TIDMLUCE
RNS Number : 3464L
Luceco PLC
05 September 2023
5 September 2023
LUCECO PLC - 2023 INTERIM RESULTS
Encouraging first half performance, continued improving momentum
and strong orderbook, remaining vigilant in a changing economic
environment
Luceco plc, the supplier of wiring accessories, EV chargers, LED
lighting, and portable power products, today announces its
unaudited results for the six months ended 30 June 2023 ("H1 2023"
or "the period").
2023 Summary results
Six months ended 30 June 2023 H1 2023 H1 2022 Change (%)
(GBPm unless otherwise stated)
================================= ======== ======== ===========
Revenue 101.1 106.4 (5.0%)
Adjusted Results(1)
Adjusted operating profit 10.8 11.5 (6.1%)
Adjusted profit before tax 9.4 10.5 (10.5%)
Adjusted profit after tax 7.7 9.0 (14.4%)
Adjusted basic earnings per
share 5.0p 5.8p (13.8%)
Statutory Results
Operating profit 9.8 10.0 (2.0%)
Profit before tax 6.2 4.6 +34.8%
Profit after tax 5.3 4.2 +26.2%
Basic earnings per share 3.4p 2.7p +25.9%
Metrics
Adjusted(1) Operating margin
% 10.7% 10.8% (0.1ppts)
Covenant Net Debt 37.6 53.9 (30.2%)
Covenant Net Debt : Covenant
EBITDA(2) 1.3x 1.4x (7.1%)
Adjusted(1) Free cash flow (8.0) (2.8) (185.7%)
Dividend per share 1.6p 1.6p 0.0%
1. The definitions of the adjustments made and reconciliations
to the reported figures can be found in note 1 of the condensed
consolidated financial statements
2. Includes pro-forma adjustment for EBITDA of acquired
businesses, as shown in note 1 of the condensed consolidated
financial statements
Performance highlights
-- 2023 results slightly ahead of the July trading update:
Revenue: GBP101.1m in line with the expected slow down seen
in the residential Repair, Maintenance and Improvement ("RMI")
market (H1 2022: GBP106.4m)
Adjusted Operating Profit: GBP10.8m (H1 2022: GBP11.5m) reflecting
a return to strong gross margins, up over 5 percentage points
versus H1 2022 to 39.4%
Adjusted EPS: 5.0p (H1 2022: 5.8p)
Covenant Net Debt reduced by 30.2% year on year and Covenant
Net Debt : EBITDA ratio remains at the lower end of the target
range at 1.3x (H1 2022: 1.4x)
-- Improving momentum in H1 2023:
Customer stocking has appeared to return to normal levels at
the end of H1 2023 following post-pandemic destocking
Non-residential demand continues its favourable trend
Despite economic headwinds, revenue decline has been less than
expected
Material and freight costs pressures have subsided
Operational synergies at DW Windsor, within the most recent
addition to the Group, contributed to a strong first half performance
with near double digit operating margin and some key contract
wins
EV business has grown further, with a strong pipeline of new
products
Outlook
-- Despite ongoing weakness in our core markets, we have made
further progress since the July trading update and we now expect
full year 2023 adjusted operating profit to show clear progress on
last year. This is above the current range of market
expectations.
-- We remain mindful of the uncertain macroeconomic environment
and the potential impact it may have on our markets in 2024.
Commenting on the results, Chief Executive Officer, John Hornby
said:
"It has been an encouraging first half for Luceco. Our gross
profit margin improved as material and freight cost pressures
continued to ease during the period, albeit partially offset by
wage pressures. We continue to build an attractive M&A pipeline
and we have further strengthened our balance sheet.
We have a number of exciting product developments in progress,
which provide us with good medium and long-term opportunities for
growth. A strong order book supports a reassuring outlook for the
remainder of the year. Historically the Group has enjoyed a
stronger second half and, whilst we are mindful of the current
economic environment, we expect a similar trend this year."
Results information
A meeting for analysts will be held at 9:30am BST today, Tuesday
5 September 2023 at the offices of Liberum, 25 Ropemaker Street,
London EC2Y 9LY. To register to attend please email
luceco@mhpgroup.com . To register to watch a live webcast of the
meeting, please follow this link:
https://stream.brrmedia.co.uk/broadcast/64df4eadaed457815bbbbcc2
The Company will host a presentation for private investors on
the Investor Meet Company platform on Wednesday 6th September at
4:00pm BST. Those wishing to attend can register via the following
link:
https://www.investormeetcompany.com/luceco-plc/register-investor
Luceco plc Contact
============================= =======================
John Hornby, Chief Executive 020 3128 8276 (Via MHP)
Officer
Will Hoy, Chief Financial 020 3128 8276 (Via MHP)
Officer
MHP Contact
============================= =======================
Tim Rowntree 020 3128 8004
Ollie Hoare 020 3128 8276
This announcement is released by Luceco plc and contains inside
information for the purposes of Article 7 of the Market Abuse
Regulation (EU) 596/2014 as it forms part of the domestic law of
the UK by virtue of the European Union (Withdrawal) Act 2018 (MAR).
It is disclosed in accordance with the Company's obligations under
Article 17 of MAR. Upon the publication of this announcement, this
information is considered to be in the public domain.
For the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055 as it forms part of the domestic law of
the UK by virtue of the European Union (Withdrawal) Act 2018, this
announcement is being made on behalf of Luceco plc by Will Hoy,
Chief Financial Officer.
Note to Editors
Luceco plc - Bringing Power To Life
Luceco plc (LSE:LUCE) is a supplier of wiring accessories, EV
chargers, LED lighting, and portable power products.
Luceco plc ("Luceco", "the Group" or "the Company").
For more information, please visit www.lucecoplc.com .
Forward-looking statements
This announcement contains forward -- looking statements that
are subject to risk factors associated with, among other things,
the economic and business circumstances occurring from time to time
in the countries, sectors and markets in which the Group operates.
It is believed that the expectations reflected in these statements
are reasonable, but they may be affected by a wide range of
variables which could cause actual results to differ materially
from those currently anticipated. No assurances can be given that
the forward -- looking statements in this announcement will be
realised.
The forward -- looking statements reflect the knowledge and
information available at the date of preparation of this
announcement and the Company undertakes no obligation to update
these forward -- looking statements. Nothing in this announcement
should be construed as a profit forecast.
Use of alternative performance measures
The commentary in both the Chief Executive Officer's and Chief
Financial Officer's Reviews uses alternative performance measures,
which are described as "Adjusted". Definitions of these measures
can be found in note 1 of the condensed consolidated financial
statements. The measures provide additional information for users
on the underlying performance of the business, enabling consistent
year-on-year comparisons.
Chief Executive's review
Performance highlights
During the first half of 2023, we achieved revenue of GBP101.1m
(H1 2022: GBP106.4m) and Adjusted Operating Profit of GBP10.8m (H1
2022: GBP11.5m), which is slightly ahead of the performance
reported in our July trading update.
During the period we have increased our gross margin, as
material and freight costs continue to ease, albeit these have been
partially offset by increasing wage costs.
Customer stock movements
In 2021, the combination of strong end user demand and
exceptionally constrained global supply chains caused our
distributor customers to materially increase their stock of our
products, adding to our sales, as previously reported. In 2022 and
in the first half of 2023, they largely unwound the extra inventory
added as both demand and supply chain constraints eased, reducing
our sales.
As of June 2023, this period of destocking appears to be
complete, based on the analysis of EPOS data with our customers who
have returned to more normalised purchasing patterns.
Cost inflation
Following the global supply and demand imbalances during the
pandemic we have finally seen cost inflation subside with material
and freight and duty prices continuing to ease. Our gross margin is
beginning to return to through-the-cycle levels which is
encouraging.
Underlying demand
Despite strong economic headwinds and unfavourable leading
indicators we have not seen the extent of the reduction in revenue
that might have been expected in the first half of the year.
We have seen resilient demand in the residential professional
and non-residential sectors which has helped maintain activity
levels at this higher than expected rate.
Whilst this position has been encouraging, we are cognisant of
the current macroeconomic climate and will remain vigilant in the
second half of the year and into the early part of 2024 as pressure
increases further on discretionary consumer spending.
Supply chain management
Lead times normalised in 2022 following the peaks during the
pandemic and have remained consistent in the current period -
accordingly we have been managing our own inventory position to the
new normalised demands.
Strategic highlights
I am pleased with the continued progress we have made against
our business strategy to Grow, Innovate and Sustain, which leaves
us well positioned to make further progress and continue our
competitive advantage.
Grow
Our Grow strategy takes a two-pronged approach of organic and
M&A growth.
Our organic growth is driven by being agile and innovative to
our customer needs. We can achieve this because we make a
significant amount of our products in-house and also because of the
Group's culture and desire to design and build new and innovative
products.
The Group generates strong operational cash flow and this can be
used to fund acquisitions. The recent acquisition of Sync EV in
2022 has given us a valuable foothold in the rapidly growing EV
charger market, whilst our DW Windsor acquisition provides a more
diversified infrastructure related revenue stream - which is
holding firm in this tight consumer spending period. Kingfisher
Lighting has recently won a contract, as one of seven key
suppliers, to provide lighting for the Premiership Floodlighting
scheme - which should provide a revenue stream from the second half
of 2023 to 2027.
Through organic growth and M&A, we have increased our sales
of professionally installed products over recent years, a key
strategic priority, to complement our historic weighting towards
consumer installed products. This has given us greater access to a
typically higher margin and more resilient market. Our growth in
the non-residential construction market has proven particularly
beneficial as consumer-led construction has normalised post-COVID
and institutions have increasingly demanded LED retrofit projects
to combat energy cost increases.
Innovate
The Group has approximately 100 product development specialists
globally. Their focus is on developing new products whilst
continually enhancing our existing range. Our product development
process is customer-centric, rapid and carries relatively low
execution risk due to our extensive and close relationships with
distributors and retailers. It has been a key driver of the Group's
historic success.
