dialight plc 2009 results - investis...
TRANSCRIPT
![Page 1: Dialight plc 2009 Results - Investis Digitalfiles.investis.com/dialight/presentations/prelims09.pdf · Revenues 2009 2008 Revenue £77.3m £77.9m Signals/Illumination £46.4m £43.4m](https://reader035.vdocuments.site/reader035/viewer/2022071008/5fc594d11e509071b71b0fbb/html5/thumbnails/1.jpg)
Dialight plc 2009 Results3 March 2010
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Agenda
� Business review and outlook
� Financial results
� Q&A
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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)
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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
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Operating Profit
2009 2008
� Signals/Illumination £3.3m £1.7m
� Electromagnetic Components £0.7m £0.5m
� Indication Components £3.2m £4.9m
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Indication Components
� Revenues down almost 25% (US$) versus 2008
� Some recovery in H2
� Fundamentals of the business unchanged
� Margins solid
� Recovery continues in 2010
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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
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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
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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
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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
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2000 2004 2006 2009
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2006 2007 2008 2009
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Obstruction Lighting
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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
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White Light Strategy
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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 ?
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White Light LED Lamp Price vs. Fluorescent Lamp (Projection)
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World Lighting Fixture Market
Residential
23%Industrial
7%
Outdoor
17%Commercial
21%
Portable
18%
Parts &
Accessories
14%
Source: Freedonia
2010 Projection: $75 billion
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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
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250W HPS
60% Energy Saving
No Mercury or Hazardous material
10+ years expected life
100W SafeSite Downlight
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Product: SafeSite HZC Downlight
Qty: 423 Units
Location: Midland, MI
Application – Silicon Plant
Dow Corning
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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
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Product: LED High Bay
Qty: 59 units
Location: Frontline Manufacturing
Application – Warehouse
Frontline Manufacturing
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Product: LED High Bay
Qty: 130 units
Location: Rockline Manufacturing
Application – Warehouse
Rockline Manufacturing
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Freezer Installations
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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
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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
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Pittsburgh Street Light Trial
Product: StreetSENSE LED Street Light
Qty: 3 units
Location: Pittsburgh, PA
Application: Residential road
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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
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Product: LED Street Light
Qty: 4 units
Location: Edinburgh, Scotland
Application: Princes Street
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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
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GEORGE RALPH
FINANCE DIRECTOR
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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
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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
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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
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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
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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
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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
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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