TIDMLUCE
RNS Number : 2824Y
Luceco PLC
08 September 2020
8 September 2020
LUCECO PLC
2020 INTERIM RESULTS
Structural resilience and operational agility drive growth in
profitability despite COVID
Luceco plc, ("Luceco" or the "Group" or the "Company") today
announces its unaudited results for the six months ended 30 June
2020 ("H1 2020" or "the period"). Luceco is a leading manufacturer
and distributor of high quality and innovative wiring accessories,
LED lighting and portable power products for a global customer
base.
Reported results Adjusted(1) results
H1 H1 Change H1 H1 Change
Change Change
at constant at constant
FX rate FX rate
GBPm 2020 2019 (%) (%)(2) 2020 2019 (%) (%)(2)
----- ----- ------- ------------ ----- ----- ------- ------------
Revenue 71.6 82.7 (13.4%) (14.4%) 71.6 82.7 (13.4%) (14.4%)
Gross margin
% 38.4% 35.0% 3.4ppts 38.4% 35.0% 3.4ppts 2.5ppts
Operating profit 8.8 7.0 25.7% 9.0 7.2 25.0%
Operating margin
% 12.3% 8.5% 3.8ppts 12.6% 8.7% 3.9ppts 2.6ppts
Profit before
tax 8.4 5.3 58.5% 8.3 6.1 36.1%
Profit after
tax 6.8 4.1 65.9% 6.7 4.9 36.7%
Basic earnings
per share 4.4p 2.6p 69.2% 4.3p 3.1p 38.7%
Net debt 22.7 36.4 (37.6%)
Net debt : LTM
EBITDA(3) 0.8x 1.5x (46.7%)
Free cash flow 6.7 2.1 228.6% 10.2 5.1 100.0%
Return on capital
invested 24.5% 18.3% 6.2ppts
Dividend per
share 3.2p 0.6p 433.3%
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. H1 2020 translated at H1 2019 exchange rates. Further details
in note 10 of the condensed consolidated financial statements.
3. Last 12 months earnings before net finance expense, tax, depreciation and amortisation.
Financial highlights
-- Revenue 13.4% lower than last year reflecting COVID impact - outperformed the UK market
-- Adjusted Operating Profit increased 25%, despite COVID
-- Adjusted Operating Margin of 12.6%, in the middle of our targeted range of 10-15%
-- Adjusted Free Cash Flow doubled to GBP10.2m with tight
control of working capital in challenging conditions
-- Net debt reduced by GBP13.7m and leverage reduced to 0.8x LTM Adjusted EBITDA
-- Dividend reinstated and payout range increased: payout policy
increased from 20-30% to 40-60%, resulting in interim dividend of
1.5p (40% payout). We will also make an additional interim payment
of 1.7p in lieu of the suspended 2019 final dividend
Operational highlights
-- Strong progress in a challenging period driven by:
o Comprehensive and agile response to COVID
o High share within resilient online channels and consumer / DIY
markets, built over many years
o Continued investment in our advantaged business model to
deliver benefits in all market conditions:
-- New product development
-- Manufacturing and supply chain transformation
-- IT enhancements
-- Enhancement of our business model will accelerate as COVID distractions diminish
Commenting on the results, Chief Executive Officer, John Hornby
said:
"Growing our profit, improving our margin and doubling our free
cash flow amidst the unprecedented challenges of COVID are, I
believe, a fitting testament to the Group's forward planning,
resilience and agility. It also underlines our long-term
potential.
We look forward to making further progress in the second half
whilst remaining vigilant to the ongoing macroeconomic risks. We
expect a significant improvement on last year's performance with
full year 2020 Adjusted Operating Profit of at least GBP23.0m and
Adjusted EPS of at least 11.0p, provided there is no severely
disruptive second wave of coronavirus infection in H2. Significant
additional progress is possible if second half demand is unaffected
by macroeconomic headwinds.
The outlook for 2021 remains uncertain. But I believe business
wins and our ongoing focus on business model improvement
initiatives will continue to serve us well and be sufficient to
deliver further progress. "
There will be a webcast presentation and conference call of the
results at 9:00am today for analysts and investors. Please contact
Florence Mayo at MHP Communications on 020 3128 8572 or email
luceco@mhpc.com for details.
Luceco plc Contact
============================= ======================================
John Hornby, Chief Executive 020 3128 8572 (Via MHP Communications)
Officer
Matt Webb, Chief Financial 020 3128 8572 (Via MHP Communications)
Officer
MHP Communications Contact
============================= ======================================
Tim Rowntree 020 3128 8572
James Bavister 020 3128 8572
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 (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, this announcement is being made on
behalf of Luceco plc by Matt Webb, Chief Financial Officer.
Business summary
Luceco is a manufacturer and distributor of high quality and
innovative wiring accessories, LED lighting and portable power
products for a global customer base. The Group supplies trade
distributors, retailers, wholesalers and project developers with a
wide range of products which broadly fall into the following market
recognised brands:
-- British General ("BG"): wiring accessories (including
switches, sockets), circuit protection and cable management
products;
-- Luceco and Kingfisher Lighting: energy efficient LED lighting
products and associated accessories;
-- Masterplug: cable reels, extension leads, surge protection, timers and adaptor products; and
-- Ross: television wall mounts, audio visual accessories and other items.
Luceco's long-established BG brand commands a loyal following
amongst professional electrical contractors in both the UK and
overseas. It is synonymous with quality, safety, innovation and
value for money. The production of BG wiring accessories is the
main focus of the Group's Chinese manufacturing facility, allowing
it to control product quality, cost and availability.
The Luceco and Kingfisher LED lighting brands combine to present
a comprehensive range of indoor and outdoor LED lighting solutions.
The range focuses largely on professionally installed products with
an emphasis on performance and quality. The Group is able to
support these products by offering customers access to its in-house
installation design team.
Masterplug is the market leading brand in the UK Portable Power
category. It is sold largely to consumers through retail
distribution and online. Its products are offered in a wide range
of global electrical standards and they are sold in every territory
in which the Group operates.
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.
CHIEF EXECUTIVE OFFICER'S REVIEW
Overview
The Group has significantly improved performance despite the
severe challenges presented to all of us by COVID.
Revenue for H1 2020 of GBP71.6m was 13.4% lower than the
comparative period as COVID impacted both the supply of product out
of China and demand for product in our key markets.
Supply-side disruption was quickly overcome by swift
implementation of social distancing measures in both our China
production facility and those of our key suppliers.
Government action to control the spread of the COVID in our end
markets inevitably impacted demand for our products, but to a
lesser extent than was expected.
Construction activity was relatively unencumbered by lockdown
measures in most of our markets. Demand for our DIY products
remained strong as consumers spent more of their time and money at
home. Our higher share, built over many years, of customers with
strong e-commerce and multi-channel offerings provided a continued
route to market when traditional channels temporarily closed to
combat COVID. This, combined with new business wins in the hybrid
(i.e. mixed retail and trade) channel and circuit protection
category, meant that we comfortably outperformed the UK market.
Demand in traditional distribution channels also recovered
relatively quickly as lockdown controls eased towards the end of
the half.
By the end of the first half, sales had stabilised at 90% of
prior year levels. At the beginning of the second half, sales are
ahead of the prior year and our stronger margin means we are
expecting increased profitability in that period.
Profit lost to COVID-related disruption in the first half was
more than offset by gross margin improvement and overhead
reduction, leaving H1 Adjusted Operating Profit GBP1.8m higher than
the comparative period at GBP9.0m.
The Group delivered its fourth successive half of gross margin
improvement, largely thanks to lower production costs, better
product design and better sourcing. H1 2020 gross margin of 38.4%
was a new Group record for a half-year period, with further
progress targeted for H2 as demand improves in higher-margin
professional channels.
