DIALIGHT PLC 
By Dialight plc
Half Yearly financial report
- Lighting Revenue up over 70% to £29.3m (H1 2012 £17.2m)
- Lighting Profit up 180% to £4.4m (H1 2012 : £1.6m)
- Lighting sales force expanded to 86 (59 at 31 December 2012)
- Underlying operating profit £5.5m (H1 2012: £8.2m) due to repositioning of obstruction signals business
- First trials received for cloud based obstruction signals control and monitoring service
- Underlying earnings per share 11.6p (H1 2012: 17.3p)
- Closing net cash £11.2m (H1 2012: £8.1m)
- Interim dividend increased 22.5% to 4.9p (H1 2012: 4.0p)
Roy Burton, Group Chief Executive, said:
"The first half has seen strong performance from our Lighting segment with excellent growth. This gives us further confidence in the prospects of our ongoing strategy."
For further information:
Roy Burton, Group Chief Executive and Mark Fryer, Group Finance Director, Dialight plc, Tel: 01638 778640
Simon Bridges, Canaccord Genuity Limited, Tel: 020 7523 8000
Robert Speed, Kreab Gavin Anderson, Tel: 020 7074 1800
dialight@kreabgavinanderson.com
There will be dial in facility for the analyst meeting at 09:00 today and a replay facility will be available, please contact Christina Clark on 0207 074 1864 or email cclark@kreabgavinanderson.com for access details.
Chief Executive's statement
Finance review
Group revenues from continuing operations were £59.9m (2012: £53.1m) whilst underlying profit from continuing operations was £5.5m (H1 2012: £8.2m). This reduction is due to repositioning of obstruction signals business.
Underlying earnings per share decreased to 11.6p (H1 2012: 17.3p). The Group generated cash from operations of £3.0m and the net cash position at the 30 June 2013 was £11.2m (30 June 2012: £8.1m).This has benefitted from a non-underlying receipt of £1.3m from the buyer of our discontinued switch component business. This was highly contingent and concludes the sale.
The Board is pleased to declare an interim dividend of 4.9p per ordinary share (2012: 4.0p). The interim dividend is covered 2.4 times by underlying Group profit after taxation (H1 2012: 4.2 times).
The interim dividend is payable on 6 September 2013 to shareholders whose names are on the register of Members at close of business on 9 August 2013.
Business Review
Lighting Segment
We are pleased to report that the Lighting segment has demonstrated strong growth in both revenues and operating profit for the six months ended 30 June 2013 compared to the first half of 2012.
Lighting revenues grew over 70% in the half with an almost threefold increase in profit to £4.4m. This increase in profit is after we have invested, as planned, almost £3m in additional Lighting sales resource to drive future growth and establishing two new manufacturing facilities in Malaysia and Mexico and in funding the Airinet lighting controls development team in the US.
Lighting revenue growth was particularly strong in Europe and Asia. Contribution margins in this segment showed a further increase of over two percentage points over the first half in 2012 from 41.7% to 44.0%, demonstrating once again the value in our continued focus on the re-engineering of our products along with ongoing operational improvements.
Dialight's focus on cost, performance and continued and rapid product development will continue to deliver improved financial performance.
Our market focus will continue to be the replacement of lights in Heavy Industrial and Hazardous applications, as well as being the choice of global Engineering, Procurement and Construction contractors ("EPC's") who control the selection of those products to be designed into longer term projects. Both these markets are global in nature and need to be addressed through a global sales force. Dialight now has 86 field sales people in 23 countries around the world compared to 59 at the year-end. During the same period, we have also established Dialight Brasil Participacoes Ltda and a representative office in Russia. We will continue our geographic expansion in the second half.
Continued product improvement is key to providing enhanced value and payback for our customers. The introduction of a 10 year full performance warranty, lumens per watt in excess of 100 and added features such as emergency back-up and industry leading control systems using both wireless and power line communications maintains Dialight's position at the forefront of value creation in its chosen markets.
