30th Jul 2018 10:48
LONDON (Alliance News) - LED lighting producer Dialight PLC said Monday it reduced its number of late deliveries by 60% in the recent half year, leading to a confident outlook for the future.
Dialight shares were trading 7.7% higher at 502.00 pence each.
For the six months to June 30, the company posted revenue down 14% to GBP80.1 million from GBP92.7 million year-on-year, as results were held back by its focus on correcting operating issues that led to severe production delays.
"The most critical issue facing Dialight since the second half of 2017 has been late product deliveries due to the continued inability of our manufacturing partner to adequately increase production output," the company said.
"We have taken targeted actions to improve our operational performance and these actions have produced significant improvements. We are now confident in our ability to support the normal fourth quarter spike in demand."
Dialight noted that it is now producing 37% of its total lighting volume from its own facility in Mexico, where it continues to ramp-up production. On-time delivery from that plant is 85%, Dialight said, compared to 51% during the recent half for its manufacturing partner. The partner's performance improved to 55% in June, however.
Pretax profit for the half-year fell to GBP2.8 million from GBP4.0 million reported in the same period last year.
Dialight expects its results for 2018 to be heavily weighted towards the second half reflecting the "continued resolution of our operational issues".
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