30 January 2024
LUCECO PLC - 2023 FULL YEAR
TRADING UPDATE
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Profitability ahead of
expectations despite economic headwinds and challenging residential
markets, continued growth and strong free cash flow
generation.
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Luceco plc ("Luceco" or "the
Group"), the supplier of wiring accessories, EV chargers, LED
lighting, and portable power products, is pleased to provide the
following update on trading for the year ended 31 December 2023
("2023").
Q4
2023 Trading
·
Adjusted Operating Profit in Q4 2023 was ahead of
expectations.
·
Group revenue in Q4 was 9.5% ahead of the prior
year equivalent (at constant exchange rates).
· Adjusted Operating margin in H2 2023 is expected to be over
11% which compares favourably against a first half Adjusted
Operating margin of 10.7%.
2023 Full Year Results
· The Group expects to report full year 2023 revenue of c.£209m
and Adjusted Operating Profit in the region of £23.5m - £24m, ahead
of expectations and shows good progress over 2022 despite the
challenging economic conditions.
· Our balance sheet remains strong, with our Covenant Net Debt
ratio expected to be less than 0.6x - well below our target range
of 1.0 - 2.0x EBITDA.
· Cash generation was better than expected driven by higher
operating profit and improving working capital efficiency, leaving
the Group's net debt at circa £23m at 31 December 2023.
Recent Trends / Considerations
·
The Group is closely monitoring the situation in
the Red Sea. We have not experienced any material impact to
date.
·
Whilst the RMI market has been challenging, we
continue to achieve growth and once the macroeconomic conditions
ease, Luceco is well positioned to benefit from operational
leverage given its integrated model.
Commenting on the trading, Chief Executive Officer, John
Hornby said:
"Luceco has performed well in the second half, producing
strong results despite ongoing macroeconomic headwinds in the UK
and challenges in residential markets. As a result, we expect to
report Adjusted Operating Profit for the full year above current
market expectations. Further strengthening of the Group's balance
sheet has been driven by the continuation of our track record of
strong cash generation, leaving the Group well placed to invest for
growth and enhance earnings in line with our strategic
priorities."
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Luceco plc
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Contact
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John Hornby, Chief Executive
Officer
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020 3128 8100 (Via MHP)
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Will Hoy, Chief Financial
Officer
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020 3128 8100 (Via MHP)
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MHP
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Contact
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Tim Rowntree
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020 3128 8100
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Ollie Hoare
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020 3128 8100
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For the purposes of MAR and Article
2 of Commission Implementing Regulation (EU) 2016/1055, 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.
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.