Signals Segment
Obstruction Signals
Sales in the first half showed more than a 40% reduction compared to the same period last year. This is in line with our previous guidance and has impacted profit by in excess of £4m in the first half. In North America the reduction in sales was significantly more than 40%, however, our European based Obstruction Lighting business has shown good growth in the first half whilst broadening its customer base, a trend which should continue into the second half.
The major reason for the decline in US Obstruction sales has been a complete change of channel and product strategy precipitated by the termination of Dialight's relationship with its former principal distribution partner in this business. Whilst this has impacted performance in the short-term, in reality it has enabled us to evolve from being simply a supplier of LED Signals through a re-seller to being a supplier of control and monitoring systems for the Cellphone and Broadcast Tower markets. In the past three months we have demonstrated our new cloud based capabilities to the top ten tower operators in North America. This new product offering is yet more evidence of the strong capabilities of our technical teams and utilises aspects of the control technology acquired with Airinet.
The available market is also enhanced as the selling price of a "new" system is at a premium to those LED signal lights Dialight would have sold previously through its partner.
We have previously announced the introduction of LED based High Intensity Strobe Signals for very tall Broadcast Towers. Whilst adoption is modest at this stage, the addition of monitoring and control capabilities is expected to drive sales of these systems.
Overall, Obstruction has the potential to grow strongly, but we remain cautious as to the timing of the procurement process which is a more complex and high level decision making process as a result of the higher value system sale. The timing of the award of major Obstruction system contracts remains difficult to predict.
Traffic Signals
Traffic Light sales were down approximately 10% on the same period last year with softness in both the North American and European markets. We have recently introduced a 15 year life product for the North American market which will address the need for a product to replace those LED based Traffic Signals which were sold in the early 2000's and are now overdue for replacement. To date the problem for our customers has been the minor saving in energy in replacing the original LED Signals using 17 watts of power with new Signals which will only save a further 10 watts of power. However, the enhanced payback provided by our longer life new generation product is being favourably received by customers, and should drive replacement activity and we would therefore expect the second half to show some recovery.
Components Segment
Sales in this segment were flat at £10.4m (H1 2012: £10.4m). This remains a cyclical business which is heavily impacted by the current global macro-economic conditions. Our revenues reflect a stable outlook in our Distributor channels and in the end user markets which are related primarily to Enterprise capital spending such as cloud computing, servers, networking equipment, data storage and internet access equipment.
We do not anticipate any material change in the performance of this segment in the near future while sales by our Distributors remain relatively flat.
Operations and Engineering
Our Operations and Engineering teams play a key role in the success of the Group. The introduction of new and improved products in both the Lighting and Signals segments in the half year keeps us at the forefront of the industry. In addition, the ability to guarantee performance and reliability for ten years and more ensures a great return for our customers.
Current Trading and Outlook
Our ongoing strategy of addressing the Lighting needs of the Hazardous and Heavy Industrial markets continues to produce high growth and profitability.
The results for the year will be impacted by the transition of the obstruction business in the first half. The timing of the award of new contracts in Obstruction is uncertain. Despite this the Board believes that the results for the year will be in line with the range of market estimates.
