Dialight (LSE: DIA) reported strong trading in Q127, with sales growth comfortably ahead of its previous expectation of more than 3–5%, supported by a backlog that was well above the prior year. Gross margin also exceeded management’s ambition of more than 45%, driving higher underlying profitability, while return on sales surpassed the recently upgraded target of more than 15%. There were no non-underlying costs in the quarter.
The group moved into a net cash position during Q1 and expects further cash generation over the remainder of FY27. While a significant proportion of the year remains, the board now expects profit for the year ending 31 March 2027 to be ahead of its previous expectations. Dialight will report H127 results on 10 November 2026.
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