Dialight plc 2009 Results - Investis...
Transcript of Dialight plc 2009 Results - Investis...
Dialight plc 2009 Results3 March 2010
Agenda
� Business review and outlook
� Financial results
� Q&A
Highlights
� Turnover maintained at £77.3m (2008: £77.9m)
� Signals/Illumination showing good revenue growth in difficult market
� Record Operating profit £5.5m (2008: £5.3m)
� Strong Operating Cash Flow. Net cash £9.1m (2008:£4.1m)
� Second Interim Dividend 4.3 pence (2008:3.9 pence Final)
Revenues
2009 2008
� Revenue £77.3m £77.9m
� Signals/Illumination £46.4m £43.4m
� Electromagnetic components £13.3m £15.1m
� Indication business £17.6m £19.4m
Operating Profit
2009 2008
� Signals/Illumination £3.3m £1.7m
� Electromagnetic Components £0.7m £0.5m
� Indication Components £3.2m £4.9m
Indication Components
� Revenues down almost 25% (US$) versus 2008
� Some recovery in H2
� Fundamentals of the business unchanged
� Margins solid
� Recovery continues in 2010
Electromagnetic Components
� Revenues down £1.8m versus 2008
� 200 amp Disconnect still showing growth but slowed by design change with one customer
� Traditional business down with economy but showing some signs of recovery
� Prospects for Disconnect still promising but on thin margins
Signals/IlluminationRevenue
2009 2008
Revenue: £46.4m £43.4m
� Traffic £23.1m £24.4m
� Obstruction £7.2m £4.6m
� Transportation £10.4m £8.3m
� Lighting £5.7m £6.1m
Signals - Traffic
� US traffic down due to lack of big contracts in the year and tough comparison
� Strong European recovery in second half to maintain revenues at 2008 levels
� UK performance and prospects good
� Margins improved
� Interest in street lights from customers in both US and Europe
Signals - Obstruction
� 50% year on year growth (again!)
� Sales of Red Beacons helped by second half recovery of US Wind Turbine Market
� New Beacon introduced end of the year
� New White Strobe introduced end of the yearTwo major contracts announcedOver 1000 units soldInstalled cell tower base over 80,000 unitsOnly qualified product today
2000 2004 2006 2009
2006 2007 2008 2009
Obstruction Lighting
Illumination
� Revenues down overall
� Industrial White Lighting sales 300% of 2008
� Highly successful launch of Safesite High Bay
� Payback approaching tipping point
� Multiple street lighting trials
� Pipeline of new products
� 2010 starting strongly
White Light Strategy
Type Efficiency lm/W Life -hours x1000
Cost Per lumen $
Colour Rendering Ra
High Pressure
Sodium
60 -120 10 - 20 0.0004 30
Ceramic Metal Halide 60 -100 6 -12 0.0010 70 - 95
Fluorescent 40 -100 6 - 45 0.0005 60 - 90
Halogen & Tungsten 8 -22 2 - 10 0.0002 100
Cool white LED 6000k
90 -130 50 0.015 70
Warm white LED 3000k
20 - 50 50 0.04 75 -90
How do LEDs compare to the competition ?
White Light LED Lamp Price vs. Fluorescent Lamp (Projection)
World Lighting Fixture Market
Residential
23%Industrial
7%
Outdoor
17%Commercial
21%
Portable
18%
Parts &
Accessories
14%
Source: Freedonia
2010 Projection: $75 billion
Why LEDs?
Long Life
High Efficiency
Shock & Vibration
Extreme Climates
Zero Maintenance
Low Case Temperature
Precise Optical Control
Instant Light
Switching Cycles
Colour Performance
=Low Cost
Of
Ownership
250W HPS
60% Energy Saving
No Mercury or Hazardous material
10+ years expected life
100W SafeSite Downlight
Product: SafeSite HZC Downlight
Qty: 423 Units
Location: Midland, MI
Application – Silicon Plant
Dow Corning
250W HID
Dialight 150W LED High Bay
40% Energy Saving
50% less weight & 75% reduced size
No Mercury or Hazardous material
10+ years expected life
Product: LED High Bay
Qty: 59 units
Location: Frontline Manufacturing
Application – Warehouse
Frontline Manufacturing
Product: LED High Bay
Qty: 130 units
Location: Rockline Manufacturing
Application – Warehouse
Rockline Manufacturing
Freezer Installations
Extreme Climate
LED vs. Fluorescent
LED
• The light output of Fluorescent decreases with colder temperature
• The light output of LED light increases with colder temperature
US installed base of Street & Area Light Fixtures
2007 Total: 131 million units
131.4Total
3.1Parking Lot/Garage
34.7Street Lights
45.8Floodlights
47.8Area Lights
Millions of unitsType
US DOE Report: Energy Savings Estimates of Light Emitting Diodesin Niche Lighting Applications 2008
Pittsburgh Street Light Trial
Product: StreetSENSE LED Street Light
Qty: 3 units
Location: Pittsburgh, PA
Application: Residential road
St. Peters, MO - 4
Mobile, AL - 1
Longmont, CO - 1
Macob Co, MI - 1
VA Beach, VA - 3
O'Fallon, MO - 4
Riverside, CA - 2
Pittsburgh, PA - 3
Pocatella, ID - 1
Tacoma, WA - 5
Indio, CA - 4
Brea, CA - 1
Fargo, ND - 3
Pierre, SD – 1
Stevens Point, WI - 1
Dialight US Street Light Trials
Product: LED Street Light
Qty: 4 units
Location: Edinburgh, Scotland
Application: Princes Street
Outlook
� Signals/Illumination positioned for continued growth with stronger margins
� Improved LED efficiency and cost is moving the adoption point
� Pipeline of new and improved White Lighting products
� Continued reengineering and cost reduction
� LED Indication showing recovery and still a strong profit and cash generator
� Group shows excellent prospects for future Revenue Growth and Profitability
GEORGE RALPH
FINANCE DIRECTOR
Summary Profit & Loss
-2.1Exceptional profit
(2.2)(2.0)Tax
3.43.3Profit from cont. ops
0.3(0.2)Net financing cost
5.35.5Operating profit
3.45.4Retained profit
5.65.3Profit before tax
(11.0)(13.2)Overhead costs
20.924.2Gross Profit %
16.318.7Gross Profit
77.977.3Revenue
2008 £M2009 £M
Taxation
� Effective tax rate in 2009 was 37.7%
� Effective tax rate in 2008 was 38.5%
� Issues
� Profits in high tax locations
� Unrelievable UK losses
Dividends and Earnings Per Share
2009 2008
� Dividends per share 6.6p 6.0p
� Basic EPS 17.5p 11.2p
� Dividend cover 2.7 times 1.9 times
� Adjusted EPS 10.2p 11.2p
Summary Balance Sheet
4.19.1Cash
37.540.1Net Assets
(5.9)(2.0)Non current liabilities
(13.8)(12.1)Current liabilities
33.327.3Other current assets
19.817.8Non current assets
2008 £M2009 £M
Summarised Cash flow
3.15.0Net cash generated
(4.2)(1.9)Financing activities
(2.4)(2.5)Investing activities
(2.3)(1.6)Tax/financing
6.011.0Cash from operations
(2.1)2.7Working capital
8.18.3Operating cash
2008£M2009£M
Working capital / Cash flow
� Inventory – strong inventory performance significant reduction
� Working capital generated cash rather than consumed cash
� Cash - Continuing strong operating cash flow with debt free balance sheet
Summary
� Profitable business in difficult market conditions
� Cash generative
� Debt free balance sheet
� All above provides good platform to build on in 2010 and beyond