REG - Dialight PLC - Third Quarter Trading Update

DialightAnnouncement

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RNS Number : 0521O  Dialight PLC  08 January 2026

 8 January 2026

 

Dialight plc ("Dialight" or the "Group")

Third Quarter Trading Update

Further positive profit and cash generation momentum

 

Dialight plc (LSE: DIA.L), a global leader in LED lighting for heavy
industrial applications publishes the following trading update following the
end of the third quarter to 31 December 2025.

Demand trends and operating conditions in the Group's end markets have
remained soft. The Group therefore remains cautious on the sales outlook.

The ongoing margin improvement, overhead cost reduction and higher cash
generation announced in the Interim Results in September, have continued to
improve with a strong third quarter profit delivery. The continued benefits of
the delivery of the Transformation Plan means that the Group now expects to
exceed market expectation* for Adjusted Operating Profit for the year ending
31 March 2026 and beyond.

On 16 December 2025, the Group paid Sanmina $5.65m in full and final
settlement of all payments ahead of schedule, as previously disclosed.

 

The Group net debt closed at $10.3m on 31 December 2025 (30 September 2025:
$10.2m) demonstrating positive profit and cash generation that supported the
Sanmina advance payment being made.  The Group net debt is expected to
further reduce by year-end and thereafter. A key contribution to the reduction
in debt comes from the improved profit outlook disclosed above as well as good
progress in reducing working capital, particularly inventory. Inventory at 31
December is $30.7m (31 March 2025 $46.6m), a reduction of $15.9m.

We expect Non-Underlying costs for the year to be approximately $4m (prior
period: $21.6m) consisting almost entirely of transformation related activity,
which will contribute to ongoing upgraded financial performance.

The Group continues to review further operational improvements; a further
announcement will be made as and when appropriate.

The results for the year ending 31 March 2026 are expected to be released in
June 2026.

Notes:

* Market expectation $8.6m EBITA (Earnings before Interest, tax and
amortisation)

Contacts:

Dialight plc

Steve Blair, CEO Tel: +44 (0) 203 404 7757

Mark Fryer, CFO Tel: +44 (0) 203 058 3528

 

Investec Bank plc (Financial Adviser and Corporate Broker)

Christopher Baird / James Rudd Tel: +44 (0) 207 597 5970

LEI: 2138001AD31KKD29Z495

About Dialight: 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 Australia, Dubai, Germany, Malaysia, Mexico, Singapore, the UK and
the USA. www.dialight.com (http://www.dialight.com/) .

This announcement contains forward-looking statements that are based on
current expectations or beliefs, as well as assumptions about future events.
These forward-looking statements can be identified by the fact that they do
not relate only to historical or current facts. Forward-looking statements
often use words such as anticipate, target, expect, estimate, intend, plan,
goal, believe, will, may, should, would, could, is confident, or other words
of similar meaning. Undue reliance should not be placed on any such statements
because they speak only as at the date of this document and, by their very
nature, they are subject to known and unknown risks and uncertainties and can
be affected by other factors that could cause actual results, and Dialight's
plans and objectives, to differ materially from those expressed or implied in
the forward-looking statements. There are a number of factors which could
cause actual results to differ materially from those expressed or implied in
forward-looking statements. Among the factors that could cause actual results
to differ materially from those described in the forward-looking statements
are: increased competition, the loss of or damage to one or more key customer
relationships, changes to customer ordering patterns, delays in obtaining
customer approvals for engineering or price level changes, the failure of one
or more key suppliers, the outcome of business or industry restructuring, the
outcome of any litigation, changes in economic conditions, currency
fluctuations, changes in interest and tax rates, changes in raw material or
energy market prices, changes in laws, regulations or regulatory policies,
developments in legal or public policy doctrines, technological developments,
the failure to retain key management, or the key timing and success of future
acquisition opportunities or major investment projects. Dialight undertakes no
obligation to revise or update any forward-looking statement contained within
this announcement, regardless of whether those statements are affected as a
result of new information, future events or otherwise, save as required by law
and regulations.

 

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