TIDMDIA
RNS Number : 1643B
Dialight PLC
08 January 2018
This announcement contains inside information for the purposes
of article 7 of EU Regulation 596/2014
8 January 2018
Dialight plc
("Dialight" or the "Group")
Directorate change
Trading update and outlook
DIRECTORATE CHANGE
The Board of Dialight, the world's leading industrial LED
lighting technology company, announces today that Michael Sutsko
has stepped down as Group Chief Executive and from the Board with
immediate effect. Martin ("Marty") Rapp been appointed Group Chief
Executive on a permanent basis with immediate effect.
Marty joined Dialight as a Non-Executive Director on 26 April
2016. He served as Chief Executive Officer of Laird Technologies,
Inc. from 2001 until 2011, having held various management roles,
including Managing Director and Executive Director, at Laird plc
since joining in 1996. Previously, Marty held engineering,
marketing and management positions with Monsanto, a chemical
company, from 1981 to 1996, and served as a Non-Executive Director
of Cascade Microtech, Inc. from 2014 to 2016 and as a Non-Executive
Director of Kionix, Inc., from 2006 to 2009.
Dialight's recent product delivery performance is a significant
disappointment to the Board. Marty's prior experience is ideally
suited to lead the Group through these short-term difficulties and
the Board is confident that we will build a robust operational
platform for future growth under his leadership.
Marty will step down as a member and Chairman of Dialight's
Remuneration Committee and cease to be a member of the Audit and
Nomination Committees with immediate effect. Stephen Bird, the
Senior Independent Director, will replace Marty as Chairman of the
Remuneration Committee with Gaelle Hotellier joining the
Remuneration Committee. The Board will commence the search for an
additional non-executive director in due course.
TRADING UPDATE AND OUTLOOK
At this early stage and based on unaudited management
information, the Board expects Group revenue and EBIT (excluding
any non-recurring items) for the year ended 31 December 2017 to be
GBP181m and GBP9.7m, respectively, and net cash as at 31 December
2017 of GBP12.8m. Non-recurring items are expected to be GBP6.4m. A
full assessment of the impact of the changes in US tax legislation
(effective January 1, 2018) is not yet complete; a further update
will be provided in our full year 2017 results announcement.
Any decision on the level of the proposed final dividend for the
year ended 31 December 2017 will be made when finalising the
year-end results, which are expected to be released on 26 February
2018.
The Board continues to expect a H2 weighting to the Group's
trading performance for the year ending 31 December 2018. The
sustainability benefits of Dialight's products coupled with reduced
maintenance and improved safety offer real value to Dialight's
customers. The Board remains confident in the Group's medium to
long-term growth prospects.
Wayne Edmunds, Non-executive Chairman, said:
"On behalf of the Board, I would like to thank Michael for the
contribution he has made and wish him well for the future. Marty's
previous executive experience in product delivery and his knowledge
of Dialight's business as a board member gives him a unique
perspective to quickly and effectively remedy the recent product
delivery performance and build a robust operational platform for
future growth."
Marty Rapp, Group Chief Executive, said:
"I believe that the sustainability benefits of Dialight's
products, coupled with reduced maintenance and improved safety,
offer real value to Dialight's customers. Priority one is dramatic
and rapid improvement in our product delivery performance. My Board
colleagues and I are enthusiastic about the market transition
opportunity, which is exciting, even if its timing is unknown. We
all look forward to delivering on behalf of customers, employees,
shareholders and other stakeholders."
Contacts:
Dialight Plc
Wayne Edmunds - Non-executive chairman
Fariyal Khanbabi - Group Finance Director
Tel: +44 (0)203 058 3542
MHP Communications
Tim Rowntree
James White
Tel: +44 (0)20 3128 8100
Compensation arrangements for Michael Sutsko
Details of remuneration payments to be made to Michael Sutsko
will be in line with his contract and Dialight's Remuneration
Policy and will be posted on Dialight's website in accordance with
section 430(2B) of the Companies Act 2006 in due course.
Compensation arrangements for Marty Rapp
As a non-executive of Dialight and Chairman of the Remuneration
Committee, Marty Rapp currently receives an annual fee of $69,800.
The Remuneration Committee proposes that Marty Rapp's annual fee be
replaced with a remuneration package which is broadly equivalent to
Michael Sutsko's entitlements as Group Chief Executive.
Person responsible
The person responsible for arranging the release of this
announcement on behalf of Dialight is Chris Fussell.
About Dialight:
Dialight (LSE: DIA.L) is a global leader in sustainable LED
lighting for industrial applications. Dialight's LED products are
providing the next generation of lighting solutions that deliver
reduced energy consumption and create a safer working environment.
Our products are specifically designed to provide superior
operational performance, reliability and durability, thereby
reducing energy consumption and ongoing maintenance and achieving a
rapid return on investment.
The company is headquartered in the UK with operations in the
USA, UK, Denmark, Germany, Malaysia, Singapore, Australia, Mexico
and Brazil. www.dialight.com.
This Trading Update is based on unaudited management accounts
information and has been prepared solely to provide additional
information to the shareholders of Dialight plc. It should not be
relied on by any other party, for other purposes. Forward-looking
statements have been made by the Directors in good faith using
information available up until the date that they approved this
statement. Forward-looking statements should be regarded with
caution because of the inherent uncertainties in economic trends
and business risks. Dialight's LEI code is 2138001AD31KKD.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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