Shares in Dialight PLC (LSE:DIA) rose 12% after the company reported third-quarter trading ahead of expectations and reached a settlement in its litigation with its former manufacturing partner.
The business traded profitably during the quarter, generating positive operating cash flow, while net debt was reduced to $14.8m from $15.4m. Progress on its Transformation Plan has led to the introduction of a fifth pillar aimed at driving future growth.
The settlement with former manufacturing partner Sanmina Corp involves Dialight paying $12 million in instalments, with $4 million due by March and $1 million paid quarterly through March 2027.
The board expressed confidence that payments can be met through operational cash flow while emphasising sufficient financial headroom for ongoing needs.
In early trading, the stock was up 11.25p at 103p.