A key new development in the year has been the introduction our
new 22kw EV charger which will have applications in the commercial
and higher end residential space - developed in-house in the UK in
conjunction with our production facility in China.
We are pleased to report that DW Windsor is beginning to utilise
our expertise and manufacturing capacity, both in the UK and China,
for its product base which will help us transform the business
further.
We continue to innovate our core offering to deliver higher
margin products, with a particular focus on redesigning products to
simplify their installation by professional contractors.
Sustain
Our Sustain strategy is becoming more prominent and important to
the Group - we see this being a key competitive advantage for the
future with the Group already highly geared towards a green
oriented product range.
During the first half of 2023 we received validation from the
Science Based Targets initiative ("SBTi"), targeting a 42%
reduction in operational emissions and a 27.5% reduction in value
chain emissions by 2031. Our operations continue to offer one of
the lowest operational carbon footprints in our industry and our
progress was recognised with an upgraded rating by the Carbon
Disclosure Project in 2022 from a "C" to a "B". We continue to make
further progress in this area during 2023.
We remain committed to working closely with contractors on
training seminars and with the development of the next generation
of contractors.
How we create value
Our attractive markets
Over the course of the last decade, we have worked hard to grow
our share of existing markets as well as enter adjacent markets
where we see a competitive advantage. As a result, we now hold
enviable positions across a range of industries that are poised for
future growth.
Residential construction and DIY markets have slowed and demand
declined in the period but this is following a relative buoyant
2021 performance boosted by lockdowns. These markets remain more
active than they were in 2019. Consumers continue to spend more
time living and working from home than they did pre-pandemic, which
continues to be a benefit to the Group.
Non-residential construction markets are expected to be broadly
flat this year with continuing higher energy prices driving
increased interest in our energy-saving LED lighting retrofit
projects.
I am also encouraged that the infrastructure market, which we
serve through our Kingfisher Lighting and DW Windsor businesses, is
expected to be stable for 2023. Our customers operating within the
infrastructure market have long recognised the benefits that
premium exterior lighting can have on an environment, but given the
current cost of energy, these advantages have become even more
pertinent.
I am confident that the right fundamental drivers are in place
in each of our chosen markets for us to see sustained growth over
the coming years, despite operating in a period of short-term
macroeconomic uncertainty. What is more, I am certain that we have
the right strategy in place to outperform these markets over the
long term.
Our advantaged business model
Our advantaged business model is a key reason why we capture
opportunities in our chosen markets. Over the course of the
pandemic our vertical integration gave us unmatched control of
supply, enabling us to provide greater product availability to our
customers and fuelling our own market share gains.
Our business model enabled us to remain agile as short-term
demand changed as a result of our customers' stock movements. As
our operating environment altered, our close control of our own
manufacturing and distribution channels enabled us to respond
quickly by flexing our inventory levels, generating cash and
maintaining good gross margins.
Although our markets are attractive, the opportunities they
create can only be harnessed by those with the correct processes
and knowledge. Regulatory change is a key part of our industry,
with new wiring regulations introduced approximately every two
years.
Our advantaged business model allows us to redesign to meet
these new regulations, manufacture the new product at our own
facilities and bring the product to market quickly and efficiently
under our trusted brands. The same advantages apply when
considering the end consumers' increasing desire for more
technology and increased functionality, which we can respond to
more quickly than others.
Outlook
Encouragingly, trading in the first half of 2023 has been
slightly ahead of our expectations, illustrating the robustness of
our business model despite headwinds from economic indicators. We
will continue to remain cautious and vigilant in the latter half of
this year and in the early part of 2024, but I am encouraged by the
healthy underlying trading performance across our business and the
strong order book for Q3 2023 illustrating Luceco's leading
positions in our core markets. When economic pressures ease, the
Group is very well placed to grow and expand at a fast pace.
JOHN HORNBY
Chief Executive Officer
5 September 2023
Chief Financial Officer's review
Summary of reported results
Summary results (GBPm) H1 2023 H1 2022
======================== ======== ========
Revenue 101.1 106.4
Operating profit 9.8 10.0
Profit before tax 6.2 4.6
Taxation (0.9) (0.4)
======================== ======== ========
Profit for the period 5.3 4.2
======================== ======== ========
Operating profit of GBP9.8m was just below the prior half year
of GBP10.0m - despite the macroeconomic headwinds and a higher
operating cost base largely as a result of UK wage inflation.
Improvements in gross margin as cost pressures ease are helping
margins move towards through-the-cycle levels.
Adjusting items
Adjusting items are those which we consider unusual by virtue of
their size or incidence and therefore not representative of our
underlying trading performance. We have identified GBP1.0m of such
items within our reported operating profit for 2023 (H1 2022:
GBP1.5m). They consist of:
-- Amortisation of acquired intangibles: GBP1.0m (H1 2022: GBP0.9m)
-- Acquisition related costs: nil (H1 2022: GBP1.1m)
-- Restructuring costs: nil (H1 2022: GBP0.5m credit)
Adjusted Operating Profit for the period, excluding the items
above, was therefore GBP10.8m (H1 2022: GBP11.5m).
Income statement
Revenue
Revenue of GBP101.1m was GBP5.3m (5.0%) lower than H1 2022 with
the main movements summarised below:
Bridge from H1 Bridge from H1
2023/2 2021/2
Revenue bridge: GBPm Change GBPm %
%
====================================== ======= ======== ======= ========
2022/2021 106.4 108.2
Acquisitions/closures (1.3) 13.6
Like-for-like (decrease)/increase(1) (6.2) (5.8%) (17.8) (16.5%)
====================================== ======= ======== ======= ========
Constant Currency(2) 98.9 104.0
Currency movements 2.2 2.4
====================================== ======= ======== ======= ========
TOTAL 101.1 (5.0%) 106.4 (1.7%)
====================================== ======= ======== ======= ========
1. Like-for-like revenue increase excludes the impact of
currency movements and acquisitions, see note 10 of the condensed
consolidated financial statements
2. 2023 revenue translated at 2022 exchange rates and 2022
revenue translated at 2021 exchange rates
Total revenue declined by a modest 5.0% against the backdrop of
difficult economic conditions, with revenue falling less than the
Group had previously anticipated.
Like-for-like revenue declined by GBP6.2m compared to H1 2022
predominantly as a result of the expected reduction in residential
DIY activity.
We group our customers into the following sales channels:
-- Retail: Distributors serving consumers only, including DIY
sheds, pure-play online retailers and grocers
-- Hybrid: Distributors serving both consumers and
professionals, typically with multi-channel service options
-- Professional Wholesale: Distributors serving professionals only, largely via a branch network
-- Professional Projects: Sale agreed by Luceco direct with
professionals, but largely fulfilled via Professional Wholesale
Performance by sales channel was as follows:
H1 2023 H1 2023
Change
% of v H1 2022
Like-for-like revenue by sales channel: GBPm total %
========================================== ========= ========= ===========
Retail 20.3 20.9% (30.6%)
Hybrid 23.5 24.2% 23.7%
Professional Wholesale 24.5 25.2% (6.8%)
Professional Projects 29.0 29.7% 4.7%
========================================== ========= ========= ===========
Like-for-like revenue 97.3 100.0% (5.8%)
Currency impact 2.2
Acquisitions 1.6
========================================== ========= ========= ===========
TOTAL 101.1 (5.0%)
========================================== ========= ========= ===========
Nearly all of the destocking impact we experienced in 2022 arose
within the Retail and Hybrid channels - the Hybrid channel has
recovered in the period but the Retail channel continued to destock
during the first half of 2023. From analysis of customer EPOS data,
the products which have seen the largest destocking have been our
Portable Power products. This was caused due to unusually high
demand during the pandemic impacting their normalised customer
stocking levels. The Professional Wholesale channel declined in
line with the expected trade slow-down.
The Professional Projects channel had an increase in the period
of 4.7% which continues the strong performance from Kingfisher
Lighting and growing commercial and institutional demand for LED
retrofits in the UK with high electricity prices and as the climate
agenda becomes more of a focus.
H1 2023 H1 2022 Change v
Revenue by geographical location of customer: GBPm GBPm H1 2022 %
=============================================== ======== ======== ===========
UK 86.5 85.5 +1.2%
Europe 6.3 11.2 (43.8%)
Middle East and Africa 3.8 3.3 +15.2%
Asia Pacific 1.2 2.4 (50.0%)
Americas 3.3 4.0 (17.5%)
=============================================== ======== ======== ===========
Total revenue 101.1 106.4 (5.0%)
=============================================== ======== ======== ===========
The change in revenue by geography has a number of
characteristics by location of the customer.
Within the UK, professional residential and non-residential
demand has remained strong and this has supported some overall
growth of 1.2%.
European sales reduced in the period following the closure of
our operations in Germany and France in the prior period with no
sales in the current year. The sales decline in the Americas is
attributable to a key customer in the US DIY channel that over
stocked in 2021 and we have seen further destocking impacts during
the first half of 2023, which appears to now be complete.
Profitability
Adjusted Operating Profit of GBP10.8m for H1 2023 was GBP0.7m
lower than H1 2022. The key drivers were as follows:
Bridge from Bridge from
H1 2022 H1 2021
Adjusted Operating profit GBPm GBPm
====================================== ============ ============
2022/21 11.5 19.2
Acquisitions/closures 0.2 0.1
Like-for-like increase/(decrease)(1) 0.8 (6.1)
Currency movements (1.7) (1.7)
====================================== ============ ============
TOTAL 10.8 11.5
====================================== ============ ============
1. Like-for-like profit movements exclude the impact of currency
movements and acquisitions/closures
Encouragingly, the like for like increase in Adjusted Operating
Profit in the period was GBP0.8m, versus a decline of GBP6.1m in H1
2022. This is driven by a strong increase in gross profit margin in
the period of 8.1ppts year on year, excluding the impact of
currency. The overall operating margin would be 12.7% versus the
reported 10.7% excluding the impact of currency, so this has
impacted the Group's operating profit by GBP1.7m against the prior
year.
