* Expects full-year pretax profit to be at least 14.5 mln
* Co says some order deliveries delayed to 2014
* Shares fall as much as 26 percent
(Adds analyst comment; updates share movement)
Jan 8 Light products maker Dialight Plc
said it expects to report a lower full-year profit, citing
delays in deliveries of some orders from its U.S.-based
customers, sending its shares down as much as 26 percent.
Dialight's shares were trading at 628 pence at 0906 GMT,
making the stock one of the top percentage losers on the London
Stock Exchange on Wednesday morning.
The company, which assembles light emitting diode units and
supplies them to commercial customers, said it now expects
underlying full-year pretax profit from continuing operations to
be at least 14.5 million pounds ($23.78 million).
It had earlier estimated 2013 results to be broadly in line
with the year earlier. Dialight reported a pretax profit of 19.8
million pounds in the full year ended Dec. 31, 2012.
"We believe Dialight is facing issues in managing growth
rather than issues with the market or competition," Canaccord
Genuity analyst Bob Liao wrote in a note, cutting his target
price on the stock to 1150 pence from 1450 pence. Liao kept his
"buy" rating on the stock.
Dialight, which gets over 70 percent of its revenue from the
United States, said a change in the distribution model for its
obstruction business would also hurt results.
The company hired new sales people in 2013 to market its
obstruction business products, switching away from established
"About 60 percent of Dialight's sales force has less than
one year of experience," Liao said.
The signal unit, which includes Dialight's obstruction
business, makes led lighting for telephone towers and roads, and
accounts for about 40 percent of the company's sales.
($1 = 0.6098 British pounds)
(Reporting By Esha Vaish in Bangalore; Editing by Supriya