Dialight plc 2005 Preliminary Results 13 th March 2006

Transcription

1 Dialight plc 2005 Preliminary Results 13 th March 2006

2 Highlights Divested Solartron Businesses for gross proceeds of 72.1m Returned 46.5M to Shareholders ( 90m since 2003) Renamed and Refocussed company : Dialight plc Appointed new Executive Management Team Year end cash position 9.8m Early 2006 acquisition of Lumidrives

3 Group profit and loss account m Turnover Continuing Operations Discontinued operations Operating Profit Continuing operations Discontinued operations Interest 0.4 (0.2) Profit before tax & exceptionals Operating Margin * 8.7% 10.7% Trading Margin ** 9.2% 10.5% * before profit on disposal and interest ** before profit on disposal and after interest

4 Group profit and loss account continued m Profit before tax and exceptionals Tax (2.7) (4.3) Profit on disposal of Solartron (net of tax) Retained Profit Dividends per share 6.4p 11.0p EPS Basic 92.2p 27.4p Adjusted (for profit on disposal) 19.7p 27.4p Continuing operations 10.1p 9.0p Dividend Cover Basic Adjusted for profit on disposal

5 Movement in net debt m Free Cash Flow Disposals Tax paid on disposals (5.2) - Issue of ordinary shares Return to shareholders (46.5) - Pension liabilities (7.4) - B shares redeemed (0.1) (0.2) Dividends (3.3) (3.1) Transfer to restricted cash (4.0) - Net Cash Inflow Opening Net Debt Translation 0.2 (0.2) Closing Net Cash

6 Dialight Plc

7 Highlights - Continuing Businesses Strong increase in sales and profit in H2 over H1 Profit before tax 4.5m versus 4.3m in 2004 Operating Cash Flow 5.3m for Continuing Group before Capex and Pension Payment Strong year-end balance sheet Increased order intake in 2006

8 Segments Components- Traditional Indicator Business + Electromagnetic Based Products Signals/Illumination High Brightness LED Business comprising Traffic Lights, Rail Signals, Obstruction Lights and Solid State Lighting

9 Components Orders up 4% on year and 18% on H2 Sales down 2% on year H2 Sales up 5% on H2/04 Contribution down on year Electromagnetic Components responsible for adverse swing in contribution year on year

10 Components North American Distributor Point of Sales 5% growth in 2005 Continued strong Preferred Vendor Status at OEMs Awarded Wing Mirror Contract for major Japanese Auto Manufacturer- will ship in 2006 Booked 1.5m+ orders for Meter Disconnects in January/February to date Order Input up over H2/05

11 Signals /Illumination Orders up 4.6% on year Orders in H2/05 up 10% on H2/04 Sales up 5.5% on year Sales in H2/05 up13% on H2/04 Contribution up 7.3% on year Obstruction showing good growth Traffic flat in 2005

12 Financial Review 2005

13 Proforma 2005 group profit and loss account m Turnover 56.1 Operating profit 5.0 Interest 0.4 Profit before tax 5.4 Taxation (1.9) 3.5 Dividend say 4.5 pence full year 1.4 EPS 11p Dividend Cover 2.46x

14 Continuing operations First and second half comparison m H1 H2 % Movement Sales Operating Profit Interest (0.1) 0.6 Profit before tax

15 Continuing operations First and second half comparison m First Half Second Half % Movement Sales Contribution Sales Contribution Sales Contribution Components % 4.3% Signals/Illumination % 9.6% % 6.5% Note: Using $1.82 = 1 for first and second half

16 Taxation Actual rate including disposal 37.8% 34.2% Actual rate excluding disposal 31.5% 34.2% Actual rate for continuing group 37.0% 33.4% (excluding prior year credit) 2006 tax rate expected to be broadly similar

17 Dialight continuing group cash flow m Operating profit Depreciation / amortisation Movement in working capital (0.4) (0.1) Cash from operations Capital expenditure (1.1) (0.7) Tax (1.6) (1.5) Before one-off pension contributions

18 Dialight group cash balance m Total cash at 31 December Less: Cash held in Creditor Account (4.0) Less: Cash for acquiring Lumidrives (2.5) 7.3

19 IFRS implemented as at 01 January 2005 One year s comparative date Overall impact limited to a few key areas: Pensions Development costs Discontinued operations Goodwill Employee share options (future periods)