Overall, the improvement in gross margin was largely driven by a
combination of stronger product mix and reduction in material,
freight and duty costs. This overall gross profit increase was
offset by higher operating costs due largely to labour/wage cost
inflation.
The table below provides a more detailed view of the currency
impact in the period:
Constant Currency
variance to
Currency impact H1 2022
================== =========== ================== ============= ==================== =========
Adjusted
Adjusted H1 2023 Adjusted
H1 2023 at Constant H1 2022
actual(1) Currency(2) actual
GBPm GBPm % GBPm GBPm % GBPm
================== =========== ====== ========== ============= ======== ========== =========
Revenue 101.1 2.2 2.1% 98.9 (7.5) (7.0%) 106.4
Cost of sales (61.3) (3.9) 5.6% (57.4) 12.8 (18.2%) (70.2)
================== =========== ====== ========== ============= ======== ========== =========
Gross profit 39.8 (1.7) (4.7%) 41.5 5.3 14.6% 36.2
Gross margin
% 39.4% (2.6ppts) 42.0% 8.0ppts 34.0%
Operating costs (29.0) - - (29.0) (4.3) 17.4% (24.7)
================== =========== ====== ========== ============= ======== ========== =========
Operating
profit 10.8 (1.7) (14.8%) 12.5 1.0 8.7% 11.5
Operating margin
% 10.7% (1.9ppts) 12.6% 1.8ppts 10.8%
================== =========== ====== ========== ============= ======== ========== =========
1. Six months ended 30 June 2023 translated at H1 2023 average exchange rates
2. Six months ended 30 June 2023 translated at H1 2022 average exchange rates
Operating costs
Adjusted Operating Costs increased by GBP4.3m to GBP29.0m
(17.4%). The impact of labour/wage inflation in the period was a
key driver for overall cost increases representing GBP2.9m of the
overall cost increase. Additionally, the business has seen
increases is normal working practice costs, such as travel, fuel
and transportation as they return to pre-COVID levels.
Net finance expense
The Adjusted Net Finance Expense increased by just GBP0.4m to
GBP1.4m in the first half following increases in floating interest
rates.
This increase was partially mitigated by swaps which fixed the
interest rate applicable to approximately 70% of our borrowings on
a rolling three-year basis with 30% of our borrowing remaining at
floating interest rates.
Taxation
We currently expect a Group adjusted effective tax rate of c.18%
for the year ended 31 December 2023, which incorporates the impact
of the new UK corporation tax rate which has been effective from
April 2023 at 25%.
Adjusted Free Cash Flow
Adjusted(1) Adjusted(2) H1 2022
Adjusted(1) Free Cash Flow (GBPm) H1 2023
===================================== ============ ====================
Operating profit 10.8 11.5
Depreciation and amortisation 3.8 3.2
===================================== ============ ====================
EBITDA 14.6 14.7
Changes in working capital (17.7) (9.7)
Other items 0.6 0.7
===================================== ============ ====================
Operating Cash flow (2.5) 5.7
===================================== ============ ====================
Operating cash conversion(2) (23.1%) 49.6%
Net capital expenditure (2.4) (2.4)
Interest paid (1.3) (1.1)
Tax paid (1.8) (5.0)
===================================== ============ ====================
Free Cash Flow (8.0) (2.8)
===================================== ============ ====================
Free Cash Flow as % Revenue (7.9%) (2.6%)
===================================== ============ ====================
1. A reconciliation of the reported to Adjusted results is shown
within note 1 of the condensed consolidated financial
statements
2. Adjusted Operating Cash Conversion is defined as Adjusted
Operating Cash Flow divided by Adjusted Operating Profit
The cash generation in the second half of 2022 was exceptional
due to the unwind of stock and debtors following the unusual
trading patterns during the COVID pandemic. As a result, our cash
generation in the first half of 2023 has been negative as we return
to normalised working capital conditions. Our trade receivables
have seen a cash outflow in the period of GBP11.0m as a normalised
debtor position returns.
Capital expenditure
The Group's net capital expenditure consists of capitalised
product development costs and the purchase of physical assets.
Capital expenditure was GBP2.4m in first half in line with the
prior year (H1 2022: GBP2.4m) and was 2.4% of revenue (H1 2022:
2.3%). We continue to see opportunities to invest in low risk, high
return automation projects in our Chinese production facility and
continue to invest in R&D projects, particularly in relation to
acquired businesses.
Capital structure and returns
Return on capital
Return on Capital Invested was lower than prior year at 15.7%
(H1 2022: 25.6%). As previously flagged, our returns will naturally
reduce as Luceco transitions from a Group created organically to
one also growing via M&A (with its required investment in
goodwill). We expect average Return on Capital Invested through the
economic cycle to be 20% or higher as M&A activity is fully
integrated into the Group.
Capital structure
The business continues to consistently generate ample cash flow
to support its dividend policy and fund M&A activity.
GBPm H1 2023 H1 2022 Change
===================================== ========== ========== ========
Reported net debt GBP42.8m GBP60.2m (28.9%)
Less: IFRS 16 Finance Leases (GBP5.8m) (GBP7.0m) (17.1%)
Finance Leases - pre-IFRS 16 GBP0.6m GBP0.7m (14.3%)
===================================== ========== ========== ========
Covenant Net Debt GBP37.6m GBP53.9m (30.2%)
Covenant Net Debt : Covenant EBITDA 1.3x 1.4x (7.1%)
===================================== ========== ========== ========
The Group's Covenant Net Debt : Covenant EBITDA ratio of 1.3x
remains at the lower end of the 1-2x target. The Group has
generated less cash in the period as the Group's working capital
requirements increased as activity recovered following the impact
of destocking at the end of 2022. The Group's non-utilised
facilities totalled GBP39.9m, with an option (subject to lender
consent) to add a further GBP40.0m under the terms of its
syndicated bank facility signed in October 2021. The facility
matures in September 2025 and the Group has an option to trigger a
one-year extension thereafter. The Group's balance sheet is
therefore in a position to plan and execute organic growth and
M&A activity.
The Company's covenant position and headroom at 30 June 2023
were as follows:
H1 2023 covenant position Covenant Actual Headroom
================================================ ========= ========= ========================================
Covenant Net Debt headroom: GBP51.2m(1)
Covenant Net Debt : Covenant EBITDA 3.0 : 1 1.3 : 1 Covenant EBITDA headroom: GBP17.1m
================================================ ========= ========= ========================================
Covenant EBITDA headroom: GBP24.0m
Covenant EBITDA : Adjusted Net Finance Expense 4.0 : 1 21.1 : 1 Net Finance Expense headroom: GBP6.0m
================================================ ========= ========= ========================================
1. Headroom with increased facility. Current facility headroom is GBP39.9m.
The key measures which management use to evaluate the Group's
use of its financial resources and capital management are set out
below:
H1 2023 H1 2022
============================================= ======== ========
Adjusted(1) Earnings Per Share (pence) 5.0 5.8
Covenant Net Debt : Covenant EBITDA (times) 1.3x 1.4x
Adjusted(1) Free Cash Flow (GBPm) (8.0) (2.8)
============================================= ======== ========
1. Note 1 in the notes to the condensed consolidated financial
statements provides an explanation of the Group's alternative
performance measures.
The Group complied with its covenant requirements throughout the
first half with significant headroom on all metrics. The Group has
conducted a review of going concern work for the first half of 2023
and this is outlined in note 1 of the condensed consolidated
financial statements. The Group has a strong balance sheet and
significant facility headroom under even a realistic severe but
plausible downside scenario. No covenant breaches occur in any of
our severe but plausible downside scenarios, all of which are
before any mitigating actions, illustrating our financial
resilience.
Dividends
The Board is proposing to pay an interim dividend of 1.6p per
share, equivalent to the same dividend as the prior half year. This
will be paid to shareholders on 20 October 2023 who are on the
register on 15 September 2023 and the last day for dividend
reinvestment (DRIP) elections is 29 September 2023. This equates to
a payout ratio of 42% which, slightly ahead of the prior year's 40%
payout ratio.
Operating segment review
The revenue and profit generated by the Group's operating
segments are shown below. Operating profits are stated after the
proportional allocation of fixed central overheads.
Wiring Accessories
Adjusted(1) Reported
================================ ================================
H1 2023 H1 2022 Change H1 2023 H1 2022 Change
==================== ========= ========= ========== ========= ========= ==========
Revenue GBP41.1m GBP36.5m +12.6% GBP41.1m GBP36.5m +12.6%
==================== ========= ========= ========== ========= ========= ==========
Operating profit GBP7.1m GBP7.9m (10.1%) GBP7.1m GBP7.9m (10.1%)
==================== ========= ========= ========== ========= ========= ==========
Operating margin % 17.3% 21.6% (4.3ppts) 17.3% 21.6% (4.3ppts)
==================== ========= ========= ========== ========= ========= ==========
1. A reconciliation of the reported to Adjusted results is shown
within note 1 of the condensed consolidated financial
statements
Wiring Accessories is the Group's most profitable segment,
generating nearly two thirds of the Group's operating profit and
41% of its revenue, under a brand established over 80 years
ago.
Sales from the Wiring Accessories segment were GBP41.1m which
was a significant improvement of 12.6% over the prior period.
Strong sales from the Hybrid channel helped deliver this result in
core electrical switches particularly from the UK. Wiring
Accessories remains the most significant contributor to Group
profitability and its contribution has returned to more normalised
levels as destocking has been completed and material and freight
costs have eased.
