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(Alliance News) - Dialight PLC on Monday said its performance in 2019 was hurt by extra costs associated with exiting from an outsourced manufacturing agreement.
The LED lighting company said it swung to a pretax loss of GBP12.5 million in 2019 compared to GBP7.4 million profit reported a year earlier, as revenue declined by 11% to GBP151.0 million from GBP169.6 million. On a constant currency basis, revenue fell by 14%.
"From a financial perspective 2019 was disappointing, in large part due to the significant costs of GBP10.2 million associated with exiting from our outsource manufacturer," explained Chief Executive Fariyal Khanbabi.
"However, we continued to make investments in operations and new products of GBP12.8 million to better position us for future growth," added Khanbabi.
Looking ahead, Dialight said it expects most of its end markets to remain "challenging" in the short term amid the Covid-19 pandemic. Despite that, the company said it continues to target a "materially" improved trading performance, with a strong focus on sales and new product development.
Dialight shares were trading 20% lower in London on Monday at 173.35 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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