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Dialight Releases 2022 Half-Year Results

Dialight plc (LSE: DIA.L), a leader in sustainable LED lighting for industrial applications, announces its half-year results for the period ended 30 June 2022.

Financial summary

H1 2022       

£m

H1 2021   

£m

Revenue

80.8

60.2

Underlying profit from operating activities       

3.1

1.5

Profit from operating activities

Profit for the period

2.3

1.2

0.8

0.1

Statutory EPS – basic and diluted

3.7p

0.2p

Net debt – Pre-IFRS

(20.2)

(12.0)

Key points

  • Revenue growth of 27% at constant currency over the prior period comparator, driven by strong demand for Lighting and Opto-Electronic products (34% at reported currency)
  • Gross margin maintained at 35%, despite raw material availability and input cost pressures, with price increases successfully implemented, which make an increasing contribution over the second half
  • Underlying operating profit doubled to £3.1m, representing a margin of 3.8%, up 110bps year-on-year at constant currency (130bps at reported currency)
  • Strong customer demand, with Lighting orders up 28% and total orders up 10% (at constant currency) was coupled with good progress on key strategic initiatives:
    • Initial large project orders delivered by the strategic sales team
    • Further new distribution and specifier relationships established
    • Successful new product launches
  • Substantial order book, 4% ahead of last year and marginally ahead of December 2021
  • Inventory increase of £7.6m in H1, with £4.5m driven by foreign exchange movements, £1.3m due to component price increases and £1.8m increased holdings of critical components
  • Net debt at 30 June 2022 of £20.2m (1.3x LTM EBITDA), driven by higher inventory levels and foreign exchange movements on USD borrowings, which is expected to reduce by year end
  • Strong commercial momentum and continued operational execution provide confidence in delivering good progress in 2022, with the Board’s expectations for the full year unchanged

Fariyal Khanbabi, Group Chief Executive, said:

“The first half of 2022 has seen continued strong sales and a resilient operating performance, with profit doubling to £3.1m compared to the prior year. We expect further strong revenue growth with modest gross margin improvement in H2 as price increases and efficiency improvements offset headwinds including inflation and supply chain constraints. Our confidence in growth is underpinned by a clear organic growth strategy, robust order book, an excellent pipeline of projects and our customers increasingly focused on their need to deliver against their sustainability targets. Our full year expectations for delivery of meaningful progress in our turnaround remain unchanged. Longer term, we see significant opportunity to be captured as the established leader in the growing heavier industrial lighting market.” 

Half year results presentation

The slides of the interim results 2022 presentation can be found at:

http://ir.dialight.com/reports-presentations-and-results/reports-and-presentations/

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