Roy Burton
Group Chief Executive
Condensed consolidated income statement
For the period ended 30 June 2013
6 months ended 30 June 2013 (unaudited) | 6 months ended 30 June 2012 (unaudited) (re-stated)# | 12 months ended 31 December 2012 (audited) (restated)# | |||
Note | Total £'m | Total £'m | Total £'m | ||
Continuing operations | |||||
Revenue | 2 | 59.9 | 53.1 | 115.1 | |
Cost of sales | (41.9) | (34.9) | (73.9) | ||
Gross profit | 18.0 | 18.2 | 41.2 | ||
Distribution costs | (8.3) | (5.6) | (12.5) | ||
Administrative expenses | (4.6) | (4.4) | (9.1) | ||
Underlying profit from continuing operations* | 5.5 | 8.2 | 19.6 | ||
Non-underlying administrative expenses | 4 | (0.4) | - | - | |
Profit from continuing operations | 2 | 5.1 | 8.2 | 19.6 | |
Financial income | 5 | - | 0.1 | 0.2 | |
Financial expense | 5 | (0.2) | - | - | |
Net financing (expense) / income | 5 | (0.2) | 0.1 | 0.2 | |
Underlying profit before tax* | 5.4 | 8.3 | 19.8 | ||
Non-underlying administrative expenses | 4 | (0.4) | - | - | |
Non-underlying finance (expense) / income | 4 | (0.1) | - | 0.1 | |
Profit before tax | 4.9 | 8.3 | 19.8 | ||
Income tax expense | 6 | (1.5) | (2.8) | (6.5) | |
Profit from continuing operations after tax | 3.4 | 5.5 | 13.3 | ||
Discontinued operations | |||||
Gain / (loss) from discontinued operations (net of taxes) | 3 | 0.7 | (0.1) | 0.1 | |
Profit for the period | 4.1 | 5.4 | 13.4 | ||
Profit for the period attributable to: | |||||
Equity owners of the Company | 4.2 | 5.4 | 13.5 | ||
Non-controlling Interests | (0.1) | - | (0.1) | ||
4.1 | 5.4 | 13.4 | |||
Earnings per share - underlying** | |||||
Basic | 7 | 11.6p | 17.3p | 41.7p | |
Diluted | 7 | 11.5p | 16.9p | 41.0p | |
Earnings per share | |||||
Basic | 7 | 12.8p | 16.9p | 42.0p | |
Diluted | 7 | 12.6p | 16.5p | 41.3p | |
Earnings per share - continuing operations | |||||
Basic | 7 | 10.6p | 17.2p | 41.4p | |
Diluted | 7 | 10.5p | 16.9p | 40.7p | |
* Underlying profit measures exclude non-underlying items, which are analysed in note 4.
** Underlying earnings per share excludes non-underlying items (analysed in note 4), discontinued operations (analysed in note 3) and allocates tax at the appropriate rate (see note 6).
# See note 1.
The accompanying Notes form an integral part of these interim financial statements.
Condensed consolidated statement of comprehensive income
For the period ended 30 June 2013
6 months ended 30 June 2013 (unaudited) £'m | 6 months ended 30 June 2012 (unaudited) (re-stated) £'m | 12 months ended 31 December 2012 (audited) (re-stated) £'m | |
Other comprehensive income | |||
Exchange difference on translation of foreign operations | 1.6 | (0.6) | (1.7) |
Income tax on exchange differences on transactions of foreign operations | (0.5) | 0.1 | 0.3 |
Actuarial losses on defined benefit pension schemes | (0.3) | - | (2.5) |
Income tax on actuarial losses on defined benefit pension schemes | 0.1 | - | 0.6 |
Other comprehensive income for the period, net of tax | 0.9 | (0.5) | (3.3) |
Profit for the period | 4.1 | 5.4 | 13.4 |
Total comprehensive income for the period | 5.0 | 4.9 | 10.1 |
Attributable to: | |||
| 5.1 | 4.9 | 10.2 |
| (0.1) | - | (0.1) |
Total comprehensive income for the period | 5.0 | 4.9 | 10.1 |
The accompanying Notes form an integral part of these interim financial statements.
