Dialight profit climbs 27 per cent

Dialight, which develops lighting technology, posted a 72.7 per cent increase in 2012 Lighting revenue, helping to boost underling pre-tax profit by 26.7 per cent.

Dialight, which develops lighting technology, posted a 72.7 per cent increase in 2012 Lighting revenue, helping to boost underling pre-tax profit by 26.7 per cent.

Revenue from continuing operations grew by 12.3% to £115.1m (2011: £102.5m) with Lighting segment revenue growth of 72.7% to £45.5m (2011: £26.4m).

The group contribution margin increased from 45.8% to 46.1%, with contribution margins in the Lighting segment growing from 35.7% in 2011 to 44.3% in 2012.

Operating leverage has resulted in additional operating profit in Lighting of £6.6m from £2.0m in 2011 to £8.6m in 2012. Profit before tax from continued operations has increased 26.7% to £19.7m (2011: £15.5m).

Roy Burton, the Group Chief Executive, said: "2012 has seen a further increase of Dialight's success in converting the Industrial Lighting Market to Solid State Lighting. This change offers significant energy and maintenance savings to our customer base thus laying the foundations for continued growth."

Looking ahead the company believes it will see continued strong growth in Lighting on the back of expanded sales channels and new products.

"We see further enhancements to the value that our products bring to our customers as Dialight's technical teams capitalise on the ongoing developments in LED technology," it said.

"The growth in revenues and the group's focus on the cost and performance of its products gives us confidence for a future of sustainable profit improvement in this year and the years to follow."

Year-end cash was increased to 15.0m (2011: £13.7m) and the total dividend for the year rose 35% from 10p to 13.5p.

The share price rose 2.83% to 1,198- by 09:40.

NR

Recommended

Aviva: a share for income investors to tuck away
Share tips

Aviva: a share for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. R…
18 May 2022
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves looks at the FTSE 100’s top yielding stocks for income investors to consider.
18 May 2022
Three fast-growing, undervalued UK mid-cap stocks to buy now
Share tips

Three fast-growing, undervalued UK mid-cap stocks to buy now

Professional investor Katen Patel of the JPMorgan Mid Cap Investment Trust picks three fast-growing UK mid-cap stocks to buy now.
18 May 2022
Should you buy Vodafone shares, or steer clear?
Share tips

Should you buy Vodafone shares, or steer clear?

Vodafone grew revenue by 4% and profit by 11% last year, and offers investors a 6.4% dividend yield. So should you buy Vodafone shares? Rupert Hargrea…
17 May 2022

Most Popular

Get set for another debt binge as real interest rates fall
UK Economy

Get set for another debt binge as real interest rates fall

Despite the fuss about rising interest rates, they’re falling in real terms. That will blow up a wild bubble, says Matthew Lynn.
15 May 2022
Is the oil market heading for a supply glut?
Oil

Is the oil market heading for a supply glut?

Many people assume that the high oil price is here to stay – and could well go higher. But we’ve been here before, says Max King. History suggests tha…
16 May 2022
Value is starting to emerge in the markets
Investment strategy

Value is starting to emerge in the markets

If you are looking for long-term value in the markets, some is beginning to emerge, says Merryn Somerset Webb. Indeed, you may soon be able to buy tra…
16 May 2022