Plans to reduce overheads were set well before the coronavirus
entered general circulation. The details of our proposed reductions
were shared in our 2019 Full Year Results and we have followed that
plan closely. Early planning allowed us to respond with agility and
conviction as the situation evolved.
Our objective was to safeguard the Group's long-term future from
COVID's deleterious near-term impact whilst preserving as many jobs
as possible. The outcome was a 15% reduction in Adjusted Overheads
but, I am very pleased to report, no COVID-driven redundancies were
made in the period and no employees remain furloughed. A positive
outcome would not have been achieved without the swift action and
full support of the Group's employees, who I would like to take
this opportunity to thank.
Improved profitability and equally stringent action to preserve
cash doubled first half Adjusted Free Cash Flow to GBP10.2m,
sufficient to reduce net debt by GBP13.7m to GBP22.7m and leverage
from 1.1x to 0.8x LTM Adjusted EBITDA in the period. A strong
balance sheet provides comfort in the near-term and a potential
advantage over competitors to seize investment opportunities
thereafter.
The operational improvements to our model that we have
implemented over the course of the last two years have delivered
sustainably strong profitability, high cash generation and leverage
below our targeted range of 1.0-2.0x LTM Adjusted EBITDA. This has
allowed us to reinstate dividends with a new and more appropriate
dividend policy. Our previous policy was to pay out between 20% and
30% of Adjusted EPS. Our new policy will pay out between 40% and
60%, starting with 40% in 2020. We believe this will achieve a
fairer distribution of profits with shareholders whilst still
providing ample opportunity for us to reinvest in our unchanged
growth strategy. It will result in a total payment of 3.2p on 23
October 2020. This comprises an interim dividend of 1.5p
(representing a 40% payout) and an additional interim payment of
1.7p in lieu of the 2019 final dividend, which was prudently
suspended earlier in the year when the impact of COVID was
considerably less certain than it is now.
As encouraged and proud as I am of the Group's resilient
performance in the first half, I am far from complacent. Economies
will take years to respond to permanent changes in human behaviour
that the virus has brought about in weeks, resulting in a period of
economic uncertainty that may outlive the virus. People and
businesses will need support in the intervening period, which is
why we welcome the Government's various initiatives to stimulate
construction activity across the UK.
Market demand has undoubtedly benefited this year from
government economic support and a greater proportion of household
income being spent on home improvement during COVID. It is not yet
clear how demand in our industry will respond next year as
government support is wound down and consumers return to work or
leave the workplace.
In this period of continued uncertainty, we will run the
business in the same way we have done so far this year: continually
scanning the horizon, responding to developments with agility and
focusing on initiatives that will improve our performance
regardless of events around us. I am confident this formula will
sustain our progress.
Outlook
Growing our profit, improving our margin and doubling our free
cash flow amidst the unprecedented challenges of COVID are, I
believe, a fitting testament to the Group's forward planning,
resilience and agility. It also underlines our long-term potential.
We look forward to making further progress in the second half
whilst remaining vigilant to the ongoing macroeconomic risks. We
expect a significant improvement on last year's performance with
full year 2020 Adjusted Operating Profit of at least GBP23.0m and
Adjusted EPS of at least 11.0p.
The outlook for 2021 remains uncertain. But I believe business
wins and our ongoing focus on business model improvement
initiatives will continue to serve us well and be sufficient to
deliver further progress.
JOHN HORNBY
Chief Executive Officer
8 September 2020
CHIEF FINANCIAL OFFICER'S REVIEW
Use of alternative performance measures
The commentary in the Financial Review uses alternative
performance measures, which are described as "adjusted".
Definitions of these measures can be found in note 1 in 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.
Overview
COVID disruption left H1 2020 revenue 13.4% lower than the
comparative period last year at GBP71.6m.
Continued gross margin improvement, a key feature of the Group's
results for the last two years, and stringent control of overheads
meant the Group made more profit on lower sales, allowing H1
Adjusted Operating Profit to increase by GBP1.8m to GBP9.0m.
The Group converted all the additional profit into extra cash.
Our cash position was also supplemented by close oversight of
working capital and a prudent tightening of capex plans, resulting
in Adjusted Free Cash Flow of GBP10.2m, double the comparative
period.
Cash generated was used to pay down debt and reduce off-balance
sheet debt factoring. The reinstatement of dividends with a higher
payout ratio, including an additional interim payment in lieu of
the cancelled 2019 final dividend, underlines the Board's
confidence in the Group's ability to resiliently withstand
short-term challenges and prosper long-term.
We have resumed our capex plans in H2 (focused on new product
development, manufacturing transformation, supply chain
transformation and IT enhancement) to maximise our long-term
prospects, whilst keeping operating costs under tight control.
COVID impact
COVID disruption started in early February when our production
facility in Jiaxing, China closed for the two weeks immediately
after Chinese New Year as the coronavirus began to spread from its
initial epicentre in Wuhan.
Production restarted thereafter albeit at reduced capacity due
to a lack of workers returning to work.
Swiftly implemented social distancing measures and a safe ramp
up of production allowed our facility to regain pre-COVID levels of
manufacturing quickly - a great achievement in the
circumstances.
By the end of February, it was clear to us that the coronavirus
would eventually enter general circulation in our key markets,
notably the UK. We began to develop a contingency plan to be
triggered if governments responded with disruptive measures to
contain the spread of the virus.
Our plan focused on safeguarding our employees, reducing costs
and preserving cash. Details were shared in our 2019 Full Year
Results announcement. The plan was implemented in March as
lockdowns spread through our markets and it achieved our aims.
Predicting the impact on demand of social distancing was
inherently difficult. Our plan was designed to accommodate our
realistic worst-case scenario, which I am pleased to say did not
materialise.
There were three reasons for this: continued socially distanced
construction activity, channel diversity and product diversity.
Whilst the former was a function of government policy, the latter
two are competitive strengths and a product of our long-term
strategy.
The Group has progressively built a diverse business serving a
broad range of end-users with multiple products through multiple
distribution channels. It has particularly focused on gaining share
with distributors capable of multi-channel consumer engagement,
whom we felt were well positioned to succeed long-term. This
long-established strategy served us well during the pandemic.
Distributors with both online ordering and either direct or
"click & collect" fulfilment continued to operate throughout
the lockdown and gained share from traditional "bricks &
mortar" channels. This benefited us due to our disproportionate
share of the former. To illustrate, the year-on-year change in our
H1 2020 UK Wiring Accessories revenue by distribution channel was
as follows:
-- Pure-play online: +88%
-- Hybrid operators (multi-channel capable): +5%
-- Traditional: -19% (consistent with decline in the overall UK
Wiring Accessory market in the period)
Product diversity meant that we benefited from continued demand
for DIY products from consumers willing and able to spend more on
their homes, whilst demand for project-oriented, professional
products declined as organisations cut back on discretionary
investment. To illustrate, the year-on-year change in H1 2020
revenue by product during lockdown was as follows:
-- DIY products / channels: +6.7%
-- Project-oriented products / channels: -38.7%
The above examples illustrate a key driver of our resilient
performance.
One other key driver was cost reduction.
We avoided the need for redundancies in H1 by reducing working
hours and implementing a temporary pay cut from members of the
Board down. Our strong performance allowed us to refund the latter
before the end of the half. We made appropriate use of government
job retention schemes, generating GBP1.2m of benefit in H1. This
allowed us to maintain full employee salary levels despite the
reduction in working hours, eliminating the risk of individual
financial hardship. We do not plan to make use of such schemes in
H2 now all employees have returned to work. We are not making use
of any government lending or tax deferral schemes and have no plans
to do so.
