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Dialight Warns On November Results; Says Dec. Performance Critical; Stock Dips

Dialight plc (DIA.L), a provider of sustainable LED lighting for industrial applications, Thursday said the delays in raw material supplies adversely impacted November results. Performance in December is critical to delivering its year end results and will require a further planned ramp up in production coupled with continuity of raw material supply.

In its trading update for the year ending December 31, it has made considerable progress since the termination of its contract manufacturing partner arrangements. The company noted that at the time of the termination it had 50% of final assembly of lighting products in house. This has increased to over 90% and is anticipated to be 100% in the coming weeks.

Production at its own facility has been ramping up well, but has been hampered by the inability to obtain raw material supplies from manufacturing partner on a timely basis.

Further, the company noted that on October 26, the High Court reached a judgment in relation to Lloyds Banking Group's defined benefit pension schemes which concluded that schemes should equalise pension benefits for men and women as regards guaranteed minimum pension benefits.

Should this outcome be upheld, the company said it is working with the trustees of pension schemes, and actuarial and legal advisers, to understand the extent to which the judgment will crystallise additional liabilities for Dialight's pension schemes.

Dialight said its current guidance excludes any potential impact on the Income Statement related to the equalisation.

Marty Rapp, Group Chief Executive, said, "As we ramp up our new facilities in Mexico and Malaysia early in 2019, we will begin to see the full impact of transition to a hybrid manufacturing model. We would have preferred to make these changes outside our peak selling season, but these are the right actions for the business and coupled with our expanded new product development actions will result in a stronger and faster-growing Dialight."

Dialight's full year results will be announced on February 25, 2019.

In London, Dialight shares were trading at 315 pence, down 4.26 percent.

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