Condensed consolidated statement of changes in equity
For the period ended 30 June 2013 (Unaudited)
Share capital £'m | Merger reserve £'m | Translation reserve £'m | Capital redemption reserve £'m | Retained earnings £'m | Total £'m | Non- controlling interests £'m | Total Equity £'m | |
Balance at 1 January 2013 | 0.6 | 1.4 | 2.1 | 2.2 | 56.7 | 63.0 | 0.0 | 63.0 |
Profit | - | - | - | - | 4.2 | 4.2 | (0.1) | 4.1 |
Other comprehensive income: | ||||||||
Foreign currency translation differences, net of taxes | - | - | 1.1 | - | - | 1.1 | - | 1.1 |
Defined benefit plan actuarial losses, net of taxes | - | - | - | - | (0.2) | (0.2) | - | (0.2) |
Total other comprehensive income | - |
Condensed consolidated statement of changes in equity continued
For the period ended 30 June 2012 (Unaudited)
Share capital £m | Merger reserve £'m | Translation reserve £'m | Capital redemption reserve £'m | Retained earnings £'m | Total £'m | Non- controlling interests £'m | Total Equity £m | |
Balance at 1 January 2012 | 0.6 | 1.4 | 3.5 | 2.2 | 47.0 | 54.7 | 0.1 | 54.8 |
Profit | - | - | - | - | 5.4 | 5.4 | - | 5.4 |
Other comprehensive income: | ||||||||
Foreign currency translation differences, net of taxes | - | - | (0.5) | - | - | (0.5) | - | (0.5) |
Actuarial losses on defined benefit pension plans, net of taxes | - | - | - | - | - | - | - | - |
Total other comprehensive income | - | - | (0.5) | - | - | (0.5) | - | (0.5) |
Total comprehensive income for the period | - | - | (0.5) | - | 5.4 | 4.9 | - | 4.9 |
Transactions with owners, recorded directly in equity: | ||||||||
Own shares issued | - | - | - | - | - | - | - | - |
Deferred bonus share scheme | - | - | - | - | 0.1 | 0.1 | - | 0.1 |
Dividends to shareholders | - | - | - | - | (2.1) | (2.1) | - | (2.1) |
Dividends on shares awarded to employees | - | - | - | - | (0.1) | (0.1) | - | (0.1) |
Share-based payments, net of tax | - | - | - | - | (0.4) | (0.4) | - | (0.4) |
Total contributions by and distributions to owners | - | - | - | - | (2.5) | (2.5) | - | (2.5) |
Balance at 30 June 2012 | 0.6 | 1.4 | 3.0 | 2.2 | 49.9 | 57.1 | 0.1 | 57.2 |
Condensed consolidated statement of total financial position
As at 30 June 2013 (Unaudited)
30 June 2013 (unaudited) £'m | 30 June 2012 (unaudited) £'m | 31 December 2012 (audited) £'m | |
Assets | |||
Property, plant and equipment | 12.1 | 9.6 | 10.9 |
Intangible assets | 19.7 | 17.5 | 18.2 |
Deferred tax asset | 1.5 | 1.3 | 1.6 |
Employee benefits | - | 0.8 | - |
Total non-current assets | 33.3 | 29.2 | 30.7 |
Condensed consolidated statement of cash flows
For the period ended 30 June 2013 (Unaudited)
6 months ended 30 June 2013 (unaudited) £'m | 6 months ended 30 June 2012 (unaudited) £'m | 12 months ended 31 December 2012 (audited) £'m | |
Operating activities | |||
Profit for the year | 4.1 | 5.4 | 13.4 |
Adjustments for: |
Notes to the financial statements
For the period ended 30 June 2013 (unaudited)
Dialight Plc (the "Company") is a company domiciled in the UK. The condensed set of financial statements as at, and for, the six month period ended 30 June 2013 comprises the Company and its subsidiaries (together referred to as the "Group").
The Group financial statements as at, and for, the year ended 31 December 2012 prepared in accordance with IFRSs as adopted by the EU and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, are available upon request from the Company's registered office at Exning Road, Newmarket CB8 0AX.
The comparative figures for the year ended 31 December 2012 are not the Company's statutory accounts for that year. Those accounts have been reported on by the Company's auditors and delivered to the registrar of companies. The report of the auditors was (i) unqualified (ii) did not include any reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.
The condensed set of financial statements for the six months ended 30 June 2013 is unaudited but has been reviewed by the auditors. The independent review report is set out at the end of this report.