LED Lighting
Adjusted(1) Reported
=============================== ===============================
H1 2023 H1 2022 Change H1 2023 H1 2022 Change
==================== ========= ========= ========= ========= ========= =========
Revenue GBP37.8m GBP40.8m (7.4%) GBP37.8m GBP40.8m (7.4%)
==================== ========= ========= ========= ========= ========= =========
Operating profit GBP1.9m GBP1.2m +58.3% GBP1.1m GBP0.7m +57.1%
==================== ========= ========= ========= ========= ========= =========
Operating margin % 5.0% 2.9% +2.1ppts 2.9% 1.7% +1.2ppts
==================== ========= ========= ========= ========= ========= =========
1. A reconciliation of the reported to Adjusted results is shown
within note 1 of the condensed consolidated financial
statements
The Group entered the lighting market in 2013 as the industry
adopted LED technology and it now represents 37% of Group
revenue.
Revenue from the LED Lighting segment was GBP3.0m (7.4%) lower
than 2022. Part of the decline versus the prior year is due to the
impact of the closure of lower margin operations in France and
Germany in the prior year, which were LED focussed. On a like for
like basis, LED sales fell by just 3.0% in the period. Demand has
been particularly strong in the professional projects space in the
period, as demand for energy-saving retrofits within the
non-residential and infrastructure sectors continues to grow.
Adjusted Operating Profit of GBP1.9m was ahead of 2022 by GBP0.7m
which has been achieved by improving operating margin in the DW
Windsor acquisition due to rationalisation and stronger product
strategy.
Portable Power
Adjusted(1) Reported
================================ ==============================
H1 2023 H1 2022 Change H1 2023 H1 2022 Change
==================== ========= ========= ========== ========= ========= ========
Revenue GBP22.2m GBP29.1m (23.7%) GBP22.2m GBP29.1m (23.7%)
==================== ========= ========= ========== ========= ========= ========
Operating profit GBP1.8m GBP2.4m (25.0%) GBP1.6m GBP1.4m +14.3%
==================== ========= ========= ========== ========= ========= ========
Operating margin % 8.1% 8.2% (0.1ppts) 7.2% 4.8% 2.4ppts
==================== ========= ========= ========== ========= ========= ========
1. A reconciliation of the reported to Adjusted results is shown
within note 1 of the condensed consolidated financial
statements
The Portable Power segment consists of two main elements:
-- Cable reels, extension leads and associated accessories sold under the Masterplug brand
-- EV chargers sold under the BG Sync EV brand
The Group enjoys a leading position in the UK portable power
market. The business generates 22% of Group revenue and 17% of
Group Adjusted Operating Profit. Revenue in the period was 23.7%
lower than the prior year due to final customer destocking
particularly impacting cable reel product categories. Adjusted
operating margin remained consistent with the prior year at 8.1%
(H1 2022: 8.2%).
We are still encouraged by the EV charger sales which were over
GBP4.1m in the period, a significant increase over the prior year
of 145%. We remain excited about the opportunities that this new
sector will provide as the vehicle market moves towards
electrification by 2030. At the end of the period we launched our
22kw EV charger which will be utilised in many commercial
operations in the future and high end residential premises.
Going concern
The directors have reviewed the current financial performance
and liquidity of the business and assessed its resilience
to a reduction in sales through a series of scenarios. The
directors report that, having reviewed current performance
and forecasts, they have a reasonable expectation that the Group
has adequate resources to continue its operations for
the foreseeable future. For this reason, they have continued to
adopt the going concern basis in preparing the interim
financial statements.
WILL HOY
Chief Financial Officer
5 September 2023
Environmental, Social and Governance ("ESG") update
We continue to make progress on our ESG workstreams:
-- We committed to the Science Based Targets Initiative (SBTi)
and this was validated by the SBTi during the first half of the
year. This means we have committed to reductions in carbon
emissions over the near-term consistent with the Paris
Agreement
-- Achievement of an improved management-level score ("B") from
the Carbon Disclosure Project in 2022 from ("C") previously - we
are focussed on improving this again in 2023
-- We have delivered significant progress against our low carbon
product revenue target and are on track to achieve GBP100m of such
revenue by 2025
-- We continue to improve our packaging specifications, particularly around plastic packaging.
Key achievements by area
Products and services
-- Acquisition of Sync EV and launch of single-phase Mode 3 EV
chargers under the joint BG Sync EV brand
-- GBP78m of revenue from low carbon product categories in full
year 2022, delivering significant progress against our GBP100m low
carbon product revenue target for 2025
-- 3.5-fold increase in revenue from the sale of lighting
control devices into lighting projects in full year 2022
Supply Chain
-- Insourcing of EV charger production within our China
manufacturing facility with 100% renewable electricity supply
-- Acquisition of DW Windsor with UK manufacturing capability
and 100% renewable electricity supply
-- Evaluation of key suppliers' physical climate risk exposure
to understand vulnerabilities within our supply chain
Research and Development
-- Specialist R&D function in China and the UK
-- Development of higher power, three-phase EV chargers for larger homes and commercial premises
-- Investigating on-street EV charging solutions within DW Windsor
-- Dedicated optical engineer focusing on improvements to lens
design to improve lighting efficiency
-- Working towards the development of environmental product
declarations (EPD) and industry best practise on circular design in
lighting
Operations
-- Sourced renewable electricity for all group operations in
2022 and for 2023, bringing our scope 2 emissions to zero.
-- Offsetting residual Scope 1 emissions for 2022 and for 2023
-- Investment into energy efficiency and automation projects
within the China manufacturing facility
-- Evaluation of our key locations (manufacturing and
distribution centres) to better understand physical climate risk
exposure to understand vulnerabilities across direct operations
-- All plastic packaging is recyclable with a minimum 30% recycled content
Our ESG objectives for 2023 are as follows:
-- Formally engage with key customers to better understand their
climate ambitions and to communicate our strategy
-- Undertake detailed energy audits of our UK operations as part
of the Energy Savings Opportunity Scheme
-- Develop a Research and Development roadmap for over the
short, medium, and long-term that will help us deliver our Scope 3
science-based target
-- Begin work to develop a set of product design criteria that
help to improve the sustainability of our products
Principal risks and uncertainties
The Board is responsible for identifying, reviewing and managing
business and operational risk. It is also responsible for
determining the level of risk appetite it is prepared to take in
the ordinary course of business to achieve the Group's strategic
objectives and to ensure that appropriate and sufficient resource
is allocated to the management and mitigation of risk.
In addition to the risk management framework, the Board has
delegated responsibility to the Audit Committee for reviewing the
overall process of assessing business risks and managing the impact
on the Group. The Group's risk management process is set out
below.
The principal risks identified, and actions taken to minimise
their potential impact are included below. This is not an
exhaustive list but those the Board believes may have an adverse
effect on the Group's cash flow and profitability.
See also pages 64 to 71 in the 2022 Annual Report and
Accounts.
In determining whether it is appropriate to adopt the going
concern basis in the preparation of the financial statements, the
Directors have considered these principal risks and uncertainties.
The Viability Statement on pages 72 to 74 of the 2022 Annual Report
and Accounts considers the prospects of the Group should a number
of these risks crystallise together.
Statement of Directors' responsibilities
We confirm that to the best of our knowledge:
-- the condensed set of financial statements has been prepared
in accordance with IAS 34 Interim Financial Reporting as adopted
for use in the UK;
-- the interim management report includes a fair, balanced and
understandable review of the information required by:
(a) DTR 4.2.7R of the Disclosure Guidance and Transparency
Rules, being an indication of important events that have occurred
during the first six months of the financial year and their impact
on the condensed set of financial statements; and a description of
the principal risks and uncertainties for the remaining six months
of the year; and
(b) DTR 4.2.8R of the Disclosure Guidance and Transparency
Rules, being related party transactions that have taken place in
the first six months of the current financial year and that have
materially affected the financial position or performance of the
entity during that period; and any changes in the related party
transactions described in the last annual report that could do
so.
Approved by a Committee of the Board on 5 September 2023 and
signed on its behalf.
JOHN HORNBY
Chief Executive Officer
WILL HOY
Chief Financial Officer
5 September 2023
CONDENSED CONSOLIDATED INCOME STATEMENT
For the period ended 30 June 2023
Adjusted Adjustments(1) Adjusted Adjustments(1)
H1 2023 H1 2023 H1 2023 H1 2022 H1 2022 H1 2022
======================
Note GBPm GBPm GBPm GBPm GBPm GBPm
====================== ==== ======== ============== ======== ======== ============== =======
Revenue 2 101.1 - 101.1 106.4 - 106.4
Cost of sales (61.3) - (61.3) (70.2) 0.7 (69.5)
====================== ==== ======== ============== ======== ======== ============== =======
Gross profit 39.8 - 39.8 36.2 0.7 36.9
====================== ==== ======== ============== ======== ======== ============== =======
Distribution expenses (4.3) (4.3) (5.7) - (5.7)
Administrative
expenses (24.7) (1.0) (25.7) (19.0) (2.2) (21.2)
====================== ==== ======== ============== ======== ======== ============== =======
Operating profit 2,3 10.8 (1.0) 9.8 11.5 (1.5) 10.0
====================== ==== ======== ============== ======== ======== ============== =======
Finance expense (1.4) (2.2) (3.6) (1.0) (4.4) (5.4)
====================== ==== ======== ============== ======== ======== ============== =======
Net finance expense (1.4) (2.2) (3.6) (1.0) (4.4) (5.4)
====================== ==== ======== ============== ======== ======== ============== =======
Profit before
tax 9.4 (3.2) 6.2 10.5 (5.9) 4.6
Taxation 4 (1.7) 0.8 (0.9) (1.5) 1.1 (0.4)
====================== ==== ======== ============== ======== ======== ============== =======
Profit for the
period 7.7 (2.4) 5.3 9.0 (4.8) 4.2
====================== ==== ======== ============== ======== ======== ============== =======
Earnings per
share (p)
Basic 5 5.0p (1.6p) 3.4p 5.8p (3.1p) 2.7p
Fully diluted 5 4.9p (1.5p) 3.4p 5.7p (3.0p) 2.7p
====================== ==== ======== ============== ======== ======== ============== =======
1. Definition of the adjustments made to the reported figures
can be found in note 1 in the notes to the condensed consolidated
financial statements
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 30 June 2023
H1 2023 H1 2022
GBPm GBPm
=================================================== ========= =======
Profit for the period 5.3 4.2
Other comprehensive income - amounts that may be
reclassified to profit or loss in the future:
Foreign exchange translation differences - foreign
operations (3.2) 2.8
=================================================== ========= =======
Total comprehensive income for the year 2.1 7.0
=================================================== ========= =======
All results are from continuing operations.
