27th Sep 2018 18:26
LONDON (Alliance News) - LED lighting products firm Dialight PLC said on Thursday it expects a hit in operating profit for 2018 from a potential short-term disruption to the business.
Operating profit for the year is expected in the range of GBP8.0 million to GBP10 million, compared to GBP9.7 million the year before.
The disruption is due to a deteriorating performance from its manufacturing partner since the company's half-year results publication in July, which has led to Dialight terminating the contract.
Since then, Dialight said it has experienced a significant reduction in late orders on the High Bay product line, with service levels nearing normal parameters.
Dialight said that 50% of all its lighting products are being produced in its own facilities, and is working to transition the rest of the product lines.
"We have demonstrated our ability to provide significantly improved service levels on the production already moved back to our facilities. Our focus now is to move the rest of the assembly to our facilities. We will continue to procure some subassemblies from third-party suppliers in a hybrid model," said Chief Executive Marty Rapp.
"Our new manufacturing arrangements will put us in a much better position to meet our customers' needs. Our focus is on making the right decisions to restore the performance, sustainability and profitability of the group," Rapp added.
Shares in Dialight closed down 0.8% at 500.00 pence on Thursday.
Related Shares:
Dialight