This merits some attention....lovely graph...surprised that there is no thread on this one, so anybody else interested in this beauty ?.

StockMarketWire.com
Dialight's group revenue rose by 22% to £159.8m in the year to the end of December (2013: £131.2m) - an increase of 25% at constant currency.

Lighting segment revenue rose 46% to £99.9m (2013: £68.5m); an increase of 50% at constant currency. Lighting operating profit was up 26% to £14.5m (2013: £11.5m).

Group underlying profit from operating activities rose by 25% to £18.1m (2013: £14.5m); an increase of 30% at constant currency.

Underlying EPS increased by 20% to 36.8p (2013: 30.8p) while basic EPS increased by 12% to 29.4p (2013: 26.2p).

Recommended final dividend increased to 9.8p (2013: 9.5p) representing a total dividend for the year of 15.0p (2013: 14.4p).

Interim group chief executive Richard Stuckes said:
"Dialight delivered strong growth in 2014. Lighting sales were up 50% at constant currency and, within the Signals segment, the Obstruction business achieved sales growth of 22% at constant currency. The results benefited from continued development of our sales channels and new product innovation. "The adoption of LED lighting in the industrial and hazardous markets is still at an early stage and the opportunity for growth remains significant. We continue to see strong demand for our LED lighting and the Board remains confident in the future prospects of the Group."

StockMarketWire.com
LED lighting specialist Dialight has reiterated full year forecasts although operating profits will be weighted more towards the second half than in previous years.

A statement issued ahead of the annual general meeting today says that demand for products within the Lighting segment remained strong and group revenue growth for the quarter exceeded management expectations. It continues: "The initial assessment from the business review conducted by the group's recently-appointed interim group chief executive and group finance director, in conjunction with our management teams in the UK and US, is that the development of Dialight's production infrastructure and processes will need more focus and attention to keep pace with the Group's rapid growth in sales.

"The board will be reviewing a range of actions to improve the operational performance of the business in the second half and beyond.

"Group net debt at the end of the period was £8.9m.

"We remain encouraged by the strong demand for LED lighting. Although the Group's operating profits will be weighted more towards the second half of 2015 than in previous years, the Board's expectations for the full year remain unchanged."

StockMarketWire.com
Dialight has warned that underlying operating profit for 2015 will be significantly below expectations and that the results for the first half will be less than the prior year.

Dialight's annual general meeting trading update on 15 April said revenue growth for the first quarter had exceeded expectations but that it had a number of operational inefficiencies. The group says that since then it has also experienced a slowdown in the rate of orders in the Lighting segment in both the US and Europe which is likely to result in a shortfall in full year revenue.

The board believes that this reduction in orders is linked in part to a slowdown in the oil and gas sector. In the light of this adverse financial performance, and in conjunction with the previously-announced exercise to develop the group's production infrastructure and processes, new group chief executive Michael Sutsko is leading a strategic review of the business.

This review will focus will on the markets in which the group currently operates, together with an attendant review of its operations, supply chain, and product development. The company says the board remains convinced of the longer term prospects for the group and it expects to update the market with the findings of this review in the autumn. The group will publish its results for the six month period ending 30 June on 27 July.

Profit warning.

As in the previous post!!!

Hmmm -

N+1 Singer Buy 486.50 860.00 860.00 Reiterates

Canaccord Genuity Buy 486.50 900.00 900.00 Reiterates

Canaccord note today:
"We believe Dialight's revenue shortfall is due to macro rather than LED sector specific or company specific issues. Management has not seen a change in the competitive environment, the dynamics of the LED lighting market or its sales execution capabilities. Therefore, we remain positive on the hazardous and industrial LED lighting sector and Dialight's position in the market.
We also continue to believe the company's previously-flagged cost and margin issues are operational rather than structural. Management believes the issues are associated with business processes rather than capital and equipment. We expect progress on cost and margin issues to accelerate with the stability and leadership of a new CEO. However, largely due to unfortunate end market sector exposure, we expect a drop in demand and lower our 2015 Lighting revenue estimate 15% from £133.2m to £113.2m, and our divisional operating margin estimate to 11.9% from 13.9% (2014: 14.5%). We lower our 2015E revenue by 11% from £195.9m to £174.1m and adjusted operating profit by 27% from £21.3m to £15.5m. For 2016E, we lower revenue by 14% from £228.9m to £197.0m and adjusted operating profit by 30% from £26.7m to £18.7m. We expect FCF outflow to be £6m plus £5m of dividend payments in 2015. As a result, we expect net debt to rise to £12m from -£0.6m at end 2014 and £8.9m at the end of Q1 2015. The company has £50m of debt capacity and is well below loan covenants.

The share price has fallen 37% this morning, which we believe is excessive given our downgrades and that O&G represents 25% of Lighting revenue. We set a target price of 540p from 900p, based on a 20% discount to peer average P/E FY1 multiples. We believe a discount is justified at this time, given the pending strategic review and recent earnings performance. We believe our target price is conservative. Even after our earnings revisions, we expect 20% growth in EPS in 2016, broadly in line with 23% median growth expected for sector peers."

Harry - do you have a link to the above please?

It came from the FT. Will try and find the link.

I've found the blog Harry - thanks.

StockMarketWire.com
Dialight's underlying operating profits fell to £1.7m in the six months to the end of June - 74% down on last time (75% down at constant currencies).

Group revenues rose by 14% - up 9% at constant currency - to £80.6m with lighting revenues up 24% - 17% at constant currencies - at £53.4m.

The board is not declaring an interim dividend (H1 2014: 5.2p).

Group chief executive Michael Sutsko aUS: " We are clearly disappointed by the half year results for the Group, which reflect the adverse impact of operational inefficiencies and the impact of the oil and gas sector on lighting revenue growth in Q2 2015.

"I have commenced a strategic review to identify the best opportunities in current and potential markets, products and geographies. We will report back with the findings of this review in October."

margins low , no hope divi = s/p too high BB will maybe @ £ 4 buy director buys no comment, I look for a stake instead, will then consider a buy.