The accompanying notes form part of these financial
statements.
CONDENSED CONSOLIDATED BALANCE SHEET
At 30 June 2023
H1 2023 H1 2022 FY 2022
Note GBPm GBPm GBPm
======================================= ==== ========================= ======= ======================
Non-current assets
Property, plant and equipment 7 19.7 21.9 21.4
Right-of-use assets 5.7 6.8 6.1
Intangible assets 8 40.5 41.4 41.7
Financial assets held for trading 0.8 - 0.5
Deferred tax asset 0.7 - 0.8
======================================= ==== ========================= ======= ======================
67.4 70.1 70.5
======================================= ==== ========================= ======= ======================
Current assets
Inventories 45.7 55.7 47.5
Trade and other receivables 63.7 63.2 52.9
Financial assets held for trading 0.8 2.1 0.7
Current tax asset 1.6 2.5 1.2
Cash and cash equivalents 3.2 5.3 5.3
======================================= ==== ========================= ======= ======================
115.0 128.8 107.6
======================================= ==== ========================= ======= ======================
Total assets 182.4 198.9 178.1
======================================= ==== ========================= ======= ======================
Current liabilities
Trade and other payables 42.9 44.9 49.8
Financial liabilities held for trading 4.8 1.4 2.3
Other financial liabilities 2.1 2.0 2.0
======================================= ==== ========================= ======= ======================
49.8 48.3 54.1
======================================= ==== ========================= ======= ======================
Non-current liabilities
Interest-bearing loans and borrowings 9 40.1 58.5 28.4
Other financial liabilities 3.8 5.0 4.3
Deferred tax liability 1.8 2.1 2.3
Financial liabilities held for trading - 0.5 -
Provisions 2.1 1.6 2.3
======================================= ==== ========================= ======= ======================
47.8 67.7 37.3
======================================= ==== ========================= ======= ======================
Total liabilities 97.6 116.0 91.4
======================================= ==== ========================= ======= ======================
Net assets 84.8 82.9 86.7
======================================= ==== ========================= ======= ======================
Equity attributable to equity holders
of the parent
Share capital 0.1 0.1 0.1
Share premium 24.8 24.8 24.8
Translation reserve (0.6) 3.0 2.6
Treasury reserve (7.4) (8.6) (8.7)
Retained earnings 67.9 63.6 67.9
======================================= ==== ========================= ======= ======================
Total equity 84.8 82.9 86.7
======================================= ==== ========================= ======= ======================
The accompanying notes form part of these financial
statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 30 June 2023
Share Share Translation Retained Treasury Total
capital premium reserve earnings reserve equity
GBPm GBPm GBPm GBPm GBPm GBPm
================================= ======= ======= =========== ======== ======== ======
Balance at 1 January 2022 0.1 24.8 0.2 69.3 (6.7) 87.7
Total comprehensive income
Profit for the period - - - 4.2 - 4.2
Currency revaluations of
investments - - 1.8 - - 1.8
Currency translation differences - - 1.0 - - 1.0
================================= ======= ======= =========== ======== ======== ======
Total comprehensive income
for the period - - 2.8 4.2 - 7.0
Transactions with owners
in their
capacity as owners:
Dividends - - - (8.5) - (8.5)
Purchase of own shares - - - - (2.3) (2.3)
Disposal of own shares - - - (0.4) 0.4 -
Deferred tax on share-based
payment transactions - - - (1.7) - (1.7)
Share-based payments charge - - - 0.7 - 0.7
================================= ======= ======= ===========
Total transactions with
owners in their capacity
as owners - - - (9.9) (1.9) (11.8)
================================= ======= ======= =========== ======== ======== ======
Balance at 30 June 2022 0.1 24.8 3.0 63.6 (8.6) 82.9
================================= ======= ======= =========== ======== ======== ======
Balance at 1 January 2023 0.1 24.8 2.6 67.9 (8.7) 86.7
Total comprehensive income
Profit for the period - - - 5.3 - 5.3
Currency revaluations of
investments - - (0.1) - - (0.1)
Currency translation differences - - (3.1) - - (3.1)
================================= ======= ======= =========== ======== ======== ======
Total comprehensive income
for the period - - (3.2) 5.3 - 2.1
Transactions with owners
in their
capacity as owners:
Dividends - - - (4.7) - (4.7)
Disposal of own shares - - - (1.3) 1.3 -
Deferred tax on share-based
payment transactions 0.1 0.1
Share-based payments charge - - - 0.6 - 0.6
================================= ======= ======= =========== ======== ======== ======
Total transactions with
owners in their capacity
as owners - - - (5.3) 1.3 (4.0)
================================= ======= ======= =========== ======== ======== ======
Balance at 30 June 2023 0.1 24.8 (0.6) 67.9 (7.4) 84.8
================================= ======= ======= =========== ======== ======== ======
The accompanying notes form part of theses financial
statements.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
For the period ended 30 June 2023
Note Adjusted Adjustments(1) Adjusted Adjustments(1)
H1 2023 H1 2023 H1 2023 H1 2022 H1 2022 H1 2022
GBPm GBPm GBPm GBPm GBPm GBPm
=================================== ======== ============== ======= ======== ============== =======
Cash flows from operating
activities
Profit for the period 7.7 (2.4) 5.3 9.0 (4.8) 4.2
Adjustments for:
Depreciation and amortisation 7,8 3.8 1.0 4.8 3.2 0.9 4.1
Finance expense 1.4 2.2 3.6 1.0 4.4 5.4
Taxation 4 1.7 (0.8) 0.9 1.5 (1.1) 0.4
Share-based payments
charge 0.6 - 0.6 0.7 - 0.7
Other non-cash items - - - - 0.5 0.5
Operating cash flow
before movement in working
capital 15.2 - 15.2 15.4 (0.1) 15.3
(Increase)/decrease in
trade and other receivables (11.0) - (11.0) 9.2 - 9.2
Decrease/(increase) in
inventories 0.8 - 0.8 4.5 (0.1) 4.4
(Decrease)/increase in
trade and other payables (7.5) - (7.5) (23.4) (0.1) (23.5)
============================== === ======== ============== ======= ======== ============== =======
Cash from operations (2.5) - (2.5) 5.7 (0.3) 5.4
Tax paid (1.8) - (1.8) (5.0) - (5.0)
============================== === ======== ============== ======= ======== ============== =======
Net cash from operating
activities (4.3) - (4.3) 0.7 (0.3) 0.4
============================== === ======== ============== ======= ======== ============== =======
Cash flows from investing
activities
Acquisition of property,
plant and equipment 7 (1.9) - (1.9) (1.7) - (1.7)
Acquisition of other
intangible assets 8 (0.6) - (0.6) (0.8) - (0.8)
Disposal of tangible
assets 7 0.1 - 0.1 0.1 - 0.1
Acquisition of subsidiary - - - (7.9) - (7.9)
Net cash used in investing
activities (2.4) - (2.4) (10.3) - (10.3)
============================== === ======== ============== ======= ======== ============== =======
Cash flows from financing
activities
Origination of borrowings 11.7 - 11.7 21.2 - 21.2
Interest paid (1.3) - (1.3) (1.1) - (1.1)
Dividends paid (4.7) - (4.7) (8.5) - (8.5)
Finance lease liabilities (1.0) - (1.0) (1.0) (0.2) (1.2)
Purchase of own shares - - - (2.3) - (2.3)
============================== === ======== ============== ======= ======== ============== =======
Net cash from financing
activities 4.7 - 4.7 8.3 (0.2) 8.1
============================== === ======== ============== ======= ======== ============== =======
Net (decrease)/increase
in cash and cash equivalents (2.0) - (2.0) (1.3) (0.5) (1.8)
Cash and cash equivalents
at 1 January 5.3 6.9
Effect of exchange rate
fluctuations on cash
held (0.1) 0.2
============================== === ======== ============== ======= ======== ============== =======
Cash and cash equivalents
at 30 June 3.2 - 5.3
============================== === ======== ============== ======= ======== ============== =======
1. The definitions of the adjustments made to the statutory
figures can be found in note 1 in the notes to the condensed
consolidated financial statements
The accompanying notes form part of theses financial
statements.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 30 June 2023
1. Basis of preparation
Luceco plc (the "Company") is a company incorporated and
domiciled in the United Kingdom. These condensed consolidated
interim financial statements ("interim financial statements") for
the period ended 30 June 2023 comprise the Company and its
subsidiaries (together referred to as the "Group"). The Group is
primarily involved in the supply of wiring accessories, EV
chargers, LED lighting and portable power products to global
markets (see note 2).
This condensed set of financial statements has been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted for
use in the UK.
The annual financial statements of the group for the year ending
31 December 2023 will be prepared in accordance with UK-adopted
international accounting standards. As required by the Disclosure
Guidance and Transparency Rules of the Financial Conduct Authority,
the condensed set of financial statements has been prepared
applying the accounting policies and presentation that were applied
in the preparation of the company's published consolidated
financial statements for the year ended 31 December 2022 which were
prepared in accordance with UK-adopted international accounting
standards ("UK-adopted IFRS").
The interim financial statements do not comprise statutory
accounts within the meaning of section 434 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2022 were
approved by the Board of Directors and have been delivered to the
Registrar of Companies. The audit report on those accounts was
unqualified and did not contain any statement under section 498(2)
or (3) of the Companies Act 2006.
