21st Jul 2014 07:45
LONDON (Alliance News) - Dialight PLC said Monday it continues to trade in line with expectations despite continuing currency headwinds, as it saw pretax profit rise in the half year to end June.
The LED technology company posted an interim dividend of 5.2 pence, up from 4.9 pence in the previous year.
Dialight posted a pretax profit of GBP5.2 million in the six months to June 30, up from GBP4.9 million, as a rise in revenue to GBP70.9 million from GBP59.9 million was offset by higher cost of sales, plus GBP1.1 million in employee severance and restructuring costs.
In the company's lighting segment, revenue rose to GBP43.0 million from GBP29.3 million, boosted by its new Vigilant product line and the continuing expansion of its sales channels. Dialight said that going into the second half it will continue to expand its sales force on a region-by-region basis.
In its signals segment, Dialight posted revenue of GBP18.3 million, down from GBP20.2 million, as growth in the company's obstruction signals was offset by weakness in its traffic and transportation businesses.
Revenue also declined in components to GBP9.6 million from GBP10.4 million. Dialight said it does not expect "any material change" in this segment's performance in the near future.
Dialight said its continued focus on the hazardous and heavy industrial markets has driven growth in sales and operating profits. Although its sales have been strong, its market penetration is still limited, the company said.
"The opportunity for growth is substantial and the board remains confident that the group is well positioned to capitalise on this opportunity," the company said in a statement.
Shares in Dialight were trading up 1.4% at 907.50 pence Monday morning, having risen to 921.92p at the open.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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