Industrially focused LED lighting manufacturer Dialight Plc (LON: DIA) have seen their share price dip in morning trade, after swinging to a loss for the first half of the year 2019.
The Company’s revenues were down from £77.7 million to £76.1 million on a year-on-year basis for the first half, which the Group owed to softening end markets and delayed market share recovery.
Concurrently, the Company reported that it had swung to a loss, from £2.0 million for H1 2018, to a loss of £1.6 million for H1 2019. Dialight underlying profits were down from £2.8 million to £0.9 million and underlying basic EPS fell 1.5p, from 6.4p on-year. Further, underlying costs rose from nil to £2.7 million between the two first halves.
Marty Rapp, Group Chief Executive, said,
“Our H1 2019 financial results were disappointing. Lighting revenues were impacted by some softening of end markets and delayed market share recovery. However, we did make good operational and strategic progress in the first half, with the physical separation from our contract manufacturer now complete. Operational performance from our Mexico facilities is now significantly better than it was before the move to the contract manufacturer. Our new Penang facility is expected to be fully operational within the next two months.”
“Progress on increasing our output of new products is on track. We have launched two of the three new platform-level products planned for 2019, and the third one will be launched shortly. There are additional new products in the development pipeline – a combination of upgrades to our existing products and new products to enable to us to participate in a larger market.”
“We remain confident that the combination of the reputation of Dialight products as the best in the market, our improved operational performance, and the launch of our exciting new products will result in significant long-term growth in revenue and profit. We are taking all appropriate actions to convert these to improved financial results as quickly as possible. Our full year outlook for 2019 remains unchanged.”
The Company’s shares dipped 6.41% or 25.00p to 365.00p a share 05/08/19 12:17 BST. Analysts from Peel Hunt have reiterated their ‘Hold’ stance on Dialight stock. The Group’s p/e ratio is 22.54 and their market cap is £119.4 million.
Elsewhere in the tech sector, there were updates from; Seeing Machines (LON: SEE), Bidstack Group PLC (AIM: BIDS), Nektan PLC (LON: NKTN), Keywords Studios PLC (LON: KWS), Biome Technologies plc (LON: BIOM).