Wednesday, May 12, 2010

Annual General Meeting and Interim Management Statement

12-MAY-2010

Dialight plc, the UK based leader in Applied Light Emitting Diode ("LED") Technology, today publishes its Interim Management Statement relating to the period from 1 January 2010 until 12 May 2010, in accordance with FSA Disclosure and Transparency Rule 4.3.

"Strong start to the year for Energy Efficient Lighting"

Dialight plc is leading the lighting revolution for industrial users across the world. Applying leading edge LED technology it produces retro-fittable lighting fixtures designed specifically for hazardous locations, obstruction lighting, traffic and rail signalling to vastly reduce maintenance, save energy, improve safety and ease disposal. Versions of these high specification luminaires are also produced for more general commercial, industrial and outdoor situations.

Signals/Illumination

The Board is pleased to report another good performance by the Signals/Illumination segment which is showing a strong revenue increase over the first half of 2009.

Highlights of the trading performance include:

  • European traffic has made a strong start to the year with significant gains in the UK market.
  • Sales of White lighting products into the Industrial Market have continued strongly and show good growth . Sales of the new High Bay Light in particular are very promising as our customers recognise the significant savings that our lights provide.
  • Shipments of White Strobe Obstruction Lights are increasing as we make deliveries against the contracts secured in 2009.
  • Re-engineering of products in line with new LED technologies continues to drive improvement in margins.

Components

The Indication market continues to strengthen and is running at a level close to normal although it is possible some of this recovery is due to restocking. We are therefore cautious as to the prospects for the remainder of the year.

Shipments of electromagnetic components for smart metering applications continue to meet our expectations based on contracts previously secured. In the medium term, substantial growth in this product area could be anticipated, however, the timing of future business is hard to predict and margins are tight.

Acquisition

On 28 April 2010 we announced the acquisition of BTI Light Systems A/S (“BTI”), a Danish company offering signaling and safety equipment for the wind, marine and airport industries. BTI’s established channels and customer relationships are complementary to Dialight’s existing US wind turbine business. This acquisition fits well into Dialight’s strategy of targeting protected, niche sectors within the lighting industry where LED technology can be applied with economic benefits.

Operating out of Copenhagen, BTI’s product portfolio comprises obstruction lighting and aids to navigation for both onshore and offshore wind turbines and airports The acquisition is expected to be earnings accretive in 2010.

Cashflow

The Group maintains a strong balance sheet and cash generation is in line with expectations.

Outlook

Dialight continues to implement its strategy for driving growth through the provision of energy efficient and environmentally friendly lighting products that provide a strong and immediate value proposition to its customers.

Based on the continued good progress of the Signals/Illumination business, together with improved margins and improvement of activity levels in the Indication Components segment, the Board is confident in maintaining its outlook for 2010.

For further information:

Roy Burton - Group Chief Executive,
George Ralph- Interim Finance Director,
Dialight plc
Tel: +44 (0) 1638 778640

Simon Bridges - Canaccord Adams Limited,
Tel: 0+44 (0) 20 7050 6500

Robert Speed- Kreab Gavin Anderson,
Tel: +44 (0) 20 7074 1800,
Email: dialight@kreabgavinanderson.com

Dialight plc (LSE: DIA.L)

The Group comprises the following business segments:

  • Signals/Illumination which addresses the increasing demands for Energy Efficient Lighting solutions through the use of high brightness LEDs and utilisation of a number of associated technologies. Areas of business include Traffic and Rail Signals, Obstruction Lights and Solid State Lighting products.

  • Components comprising:

(1) The indication businesses whose sales are primarily to Electronics OEMs for status indication; and

(2) Electromagnetic components which supplies smart meter disconnect switches which are used by utility companies to manage remotely electrical supply to residential and business premises.

The company is headquartered in the UK with operating locations in the UK, USA, Germany and Mexico. More information is available at www.dialight.com.

Cautionary statement

This Interim Management Statement contains certain forward-looking statements which have been made by the Directors in good faith using information available up until the date they approved the statement. Forward-looking statements should be regarded with caution as by their nature such statements involve risk and uncertainties relating to events and circumstances that may occur in the future. Actual results may differ from those expressed in such statements, depending on the outcome of these uncertain future events.