Trading Statement

Dialight plc (LSE: DIA.L), a global leader in LED lighting for heavy industrial applications, today announces an update on trading covering the five months ended 31 August 2025.

Trading update

Demand trends and operating conditions in the Group's end markets remain soft with sales marginally down on the comparative prior period due to tariff uncertainty, a softer macro-economic climate and the impact of this on the Group's hazardous end market sectors. The Group remains cautious on the sales outlook for the full financial year to 31 March 2026 due to this continuing uncertainty. The Group confirms that products manufactured in Ensenada are currently tariff free (and have been for almost all the first half of the calendar year).

The Group is positive on profit and cash generation. Ongoing margin improvement, overhead cost reduction and higher cash generation demonstrate continuing strong delivery of the benefits of the Transformation Plan. Year-to-date adjusted operating profit at the end of August 2025 is expected to be strongly ahead of both the six months to 30 September 2024 ($0.9m) and the six months to 31 March 2025 ($3.2m). This result includes the benefit of a one-off Covid credit from the US Internal Revenue Service of $1.4m, as disclosed with the Preliminary Results in July 2025. The current year result has further benefitted from foreign exchange gains of circa $0.8m.

Net debt at the end of July was $15.1m and has further improved to approximately $13.0m on 31 August 2025 (31 March 2025 $17.8m).

Outlook

The Board remains confident of meeting current market expectation1 for the full year to 31 March 2026. A further update will be provided in October 2025 once the outcome for the first half to 30 September 2025 is determined.

Note 1: The Board believes current market forecast for the year ending 31 March 2026 to be adjusted profit before tax of $5.7m.