("Dialight" or "the Group")
Dialight Plc (LSE: DIA.L), the global leader in LED lighting for heavy industrial applications, today publishes a trading update covering the period from 1 July to 30 November 2020 (the "Period"). The Group will report its full year results on 30 March 2021.
Lighting MRO orders have steadily improved since April, as expected, and in recent months there has been a modest recovery in project work, despite challenging market conditions. Signals & Components continued to perform well.
Our revenue in the period continued to be disrupted by COVID-19 due to the inability of some of our suppliers to provide components on a timely basis. This has been compounded by the delays in the freight market, resulting in production delays and temporarily elevated costs in order to maintain supply. Additionally, we are now operating our facility in Mexico with a 20% reduction in our workforce due to the area having just been classified as a 'red zone', and with certain employees unable to work in order to comply with amended government guidelines.
Net debt on the 30 November was £14.9m, a £3.1m improvement from the half year position. The improvement was driven by a further reduction in inventory. We expect FY 2020 net debt to be at a similar level to the position at the end of November.
We continue to focus on our employees, our customers, our communities and delivering on our priorities including building the sales pipeline, product development and optimising the operational performance.
In the longer-term, the growth drivers of LED lighting and sustainability are as strong as ever. The COVID-19 crisis is also expected to accelerate the structural drivers for LED lighting and our scale and innovation-led customer offering positions us well and gives us confidence for the future.
Tel: +44 (0)203 058 3542
Fariyal Khanbabi - Group Chief Executive
Wai Kuen Chiang - Group Finance Director
Dialight (LSE: DIA.L) is a global leader in sustainable LED lighting for industrial applications. Dialight's LED products are providing the next generation of lighting solutions that deliver reduced energy consumption and create a safer working environment. Our products are specifically designed to provide superior operational performance, reliability and durability, reducing energy consumption and ongoing maintenance and achieving a rapid return on investment.
The company is headquartered in the UK, with operations in the USA, UK, Mexico, Malaysia, Singapore, Australia, Germany and Dubai. www.dialight.com. This announcement contains inside information on Dialight plc.