22nd Nov 2021 11:52
(Alliance News) - Dialight PLC on Monday cautioned that revenue growth has struggled to keep up with a rise in order intake, as the industrial LED lighting technology and solutions company faces hurt from component shortages.
London-based Dialight said its order intake year-to-date was up 34%, due to a strong performance in its Lighting segment.
Dialight remarked that revenue growth has "lagged" order intake due to supply chain issues and the availability of electronic components and metalwork.
The company asserts it has "responded well" to supply chain challenges with active management to secure components and logistics. It added that price increases were also implemented from September to reflect increased costs from suppliers.
Dialight said it also increased inventory levels to ensure supply continuity, which also enabled the company to maintain "acceptable on-time delivery levels".
However, full-year net debt expectations increased to a range of GBP12 million and GBP14 million.
Dialight said that wider expectations for the year still remain unchanged, however. Revenue in 2020 amounted to GBP119.0 million, with a pretax loss of GBP10.1 million.
"We remain mindful of the ongoing supply chain disruptions, which may continue into 2022. Longer-term, we are increasingly confident of our prospects given our leading sustainability products and significant market opportunity," Dialight said.
The company's full-year results will be published on March 28.
Dialight shares were down 5.4% at 312.08 pence each on Monday morning in London.
By Abby Amoakuh; [email protected]
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