The interim financial information have been reviewed, not
audited.
Risks and uncertainties
An outline of the key risks and uncertainties faced by the Group
is described in the 2022 Annual Report and Accounts. Risk is an
inherent part of doing business and the Directors believe that the
Group is well placed to manage the key risks it faces.
Going concern
The Directors have concluded that it is reasonable to adopt a
going concern basis in preparing the financial statements. This is
based on an expectation that the Company and the Group have
adequate resources to continue in operational existence for at
least 12 months from the date of signing these accounts and our
cash flow forecasts support this. The Group has reported a profit
before tax of GBP6.2m for the six months to June 2023 (2022:
GBP4.6m), has net current assets of GBP65.2m (30 June 2022:
GBP80.5m and 31 December 2022: GBP53.5m) and net assets of GBP84.8m
(30 June 2022: GBP82.9m and 31 December 2022: GBP86.7m), net debt
of GBP42.8m (30 June 2022: GBP60.2m and 31 December 2022: GBP29.4m)
and net cash outflow from operating activities of GBP4.3m (six
months to 30 June 2022: inflow GBP0.4m and 12 months to 31 December
2022: inflow GBP38.6m). The bank facilities mature on 30 September
2025.
The capital resources at the Group's disposal at 30 June
2023:
-- A revolving credit facility of GBP80.0m, GBP40.1m drawn at 30 June 2023
The revolving credit facility requires the Group to comply with
the following quarterly financial covenants:
-- Closing Covenant Net Debt of no more than 3.0 times Covenant
EBITDA for the preceding 12-month period
-- Covenant EBITDA of no less than 4.0 times Covenant Net
Finance Expense for the preceding 12 -- month period
The Directors ran scenario tests on the severe but plausible
downside case at the year end 2022 and for the first half of 2023
have completed a reverse stress test which is implausible. The
assumptions in the 2022 year end scenarios were as follows:
concentration risks with associated operations (25% reduction in
revenue for three months followed by 50% reduction for three months
and 20% increase in shipping costs during the period) and
macroeconomic, political and environmental risks (18-month
recession with a 10% reduction in revenue and gross profit). These
severe but plausible downside scenarios do not lead to any breach
in covenants nor any breach in facility. All modelling has been
conducted without any mitigation activity. There have been no
changes to post balance sheet liquidity positions. The Directors
are confident that the Group and Company will have sufficient funds
to continue to meet its liabilities as they fall due for at least
12 months from the date of approval of the financial statements and
therefore have prepared the financial statements on a going concern
basis.
Statutory and non-statutory measures of performance - adjusted
measures
The financial statements contain all the information and
disclosures required by the relevant accounting standards and
regulatory obligations that apply to the Group.
The Group's performance is assessed using a number of financial
measures which are not defined under IFRS (the financial reporting
framework applied by the Group). Management uses the adjusted or
alternative performance measures (APMs) as a part of their internal
financial performance monitoring and when assessing the future
impact of operating decisions. The APMs disclose the adjusted
performance of the Group excluding specific items. The measures
allow a more effective year-on-year comparison and identification
of core business trends by removing the impact of items occurring
either outside the normal course of operations or as a result of
intermittent activities such as a corporate acquisition. The Group
separately reports acquisition costs, other exceptional items and
other specific items in the condensed consolidated income statement
which, in the Directors' judgement, need to be disclosed separately
by virtue of their nature, size and incidence in order for users of
the financial statements to obtain a balanced view of the financial
information and the underlying performance of the business.
In following the guidelines on Alternative Performance Measures
(APMs) issued by the European Securities and Markets Authorities,
the Group has included a condensed consolidated income statement
and condensed consolidated cash flow statement that have both
Statutory and Adjusted performance measures. The definitions of the
measures used in these results are below and the principles to
identify adjusting items have been applied on a basis consistent
with previous years.
Nature of Related Related IFRS Definition Use/relevance
measure IFRS measure source
================ ======================= ====================== ======================== =========================
Adjusted Gross Profit Condensed consolidated Based on the Allows management
Gross Profit Margin income statement related IFRS to
Margin measure but excluding assess the performance
the of the business
adjusting items. after
A breakdown of removing large/unusual
the items or transactions
adjusting items that
from H1 2023 are not reflective
and H1 2022, of the
which reconciles underlying business
the adjusted operations
measures to
statutory figures,
can be
found later in
this document
================ ======================= ====================== ======================== =========================
Adjusted Operating Condensed consolidated
Operating Gross profit income statement
Costs less Operating
profit
================ ======================= ====================== ======================== =========================
Adjusted Operating Condensed consolidated
Operating profit income statement
Profit
================ ======================= ======================
Adjusted Basic EPS Condensed consolidated
Basic EPS income statement
================ ======================= ====================== ======================== =========================
Constant Current period Allows management
Currency reviewed translated to identify the
at the average relative
exchange rate year-on-year performance
of the prior of the business
period by removing
the impact of currency
movements that
are outside
of management's
control
================ ======================= ====================== ======================== =========================
EBITDA Operating Condensed consolidated Consolidated Provides management
profit income statement earnings before with an approximation
interest, tax, of cash generation
depreciation from the Group's
and amortisation operational activities
================ ======================= ====================== ======================== =========================
Low Carbon Revenue Segmental operating EV charger revenue Provides management
Sales revenue and LED revenue with a measure
less sales from of low
lighting columns carbon sales
and downlight
accessories
================ ======================= ====================== ======================== =========================
Adjusted Operating Condensed consolidated EBITDA excluding Provides management
EBITDA profit income statement the adjusting with an approximation
items excluded of cash generation
from Adjusted from the Group's
Operating Profit underlying operating
except for any activities
adjusting items
that relate to
depreciation
and amortisation
================ ======================= ====================== ======================== =========================
Covenant Operating Condensed consolidated As above definition Aligns with the
EBITDA profit income statement of "Adjusted definition of EBITDA
EBITDA" but including used for bank covenant
EBITDA generated testing
from acquisitions
between 1 January
and the date
of acquisition
and excluding
share-based payment
expense
================ ======================= ====================== ======================== =========================
Contribution Operating Condensed consolidated Contribution Provides management
profit profit and income statement profit is after with an assessment
operating allocation of of profitability
costs directly attributable by operating segment
adjusted operating
expenses for
each operating
segment
================ ======================= ====================== ======================== =========================
Contribution Operating Condensed consolidated Contribution Provides management
margin profit and income statement margin is contribution with an assessment
operating profit, as above, of margin by operating
costs divided by revenue segment
for each operating
segment
================ ======================= ====================== ======================== =========================
Adjusted Cash flow Condensed consolidated Adjusted Operating Provides management
Operating from operations cash flow statement Cash Flow is with an indication
Cash Flow the cash from of the amount of
operations but cash available
excluding the for discretionary
cash impact of investment
the adjusting
items excluded
from Adjusted
Operating Profit
================ ======================= ====================== ======================== =========================
Adjusted Net increase/(decrease) Condensed consolidated Adjusted Free Provides management
Free Cash in cash and cash flow statement Cash Flow is with an indication
Flow cash equivalents calculated as of the free cash
Adjusted Operating generated by the
Cash Flow less business for return
cash flows in to shareholders
respect of investing or reinvestment
activities (except in M&A activity
for those in
respect of acquisitions
or disposals),
interest and
taxes paid
================ ======================= ====================== ======================== =========================
Adjusted Net increase/(decrease) Condensed consolidated Adjusted Free Provides management
Net Cash in cash and cash flow statement Cash Flow less with an indication
Flow cash equivalents cash flows relating of the net cash
to dividend payments flows generated
and the purchase by the business
of own shares after dividends
and share purchases
================ ======================= ====================== ======================== =========================
Adjusted None Condensed consolidated Operating Cash Allows management
Operating cash flow statement Conversion is to monitor the
Cash Conversion and condensed defined as Adjusted conversion of operating
consolidated Operating Cash profit into cash
income statement Flow divided
by Adjusted Operating
Profit
================ ======================= ====================== ======================== =========================
Return on None Operating profit Adjusted Operating To provide an assessment
Capital and Net assets Profit divided of how profitability
Invested into the sum capital is being
("ROCI") of net assets deployed in the
and net debt business
(average for
the last two
years) expressed
as a percentage
================ ======================= ====================== ======================== =========================
The following tables indicate how alternative performance
measures are calculated:
H1 2023 H1 2022
Adjusted 12 months rolling EBITDA GBPm GBPm
======================================= ======= =======
Adjusted Operating Profit 21.3 31.3
