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(Sharecast News) - Dialight said on Wednesday that full-year profit was set to be ahead of its previous expectations following strong sales growth in the first quarter of the new financial year.
The company, which provides LED lighting for industrial applications, said first-quarter sales comfortably beat its stated expectations of 3-5%+ sales growth. Gross margin also comfortably exceeded management's ambition of 45%+, with the improvement flowing directly through to increased underlying profitability.
"This has also meant that the group has exceeded the newly issued, and upgraded, return on sales target of 15% plus in the first quarter of the year," it said.
Dialight said it's now in a net cash position and as indicated expects further cash generation during the remainder of the financial year.
"Whilst there remains a significant proportion of the financial year still ahead, based on performance to date and the current outlook, the board believes the group's profit for the financial year ending 31 March 2027 is likely to be ahead of its previous expectations."
At 1003 BST, the shares were up 9.2% at 441.28p.
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