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Dialight PLC on Monday reported a double-digit rise in annual revenue but suffered a fall in profit as expenses rose.
The London-based industrial LED lighting firm said revenue amounted to £169.7 million for 2022, up 29% from £131.6 million in 2021, driven by ‘strong customer demand across both business segments and a robust order book at the start of the year’.
Dialight said lighting revenue was up 34% with orders up 23% year-on-year.
Pretax profit, however, declined to £500,000 from £700,000, as financial expenses increased to £1.8 million from £1.4 million a year earlier.
Administrative expenses increased to £26.8 million from £23.6 million a year earlier.
Underlying operating profit was £5.0 million, compared to £3.4 million in 2021. The company said this was lower than initially expected due to ‘weaker orders and deliveries in the very important December trading period’.
Chief Executive Fariyal Khanbabi said: ‘We made important strategic progress which was reflected in significant sales growth driven by strong demand for our sustainable lighting products. However, the markets we operate within became increasingly difficult during the year due to significant price inflation and continued global supply chain disruptions, which impacted our gross margins. Whilst these headwinds remain, we believe that they are in most cases transitory, and we expect to see some alleviation in H2 2023.’
It proposed no dividend for 2022, unchanged from 2021.
Looking ahead, Dialight said the macroeconomic outlook remains challenging, and it expects global supply chain disruptions to continue in the short term.
Shares were down 0.9% at 194.41 pence each on Monday around midday in London.
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