Dialight brightens up investors' day with half year results

Revenues at Dialight, a producer of LED lighting technology, leapt during the half year ended June 30th, pushed higher by Signals/Illumination income, which was in turn driven by 65 per cent growth in Solid State Lighting and 40 per cent growth in Obstruction Lights.

Group revenue climbed 18.2% to £61.1m (2011: £51.7m), pushed operating profit from continuing operations higher by 21% to £8.2m (2011: £6.8m) and pre-tax profits to £8.3m from £6.2m the same half the previous year. Basic earnings per share leapt from 11.2p to 16.9p.

In a statement, the firm said: "Despite the uncertain prospects for the world economy, our strategy of bringing compelling value propositions to sizeable and regulated markets through the application of LED technology continues to drive strong growth in both revenues and profits.

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"The future for our White Lighting product line is ever more exciting. The increase in the group's sales of these products reflects our ability to focus on appropriate applications and capitalise on the benefits delivered by our Solid State Lights. The results of the first half give the board confidence of achieving results at the higher end of expectations and that the group's strategy will continue to deliver strong results in the coming years."

The interim dividend has been increased from 3.3p to 4p per share, covered 4.2 times by group profit after taxation (2011: 3.4 times). Closing net cash was £8.1m compared to £6.2m at the same date in 2011.

"Growth in the period was 65% over the same period in 2011 with increases in both customers and geographical coverage," the firm added.

"Cost reduction and re-engineering programmes have enabled further improvement in contribution margins in Signals/Illumination, the first half returning a result of 45.7% a 1.9% improvement on the full year of 2011."

NR