Dialight shares tumble as board reviews operational performance
Dialight’s UK share price fell 28p (3.52p) to 767p on early trading as the LED lighting technology business revealed it needed to improve its operational performance.
The ‘must do better’ mandate was delivered to shareholders hours ahead of the Cambridge cluster company’s AGM today in a trading update for the three months to March 31.
A statement issued to London Stock Exchange said demand for Dialight’s LED products within the lighting segment remained strong and group revenue growth for the quarter exceeded management expectations.
But it added that an initial assessment from a business review conducted by the group’s recently-appointed interim chief executive and FD, in conjunction with management teams in the UK and US, was that more work needed to be done.
“It was felt that the development of Dialight’s production infrastructure and processes will need more focus and attention to keep pace with the group’s rapid growth in sales,” Dialight said.
It added: “The board will be reviewing a range of actions to improve the operational performance of the business in the second half and beyond.
“We remain encouraged by the strong demand for LED lighting. Although the group’s operating profits will be weighted more towards the second half of 2015 than in previous years, the board’s expectations for the full year remain unchanged.”
Group net debt at the end of the quarter was £8.9 million.