Dialight holds profit guidance despite weaker sales amid soft markets
Dialight PLC on Monday said it remains confident of meeting current market profit expectations as margin improvements help offset weaker sales in soft end markets.
Shares in the London-based industrial light-emitting diode lighting company fell 2.8% to 210.00 pence each in London on Monday.
Dialight said demand trends and operating conditions in its end markets remain soft with sales in the five months ended August marginally down on the comparative prior period due to tariff uncertainty and a weaker macro-economic climate.
Due to this continuing uncertainty, Dialight said it remains cautious on the sales outlook for the financial year to March 2026. In the 12 months to March, 2025, Dialight reported revenue of £183.5 million.
Despite this, the company remains ‘confident’ in meeting the company-compiled current market consensus of $5.7 million in adjusted pretax profit for the financial year ending to March. This would be a 9.5% decline from $6.3 million in adjusted profit from operating activities before impairment losses of financial assets the year before. Dialight had recorded a statutory annual pretax loss of $14.1 million.
Year-to-date adjusted operating profit, to the end of August, is anticipated ‘strongly ahead’ of the $900,000 reported in the six months to September 30, 2024 and the $3.2 million recorded for the six months to March 31 this year. This year-to-date figure includes a one-off $1.4 million Covid credit from the US International Revenue Service.
This reflects ongoing margin improvement, overhead cost reduction and higher cash generation, Dialight said. The firm has also benefitted from foreign exchange gains of around $800,000 during the financial year so far.
Net debt has improved to around $13.0m on August 31 from $17.8 million at the end of March.
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