Statement of complianceThe condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU. The condensed set of financial statements do not include all of the information required for full annual financial statements, and should be read in conjunction with the Group's financial statements as at, and for the year ended 31 December 2012.
This condensed set of financial statements was approved by the Board of Directors on 22 July 2013.
Adoption of new and revised standards
There are a number of new standards, amendments to standards and interpretations which have been adopted as they are mandatory for the year ending 31 December 2013.
IAS19 (2011) requires the return on defined benefit pension plan assets recognised in the income statement to be calculated by applying the rate used to discount the plan's liabilities, rather than using the long-term expected rate of return. The impact of adopting this new standard is an increase in profit after tax for the year ended 31 December 2012 of £58,000 (6 months ended 30 June 2012: increase of £29,000) and a decrease in other comprehensive income of the same amount. In addition, the expected return on assets and interest charge on scheme liabilities have been presented net in the income statement.
No other changes to new or revised accounting standards have had a material impact on the consolidated financial statements of the Group.
Estimates and judgementsThe preparation of a condensed set of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
The Group has three reportable segments, as described below, which are the Group's strategic business units. The strategic units offer different products. They require different technology and marketing strategies. For each of the units the CEO reviews internal monthly reports. The following summary describes the operations in each of the Group's reportable segments.
The Group comprises the following business segments:
- Signals which addresses the increasing demands for Energy Efficient signalling solutions through the use of high brightness LEDs and utilisation of a number of associated technologies. Areas of business include Traffic Signals, Obstruction Signals
- Lighting which addresses the increasing demands for Energy Efficient Lighting solutions through the use of high brightness LEDs and utilisation of a number of associated technologies. Areas of business are Solid State Lighting products for Hazardous and Non-Hazardous Industrial application.
- Components whose sales are primarily to Electronics OEMs for status indication and residual disconnect components for automotive and niche industrial application
All revenue relates to the sale of goods. There is no inter-segment revenue. Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated expenses comprise corporate costs including share-based payments.
There are no individual customers representing more than 10% of revenue.
6 months ended 30 June 2013 | Lighting £'m | Signals £'m | Components £'m | Continuing Operations Total £'m | Electro- magnetic components (discontinued) £'m | Total £'m |
Revenue | 29.3 | 20.2 | 10.4 | 59.9 | 0.5 | 60.4 |
Contribution | 12.9 | 8.0 | 5.3 | 26.2 | 0.1 | 26.3 |
Overhead costs | (8.5) | (6.4) | (4.3) | (19.2) | (0.5) | (19.7) |
Segment results | 4.4 | 1.6 | 1.0 | 7.0 | (0.4) | 6.6 |
Unallocated expenses | (1.5) | - | (1.5) | |||
Non-underlying income / (expense) | (0.4) | - | (0.4) | |||
Operating profit | 5.1 | (0.4) | 4.7 | |||
Net financing income / (expense) | (0.2) | - | (0.2) | |||
Profit before tax | 4.9 | (0.4) | 4.5 | |||
Income tax expense | (1.5) | 0.1 | (1.4) | |||
Profit for the period | 3.4 | (0.3) | 3.1 |
6 months ended 30 June 2012 | Lighting £'m | Signals £'m | Components £'m | Continuing Operations Total £'m | Electro- magnetic components (discontinued) £'m | Total £'m |
Revenue | 17.2 | 25.5 | 10.4 | 53.1 | 7.9 |
Year ended 31 December 2012 | Lighting £'m | Signals £'m | Components £'m | Continuing Operations Total £'m | Electro- magnetic components (discontinued) £'m | Total £'m |
Revenue | 45.5 | 48.1 | 21.5 | 115.1 | 14.6 | 129.7 |
Contribution | 20.2 | 22.6 | 10.3 | 53.1 | 1.9 | 55.0 |
Overhead costs | (11.6) | (11.3) | (7.2) | (30.1) | (2.4) | (32.5) |
Segment results | 8.6 | 11.3 | 3.1 | 23.0 | (0.5) | 22.5 |
Unallocated expenses | (3.4) | - | (3.4) | |||
Non-underlying income / (expense) | - | - | - | |||
Operating profit | 19.6 | (0.5) | 19.1 | |||
Net financing income | 0.2 | - | 0.2 | |||
Profit on sale | - | 0.7 | 0.7 | |||
Profit before tax | 19.8 | 0.2 | 20.0 | |||
Income tax expense |
Note: Contribution is revenue less direct material, direct labour, freight and sales commission.
