Dialight Plc, a maker of light-emitting diode fittings used at the London Olympics, plunged the most in six years after saying full-year profit will probably miss its forecasts as a result of delays in contract awards.
The shares slumped 16 percent, the most since April 20, 2007, to 1,150 pence in London, paring Dialight’s advance this year to 8.2 percent. The stock was the worst performer in the FTSE All-Share Index. The volume of shares traded was almost seven times the three-month daily average.
It’s the second time in three months that Dialight said delays in the roll-out of contracts for the mobile-phone tower market would hurt profit. The shares dropped 13.5 percent on June 11 after the Newmarket, England-based company said it would miss first-half earnings estimates.
Dialight won one contract for so-called obstruction systems for towers since announcing first-half earnings on July 22, and made good progress toward being awarded others, the company said in a statement today.
“The group does not expect these contracts to be awarded in time to sufficiently impact the current financial year,” it said. “This is likely to negatively affect the group’s expectations for overall financial performance in 2013.”
Full-year profit will now probably be broadly in line with last year, Dialight said. The company reported pretax profit of 19.8 million pounds ($31.3 million) for 2012.
The lighting unit continued to grow “very strongly with no change in guidance for both the short and long term,” Dialight said.