Revenue remained remarkably strong during COVID despite a sharp
reduction in sales & marketing activity, testament to the power
of our brands and our market position. Whilst welcome in 2020, the
unsustainably low cost of acquiring sales in H1, combined with
government furlough income, are a challenging performance headwind
to overcome in 2021. Our sales force is now restored to full
strength to preserve long-term customer relationships.
We are keeping non-discretionary expense under tight control in
H2 until the outlook becomes clearer.
Whilst the risk of further COVID-related disruption remains
high, we have a better understanding of its likely impact. Our
experience in H1 suggests that a further COVID-driven UK lockdown
of similar scale would cost GBP0.75m of operating profit per month
of lockdown, without impacting liquidity, meaning the Group can
comfortably fund any reasonably plausible future lockdown
scenarios.
Revenue
Group revenue declined by GBP11.1m (13.4%) to GBP71.6m. Currency
benefits added GBP0.8m, meaning a constant currency decline of
GBP11.9m or 14.4%.
Constant currency revenue declined by 10.7% in Q1, largely
because of COVID-driven supply chain disruption in China.
The decline was 18.1% in Q2, with sales at 50% of prior year
levels at the start of the quarter as markets responded cautiously
to newly introduced social distancing measures, before recovering
to 90% of prior year levels at the end.
Sales to UK retail networks declined by 11.4%, less than the
Group average, thanks to new business wins and a shift in end-users
toward distributors offering online ordering and non-branch
fulfilment. UK DIY and grocery stores remained largely open
throughout the half, allowing the Group to benefit from relatively
strong consumer demand.
Sales to UK professionals declined by 23.3%, more than the Group
average, as traditional wholesalers remained locked down for longer
and organisations cut back on large, discretionary construction
projects.
I am pleased to report that demand from professional channels
has improved in early H2 as lockdown conditions have eased,
allowing the Group to forecast low single digit like-for-like
revenue growth in Q3. This leads us to expect 2020 Full Year
Adjusted Operating Profit of at least GBP23.0m.
European sales declined by 19.6% in constant currency. The
region grew strongly in Q1 before relatively severe lockdowns in
Continental Europe took their toll in Q2. The region has returned
to modest year-on-year growth in early H2.
Rest of the World sales grew by 7.7% in constant currency. Asian
markets were impacted by COVID early in the half before recovering.
Other markets avoided the impact of COVID for most of H1 but may
still be impacted in H2.
H1 H1
2020 % 2019 % Growth
Revenue by geographical location of customer GBPm total revenue GBPm total revenue %
============================================= ===== ============== ===== =============== =======
UK 56.1 78.4 66.2 80.0 (15.3)%
Europe 7.2 10.1 8.9 10.8 (19.1)%
Middle East and Africa 3.9 5.4 3.9 4.7 -
Asia Pacific 1.3 1.8 1.4 1.7 (7.1)%
Americas 3.1 4.3 2.3 2.8 34.8%
Total revenue 71.6 100.0 82.7 100.0
============================================= ===== ============== ===== =============== =======
Gross Margin %
Adjusted gross margin advanced for the fourth successive
half-year, from a historic trough of 27.3% in H1 2018 to a new peak
of 38.4% in H1 2020, as illustrated in the table below:
H1 2018 H2 2018 H1 2019 H2 2019 H1 2020
================================ ======= ======= ======= ======= =======
Adjusted Gross Margin % 27.3% 33.9% 35.0% 37.4% 38.4%
Hedged currency rates:
USD:GBP 1.37 1.31 1.29 1.26 1.26
RMB:GBP 8.74 8.88 8.89 9.00 9.04
Hedged copper price RMB (tonne) 51,900 49,315 48,226 48,270 48,000
================================ ======= ======= ======= ======= =======
Over that time, the US Dollar has strengthened by 12.5% against
the Chinese Renminbi, increasing our income and lowering our costs.
Likewise, copper has reduced in price by 7.5%. Both have improved
our margins and are now hedged at rates similar to H1 2020 rates
for the near-term. But external factors only explain around one
third of the 11.1 percentage point improvement in margin in the
last two years.
The majority has arisen from our ongoing manufacturing
transformation project and actions taken to lower product cost
through better design.
Manufacturing efficiency has progressively improved under new
management at our Chinese factory. Unit costs of manufacture have
reduced by 12.5% on average over the two-year period through the
cumulative impact of many initiatives. More timely payments to
suppliers and disciplined contract tendering have yielded price
reductions under new Sourcing leadership. Labour efficiency has
considerably increased thanks to improvements to operator
retention, line changeover efficiency and line layout. Waste has
been eliminated from administrative overheads and packaging has
been streamlined across our product range.
We have also outsourced the manufacture of some products to
lower cost alternatives and used our extensive network in China to
find cheaper manufacturers of existing products, particularly in
the LED category.
The improvement in gross margin has been achieved despite the
headwind of fewer, high margin professional sales and generally low
volumes at our Chinese factory in H1 2020. I expect both to improve
in H2, benefiting margins still further.
Overheads
Adjusted Overheads were GBP3.2m (14.7%) lower than the
comparative period at GBP18.5m.
GBP1.7m of this came from temporary staff layoffs and the
suspension of bonus payments. Improving performance brought this
saving to an end at the start of H2 and bonuses were also
reinstated.
Reduced activity levels and more efficient shipping resulted in
a GBP0.5m reduction in freight costs.
Curtailment of discretionary expenditure such as promotion,
advertising, travel and entertainment saved a further GBP1.0m. We
aim to retain as much of this saving as possible in H2 to ensure
total overheads for the half remain less than the prior year.
Net finance expense
Net finance expense as a percentage of average net debt reduced
from 3.2% in H1 2019 to 2.8% in H1 2020 with reduced leverage
driving cheaper borrowing rates. The Group also benefited from a
lower base rate toward the end of the half, which should continue
in H2.
Taxation
The Group's effective tax rate on Adjusted Profit Before Tax has
reduced in recent years as follows - FY2018: 27.0%, FY2019 23.4%,
H1 2020: 19.3%. This has been achieved by better tax planning,
particularly releasing previously trapped tax losses.
Dividends
The business has proven its ability to generate sustainably
strong profits and cash flows. Over the last two and a half years,
free cash has been used to reduce indebtedness to our target range
of 1.0-2.0x LTM Adjusted EBITDA whilst still investing fully in
sources of long-term growth, such as new product development and
manufacturing transformation. I am pleased to report that, with
de-levering complete, we can choose to deploy our free cash in
other ways in future.
We will continue to pursue our M&A strategy. We have a clear
set of acquisition criteria are confident that acquisitions in our
pipeline will deliver long term value. But we will balance this
long-term opportunity with a responsibility to provide shareholders
with a commensurate near-term return. We have concluded that our
current dividend policy does not achieve this balance, falling
short of the payout that shareholders would rightly expect for a
business with our profitability, cash generation and healthy
long-term growth prospects.
Therefore, we have decided to increase our expected dividend
payout range from 20-30% to 40-60% of Adjusted EPS. The payout in
2020 will be 40%. Our dividend will remain progressive.
This results in a 3.2 pence per share payment on 23 October 2020
to shareholders on the register on 18 September 2020. It includes a
1.5p interim payment for 2020 and an additional 1.7p payment in
lieu of the suspended final payment for 2019.
