Dialight dazzles

The signals and illumination division shone brightly. The business was particularly successful in selling obstruction lighting for tall buildings and communication masts, especially in the US market where the durability of LED technology reduces maintenance costs. Revenues from obstruction lighting grew by 45 per cent last year and chief executive Roy Burton believes growth can be maintained at 30-50 per cent for the next couple of years at least.

Sales of solid-state lighting for industrial applications more than doubled to £25m. Dialight also made rapid inroads supplying to customers in the oil and gas, pharmaceutical, mining, power generation and food processing industries. LED lighting still represents a tiny slice of these very big markets. Moreover, with compelling economic and performance merits for switching to LED lighting, Dialight has not seen much of an effect from wider economic woes in its main businesses.

However, the more cyclical LED components business, which accounted for £20.8m in revenue in 2011, had a tougher time and the electromagnetic components business, which is earmarked for sale, dipped into a small loss.

Broker Canaccord Genuity is forecasting 2012 adjusted EPS of 37.3p (31.7p in 2011).