Dialight shares crash after profits warning
Smart lighting technology company Dialight saw its shares nosedive to their lowest price since December 2010 today after posting a profits warning and triggering the second major review of operations inside the last 12 months.
The stock sank over 35 per cent and by 262.31p to 482.69p. It was the biggest faller on London Stock Exchange.
The Cambridge UK cluster company warned at its AGM in April that a major review had shown the need for an overhaul of the business.
And today new CEO Michael Sutsko ordered another “strategic review” after warning that there was likely to be a shortfall in full-year revenue and that underlying operational profit for 2015 would be “significantly below expectations and that the results for the first half will be less than the prior year.”
The company blamed a slump in the rate of orders in the lighting segment in both the US and Europe and said this was partly due to a slowdown in the oil and gas sector.
In a trading update today Dialight said: “In the light of this adverse financial performance, and in conjunction with the previously-announced exercise to develop the group's production infrastructure and processes, Michael Sutsko, the new group chief executive, is leading a strategic review of the business.
“This review will focus on the markets in which the group currently operates, together with an attendant review of its operations, supply chain, and product development.
“The board remains convinced of the longer term prospects for the group and it expects to update the market with the findings of this review in the autumn.”
Dialight will publish its results for the six month period ending June 30 on July 27.