Trading Update For Dialight Amid Falling Sales & Share Price
A profit warning from Dialight has sent its share price plunging by 25.8 per cent.
In its AGM Trading Update of 15 April 2015, Dialight said that Group revenue growth for the first quarter had exceeded expectations but that the company had a number of operational inefficiencies. However, since that statement, the Group has also experienced a slowdown in the rate of orders in the Lighting segment in both the US and Europe which is likely to result in a shortfall in full year revenue. In consequence, the Board expects that underlying operating profit for 2015 will be significantly below expectations and that the results for the first half will be less than the prior year.
The Board believes that this reduction in orders is linked in part to a slowdown in the oil and gas sector.
In light of this adverse financial performance, Michael Sutsko, the new Group Chief Executive appointed last month, is leading a strategic review of the business during the summer months. 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.
The Group will publish its results for the six month period ending 30th June 2015 on 27th July 2015.
The company is headquartered in the UK with operating locations in Australia, Brazil, Denmark, Germany, Malaysia, Mexico, Singapore, UAE, the UK and the USA. More information is available at www.dialight.com.