20 Impact on continuing group (IFRS V UK GAAP) Profit and Loss Net Assets m m m m Capitalisation of development costs Accounting for defined benefit schemes (3.9) (7.4) Deferred tax on development costs and pension (0.1) (0.4) Accounting for goodwill Accounting for dividends Accounting for shares - - (2.2) (2.6) (1.1)

21 Acquisition of Lumidrives Ltd. Completed on 11 January 2006 for 3m 2.45m in cash 0.55m in Dialight shares (223,578 shares) 2005 draft results show sales of 3.2m with a double digit return Consistent growth in sales from 2002 to 2005 Net assets of approximately 0.5m at acquisition fair value review to be completed

22 Dialight Plc

23 Growth Objectives Dialight has set double digit growth plans Some of its markets are mature Important to focus on growth segments for investment

24 North America $80m annually 50% Adopted Dialight 35%+ share Drivers for Growth-Traffic Competition Gelcore and Leotek plus numerous small Asian companies Share protected by dealer Channel and strong spec. position Europe <5% Adopted 10 million Signals to be converted Potential 60m market annually if only 8% of lights are replaced each year Futurit market leader with 65% share followed by Dialight with 20% Sales through OEMs- new agreement with Siemens Germany New standards driving adoption in Germany and Netherlands Asia Low infrastructure, high new build, energy shortage No strong market established yet

25 Drivers for Growth- Rail Completed NYCT Contract in 2005 Europe little adoption Contract for Danish rail will ship early 2006 Working with SBB(CH), Railpro(NL), SNCB(B), AZD(CZ), Jerbaverket(N), Col(IT) In qualification for Russian Rail Authority Market just starting to open up Over 2 million signals to replace worldwide

26 Drivers for Growth-Obstruction Market Potential over $300m Worldwide USA has 79,000 lighted towers using 311,000 Sidelights and 38,000 Red Beacons for a potential of $120 million Assume Europe and Asia to be similar size to give a further $120 million Wind Energy will install 30,000 units over the next 5 years giving a market of $120 million assuming 2 beacons per tower Hazardous Location Market estimated to be $50 million Bridges, cranes and tall buildings estimated to be $10 million White applications not included in these estimates

27 Drivers for Growth-Obstruction Compelling Value Proposition Key supplier to FAA 6,000 Beacons sold so far more than130,000 left to change 38,000 sidelights sold so far- almost 600,000 left to change Agreements with the two leading OEMs in North America Major Customers in Europe NTL, Centertel and Polkomtel (Poland), VT Merlin Distribution set up throughout Europe

28 Drivers for Growth-White Lighting - White LEDs currently only viable for niche applications due to cost and efficiency Currently areas of high reliability, safety and durability are viable Examples are: Hazardous location lights for explosive environments Bridge and Tunnel Lights Road Sign Illumination More niches are enabled as LEDs become more efficient and more cost effective.

29 Hazloc Applications in White Mines Petrochem Pharmaceutical Chemical Long life and inherent safety allow use in hazardous locations where lights qualified to UL Class 1 Div 2 are required Dialight has qualified product

30 Drivers for Growth - Coloured Lighting Available market worldwide in hundreds of millions of dollars. Technology opens up applications Colour Mixing for Architectural, Entertainment and Theatrical Markets LEDs can be dynamically controlled LEDs do not need to be maintained

31 Drivers for Growth-Coloured Lighting Acquisition of Lumidrives in January 2006 Strong position in Architectural/Entertainment Market in Europe Revenues in 2005 more than 3m 30%+ Growth in 2005 OEM sales of complete fixtures Range of Lighting Modules Optics Drivers Light Engines

32 Architectural Lighting Products

33 White Lighting Products

34 The Light Leeds, UK

35 Lacoste Retail Outlets Nationwide UK

36 Modules Developing the essential components Enabling OEM s in new markets Invigorating existing applications Faster routes to market

37 Modules Light Engines

38 Modules - Drivers

39 Modules - Optics

40 Drivers for Growth-Coloured Lighting Expect continued growth from Lumidrives Take Dialight Spectramix Products to Europe Take Lumidrives Lighting Modules and Fixtures to USA and Asia Expand European Sales Network using Dialight channels

41 Prospects for 2006 European Traffic positioned to grow Obstruction continued growth with new products and more adoption White Light- hazardous location launched Coloured Light- exploitation of Lumidrives acquisition on a worldwide basis Promising signs in Components Segment

42 DIALIGHT Uniquely Positioned to Exploit the Lighting Revolution