Cash flow and funding
The Group's recent focus on improving efficiency and
reallocating existing resources to the best growth opportunities
before investing in additional resources has had the expected
beneficial impact on free cash flow generation:
Adjusted(1) Adjusted(1) Adjusted(1)
H1 H1 LTM(3)
2020 2019 H1 2020
==============================
Adjusted Free Cash Flow GBPm GBPm GBPm
============================== =========== =========== ===========
Operating profit 9.0 7.2 19.8
Depreciation and amortisation 2.8 3.4 7.3
============================== =========== =========== ===========
EBITDA 11.8 10.6 27.1
Changes in working capital 1.6 (1.2) 3.8
Other items 0.4 - 0.7
============================== =========== =========== ===========
Cash from operations 13.8 9.4 31.6
============================== =========== =========== ===========
Operating cash conversion(2) 117% 89% 117%
Net capital expenditure (1.7) (1.4) (3.9)
Interest paid (0.7) (1.2) (1.6)
Tax paid (1.2) (1.7) (2.1)
============================== =========== =========== ===========
Free Cash Flow 10.2 5.1 24.0
============================== =========== =========== ===========
Free Cash Flow as % Revenue 14.2% 6.2% 14.9%
============================== =========== =========== ===========
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 EBITDA
3. Results for the 12 months ended 30 June 2020
H1 Adjusted Free Cash Flow was particularly strong at GBP10.2m,
with a margin of 14.2% exceeding the Group's targeted range of
5-10%.
Some manufacturing investment plans temporarily slowed in Q2 due
to COVID, but have since restarted, leading to lower than expected
capex.
Reduced activity liberated GBP1.6m of cash from working capital.
This is expected to reverse in H2 as activity returns.
The Group granted temporarily extended payment terms to some
loyal customers during the COVID lockdown, leading to an increase
in debtor days. Improved trading across the industry had helped to
speed up payments by the end of the half. The Group experienced no
material bad debts in the period.
GBP3.5m of the cash generated in the period was used to continue
to pay down off-balance sheet debt factoring, which stood at
GBP1.5m on 30 June 2020. The remaining balance will be cleared in
H2, ending many years of off-balance sheet funding arrangements in
the interests of greater simplicity and transparency.
The Company's covenants and headroom are summarised as
follows:
H1 2020 covenant Covenant Actual Headroom
=========================== ======== ====== =============================
Net Debt : Adjusted(1) LTM
EBITDA 2.50 : 1 0.8 Debt Headroom: GBP45.1m
=========================== ======== ======
Adjusted(1) EBITDA Headroom:
GBP18.0m
=========================== ======== ====== =============================
Adjusted(1) LTM EBITDA : Adjusted(1) EBITDA Headroom:
LTM Net Finance Expense 4.00 : 1 14.4 GBP19.5m
=========================== ======== ======
Net Finance Expense Headroom:
GBP4.9m
=========================== ======== ====== =============================
1. A reconciliation of the reported to Adjusted results is shown
within note 1 of the condensed consolidated financial
statements
As set out in the 2019 Full Year Results announcement, the Group
agreed in principle in April 2020 to reset banking covenants for Q3
and Q4 2020 to accommodate a then plausible COVID downside
scenario. As COVID developed, it became clear that we could
comfortably remain within our existing covenants in any plausible
scenario and the focus moved to extending the maturity of our
existing facilities rather than changing their terms. We have
therefore not reset covenants but have extended the maturity date
of our facilities from 31 December 2021 to 31 March 2023 on similar
terms to the existing arrangements.
As 30 June 2020, the Group had headroom of GBP30.4m in its
committed borrowing facilities.
The key measures which management use to evaluate the Group's
use of its financial resources and capital management are set out
below:
Adjusted(1) Adjusted(1)
H1 H1
2020 2019
============================== =========== ===========
Earnings Per Share (pence) 4.3 3.1
Net Debt : LTM EBITDA (times) 0.8 1.5
Free Cash Flow (GBPm) 10.2 5.1
============================== =========== ===========
1. A reconciliation of the reported to Adjusted results is shown
within note 1 of the condensed consolidated financial
statements
Working capital
H1 H1 FY
====================
2020 2019 2019
GBPm GBPm GBPm
==================== ======== ======== ========
Inventories 29.7 34.5 32.2
Inventory days 130 days 114 days 105 days
Trade debtors 41.3 38.3 42.8
Debtor days(1) 99 days 95 days 89 days
Trade creditors (19.1) (24.6) (22.1)
Creditor days 81 days 79 days 75 days
==================== ======== ======== ========
Net working capital 51.9 48.2 52.9
==================== ======== ======== ========
Working capital reduced by GBP1.0m in the period to
GBP51.9m.
This was achieved despite a reduction in off-balance sheet debt
factoring, which increased trade debtors by GBP3.5m. The reduction
in working capital absent changes in debt factoring, which is a
more informative gauge of capital management, was therefore GBP4.5m
- a key driver of the strong cash flow in the period.
Inventory levels were pro-actively reduced in March before COVID
lockdowns commenced. Closing inventory of GBP29.7m represents 130
days of backward looking, and therefore depressed, demand but we
expect stockholding periods to reduce now demand has improved
post-lockdown.
The average debt collection period increased by 10 days to 99
days as we granted targeted extensions in payment terms to loyal
customers adversely impacted by COVID. Collection has accelerated
in the second half.
Operating segment review
Wiring Accessories
Adjusted(1) Reported
=========================== ===========================
H1 H1 H1 H1
2020 2019 Change 2020 2019 Change
====================== ======== ======== ======= ======== ======== =======
Revenue GBP31.3m GBP34.1m (8.2%) GBP31.3m GBP34.1m (8.2%)
====================== ======== ======== ======= ======== ======== =======
Contribution profit GBP10.9m GBP9.9m 10.1% GBP10.9m GBP9.9m 10.1%
====================== ======== ======== ======= ======== ======== =======
Contribution margin % 34.8% 29.0% 5.8ppts 34.8% 29.0% 5.8ppts
====================== ======== ======== ======= ======== ======== =======
Operating profit GBP7.3m GBP5.9m 23.7% GBP7.3m GBP5.9m 23.7%
====================== ======== ======== ======= ======== ======== =======
Operating margin % 23.3% 17.3% 6.0ppts 23.3% 17.3% 6.0ppts
====================== ======== ======== ======= ======== ======== =======
1. A reconciliation of the reported to Adjusted results is shown
within note 1 of the condensed consolidated financial
statements
Wiring Accessories revenue declined by 8.2% to GBP31.3m.
The decline in revenue was less than both the Group average and
the overall market thanks to share gains. Gains arose from new
business wins, good stock availability and channel switching.
The exit of a large UK competitor allowed us to materially
expand our circuit protection sales at attractive margins.
Unlike some of our competitors, we achieved good outbound order
fill rates throughout the period due to the swift recovery of our
Chinese manufacturing capacity after lockdown and good stock cover
in the UK pre-COVID.
Professional end users switched away from traditional channels
toward distributors with remote ordering and fulfilment channels
during lockdown, of which the Group has a high share.
Despite the reduction in revenue, segmental adjusted operating
profit increased by nearly 24% to GBP7.3m due to improved
manufacturing efficiency and the temporary curtailment of sales and
marketing expenses.
LED Lighting
Adjusted(1) Reported
=========================== ===========================
H1 H1 H1 H1
2020 2019 Change 2020 2019 Change
====================== ======== ======== ======= ======== ======== =======
Revenue GBP19.8m GBP25.6m (22.7%) GBP19.8m GBP25.6m (22.7%)
====================== ======== ======== ======= ======== ======== =======
Contribution profit GBP2.6m GBP2.6m Nil% GBP2.6m GBP2.6m Nil%
====================== ======== ======== ======= ======== ======== =======
Contribution margin % 13.1% 10.2% 2.9ppts 13.1% 10.2% 2.9ppts
====================== ======== ======== ======= ======== ======== =======
Operating profit GBP0.9m GBP0.4m 125.0% GBP0.7m GBP0.2m 250.0%
====================== ======== ======== ======= ======== ======== =======
Operating margin % 4.5% 1.6% 2.9ppts 3.5% 0.8% 2.7ppts
====================== ======== ======== ======= ======== ======== =======
1. A reconciliation of the reported to Adjusted results is shown
within note 1 of the condensed consolidated financial
statements
LED Lighting revenue declined by 22.7% to GBP19.8m.
