Dialight Share News (DIA)

(ShareCast News) - Shares in Dialight dimmed on Tuesday as the LED lighting group's new chief executive, Michael Sutsko, revealed his new strategy but also warned of much slower sales growth and increased uncertainty for the rest of the year.The FTSE Smallcap company said lighting revenue had slowed to 5% in the third quarter to 30 September, a vast deceleration from the 24% in the first half of the year and 46% last year.The company said this was due to further weakness in the oil and gas sector and reduced levels of industrial capital expenditure, particularly in North America.At the half-year stage, Sutsko, who was appointed in June, had put in place cost-reduction plans, which were said to be on track to deliver their targeted reduction in operating costs, with management also encouraged by the strength of the order book."However, with market conditions more challenging during the third quarter, and Dialight's financial performance weighted as usual to the seasonally-strong fourth quarter, the group faces an increased level of uncertainty in the remainder of the current financial year," the company said.Sutkso added that his strategic review had confirmed his view that the company can grab "significant value" in the LED lighting market.As part of his new strategy, he plans to grow into new sectors and geographies and create a sales model based on strategic global accounts, with more "scalable and efficient" manufacturing operations.By the end of 2018, Sutsko has set Dialight a target of achieving at least: 25% annual revenue growth, 40% gross margin, 15% EBIT margin and 80% cash conversion."The group has a differentiated position in a market that benefits from long-term structural growth and our focus now is to build on Dialight's expertise in LED lighting technology to diversify into new sectors and geographies, develop a more effective sales model and ensure that our manufacturing operations are scalable and efficient," he said."The board is confident that the strategy set out today will provide the platform for the group to deliver sustainable profitable growth."Dialight shares were down 13.6% at 577p by 1300 GMT on Tuesday.