Adjusted Depreciation and Amortisation 7.7 7.0
======================================= ======= =======
Adjusted 12 months rolling EBITDA 29.0 38.3
======================================= ======= =======
H1 2023 H1 2022
Covenant EBITDA GBPm GBPm
==================================================== ======= =======
Adjusted 12 months rolling EBITDA 29.0 38.3
EBITDA from acquisitions from 1 January to the date
of acquisition and share based payment expense 0.6 0.7
==================================================== ======= =======
Covenant EBITDA 29.6 39.0
==================================================== ======= =======
H1 2023 H1 2022
Adjusted Operating Cash Conversion GBPm GBPm
=================================================== ======= =======
Cash from operations (from condensed consolidated
cash flow statement) (2.5) 5.4
Adjustments to operating cash flow (from condensed
consolidated cash flow statement) - 0.3
=================================================== ======= =======
Adjusted Operating Cash Flow (2.5) 5.7
=================================================== ======= =======
Adjusted Operating Profit 10.8 11.5
=================================================== ======= =======
Adjusted Operating Cash Conversion (23.1%) 49.6%
=================================================== ======= =======
H1 2023 H1 2022
Adjusted Net Cash Flow as % of revenue GBPm GBPm
======================================= ======= =======
Adjusted Free Cash Flow (see below) (8.0) (2.8)
Purchase of own shares - (2.3)
Dividends (4.7) (8.5)
======================================= ======= =======
Adjusted Net Cash Flow (12.7) (13.6)
======================================= ======= =======
Revenue 101.1 106.4
======================================= ======= =======
Adjusted Net Cash Flow as % of revenue (12.6%) (12.8%)
======================================= ======= =======
H1 2023 H1 2022
Adjusted Free Cash Flow as % of revenue GBPm GBPm
===================================================== ======= =======
Adjusted Operating Cash Flow (see table above) (2.5) 5.7
Net Cash used in investing activities excluding
acquisitions (from condensed consolidated cash flow
statement) (2.4) (2.4)
Interest paid (from condensed consolidated cash
flow statement) (1.3) (1.1)
Tax paid (from condensed consolidated cash flow
statement) (1.8) (5.0)
===================================================== ======= =======
Adjusted Free Cash Flow (8.0) (2.8)
===================================================== ======= =======
Revenue 101.1 106.4
===================================================== ======= =======
Adjusted Free Cash Flow as % of revenue (7.9%) (2.6%)
===================================================== ======= =======
H1 2023 H1 2022
Return on Capital Investment GBPm GBPm
=============================================== ======= =======
Net assets 84.8 82.9
Net debt 42.8 60.2
=============================================== ======= =======
Capital invested 127.6 143.1
=============================================== ======= =======
Average capital invested (from last two years) 135.4 122.5
=============================================== ======= =======
Adjusted Operating Profit (from above) 21.3 31.5
=============================================== ======= =======
Return on Capital Invested (Adjusted Operating
Profit/average capital invested) 15.7% 25.6%
=============================================== ======= =======
The following table reconciles all adjustments from the reported
to the adjusted figures in the income statement:
Amortisation
of acquired
intangibles Re-measurement
and related to fair value
Adjusted acquisition of hedging 2023 Reported
H1 2023 costs(1) portfolio(2) Adjustments H1 2023
GBPm GBPm GBPm GBPm GBPm
====================== ======== ============ ============== ============ ========
Revenue 101.1 - - - 101.1
Cost of sales (61.3) - - - (61.3)
====================== ======== ============ ============== ============ ========
Gross profit 39.8 - - - 39.8
====================== ======== ============ ============== ============ ========
Distribution expenses (4.3) - - - (4.3)
Administrative
expenses (24.7) (1.0) - (1.0) (25.7)
====================== ======== ============ ============== ============ ========
Operating profit 10.8 (1.0) - (1.0) 9.8
====================== ======== ============ ============== ============ ========
Net finance expense (1.4) - (2.2) (2.2) (3.6)
====================== ======== ============ ============== ============ ========
Profit before
tax 9.4 (1.0) (2.2) (3.2) 6.2
Taxation (1.7) 0.2 0.6 0.8 (0.9)
====================== ======== ============ ============== ============ ========
Profit for the
period 7.7 (0.8) (1.6) (2.4) 5.3
====================== ======== ============ ============== ============ ========
Gross margin 39.4% - - - 39.4%
====================== ======== ============ ============== ============ ========
1. Relating to Kingfisher Lighting, DW Windsor and Sync EV
2. Relating to currency/interest hedges
Amortisation
of acquired Re-measurement
intangibles to fair
and related value of
Adjusted acquisition hedging H1 2022 Reported
H1 2022 costs(1) portfolio(2) Restructuring(3) Adjustments H1 2022
GBPm GBPm GBPm GBPm GBPm GBPm
====================== ======== ============ ============== ================ ============ ========
Revenue 106.4 - - - - 106.4
Cost of sales (70.2) - - 0.7 0.7 (69.5)
====================== ======== ============ ============== ================ ============ ========
Gross profit 36.2 - - 0.7 0.7 36.9
====================== ======== ============ ============== ================ ============ ========
Distribution expenses (5.7) - - - - (5.7)
Administrative
expenses (19.0) (2.0) - (0.2) (2.2) (21.2)
====================== ======== ============ ============== ================ ============ ========
Operating profit 11.5 (2.0) - 0.5 (1.5) 10.0
====================== ======== ============ ============== ================ ============ ========
Net finance expense (1.0) - (4.4) - (4.4) (5.4)
====================== ======== ============ ============== ================ ============ ========
Profit before
tax 10.5 (2.0) (4.4) 0.5 (5.9) 4.6
Taxation (1.5) 0.3 0.8 - 1.1 (0.4)
====================== ======== ============ ============== ================ ============ ========
Profit for the
period 9.0 (1.7) (3.6) 0.5 (4.8) 4.2
====================== ======== ============ ============== ================ ============ ========
Gross margin 34.0% 34.7%
====================== ======== ============ ============== ================ ============ ========
1. Relating to Kingfisher Lighting, DW Windsor and Sync EV
2. Relating to currency/interest hedges
3. Relating to the closure of Germany and France operation
Standards and interpretations issued
The following UK-adopted IFRS have been issued and have been
applied in these financial statements. Their adoption did not have
a material effect on the financial statements, unless otherwise
indicated, from 1 January 2023:
-- IFRS 17 Insurance contracts (as issued on 18 May 2017) including
amendments to IFRS 17 (issued on 25 June 2020)
-- Definition of Accounting Estimates: Amendments to IAS 8 Accounting
Policies, Changes in Accounting Estimates and Errors
-- Disclosure of Accounting policies: Amendments to IAS 1 Presentation
of Financial Statements and IFRS Practice Statement 2 Making
Materiality Judgements
-- Amendments to IAS 12 Income Taxes - Deferred Tax Related to
Assets and Liabilities Arising from a Single Transaction
-- Amendments to IFRS 17 Insurance Contracts: Initial application
of IFRS 17 and IFRS 9 - Comparative information
-- Amendments to IAS 12: International Tax Reform-Pillar Two Model
Rules
The following UK adopted IFRS have been issued but have not been
applied and adoption is not expected to have a material effect on
the financial statements, unless otherwise indicated, from 1
January 2024:
-- Amendments to IFRS 16 Leases: Lease Liability in a Sale and
Leaseback (issued on 22 September 2022)
-- Amendments to IAS 1 Presentation of Financial Statements: Classification
of Liabilities as Current or Non-current (July 2020) Non-current
liabilities with Covenants (Oct 2022)
-- Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial
Instruments: Disclosures: Supplier Finance Arrangements (issued
on 25 May 2023)
2. Operating segments
The Group's principal activities are in the manufacturing and
supply of Wiring Accessories, LED Lighting and Portable Power
equipment. For the purposes of management reporting to the Chief
Operating Decision-Maker (the Board), the Group consists of three
operating segments which are the product categories that the Group
distributes. The Board does not review the Group's assets and
liabilities on a segmental basis and, therefore, no segmental
disclosure is included. Inter-segment sales are not material.
Revenue and operating profit are reported under IFRS 8 Operating
Segments.
Adjusted Reported Adjusted Reported
H1 2023 Adjustments H1 2023 H1 2022 Adjustments H1 2022
GBPm GBPm GBPm GBPm GBPm GBPm
=================== ======== ============= ======== ======== ============= ========
Revenue
Wiring Accessories 41.1 - 41.1 36.5 - 36.5
LED Lighting 37.8 - 37.8 40.8 - 40.8
Portable Power 22.2 - 22.2 29.1 - 29.1
101.1 - 101.1 106.4 - 106.4
=================== ======== ============= ======== ======== ============= ========
Operating profit
Wiring Accessories 7.1 - 7.1 7.9 - 7.9
LED Lighting 1.9 (0.8) 1.1 1.2 (0.5) 0.7
Portable Power 1.8 (0.2) 1.6 2.4 (1.0) 1.4
=================== ======== ============= ======== ======== ============= ========
Operating profit 10.8 (1.0) 9.8 11.5 (1.5) 10.0
=================== ======== ============= ======== ======== ============= ========
Revenue by location of customer
H1 2023 H1 2022
GBPm GBPm
================================ ======= =======
UK 86.5 85.5
Europe 6.3 11.2
Middle East and Africa 3.8 3.3
Asia Pacific 1.2 2.4
Americas 3.3 4.0
================================ ======= =======
Total revenue 101.1 106.4
================================ ======= =======
3. Expenses recognised in the condensed consolidated income
statement
Included in the condensed consolidated income statement are the
following:
H1 2023 H1 2022
GBPm GBPm
==================================================== ======== =======
Research and development costs expensed as incurred 2.0 1.9
Depreciation of property, plant and equipment and
right-of-use assets 3.0 2.9
Amortisation of intangible assets 1.8 1.2
==================================================== ======== =======
4. Income tax expense
A tax charge for the six-month period has been included in the
condensed consolidated income statement of GBP0.9m (H1 2022:
GBP0.4m) and has been calculated using the anticipated effective
tax rate on the taxable profit of the Group. The anticipated
adjusted effective tax rate for the year ending 31 December 2023 is
18.1% (H1 2022: 8.7%).
5. Earnings per share
Earnings per share is calculated based on the profit for the
period attributable to the owners of the Group. Adjusted earnings
per share is calculated based on the adjusted profit for the
period, as detailed below, attributable to the owners of the Group.
These measures are divided by the weighted average number of shares
outstanding during the period.