The decline in revenue was more than the Group average. Over
half of the segmental revenue is driven by professional,
project-related demand, which slowed considerably in the UK and
Spain during lockdown. Activity in this part of the market began to
improve toward the end of the first half, which is encouraging for
the second half.
Results benefited from continued product development,
manufacturing and sourcing efforts to reduce product cost, thereby
improving profitability and maintaining price competitiveness. This
was particularly evident at Kingfisher Lighting, which has improved
its product margins under our ownership.
Portable Power
Adjusted(1) Reported
=========================== ===========================
H1 H1 H1 H1
2020 2019 Change 2020 2019 Change
====================== ======== ======== ======= ======== ======== =======
Revenue GBP18.7m GBP20.5m (8.8%) GBP18.7m GBP20.5m (8.8%)
====================== ======== ======== ======= ======== ======== =======
Contribution profit GBP3.1m GBP3.2m (3.1%) GBP3.1m GBP3.2m (3.1%)
====================== ======== ======== ======= ======== ======== =======
Contribution margin % 16.6% 15.6% 1.0ppts 16.6% 15.6% 1.0ppts
====================== ======== ======== ======= ======== ======== =======
Operating profit GBP0.9m GBP0.9m nil% GBP0.9m GBP0.9m nil%
====================== ======== ======== ======= ======== ======== =======
Operating margin % 4.8% 4.4% 0.4ppts 4.8% 4.4% 0.4ppts
====================== ======== ======== ======= ======== ======== =======
1. A reconciliation of the reported to Adjusted results is shown
within note 1 of the condensed consolidated financial
statements
Portable Power revenue declined by 8.8% to GBP18.7m.
The decline in revenue was less than the Group average. Demand
remained relatively robust despite COVID as consumers bought
extension leads and cable reels during lockdown to support home
working and home improvement respectively.
Whilst our market share in the UK is relatively mature, we are
hopeful about developing the nascent North American portable power
market, with one major US retailer placing a large order in the
first half.
A stronger US dollar, the currency in which most of the
segmental revenue is invoiced, and central cost reduction helped to
maintain profit despite the reduction in revenue.
Ross
Adjusted(1) Reported
============================== ==============================
H1 H1 H1 H1
2020 2019 Change 2020 2019 Change
========================== ========= ======= ========== ========= ======= ==========
Revenue GBP1.8m GBP2.5m (28.0%) GBP1.8m GBP2.5m (28.0%)
========================== ========= ======= ========== ========= ======= ==========
Contribution profit GBPnil GBP0.3m (100.0%) GBPnil GBP0.3m (100.0%)
========================== ========= ======= ========== ========= ======= ==========
Contribution margin % nil% 12.0% (12.0ppts) nil% 12.0% (12.0ppts)
========================== ========= ======= ========== ========= ======= ==========
Operating profit / (loss) (GBP0.1m) GBPnil nil% (GBP0.1m) GBPnil nil%
========================== ========= ======= ========== ========= ======= ==========
Operating margin % (5.6%) nil% (5.6ppts) (5.6%) nil% (5.6ppts)
========================== ========= ======= ========== ========= ======= ==========
1. A reconciliation of the reported to Adjusted results is shown
within note 1 of the condensed consolidated financial
statements
Ross revenue declined by 28.0% to GBP1.8m due to COVID
disruption. Ross products are sold through the same channels using
the same resources as other segments. Absent COVID, the business
typically generates an Adjusted Contribution Profit to help pay for
fixed central overheads and we expect this contribution to resume
in H2 2020 as COVID disruption subsides.
Impact of foreign exchange movements
A summary of the Condensed Consolidated Income Statement on a
constant currency basis is included in the table below. Current
period balances have been translated at the prior year's average
exchange rates and demonstrate the impact of movement in exchange
rates during the period.
Constant currency
Currency impact variance to 2019
================= ========== ================= ============ =================== =========
H1 2020
H1 2020 Adjusted H1 2019
Adjusted at constant Adjusted
actual(1) currency(2) actual
GBPm GBPm % GBPm GBPm % GBPm
================= ========== ====== ========= ============ ======== ========= =========
Revenue 71.6 0.8 1.1% 70.8 (11.9) (14.4%) 82.7
Cost of sales (44.1) 0.2 (0.5%) (44.3) 9.5 (17.7%) (53.8)
================= ========== ====== ========= ============ ======== ========= =========
Gross profit 27.5 1.0 3.8% 26.5 (2.4) (8.3%) 28.9
Gross margin
% 38.4% 1.0ppts 37.4% 2.4ppts 35.0%
Operating costs (18.5) - - (18.5) 3.2 (14.7%) (21.7)
================= ========== ====== ========= ============ ======== ========= =========
Operating profit 9.0 1.0 12.5% 8.0 0.8 11.1% 7.2
Operating margin
% 12.6% 1.3ppts 11.3% 2.6ppts 8.7%
================= ========== ====== ========= ============ ======== ========= =========
1. H1 2020 translated at H1 2020 average exchange rates.
2. H1 2020 translated at H1 2019 average exchange rates.
Our major currencies are largely hedged for the second half of
2020. I do not expect any further year-on-year currency gain in
that period.
MATT WEBB
Chief Financial Officer
8 September 2020
GOING CONCERN
Our going concern assessment has modelled the impact of various
scenarios associated with the Group's principal risks.
The Group's principal risks include the future impact of COVID,
which the Board has considered in detail. Our assessment has been
appropriately informed by our experience of the virus to date,
particularly in setting forecast assumptions. COVID's impact thus
far has been considerably less severe than that assumed when we
performed our going concern assessment for the 2019 Annual
Report.
Our assessment has taken into consideration the overall level of
Group borrowings and covenant requirements, the flexibility of the
Group to react to changing market conditions and ability to
appropriately manage any business risks.
The conclusion of this work is that the Group has sufficient
headroom in its banking covenants and facilities in all of the
scenarios considered to continue to fund itself and operate.
In view of this, the Board has a reasonable expectation that the
Group has adequate resources to continue in operational existence
for the foreseeable future. They therefore continue to adopt the
going concern basis in preparing these interim financial
statements.
Further details of the type of scenarios considered, the
assumptions made in each and support for the conclusions can be
found in note 1 to the condensed consolidated interim financial
statements.
PRINCIPAL RISKS AND UNCERTAINTIES
The Group is subject to risk factors both internal and external
to its business and has a well-established set of risk management
procedures. The following risks and uncertainties are those that
the Directors believe could have the most significant impact on the
Group's business; impact of coronavirus on supply and demand of
Luceco products, disruption to operating operations; information
technology systems; business relationships; loss of key employees;
acquisition strategy; impact of macroeconomic, political and
environmental factors; legal and regulatory non-compliance and
risks associated with funding and treasury management.
For further detail of these risks and uncertainties, please
refer to pages 45 to 50 of the Luceco plc 2019 Annual Report and
Accounts, which is available on request from the Group's head
office or through the Group website www.lucecoplc.com
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 by
the EU;
-- the interim management report includes a fair 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.
At the date of this statement, the Directors are those listed in
the Group's 2019 Annual Report and Accounts with the exception of
John Barton who did not stand for re-election at the AGM on 4 June
2020. Pim Vervaat was appointed to the Board as Senior Independent
Director with effect from 1 September 2020.
