Dialight Plc · LSE:DIA
Dialight — FY2025 Earnings Presentation
18 slides from Dialight's earnings presentation, June 2025
Slide 1: Dialight Full Year Results FY25 Investor Presentation
DIALIGHT F U L L Y E A R R E S U LT S F Y 2 5 I N V E S TO R P R E S E N TAT I O N
Slide 2: Executive Summary
EXECUTIVE SUMMARY • G R O U P R E T U R N T O P R O F I TA B I L I T Y • F I N A N C I A L B E N E F I T S F R O M T H E T R A N S F O R M AT I O N P L A N • REVISED AND STRENGTHENED MANAGEMENT TEAM • E X T E N S I O N O F T H E B A N K FA C I L I T Y • S A N M I N A L I T I G AT I O N S E T T L E D
Slide 3: Transformation plan on track to return to historic profitability
T R A N S F O R M AT I O N P L A N O N T R A C K T O RETU RN TO HI STO RI C PRO F I TA BI L I T Y Transformation focused around 5 key pillars: 1. WINNING 2. SALES 3. OPERATIONS 4. MARGIN 5. CREATING A HEARTS & MINDS TRANSFORMATION TRANSFORMATION IMPROVEMENT & PLATFORM FOR CASH GENERATION FUTURE GROW
Slide 4: Progress to Date
P R O G R E S S T O D AT E K E Y P R O G R E S S S O FA R • Underlying profitability and cash generation continues to improve • Positive change continues at pace with excellent engagement from teams across the business T R A N S F O R M AT I O N P L A N • First four pillars are substantially complet
Slide 5: Tariff Update
TA R I F F U P D AT E • Evolving situation requiring continuous scenario planning and analysis • Currently exempt under United States-Mexico-Canada Agreement (USMCA) on exports from Mexico to the US • Small price increase to cover blended tariff impact on components imported from Asia • Streamlining
Slide 6: FY25 at a Glance
F Y 2 5 AT A G L A N C E FACTORIES / SUPPLY CHAIN PRODUCTS / NEW BUSINESS • Cost saving projects • 81% reduction in sub-assembly SKUs (126 power supplies to 12) • Labour reduction for Electronics area • 95% power supply automation • Quick-Ship programmes • Over 80% dual sourcing • Safety stock reduc
Slide 7: Future Plans
FUTURE PLANS FOCUS ON HIGHER MARGIN PRODUCTS FURTHER SKU REDUCTION MANAGEMENT OF COST BASE A N N U A L I S AT I O N O F C O S T R E D U C T I O N FURTHER POSITIVE PPV NEW PRODUCT DEVELOPMENT O R I G I N A L D E S I G N M A N U FA C T U R E R (ODM) NEW PRODUCTS 7 R e sF uUl Lt sL PP rE eRs IeOn Dt a
Slide 8: 5th Pillar: Creating a Platform for Future Growth
5 th P I L L A R : C R E AT I N G A P L AT F O R M F O R FUTURE GROWTH • Delivering our growth ambitions • Board S&I Committee with External Advisor Support External strategy development • New markets identification, analysis and evaluation Q1 2025 • New products development strategy Innovation to d
Slide 9: Medium Term Ambition
MEDIUM TERM AMBITION 2012 CURRENT 3-5 YEAR AMBITION Revenue growth 12.3% Revenue growth 0.8% Revenue growth 3-5% Underlying gross margin 39.2% Underlying gross margin 35.6% Underlying gross margin 45.0% Underlying EBITDA margin 20% Underlying EBITDA margin 5.8% Underlying EBITDA margin * 15.0% Retur
Slide 10: Key Strengths of the Business
KEY STRENGTHS OF THE BUSINESS Premium product with strong brand awareness in our core markets – appreciated by our customer base Our industry leading 10-year warranty is based on our low maintenance mechanical design Our in-house designed power supplies offer protection against environmental contami
Slide 11: Financial Review
FINANCIAL REVIEW MARK FRYER 1 1 Results Presentation FY25
Slide 12: Summary
SUMMARY • PROFITABILITY RESTORED AFTER AN EXTENDED PERIOD OF FINANCIAL PRESSURE • REVENUE PERFORMANCE IN LINE WITH THE SAME PERIOD LAST YEAR • GROSS MARGIN IMPROVEMENT DUE TO TRANSFORMATION PLAN • NO FURTHER SIGNIFICANT NON-UNDERLYING COSTS EXPECTED • SIGNIFICANT TAX LOSSES IN THE GROUP • ENHANCED W
Slide 13: Income Statement
I N C O M E S TAT E M E N T 12-month period 12-month period 15-month period ending 31 March 2025 ending 31 March 2024 ending 31 March 2024 $m $m $m Revenue 183.5 182.1 226.0 Cost of sales (118.2) (124.7) (155.9) Underlying gross profit 65.3 57.4 70.1 Gross margin % 35.6% 31.5% 31.0% Underlying overh
Slide 14: Non-Underlying Costs
N O N - U N D E R LY I N G C O S T S 12-month period 15-month period ending 31 March ending 31 March 2025 2024 $m $m Sanmina settlement and litigation costs (17.8) (2.3) Transformation project (4.1) (4.5) Business disposal costs 0.9 (3.5) Other (0.6) - Impairment of goodwill - (11.2) Impairment of c
Slide 15: Balance Sheet
BALANCE SHEET 31 March 31 March Sum m a r y: 2025 2024 $m $m Assets Property, plant and equipment 13.5 12.7 • Pension Buy-In Right-of-use assets 9.0 8.8 Intangibles assets 9.0 8.1 • Trade and other receivables high but Deferred tax assets 8.5 5.8 Employee benefits 2.2 5.4 justified Other receivables
Slide 16: Cashflow
CASHFLOW Net Bank Debt $m $m Opening balance 01 April 2024 (16.4) Decrease in inventories 2.6 Increase in trade and other payables 2.2 Decrease in trade and other receivables 1.9 Proceeds on disposal of business 5.2 Operating cash flows before movements in working capital 14.6 26.5 Sanmina & legal c
Slide 17: Current Trading & Outlook
CURRENT TRADING & OUTLOOK • Notwithstanding current geopolitical uncertainties, in particular the US tariffs impact, the Group’s trading has started well in April and May. • For the current financial year, we remain confident in the Group making further progress and note that the Group will also ben
Slide 18: Executive Summary
EXECUTIVE SUMMARY • G R O U P R E T U R N T O P R O F I TA B I L I T Y • F I N A N C I A L B E N E F I T S F R O M T H E T R A N S F O R M AT I O N P L A N • REVISED AND STRENGTHENED MANAGEMENT TEAM • E X T E N S I O N O F T H E B A N K FA C I L I T Y • S A N M I N A L I T I G AT I O N S E T T L E D