Dialight Reports Strong Growth in Lighting

Fariyal Khanbabi, Dialight Group Chief Executive, reported that the overall group revenues for the year 2022 were 29% higher than the previous year, with lighting revenues up by 34%, and orders increasing by 23%. The underlying operating profit for the year increased to £5.0m from £4.5m in 2021.

However, the gross margin fell to 32.2%, down from 35.7% in 2021. This was primarily due to significant cost inflation and supply chain disruption. The weaker orders in the crucial December trading period were also a contributing factor to the lower operating profit.

The net debt of the company stood at £20.9m, with a 1.7x LTM EBITDA ratio, driven by higher inventory levels.

Despite the challenges, Khanbabi noted that the company had made important strategic progress, reflected in the significant sales growth driven by the high demand for sustainable lighting products. She further stated that the markets the company operates in became increasingly difficult due to significant price inflation and global supply chain disruptions, which impacted their gross margins. However, she expects to see some alleviation of these issues in H2 2023.

Khanbabi also highlighted that the strong growth in Lighting orders demonstrates the increasing relevance of their products as energy efficiency became more urgent. The company delivers innovative and sustainable lighting solutions to its customers and continues to make progress towards driving their impact on the environment and society.