Approved by the Board on 8 September 2020 and signed on its
behalf.
JOHN HORNBY
Chief Executive Officer
MATT WEBB
Chief Financial Officer
8 September 2020
Condensed Consolidated Income Statement
for the period ended 30 June 2020
Adjusted Adjustments(1) Reported Adjusted Adjustments(1) Reported Reported
H1 2020 H1 2020 H1 2020 H1 2019 H1 2019 H1 2019 FY 2019
Note GBPm GBPm GBPm GBPm GBPm GBPm GBPm
========================= ==== ======== ============== ======== ======== ============== ======== ========
Revenue 2 71.6 - 71.6 82.7 - 82.7 172.1
Cost of sales (44.1) - (44.1) (53.8) - (53.8) (107.5)
========================= ==== ======== ============== ======== ======== ============== ======== ========
Gross profit 27.5 - 27.5 28.9 - 28.9 64.6
========================= ==== ======== ============== ======== ======== ============== ======== ========
Other income 1.0 - 1.0 - - - -
Distribution expenses(2) (3.1) - (3.1) (4.0) - (4.0) (8.5)
Administrative
expenses(2) (16.4) (0.2) (16.6) (17.7) (0.2) (17.9) (35.9)
========================= ==== ======== ============== ======== ======== ============== ======== ========
Operating profit 2,3 9.0 (0.2) 8.8 7.2 (0.2) 7.0 20.2
========================= ==== ======== ============== ======== ======== ============== ======== ========
Finance income - 0.3 0.3 - - - -
Finance expense (0.7) - (0.7) (1.1) (0.6) (1.7) (3.1)
========================= ==== ======== ============== ======== ======== ============== ======== ========
Net financing
expense (0.7) 0.3 (0.4) (1.1) (0.6) (1.7) (3.1)
========================= ==== ======== ============== ======== ======== ============== ======== ========
Profit before
tax 8.3 0.1 8.4 6.1 (0.8) 5.3 17.1
Taxation 4 (1.6) - (1.6) (1.2) - (1.2) (4.0)
========================= ==== ======== ============== ======== ======== ============== ======== ========
Profit for the
period 6.7 0.1 6.8 4.9 (0.8) 4.1 13.1
========================= ==== ======== ============== ======== ======== ============== ======== ========
Earnings per share
(pence)
Basic 5 4.3p 0.1p 4.4p 3.1p (0.5)p 2.6p 8.3p
Fully diluted 5 4.3p - 4.3p 3.1p (0.5)p 2.6p 8.3p
========================= ==== ======== ============== ======== ======== ============== ======== ========
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 2020
H1 2020 H1 2019 FY 2019
GBPm GBPm GBPm
=================================================== ======== ======== ========
Profit for the period 6.8 4.1 13.1
Other comprehensive income - amounts that may
be reclassified to profit or loss in the future:
Foreign exchange translation differences - foreign
operations and investments 1.7 (0.1) (2.3)
=================================================== ======== ======== ========
Total comprehensive income for the period 8.5 4.0 10.8
=================================================== ======== ======== ========
All results are from continuing operations.
Condensed Consolidated Statement of Financial Position
at 30 June 2020
H1 2020 H1 2019 FY 2019
Note GBPm GBPm GBPm
============================== ==== ======= ======= =======
Non-current assets
Property, plant and equipment 7 17.8 19.5 17.0
Right-of-use assets 3.0 2.8 3.0
Intangible assets 8 22.0 23.1 22.6
================================== ==== ======= ======= =======
42.8 45.4 42.6
============================== ==== ======= ======= =======
Current assets
Inventories 29.7 34.5 32.2
Trade and other
receivables 42.5 41.2 43.6
Cash and cash
equivalents - 5.2 1.4
================================== ==== ======= ======= =======
72.2 80.9 77.2
============================== ==== ======= ======= =======
Total assets 115.0 126.3 119.8
================================== ==== ======= ======= =======
Current liabilities
Interest-bearing loans
and borrowings 9 0.2 - -
Trade and other
payables 32.5 40.6 39.0
Current tax liabilities 3.2 1.4 2.8
Financial assets held
for trading - - 0.3
Other financial
liabilities 1.2 0.6 1.1
================================== ==== ======= ======= =======
37.1 42.6 43.2
============================== ==== ======= ======= =======
Non-current liabilities
Other interest-bearing
loans and borrowings 9 19.4 38.5 26.0
Other financial
liabilities 1.9 2.5 1.7
Deferred tax liability 1.0 1.0 1.0
Provisions 0.8 - 0.8
================================== ==== ======= ======= =======
23.1 42.0 29.5
============================== ==== ======= ======= =======
Total liabilities 60.2 84.6 72.7
================================== ==== ======= ======= =======
Net assets 54.8 41.7 47.1
================================== ==== ======= ======= =======
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 0.8 1.3 (0.9)
Treasury reserve (5.3) (3.5) (4.1)
Retained earnings 34.4 19.0 27.2
================================== ==== ======= ======= =======
Total equity 54.8 41.7 47.1
================================== ==== ======= ======= =======
Condensed Consolidated Statement of Changes in Equity
for the period ended 30 June 2020
Share Share Translation Retained Treasury Total
capital premium reserve earnings reserve equity
GBPm GBPm GBPm GBPm GBPm GBPm
--------------------------- ------- ------- ----------- -------- -------- ------
Balance at 1 January
2019 0.1 24.8 1.4 16.1 (1.2) 41.2
Adoption of IFRS 16
- Leases(1) (0.3) (0.3)
Balance at 1 January
2019 restated 0.1 24.8 1.4 15.8 (1.2) 40.9
Total comprehensive
income
Profit for the period - - - 4.1 - 4.1
Impairment provision - - - - - -
on expected credit losses
Currency translation
differences - - (0.1) - - (0.1)
=========================== ======= ======= =========== ======== ======== ======
Total comprehensive
income for the period - - (0.1) 4.1 - 4.0
Transactions with owners
in their capacity as
owners:
Distribution paid - - - (0.9) - (0.9)
Purchase of own shares - - - - (2.3) (2.3)
Share-based payments - - - - - -
charge(2)
=========================== ======= ======= =========== ======== ======== ======
Total transactions with
owners in their capacity
as owners - - - (0.9) (2.3) (3.2)
=========================== ======= ======= =========== ======== ======== ======
Balance at 30 June 2019 0.1 24.8 1.3 19.0 (3.5) 41.7
=========================== ======= ======= =========== ======== ======== ======
Balance at 1 January
2020 0.1 24.8 (0.9) 27.2 (4.1) 47.1
Total comprehensive
income
Profit for the period - - - 6.8 - 6.8
Currency revaluations
of investments 1.0 1.0
Currency translation
differences - - 0.7 - - 0.7
=========================== ======= ======= =========== ======== ======== ======
Total comprehensive
income for the period - - 1.7 6.8 - 8.5
Transactions with owners
in their capacity as
owners:
Purchase of own shares - - - - (1.2) (1.2)
Share-based payments
charge - - - 0.4 - 0.4
=========================== ======= ======= =========== ======== ======== ======
Total transactions with
owners in their capacity
as owners - - - 0.4 (1.2) (0.8)
