Dialight Reports Below Expectations Outlook for 2023, CFO Steps Down

By Elena Vardon

Dialight, the U.K. lighting company, has revised its outlook for 2023, stating that it is now below previous expectations. This announcement comes after the company reported a swing to a pretax loss for the first half of the year and revealed that its chief financial officer (CFO) will be stepping down.

For the six months ended June 30, Dialight posted a pretax loss of £4.2 million ($5.2 million), compared to a pretax profit of £1.6 million in the same period the previous year. The company attributed this decline to a cyclical downturn in its signals and components division. Additionally, revenue for the period was reported at £73.2 million, down from £80.8 million in the previous year.

The underlying operating loss, which excludes exceptional and other one-off items, was £2.5 million, marking a decrease from the £3.1 million profit in the same period last year.

Although current trading and the full-year outlook are below expectations, Dialight anticipates an improvement in the second half of the year, which is traditionally the strongest season. This improvement is expected to be driven by a solid order book, lower component costs, and cost savings.

CEO Fariyal Khanbabi stated, "With the group's markets remaining challenging, the board is focused on executing our transformation plan, which will involve initial restructuring actions in the second half of 2023."

Dialight's medium-term plan includes achieving higher underlying profitability through a streamlined focus on its core LED lighting business, realigning its cost base, and pursuing growth in key markets.

In a separate statement, the company announced that CFO Clive Jennings will be leaving his role immediately. Dialight will begin searching for a successor to fill the position.