Geographical segmentsThe Lighting, Signals and Components segments are managed on a worldwide basis, but operate in four principal geographic areas, North America, UK, Europe and Rest of World. The following table provide an analysis of the Group's sales by geographical market, irrespective of the origin of the goods. All revenue relates to the sale of goods.
Sales revenue by geographical market6 months ended 30 June 2013 £'m | 6 months ended 30 June 2012 £'m | 12 months ended 31 December 2012 £'m | |
North America | 37.2 | 43.7 | 90.1 |
UK | 6.3 | 5.3 | 11.7 |
Rest of Europe | 8.7 | 6.5 | 12.9 |
Rest of World | 8.2 | 5.5 | 15.0 |
Electro-magnetic components (discontinued) | (0.5) | (7.9) | (14.6) |
Consolidated revenue | 59.9 | 53.1 | 115.1 |
The Group disposed of the assets of its electromagnetic components business in late 2012. In the period, the Group received contingent consideration of £1.3m (before tax) and sold some residual inventory. The results of these activities have been presented as discontinued operations.
Results of discontinued operations6 months ended 30 June 2013 £'m | 6 months ended 30 June 2012 £'m | 12 months ended 31 December 2012 £'m | |
Revenue | 0.5 | 7.9 | 14.6 |
Expenses | (0.9) | (8.1) | (15.1) |
Results from operating activities | (0.4) | (0.2) | (0.5) |
Tax | 0.1 | 0.1 | 0.1 |
Results from operating activities, net of tax | (0.3) | (0.1) | (0.4) |
Gain on sale of discontinued operation | 1.3 | - | 0.7 |
Tax on gain on sale of discontinued operation | (0.3) | - | (0.2) |
Gain / (loss) for the period | 0.7 | (0.1) | 0.1 |
Basic earnings (loss) per share | 2.1p | (0.3)p | 0.5p |
Diluted earnings (loss) per share | 2.1p | (0.4)p | 0.5p |
The Group incurred non-underlying administrative expenses of £0.4m in the period (2012: £nil) related to the restructuring of European development operations, employee severance and defined benefit pension scheme admin costs that have previously been included within actuarial gains and losses in other comprehensive income. Non-underlying finance expenses of £0.1m (6 months ended 30 June 2012: £nil; year ended 31 December 2012: £0.1m) relate to the unwinding of the discount on deferred consideration on the acquisition of Airinet. In addition, there was a £0.2m gain within finance income in the year ended 31 December 2012 in respect of the buyout of the US pension scheme.
5. Net financing expense
6 months ended 30 June 2013 £'m | 6 months ended 30 June 2012 (re-stated)# £'m | 12 months ended 31 December 2012 (re-stated)# £'m | |
Interest on bank deposits | - | - | 0.1 |
Fair value profit on financial instruments recognised at fair value through the income statement | - | 0.1 | 0.1 |
Net interest on net defined benefit liability | - | - | - |
Financial income | - | 0.1 | 0.2 |
Interest expense on financial liabilities | (0.1) | - | (0.1) |
Non-underlying unwind of discount on contingent consideration | (0.1) | - | (0.1) |
Non-underlying settlement loss on buy-out of US pension scheme | - | - | 0.2 |
Financial expense | (0.2) | - | - |
Net financing (expense) / income | (0.2) | 0.1 | 0.2 |
# See note 1.
The tax charge on continuing operations of £1.5m for the six months ended 30 June 2013 reflects the anticipated effective tax rate on underlying earnings of 31.0% for the year ending 31 December 2013. Non-underlying items have been taxed using the relevant tax rates. The effective tax rate is higher than the current UK tax rate of 23.25% due to the level of Group profits in the US which has an effective tax rate of 38.0%. The effective tax rate for the period ended 30 June 2012 was 33.7% and for the year ended 31 December 2012 was 32.7%.