=========================== ======= ======= =========== ======== ======== ======
Balance at 30 June 2020 0.1 24.8 0.8 34.4 (5.3) 54.8
=========================== ======= ======= =========== ======== ======== ======
1. Impact of IFRS 16 Leases.
2. The share-based payment charge in the period ended 30 June 2019 was GBP41,000.
Condensed Consolidated Cash Flow Statement for the period ended
30 June 2020
Adjusted Adjustments(1) Reported Adjusted Adjustments(1) Reported Reported
H1 2020 H1 2020 H1 2020 H1 2019 H1 2019 H1 2019 FY 2019
============================== ==== ======== ============== ======== ======== ============== ======== ========
Note GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============================== ==== ======== ============== ======== ======== ============== ======== ========
Cash flows from operating
activities
Profit for the period 6.7 0.1 6.8 4.9 (0.8) 4.1 13.1
Adjustments for:
Depreciation and amortisation 7,8 2.8 0.2 3.0 3.4 0.2 3.6 8.3
Financial income - (0.3) (0.3) - - - -
Financial expense 0.7 - 0.7 1.1 0.6 1.7 3.1
Taxation 4 1.6 - 1.6 1.2 - 1.2 4.0
Loss on disposal of tangible
assets - - - - - - 0.1
Share-based payments charge 0.4 - 0.4 - - - 0.2
============================== ==== ======== ============== ======== ======== ============== ======== ========
Operating cash flow before
movement in working capital 12.2 - 12.2 10.6 - 10.6 28.8
Decrease/(increase) in trade
and other receivables 4.6 (3.5) 1.1 3.1 (3.0) 0.1 (2.7)
Decrease/(Increase) in
inventories 2.5 - 2.5 (1.5) - (1.5) -
Decrease in trade and other
payables (5.5) - (5.5) (2.8) - (2.8) (4.8)
============================== ==== ======== ============== ======== ======== ============== ======== ========
Cash from operations 13.8 (3.5) 10.3 9.4 (3.0) 6.4 21.3
Income taxes paid (1.2) - (1.2) (1.7) - (1.7) (2.6)
============================== ==== ======== ============== ======== ======== ============== ======== ========
Net cash from operating
activities 12.6 (3.5) 9.1 7.7 (3.0) 4.7 18.7
============================== ==== ======== ============== ======== ======== ============== ======== ========
Cash flows from investing
activities
Acquisition of property,
plant and equipment 7 (1.3) - (1.3) (0.6) - (0.6) (2.0)
Acquisition of other
intangible
assets 8 (0.4) - (0.4) (1.0) - (1.0) (1.6)
Disposal of tangible assets 7 - - - 0.2 - 0.2 -
============================== ==== ======== ============== ======== ======== ============== ======== ========
Net cash used in investing
activities (1.7) - (1.7) (1.4) - (1.4) (3.6)
============================== ==== ======== ============== ======== ======== ============== ======== ========
Cash flows from financing
activities
Proceeds from new loans 13.4 - 13.4 2.7 - 2.7 5.0
Repayment of borrowings (20.0) - (20.0) - - - (14.6)
Interest paid (0.7) - (0.7) (1.2) - (1.2) (2.1)
Dividends paid - - - (0.9) - (0.9) (1.9)
Other financial liabilities (0.6) - (0.6) (0.6) - (0.6) (1.3)
Purchase of treasury shares (1.2) - (1.2) (2.3) - (2.3) (2.9)
============================== ==== ======== ============== ======== ======== ============== ======== ========
Net cash from financing
activities (9.1) - (9.1) (2.3) - (2.3) (17.8)
============================== ==== ======== ============== ======== ======== ============== ======== ========
Net (decrease)/increase
in cash and cash equivalents 1.8 (3.5) (1.7) 4.0 (3.0) 1.0 (2.7)
Cash and cash equivalents
at 1 January 1.4 4.2 4.2
Effect of exchange rate
fluctuations on cash held 0.1 - 0.1
============================== ==== ======== ============== ======== ======== ============== ======== ========
Cash and cash equivalents at 30
June/31 December (0.2) 5.2 1.4
============================================== ============== ======== ======== ============== ======== ========
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.
Notes to the Condensed Consolidated Financial Statements
for the period ended 30 June 2020
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 2020 comprise the Company and its
subsidiaries (together referred to as the "Group"). The Group is
primarily involved in the manufacturing and distributing of high
quality and innovative wiring accessories, LED lighting and
portable power products to global markets (see note 2).
The Annual Report and Accounts of Luceco plc are prepared in
accordance with International Financial Reporting Standards (IFRS)
and IFRS Interpretations Committee (IFRS IC) interpretations as
adopted by the European Union and the Companies Act 2006 applicable
to companies reporting under IFRS. The interim financial statements
included in this half-yearly financial report has been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by
the European Union.
The accounting policies adopted in the preparation of the
interim financial statements are consistent with those followed in
the preparation of the Group's Annual Report and Accounts for the
year ended 31 December 2019 other than the impact of the new
standards adopted in the period, as described below.
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 2019 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 auditors in their report drew
attention to the going concern comment made in note 1 to the
financial statements which indicated that in the Group's severe but
plausible downside case only, the Group would exceed it's quarterly
financial covenants in Q4 2020 and Q1 2021. These events and
conditions, along with the other matters explained in note 1,
constitute a material uncertainty that may cast significant doubt
on the Group's and the parent company's ability to continue as a
going concern. The audit opinion was not modified in respect of
this matter.
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 2019 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
Our going concern assessment has developed plausible downside
scenarios linked to the following principal risks. Each has been
modelled over three years:
1. 2nd COVID-driven lockdown in the Q4 2020 - utilising our
experience in H1 2020, as described below
2. Macroeconomic decline - based on 15% reduction on sales
3. Shipping and transportation - based on 15% reduction in worldwide revenue for 6 months
4. Disruption to manufacturing facilities - based on two months
loss of sales in China in Sep/Oct-20 and 5% reduction in margin
from 4 months from Sep-20
COVID impact in H1 2020
Disruption to the business started in February when production
at the facility in Jiaxing, China closed for the two weeks
immediately after Chinese New Year as the coronavirus began to
spread from its initial epicentre in Wuhan. However, production
quickly restarted albeit at reduced capacity due to a lack of
workers. A swift implementation of social distancing measures and a
safe ramp up of production allowed our facility to regain pre-COVID
levels of manufacturing quickly.
The threat that the coronavirus would eventually enter general
circulation in our key markets, notably the UK, led to the
development of a contingency plan to be triggered if governments
responded with disruptive measures to contain the spread of the
virus. Our plan focused on safeguarding our employees, reducing
costs and preserving cash. Details can be found in the 2019 Annual
Report. The plan was implemented in March as lockdowns spread
through our markets and it achieved our aims.
Predicting the impact on demand of social distancing was
inherently difficult. Our plan was designed to accommodate our
realistic worst-case scenario, which did not materialise. There
were three reasons for this outcome: continued socially distanced
construction, channel diversity and product diversity. Whilst the
former was a function of government policy, the latter two were a
product of our long-term strategy. The Group has progressively
built a diverse business serving a broad range of end-users with
multiple products through multiple distribution channels. It has
particularly focused on gaining share with distributors capable of
multi-channel consumer engagement, whom it was felt were well
positioned to succeed long-term. These earlier decisions mitigated
the impact on the business during the pandemic.
Distributors with both online ordering and either direct or
"click & collect" fulfilment continued to operate throughout
the lockdown and gained share from traditional "bricks &
mortar" channels. This benefited the Group due to the
disproportionate share of the former.
Product diversity benefited the Group from continued demand for
DIY products from consumers willing and able to spend more on their
homes, whilst demand for project-oriented, professional products
declined as organisations cut back on discretionary investment.
The above examples illustrate a key driver of the Group's
resilient performance.
One other key driver was cost reduction. The Group avoided the
need for redundancies in H1 by reducing working hours and
implementing a temporary pay cut from members of the Board down.
The strong performance of the Group allowed the refund the latter
before the end of the half. Appropriate use of government job
retention schemes was made, generating GBP1.2m of income in H1.
