Dialight PLC AGM trading update (0982L)
April 17 2018 - 2:00AM
UK Regulatory
TIDMDIA
RNS Number : 0982L
Dialight PLC
17 April 2018
17 April 2018
Dialight plc
("Dialight" or the "Group")
AGM trading update
Dialight, the world's leading industrial LED lighting technology
company, today publishes a trading
update for the year ending 31 December 2018, ahead of its Annual
General Meeting taking place later today.
Since the Group's full year results announcement on 26 February
2018, the Group has continued to focus on addressing its
operational issues. These arose from an incompatibility of our
contract manufacturer's internal systems and the needs of our
product portfolio.
We have provided significant support from our most experienced
supply chain and production teams at the plant in Guadalajara,
Mexico. We have made progress in the early identification of
material shortages and we continue to take corrective action to
relieve these shortages, as well as other measures to improve
efficiency.
The second step involved the transfer of the more complex
product lines back to our Ensenada, Mexico facility, where we have
retained assembly capabilities, to help the overall production
throughput. During this period of transfer we will be holding
higher inventory levels to support the business. The production of
the complex product lines commenced in February 2018 and this will
be extended to produce High Bays by June 2018.
As expected, these actions are yet to yield significant results
in the fulfilment of outstanding orders, although we have made
progress in service levels of our smaller product lines. We are
confident of an overall significant improvement in our operations
over the coming months. The Board continues to expect the Group's
results for 2018 to be heavily weighted to H2 reflecting the
successful resolution of the issues.
We have the right products and a market with good growth
prospects; when the current operational issues are behind us we
will maximise the opportunities for growth available to the
Group.
The Group's interim results for the six months ending 30 June
2018 are expected to be released on 30 July 2018.
Contacts:
Dialight Plc
Martin L Rapp - Group Chief Executive
Tel: +44 (0)203 058 3542
Fariyal Khanbabi - Group Finance Director
Tel: +44 (0)203 058 3542
MHP Communications
Tim Rowntree
James White
Tel: +44 (0)20 3128 8100
About Dialight:
Dialight (LSE: DIA.L) is a global leader in sustainable LED
lighting for industrial applications. Dialight's LED products are
providing the next generation of lighting solutions that deliver
reduced energy consumption and create a safer working environment.
Our products are specifically designed to provide superior
operational performance, reliability and durability, thereby
reducing energy consumption and ongoing maintenance and achieving a
rapid return on investment.
The company is headquartered in the UK with operations in the
USA, UK, Denmark, Germany,
Malaysia, Singapore, Australia, Mexico and Brazil.
www.dialight.com.
This Trading Update is based on unaudited management accounts
information and has been prepared solely to provide additional
information to the shareholders of Dialight plc. It should not be
relied on by any other party, for other purposes. Forward-looking
statements have been made by the Directors in good faith using
information available up until the date that they approved this
statement. Forward-looking statements should be regarded with
caution because of the inherent uncertainties in economic trends
and business risks.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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