LONDON (ShareCast) - Dialight is to divest the part of business that made all of its profit in 2007 following a strategic review.

The LED lighting specialist has put its Indication Components business up for sale, which if concluded, will leave it focused on its smart metering arm, which makes electromagnetic disconnect switches, and its LED lighting operation that includes traffic lights.

Dialight said the Indication Components business services a mature niche in the electronics market place that will exhibit low growth over time. It saw profits fall from £6.6m to £5.4m in 2007.

"The board believes that the divesture of the LED Indication Components business may be the most appropriate way to deliver value to shareholders from this part of the group and to assist the focus on the Solid State Lighting business," it said.

Overall, profits for Dialight fell to £4.45m from £5.81m on sales up slightly at £63.8m from £62.3m. Investment income on Dialight's £6.56m cash pile chipped in £590,000.

"In 2007, sales in the Signals/Illumination segment of our business grew over 17%. With an excellent pipeline of new products complementing the Safesite and White Strobe products, we are confident of continued growth in our Signals/Illumination business," chief executive Roy Burton said.

The final dividend rises by 9% to 3.8p with the full year total 5.7p.

• News Channel