The calculation of basic earnings per share is based on the profit for the period of £4.1m (2012: £5.4m) and a weighted average number of ordinary shares outstanding during the six months ended 30 June 2013 of 32,148,923 (2012: 31,871,023).
Profit attributable to ordinary shareholders
6 months ended 30 June 2013 | 6 months ended 30 June 2012 | Year ended 31 December 2012 | |||||||
Continuing £m |
Discontinued £'m | Total £'m |
Continuing £'m |
Discontinued £'m | Total £'m |
Continuing £'m |
Discontinued £m | Total £'m | |
Profit/(loss) for the period | 3.4 | 0.7 | 4.1 | ||||||
Weighted average number of ordinary shares
6 months ended 30 June 2013 Number '000 | 6 months ended 30 June 2012 Number '000 | Year ended 31 December 2012 Number '000 | |
Weighted average number of shares | 32,149 | 31,871 | 31,988 |
Diluted effect of share options | 432 | 647 | 547 |
Diluted weighted average number of shares | 32,581 | 32,518 | 32,535 |
The weighted average number of shares used in the basic earnings per share calculation excludes nil (6 months ended 30 June 2012 and year ended 31 December 2012: 47,596) shares held by the Dialight Employees' Share Ownership Plan Trust.
6 months ended 30 June 2013 Per share | 6 months ended 30 June 2012 Per share | 12 months ended 31 December 2012 Per share | |
Basic earnings | 12.6p | 16.9p | 42.0p |
Underlying basic earnings* | 11.6p | 17.3p | 41.7p |
Continuing operations basic earnings | 10.4p | 17.2p | 41.4p |
Diluted earnings | 12.4p | 16.5p | 41.3p |
Underlying diluted earnings* | 11.5p | 16.9p | 41.0p |
Continuing operations diluted earnings | 10.3p | 16.9p | 40.7p |
* Underlying earnings excludes non-underlying items as explained in note 4 and discontinued operations as explained in note 3 and allocates tax at the appropriate rate (see note 6)
During the period the following dividends were paid:
6 months ended 30 June 2013 £'m | 6 months ended 30 June 2012 £'m | 12 months ended 31 December 2012 £'m | |
Final - 9.5p (2012: 6.7p) per ordinary share | 3.1 | 2.1 | 2.1 |
Interim - nil (2012:nil) per ordinary share | - | - | 1.3 |
Less: dividends on shares held in trust | - | - | - |
3.1 | 2.1 | 3.4 | |
Final dividend - 9.5p (2012: 6.7p) on shares award not yet vested * | - | 0.1 | 0.1 |
Interim dividend - nil (2012:nil) on shares awarded not yet vested* | - | - | - |
Dividends accrued on shares awarded but not yet vested* | - | 0.1 | 0.1 |
Dividends paid on shares awarded under the PSP vested during the period | - | - | - |
Total (amount shown in the statement of changes in equity) | 3.1 | 2.3 | 3.6 |
* Relates to shares awarded under the PSP and deferred share bonus plan.
The Directors have declared an interim dividend of 4.9p per share (2012: 4.0p) costing £1.5m (including dividends on shares awarded under the PSP and deferred share bonus plan but not yet vested) (2012: £1.3m). It is payable on 6 September 2013 to shareholders whose names are on the Register of Members at close of business on 9 August 2013.
As the dividend was declared after the end of the period being reported and in accordance with IAS 10 "Events after the Balance Sheet Date", the interim dividend has not been accrued for in these financial statements. It will be shown as a deduction from equity in the financial statements for the year ending 31 December 2013.
