("Dialight" or "the Group")
Update on FY18 trading
Dialight plc (LSE: DIA.L), the global leader in sustainable LED lighting for industrial applications, provides its scheduled trading update for the year ending 31 December 2018.
We have made considerable progress since the termination of our contract manufacturing partner arrangements. At the time of the termination we had 50% of final assembly of lighting products in house. This has increased to over 90% and is anticipated to be 100% in the coming weeks. Production at our own facility has been ramping up well, but has been hampered by the inability to obtain raw material supplies from our manufacturing partner on a timely basis. The delays in raw material supplies adversely impacted November results. Performance in December is critical to delivering our year end results and will require a further planned ramp up in production coupled with continuity of raw material supply.
On 26 October 2018, the High Court reached a judgment in relation to Lloyds Banking Group's defined benefit pension schemes which concluded that schemes should equalise pension benefits for men and women as regards guaranteed minimum pension benefits. Should this outcome be upheld, we are working with the trustees of our pension schemes, and our actuarial and legal advisers, to understand the extent to which the judgment will crystallise additional liabilities for Dialight's pension schemes. Our current guidance excludes any potential impact on the Income Statement related to the equalisation.
Marty Rapp, Group Chief Executive, said:
"The relocation of final assembly of our products to our own facilities is essentially complete. As we ramp up our new facilities in Mexico and Malaysia early in 2019, we will begin to see the full impact of transition to a hybrid manufacturing model. We would have preferred to make these changes outside our peak selling season, but these are the right actions for the business and coupled with our expanded new product development actions will result in a stronger and faster-growing Dialight."
Dialight's full year results for the year ending 31 December 2018 will be announced on 25 February 2019.
Tel: +44 (0)203 058 3542
Marty Rapp - Group Chief Executive
Tel: +44 (0)203 058 3542
Fariyal Khanbabi - Group Finance Director
Tel: +44 (0)20 3128 8570
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, Denmark, Germany, Malaysia, Singapore, Australia, Mexico, Dubai and Brazil. www.dialight.com.
Cautionary Statement: This announcement contains certain statements, statistics and projections that are or may be forward-looking. The accuracy and completeness of all such statements, including, without limitation, statements regarding the future financial position, strategy, projected costs, plans and objectives for the management of future operations of Dialight Plc and its subsidiaries is not warranted or guaranteed. These statements typically contain words such as 'intends', 'expects', 'anticipated', 'estimates' and words of similar import. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Although Dialight Plc believes that the expectations will prove to be correct. There are a number of factors, many of which are beyond the control of Dialight Plc, which could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. This announcement contains inside information on Dialight Plc.
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