Dialight Share Discussion Threads

[beeezzz] 08/3/2016 11:16

I'm disappointed they have decided to close their UK operation another load workers out of a job...we like the US are exporting our jobs to cheaper countries, can't go on forever otherwise we will go bankrupt as a nation.

It seems they are getting to grips with the new normal in LED sector where as usual cost matters not quality, Chinese rubbish swamping the market like everything else.

[duncan doughnut] 08/3/2016 10:53

No nasty shockers in the results for a change. The new board delivering exactly what they said.

There has not been much of a decline today given the recent strong rally either. I think you might be right napoleon.

I'm very happy to keep holding.

[napoleon 14th] 08/3/2016 10:35

The (speculative) theory is that IIs are moping up sells.
DIA is a mess, so any investing would be to back the new CEO.

[salpara111] 08/3/2016 08:49

Pretty ugly,
Loss making, big exceptionals to come and divi cancelled.
I would have expected a bigger drop at the open.

[pugugly] 08/3/2016 07:57

More cash burning to come by the looks of it.


"3. The closure of the Group's UK plant is announced today. We expect non-underlying costs in 2016 relating to the closure and the other strategic initiatives to be around GBP12m, with cumulative cost savings of approximately GBP12m over the next three years. "

"Underlying EBIT decreased 66% to GBP6.1m (2014: GBP18.1m). This was primarily the result of the business decision to employ additional headcount in advance of expected growth that did not materialise. There were also manufacturing inefficiencies relating to material sourcing, shop floor planning and tooling which were compounded by too many product variations. "

The $64M question - Is the Coy over the worst or is it such a structural mess in an increasingly competitive market that it may just have residual value and crash out to a low ball (below current market cap)to another in th elighting industry looking to integrate the DIA revenue within their current capacity ?

Still potentially toxic (imo) but Mr Market will probably prove me wrong.


SP before market opens 495/510

Edited

I also disagree with the allocation of the 2 items below to non underlying costs - They are very much (imo) a general cost of doing business. In particular (if I am reading correctly) write off of out of date stock.

?? Can any practicing accountant comment ?

Non-underlying costs GBPm GBPm
------------------------------------------------ ------ ------
Inventory provision (6.0) (2.8)
Goodwill and asset write-down (1.0) (1.3)

[shaunstar] 08/3/2016 07:57

RNS trying to be positive but i think these are poor results.

Even on an underlying basis DIA currently on a PE of 40. Cash burnt was £1.9m during the year.

£5.5m in cash but then says "The closure of the Group's UK plant is announced today. We expect non-underlying costs in 2016 relating to the closure and the other strategic initiatives to be around £12m, with cumulative cost savings of approximately £12m over the next three years."

IMO they cannot keep burning cash and spend money on 'strategic initiatives' without raising money.

[bookbroker] 08/3/2016 07:19

Very overvalued is all I can say after those results, why on earth does the market give these a premium rating!

[beeezzz] 07/3/2016 22:04

IC...

Still alive an kicking then, cbuy have you ditched them.

[itchycrack] 07/3/2016 18:50

This is just a short squeeze - next leg down when the market turns, within 2 weeks now.

[shaunstar] 07/3/2016 18:35

Some perspective... This is a company worth £146m which is currently burning cash. Thats just too high despite the jam tomorrow thats been touted for quite some years now.

This plus broker appointment In Jan made me think money raise is going to happen.

Excited for tomorrows RNS :-)

[beeezzz] 07/3/2016 16:41

Well certainly a pop at the end of trade, results tomorrow; has news leaked regarding better than anticipated. You really have to be brave shorting this one with very few shares in circulation.

Fingers crossed we are over the worse.

[jeffian] 29/2/2016 10:18

"When net debt has fallen from £8m last quarter to below £4m at the last trading update?"

That's quite interesting. How on earth did they do that?! As I have posted several times before, my concern about DIA was their ability to burn cash whilst apparently making 'profits' - moving from £15m net cash in 2013 to net debt of -£8m last reported period - and now they claim to have turned that round rather dramatically despite saying that they have incurred up to £5m exceptional cash costs in the period ("As anticipated, this fundamental transition in our operating model has led to significant exceptional costs. In aggregate, we have incurred exceptional costs in the range of £10 million to £12 million during the year of which approximately £7 million were non-cash costs"). Have they had a fundraising I missed? Can anyone throw any light on that?

[duncan doughnut] 28/2/2016 17:52

"possibly requiring a fund raising."

When net debt has fallen from £8m last quarter to below £4m at the last trading update?

lol

[shaunstar] 28/2/2016 17:23

I think cash is going to be extremely tight, possibly requiring a fund raising. If i was the new CEO i'd do it and give myself the best possible footing to be judged on going forwards,

As a future long, maybe, but not just yet.
Shaun

[effortless cool] 26/2/2016 16:47

Longer term, perhaps, but it looks a nailed on short to me, short-term, coming into results that are going to show a sizeable loss and likely to show a challenging outlook.

[cottlet] 25/2/2016 08:58

I am out
better opportunities elsewhere.
give a dog a bad name...............

[napoleon 14th] 25/1/2016 09:03

Yep, bargepole situation here. Pity, as they made me £££;£ 2 or 3 years ago.
Switched to PAYS ("OPAY" at the time) which was lucky.

IMO it's good policy to back rights issues for the right reasons,
excluding cash hungry loosers which DIA has been for a while.
I went for PAYS's rights big time, but am only watching DIA for signs of recovery......
at someone else's expense!

[pugugly] 25/1/2016 08:13

New Chairman - Background suggests to me either or both of new fundraising or groom for sale. Thoughts/knowledge ?

[itchycrack] 15/1/2016 08:35

Stay short! This is just a dog with fleas! :-)

[shaunstar] 15/1/2016 08:16

Trading update read ok but numbers not so good.
Op profit of £5.5m expected. Take out 1m in interest, 3 to 5m of exceptional costs stated due to restructuring and we arrive at -0.5 to 1.5m profit.

Mkt cap £144m so pe of at best 115!

More exceptional costs to come in 2016..... I can see a placing to boost balance sheet and reset the business. For now i remain short as in my view the company is still on too high a valuation.

[duncan doughnut] 14/12/2015 17:31

through the recent low tonight - drat.

[dangersimpson2] 14/12/2015 17:17

Yeah if they only manage to deliver 16.1p EPS in 2016 with successful turnaround program then you would think this has much further to fall.

They seem to suggest that the main issue is G&A hence the cost reductions but gross margin seems to have fallen from 37% in 2012H2 to 24% in 2015H1 (based on Stockopedia figures.) Which would suggest that their markets have got a lot more competive.

[pugugly] 10/12/2015 14:12

Looks like Montanaro jumping out in out. Were holding 5.83% Refs (Oct) then up to 6.18% Refs Dec and now 5.79% 1,882,113 shares (today's rns) So if they have now decided to bite the bullet a large overhang with what appears to be a low average daily volume (I cannot find the exact figures) but from charts and trades seems o be in the region of 20K - 30K.

Forward p/w Refs proportional at 24.7 at 510p - However brokers eps estimates have been falling fast . Last I have for 2015 Investec is only 4.82p and 16.1p for 2016 The 2016 figures (imo) assumes new managemtn will achieve a significant turnround BUT many customers capital budgets are under severe pressure if not totally blocked.

Back on the side - Memo self - Caution - Caution - Caution .