InterimResults2007 010410074048

Interim Results 10th September 2007
Financial Highlights
2007
H1
Movement on
2006*
H1
z
Revenue
£28.9m
3%
z
Operating profit
£1.0m
(53%)
z
Profit before tax
£1.3m
(50%)
z
Earnings per share (basic)
2.5p
(53%)
z
Strong cash generation
z
Dividend
*Restated to 2007 currency
Increased by 9% to1.9 pence per share
Revenue Bridge
£m
2006 H1 revenue
Volume increase (3%)
30.0
0.9
Currency impact
(2.0)
2007 H1 Revenue
28.9
Revenue Bridge
Signals/Illumination
2006 H1 revenue
Volume increase (12%)
£14.2m
£1.7m
Components
2006 H1 revenue
£15.8m
Volume reduction (5%)
£(0.8)m
Currency impact
£(1.1)m
Currency impact
£(0.9)m
2007 H1 Revenue
£14.8m
2007 H1 Revenue
£14.1m
Contribution Margin
2007
First Half
2006
First Half
Components
43.8%
47.9%
Signals/Illumination
33.2%
36.3%
Bridge – Operating Profit
£m
2006 H1 operating profit
Components
Signals/Illumination
2.3
(0.9)
0.6
Slippage of Cost Reduction (S/I)
(0.5)
Currency/Other
(0.5)
2007 H1 operating profit
Note:
USD rate movement – 18 cents
Euro rate movement – 3 cents
Effect of 1 cent movement p.a. - £30k (annualised)
1.0
Summarised Cashflow
£m
Operating profit
1.0
Depreciation and amortisation
1.1
Working capital
1.9 *
Pension payment
(0.5)
Operating cashflow
3.5
Capital expenditure
(0.7)
Development spend
(0.4)
Taxation
1.1
Free cash flow
3.5
*Inventory reduced by £0.8m to £9.4m
Movement in Cash
£m
Free cash flow
„
Dividends
„
Interest
Net cash inflow
„
Opening net cash
„
Translation
Closing net cash
3.5
(1.1)
0.3
2.7
4.3
(0.1)
6.9
Segment Revenues
2007 1H Sales (£M)
14.1
2006 1H Sales (£M)
14.8
14.2
15.8
Signals/Illumination
Components
Components
z
z
z
Orders stabilised
End user demand flat to 2006
Outlook for Disconnects positive
Signals/Illumination Revenues
H1 '07
H1 '06
22%
23%
54%
15%
9%
Traffic
Obstruction
Illumination
Other
53%
14%
10%
Traffic
z
z
z
z
z
z
14% Revenue growth year on year
US “Large Bid” activity growing
Awarded major contracts for New York State, Florida State
Adoption of new ITE Specification stabilising
Europe strategy continues
Price movement to be offset by cost reduction
Obstruction
z
z
z
Revenues flat year on year
US Orders up by 33%
Major new product introductions to drive revenue
1.
2.
3.
4.
5.
US Wind Turbines - Synchronised Red Beacon
European Wind Turbines - White LED Strobe
US Telecommunications - White LED Strobe
European Hazardous Market - “ATEX” Red Strobe
General Obstruction Market- Low cost Obstruction Side Light
Obstruction
z
z
z
Synchronised Red Beacon - US Wind Turbine installations to
run at 1000 Turbines/ year - potential of 2000 Lights per year
White Strobe 3 Layer (Europe) - 2000 Turbines/year potential of
4000 Lights per year
White Strobe 4 Layer(North America) - over 50,000 lighted Cell
Towers in North America on a 10 year replacement cycle potential 5000 Lights per year
Transportation - Vehicle and Rail
z
z
z
Entering H2 2007 with $1m Order Book for Heavy Duty Vehicle
Lights
White Lights for Bus Interior Lighting - Fluorescent replacement
- Potential $2000 per bus
Booked New York Power Authority Order for 12,000 Wayside
Signals - $2m approx.
Lighting
Lighting
Architectural Lighting
z In discussions with US OEMs for private label of Lumidrives
Products
z Won a “Best Product” Category at Lightfair
z Light Engines launched through Distribution
z High Power Colourdriver to be introduced in H2 for new LEDs
How do LEDs compare to the competition ? (September 2007)
Type
Efficiency
lm/W
Life -hours
x1000
Cost Per
lumen $
Colour
Rendering
Ra
High Pressure
Sodium
60 -120
10 - 20
0.0004
30
Ceramic Metal
Halide
60 -100
6 -12
0.0010
70 - 95
Fluorescent
40 -100
6 - 45
0.0005
60 - 90
Halogen &
Tungsten
8 -22
2 - 10
0.0002
100
Cool white
LED 6000k
60 -100
50
0.01
70
Warm white
LED 3000k
20 - 50
50
0.04
75 -90
White Lighting
z
z
z
z
z
z
z
z
z
Introduced “Safesite” Hazardous Location Downlight
Designed to replace 150 watt High Intensity Discharge Light
Installed base $250m plus for Refinery Market
First sales to beta sites August of this year
Strong value proposition
Over 40% Power Saving
Longer life - 5 year warranty
Sealed for life concept
Similar price as conventional fixture
Break the Paradigm! Efficiency
Typical
150W
HID HL
Typical
100W
HID HL
Dialight
SafeSite™
LED C1D2
16000
9440
4310 Lamp/LED Output (lumens)
7349
4336
3344 Fixture Output (lumens)
3707
2187
3217 Target Area Illumination (lumens)
167
110
39
39
35 Fixture Efficiency lumens/watt)
22
20
34 Target Area Efficiency (lumens/watt)
95 Power (watts)
z
Directional nature of LED’S mean more efficient light delivery to target area
z
Energy efficiency is influenced by LED selection and drive scheme
Where can LEDs add value today?
z
By understanding applications in which we can exploit the unique
properties of LEDs and engineer system level solutions which create
a strong value proposition
Robust
No Mercury
Precision optics
Long Life
Low operating
temperature
Compact
No UV or IR
New lighting applications
Easily Controlled
Strategy
z
z
z
z
Select the application that drives value
Engineer the fixture to capitalise on LED properties
Register IP to protect the future
Take to End Users/OEMs