan – growth initiatives to capture the long-term opportunity in LED lighting – is underway and on track to deliver against our strategic plan.
“We remain confident of the group's prospects for 2017 and over the medium to long-term, based on current FX rates.”
The opening UK share price on Monday held steady at 957p and market cap settled at £310.4m.
The business model rebuild is largely complete, the company reports, and growth initiatives underway to build on more solid foundations. Dialight says higher quality sales teams with broader international presence are in place. Three automation partnerships are in progress, widening the company’s channels to market and value proposition. The company has invested significantly in its product roadmap, to such an extent that 37 new products have been launched in the last 12 months.
Dialight adds that its revenues have been diversified by sector and geography. Its lighting division order intake is up eight per cent; profit in lighting and signals & components grew by £6.7m and £2.2m, respectively. Sutsko said a strong balance sheet was supported by good working capital management and a new five-year credit facility.