Supplier of light emitting diode (LED) solutions for industrial users. Applying leading edge LED technology, it produces retro-fittable lighting fixtures designed specifically for hazardous locations, obstruction signals and traffic signalling. I have a holding in my growth portfolio (epic code: DIA).
Dialight today issued an IMS for the period from 1 July 2014 to 18 November 2014 and confirmed that their expectations for the full year remain unchanged.
The Lighting business continues to perform well, with strong sales and order growth in the year to date. Although during the period the business experienced component delays and disruption arising from their investment to increase production capacity and capability; management state that these problems have now been resolved.
In the Signals Segment, the performance of their Obstruction business continued to improve steadily and the Traffic business remained in line with expectations.
The performance of their Components segment remained steady.
The Group's net debt at the end of October was £4.2m which implies a cash outflow this year of £11.3m and £7m since the half year. This is highlighted as due to increased working capital in the Lighting business and, investment in increasing production capacity in their Mexican and Malaysian facilities.
A reasonably positive update, that means that Dialight is on track to return to growth this year after stumbling in 2013.