9. Principal exchange rates
6 months ended 30 June 2013 | 6 months ended 30 June 2012 | Year ended 31 December 2012 | |
Average for the period | |||
Euro | 1.18 | 1.21 | 1.23 |
US dollar | 1.54 | 1.58 | 1.58 |
30 June 2013 | 30 June 2012 | 31 December 2012 | |
Spot rate | |||
Euro | 1.17 | 1.24 | 1.23 |
US dollar | 1.53 | 1.57 | 1.63 |
10. Related party transactions
There have been no changes in the nature of related party transactions to those described in the 2012 Annual Report that could have a material effect on the financial position or performance of the Group in the period to 30 June 2013.
The principal risks and uncertainties affecting the business activities of the Group for the next six months of 2013 remain those that are described on pages 24 to 25 of the Annual Report for the year ended 31 December 2012 (which can be found at www.dialight.com).
These include the impact of wider macro-economic conditions, changes in government legislation/policy, changes in the competitive landscape, worldwide regulatory and legal compliance, problems with LED development or introduction of superior or preferred technology, failure to protect intellectual property portfolio, product liability, uncertain financial markets, the impact of foreign exchange rates and a failure to identify and integrate suitable acquisition targets.
Responsibility statement of the directors in respect of the half-yearly financial report
We confirm that to the best of our knowledge:
- the condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU;
- the interim management report includes a fair review of the information required by:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.
By order of the Board
Roy Burton Mark FryerGroup Chief Executive Group Finance Director
22 July 2013
Independent review report to Dialight plc
IntroductionWe have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2013 which comprises the Condensed consolidated income statement, Condensed consolidated statement of comprehensive income, the Condensed consolidated statement of changes in equity, the Condensed consolidated statement of financial position, the Condensed consolidated statement of cash flows and the related explanatory notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the Company in accordance with the terms of our engagement to assist the company in meeting the requirements of the Disclosure and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA"). Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached.
Directors' responsibilitiesThe half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FCA.
As disclosed in Note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the EU. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2013 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU and the DTR of the UK FCA.
G A Watts
Senior Statutory Auditor
for and on behalf of KPMG Audit Plc,
Statutory Auditor
Chartered Accountants
One Snowhill
Snow Hill Queensway
Birmingham
B4 6GH
22 July 2013
There will be an analyst and investor meeting at 09.00 hours this morning at Kreab Gavin Anderson, Scandinavian House, 2-6 Cannon Street, London EC4M 6XJ.
A slide presentation of the event will be available at 09.00 hours on http://www.dialight.com
Internet users will be able to view this announcement, together with other information about Dialight plc at the company's web site http://www.dialight.com
About Dialight
Dialight plc is leading the lighting revolution for industrial users across the world. Applying leading edge LED technology it produces retro-fittable lighting fixtures designed specifically for hazardous locations, obstruction lighting, traffic and rail signalling to vastly reduce maintenance, save energy, improve safety and ease disposal. Versions of these high specification luminaries are also produced for more general commercial, industrial and outdoor situations.
Dialight comprises the following business segments:
- Signals which addresses the increasing demands for Energy Efficient signalling solutions through the use of high brightness LEDs and utilisation of a number of associated technologies. Areas of business include Traffic Signals, Obstruction Signals
- Lighting which addresses the increasing demands for Energy Efficient Lighting solutions through the use of high brightness LEDs and utilisation of a number of associated technologies. Areas of business are Solid State Lighting products for Hazardous and Non-Hazardous Industrial application.
- Components whose sales are primarily to Electronics OEMs for status indication and residual disconnect components for automotive and niche industrial application
The company is headquartered in the UK and listed on the London Stock Exchange (LSE:DIA.L,GB0033057794) with operating locations in the UK, USA, Germany, Denmark, Japan, Australia and Mexico. More information is available at 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.
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