H1 2023 H1 2022 FY 2022
GBPm GBPm
============================================ ======= ======= =======
Earnings for calculating basic earnings
per share 5.3 4.2 11.0
Adjusted for:
Restructuring of European operations - (0.5) (1.0)
Amortisation of acquired intangibles and
related acquisition costs 1.0 2.0 3.0
Remeasurement to fair value of hedging
portfolio 2.2 4.4 5.7
Income tax on above items (0.8) (1.1) (1.5)
============================================ ======= ======= =======
Adjusted earnings for calculating adjusted
basic earnings per share 7.7 9.0 17.2
============================================ ======= ======= =======
H1 2023 H1 2022 FY 2022
Number Number Number
Weighted average number of ordinary shares Million Million Million
============================================== ======= ======= =======
Basic 155.2 154.3 154.3
Dilutive effect of share options on potential
ordinary shares 1.4 3.7 2.6
============================================== ======= ======= =======
Diluted 156.6 158.0 156.9
============================================== ======= ======= =======
H1 2023 H1 2022 FY 2022
Pence Pence Pence
==================================== ======= ======= =======
Basic earnings per share 3.4 2.7 7.1
Diluted earnings per share 3.4 2.7 7.0
Adjusted basic earnings per share 5.0 5.8 11.1
Adjusted diluted earnings per share 4.9 5.7 11.0
==================================== ======= ======= =======
6. Dividend
An interim dividend of 1.6 pence per share will be paid to
shareholders on 20 October 2023. This compares to a 1.6 pence
interim dividend in 2022.
7. Property, plant and equipment
During the six months ended 30 June 2023, the Group purchased
assets at a cost of GBP1.9m (H1 2022: GBP1.7m and FY 2022:
GBP4.1m); including plant and equipment GBP1.5m, tooling GBP0.9m,
construction in progress GBP(0.7)m, land and buildings GBP0.1m and
fixtures and fittings GBP0.1m. Assets with a net book value of
GBP0.1m were disposed of (H1 2022: GBP0.1m and FY 2022 GBP0.3m).
Total depreciation for the period was GBP2.0m (H1 2022: GBP1.9m and
FY 2022: GBP4.1m).
During the year there were lease additions totalling GBP0.6m and
a depreciation charge of GBP1.0m. The net book value of
right-of-use assets at 30 June 2023 was GBP5.7m (30 June 2022:
GBP6.8m and 31 December 2022: GBP6.1m).
The Group has not included any borrowing costs within additions
in 2023 (2022: GBPnil). There were no funds specifically borrowed
for the assets and the amount eligible as part of the general debt
instruments pool (after applying the appropriate capitalisation
rate) is not considered material.
8. Intangible assets and goodwill
Development expenditure is capitalised and included in
intangible assets when it meets the criteria laid out in IAS 38,
"Intangible Assets". During the six months ended 30 June 2023, the
Group incurred internally generated development costs of GBP0.6m
(H1 2022: GBP0.8m and FY 2022: GBP1.7m). The Group has not included
any borrowing costs within capitalised development costs. There
were no funds specifically borrowed for this asset and the amount
eligible as part of the general debt instruments pool (after
applying the appropriate capitalisation rate) is not considered
material. Amortisation for the six months ended 30 June 2023 was
GBP1.8m (H1 2022: GBP1.2m and FY 2022: GBP2.9m).
In the condensed consolidated income statement these amounts
have been included within "adjustments" in calculating the Adjusted
Operating Profit/loss (refer to note 1 in the Notes to the
condensed consolidated financial statements).
There have been no triggers to necessitate an impairment of
goodwill since the review undertaken as part of the year ended 31
December 2022. Goodwill has been allocated to cash-generating units
and can be referred to in the Group's 2022 Annual Report and
Accounts.
9. Interest-bearing loans and borrowings
This note provides information about the contractual terms of
the Group's interest-bearing loans and borrowings, which are
measured at amortised cost. For more information about the Group's
exposure to interest rate and foreign currency risk, please refer
to note 20 in the 2022 Annual Report and Accounts.
H1 2023 H1 2022 FY 2022
GBPm GBPm GBPm
========================== ======= ======= =======
Non-current liabilities
Revolving credit facility 36.3 58.5 28.2
Overdrafts 3.8 - 0.2
========================== ======= ======= =======
40.1 58.5 28.4
========================== ======= ======= =======
Bank loans are secured by a fixed and floating charge over the
assets of the Group.
10. Exchange rates
The following significant Sterling exchange rates were applied
during the year:
Reporting date
Average rate spot rate
H1 2023 H1 2022 H1 2023 H1 2022
==== ======= ======= ======= =======
USD 1.23 1.24 1.27 1.21
EUR 1.14 1.19 1.16 1.16
RMB 8.54 8.45 9.18 8.13
==== ======= ======= ======= =======
11. Financial risk management and financial instruments
The Group's activities expose it to a variety of financial risks
that include currency risk, interest rate risk, credit risk and
liquidity risk.
These interim financial statements do not include all financial
risk management information and disclosures required in
the Annual Report and Accounts. They should therefore be read in
conjunction with the Group's Annual Report and Accounts for the
year ended 31 December 2022. There have been no changes to the risk
management policies since the year ended 31 December 2022.
12. Related party transactions
The Group has related party relationships with its subsidiaries
and with its Directors. Transactions between Group companies, which
are related parties, have been eliminated on consolidation and are
not disclosed in this note. There have been no related party
transactions with Directors other than in respect of remuneration
.
13. Date of approval of financial information
The interim financial information covers the period 1 January
2023 to 30 June 2023 and was approved by the Board on 5 September
2023. Further copies of the interim financial information can be
found at www.lucecoplc.com .
INDEPENT REVIEW REPORT TO LUCECO PLC
Conclusion
We have been engaged by the company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 June 2023 which comprises condensed
consolidated income statement, condensed consolidated statement of
comprehensive income, condensed consolidated statement of changes
in equity, condensed consolidated balance sheet, condensed
consolidated cash flow statement and the related explanatory
notes.
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
June 2023 is not prepared, in all material respects, in accordance
with IAS 34 Interim Financial Reporting as adopted for use in the
UK and the Disclosure Guidance and Transparency Rules ("the DTR")
of the UK's Financial Conduct Authority ("the UK FCA").
Basis for conclusion
We conducted our review in accordance with International
Standard on Review Engagements (UK) 2410 Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity ("ISRE (UK) 2410") issued for use in the UK. A review of
interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. We
read the other information contained in the half-yearly financial
report and consider whether it contains any apparent misstatements
or material inconsistencies with the information in the condensed
set of financial statements.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than
those performed in an audit as described in the Basis of conclusion
section of this report, nothing has come to our attention that
causes us to believe that the Directors have inappropriately
adopted the going concern basis of accounting, or that the
Directors have identified material uncertainties relating to going
concern that have not been appropriately disclosed.
This conclusion is based on the review procedures performed in
accordance with ISRE (UK) 2410. However, future events or
conditions may cause the group to cease to continue as a going
concern, and the above conclusions are not a guarantee that the
group will continue in operation.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the Directors. The Directors are responsible
for preparing the half-yearly financial report in accordance with
the DTR of the UK FCA.
As disclosed in note 1, the annual financial statements of the
group are prepared in accordance with UK-adopted international
accounting standards.
The Directors are responsible for preparing the condensed set of
financial statements included in the half-yearly financial report
in accordance with IAS 34 as adopted for use in the UK.
In preparing the condensed set of financial statements, the
Directors are responsible for assessing the group's ability to
continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of
accounting unless the Directors either intend to liquidate the
group or to cease operations, or have no realistic alternative but
to do so.
Our responsibility
Our responsibility is to express to the company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review. Our conclusion, including our
conclusion relating to going concern, are based on procedures that
are less extensive than audit procedures, as described in the Basis
of conclusion section of this report.
The purpose of our review work and to whom we owe our
responsibilities
This report is made solely to the company in accordance with the
terms of our engagement to assist the company in meeting the
requirements of the DTR of the UK FCA. Our review has been
undertaken so that we might state to the company those matters we
are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the company for our
review work, for this report, or for the conclusions we have
reached.
Gordon Doherty
for and on behalf of KPMG LLP
One Snowhill
Snow Hill Queensway
Birmingham
B4 6GH
5 September 2023
Additional information
Financial calendar
Item Date
============================================== =================
Interim dividend record date 15 September 2023
============================================== =================
Interim dividend reinvestment elections (DRIP) 29 September 2023
============================================== =================
Interim dividend payment date 20 October 2023
============================================== =================
2023 Q3 trading update 07 November 2023
============================================== =================
2023 Year end 31 December 2023
============================================== =================
2023 Full year trading update 30 January 2024
============================================== =================
2023 Full year results statement 26 March 2024
============================================== =================
AGM 14 May 2024
============================================== =================
2024 Half year end 30 June 2024
============================================== =================
2024 Half year trading update 23 July 2024
============================================== =================
2024 Half year result statement 10 September 2024
============================================== =================
Contacts
Type Name Address Website/Email/Phone
==================== ================ ===================== ====================================
Company's registered Luceco plc Building E Stafford www.lucecoplc.com
office Park 1 ir@luceco.com
Stafford Park
Telford
TF3 3BD
==================== ================ ===================== ====================================
Independent auditor KPMG LLP Chartered Accountants www.kpmg.co.uk
One Snowhill
Snow Hill Queensway
Birmingham
B4 6GH
==================== ================ ===================== ====================================
Financial advisors Numis Securities 45 Gresham Street www.numis.com
and brokers London
EC2V 7BF
==================== ================ ===================== ====================================
Liberum Ropemaker Place www.liberum.com
Level 12
25 Ropemaker Street
London
EC2Y 9LY
==================== ================ ===================== ====================================
Company registrar Link Group Central Square shareholderenquiries@linkgroup.co.uk
29 Wellington
Street Tel: +44 (0)371 664 0300
Leeds
LS1 4DL
==================== ================ ===================== ====================================
Company Secretary Company Matters 6(th) Floor luceco@linkgroup.co.uk
(part of Link 65 Gresham Street
Group) London Tel: +44 (0)333 300 1950
EC2V 7NQ
==================== ================ ===================== ====================================
Financial PR MHP 60 Great Portland luceco@mhpgroup.com
Street
London Tel: +44 (0)20 3128 8100
W1W 7RT
==================== ================ ===================== ====================================
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END
IR USVAROWUKRUR
(END) Dow Jones Newswires
September 05, 2023 02:00 ET (06:00 GMT)
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