Philips said it was likely to list its lighting division on the stock market, creating a standalone company that would be the world's largest maker of lights.

The announcement is the first time the Dutch company has specified how it intends to separate lighting – its original business when it started in 1891 – to increase its focus on healthcare technology, a higher-margin business that accounts for most of its sales and profits.

Investors have been awaiting guidance since the plans to spin off the lighting division – valued at around €5 billion – were unveiled almost two years.

The group’s first-quarter earnings before interest, taxes and amortisation (Ebita) rose 26 per cent to €290 million, beating an analyst average estimate of €257 million. Comparable sales rose 5 per cent to €5.51 billion. – (Reuters)