This allowed the maintenance of employee salary levels despite the
reduction in working hours, eliminating the risk of individual
financial hardship. The use of such schemes will not be required in
H2 now that all employees have returned to work. The Group is not
using any of the government's lending or tax deferral schemes.
Our experience in the first half of the year suggests that a
further COVID-driven UK lockdown of similar scale would cost
GBP0.75m of operating profit per month of lockdown, without
impacting liquidity.
Funding
In arriving at its conclusion on going concern, the Board has
given due consideration to whether the funding and liquidity
resources above are sufficient to accommodate the principal risks
and uncertainties faced by the Group.
The Group has reported a profit before tax of GBP8.4m for the
six months to 30 June 2020 (30 June 2019: GBP5.3m), has net current
assets of GBP36.3m (30 June 2019: GBP38.3m) and net assets of
GBP54.8m (30 June 2019: GBP41.7m).
The capital resources at the Group's disposal at 30 June 2020
were as follows:
-- a revolving credit facility of GBP30.0m, GBP5.1m drawn at 30 June 2020
-- an invoice financing facility of GBP20.0m, GBP14.5m was drawn at 30 June 2020
Both bank facilities mature on 31 March 2023.
The revolving credit facility requires the Group to comply with
the following quarterly financial covenants:
-- Closing net debt of no more than 2.5 times Adjusted EBITDA
for the preceding 12-month period. At the 30 June 2020 this ratio
was 0.8 - with headroom on net debt of GBP45.1m and EBITDA of
GBP18.0m.
-- Adjusted EBITDA of no less than 4.0 times Adjusted Net
Finance Expense, both for the preceding 12-month period. At the 30
June 2020 this ratio was 14.4 - with headroom on Net Finance
Expense of GBP4.9m and EBITDA of GBP19.5m.
Conclusions
The conclusion of this work is that the Group has sufficient
headroom, even in plausible downside scenarios, to remain in
compliance with its quarterly financial covenants for a period of
at least 12 months from the date of approval of the interim
financial statements.
Consequently, the directors are confident that the 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
interim financial statements and therefore have prepared the
interim financial statements on a going concern basis.
Standards and interpretations issued
At the date of the approval of these financial statements, the
following standards and interpretations, which have not yet been
applied in these financial statements, were in issue, but not yet
effective:
-- Amendments to References to Conceptual Framework for IFRS Standards
-- Definition of a Business (Amendments to IFRS 3)
-- Definition of Material (Amendments to IAS 1 and IAS 8)
The following accounting standards and amendments that are
applicable to the Group have been issued by the IASB but had either
not been adopted by the European Union or were not yet effective at
30 June 2020.
-- IFRS 17 Insurance Contracts. The current effective date is 1
January 2022. This is not expected to be applicable to the
Group.
-- Sale or Contribution of Assets between an Investor and its
Associate or Joint venture (Amendments to IFRS 10 and IAS 28).
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
because of intermittent activities such as a corporate acquisition.
The Group separately reports items in the Condensed Consolidated
Income Statement and Condensed Consolidated Cash Flow Statement
which, in the Directors' judgement, need to be disclosed separately
by virtue of their nature, size and incidence 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 measures used in these interim financial statements are
defined in the table on page 108 of the 2019 Annual Report and
Financial Statements and the principles to identify adjusting items
have been applied on a consistent basis.
The unaudited measures used in the interim financial statements
and adjustments made are summarised in the table below:
H1 2020 H1 2019 FY 2019
================ ================================================================== =============== ===============
Amortisation
of acquired
Remeasurement intangibles
to fair value and related
of hedging acquisition Total Total Total
Adjusted portfolio(2) costs(3) adjustments Reported adjustments(1) adjustments(1)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
================ ========= ============== ============= ============= ========= =============== ===============
Revenue 71.6 - - - 71.6 - -
Cost of sales (44.1) - - - (44.1) - 2.3
================ ========= ============== ============= ============= ========= =============== ===============
Gross profit 27.5 - - - 27.5 - 2.3
================ ========= ============== ============= ============= ========= =============== ===============
Other income 1.0 - - - 1.0 - -
Distribution
expenses (3.1) - - - (3.1) - -
Administrative
expenses (16.4) - (0.2) (0.2) (16.6) (0.2) (0.1)
================ ========= ============== ============= ============= ========= =============== ===============
Operating
profit 9.0 - (0.2) (0.2) 8.8 (0.2) 2.2
================ ========= ============== ============= ============= ========= =============== ===============
Net finance
expense (0.7) 0.3 - 0.3 (0.4) (0.6) (0.9)
================ ========= ============== ============= ============= ========= =============== ===============
Profit before
tax 8.3 0.3 (0.2) 0.1 8.4 (0.8) 1.3
Taxation (1.6) - - - (1.6) - (0.3)
================ ========= ============== ============= ============= ========= =============== ===============
Profit for the
period 6.7 0.3 (0.2) 0.1 6.8 (0.8) 1.0
================ ========= ============== ============= ============= ========= =============== ===============
Gross margin
% 38.4% 38.4%
1. The adjustments made during 2019 were in respect of the following:
H1 2019 FY 2019
GBPm GBPm
=================================================== =================== ===================
Remeasurement to fair value of hedging
portfolio(2) (0.6) (0.9)
Amortisation of acquired intangibles
and related acquisition costs(3) (0.2) (0.4)
Closure of US business - 0.3
Cost recovery - 1.4
VAT repayment - 0.9
=================================================== =================== ===================
Total adjustments before tax (0.8) 1.3
=================================================== =================== ===================
2. Relating to currency hedges.
3. Relating to Kingfisher Lighting.
2. Operating segments
The Group's principal activities are in the manufacturing and
supply of wiring accessories, LED lighting, portable power
equipment and Ross (home entertainment products). For the purposes
of management reporting to the Chief Operating Decision-Maker (the
Board), the Group consists of four operating segments which are the
product categories that the Group manufactures and 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 2020 Adjustment(1) H1 2020 H1 2019 Adjustment(1) H1 2019
GBPm GBPm GBPm GBPm GBPm GBPm
=================== ======== =============== ======== ======== =============== ========
Revenue
Wiring Accessories 31.3 - 31.3 34.1 - 34.1
Portable Power 18.7 - 18.7 20.5 - 20.5
LED Lighting 19.8 - 19.8 25.6 - 25.6
Ross and other 1.8 - 1.8 2.5 - 2.5
=================== ======== =============== ======== ======== =============== ========
71.6 - 71.6 82.7 - 82.7
=================== ======== =============== ======== ======== =============== ========
Operating profit
Wiring Accessories 7.3 - 7.3 5.9 - 5.9
Portable Power 0.9 - 0.9 0.9 - 0.9
LED Lighting 0.9 (0.2) 0.7 0.4 (0.2) 0.2
Ross and other (0.1) - (0.1) - - -
=================== ======== =============== ======== ======== =============== ========
Operating profit 9.0 (0.2) 8.8 7.2 (0.2) 7.0
=================== ======== =============== ======== ======== =============== ========
1. Relating to Kingfisher Lighting.
Revenue by location of customer
H1 2020 H1 2019
GBPm GBPm
================================ ============== ==============
UK 56.1 66.2
Europe 7.2 8.9
Middle East and Africa 3.9 3.9
Asia Pacific 1.3 1.4
Americas 3.1 2.3
================================== ============== ==============
Total revenue 71.6 82.7
================================== ============== ==============
3. Expenses recognised in the Condensed Consolidated Income
Statement
Included in the Condensed Consolidated Income Statement are the
following:
H1 2020 H1 2019 FY 2019
GBPm GBPm GBPm
================================================ ================== ================== =======
Research and development costs expensed
as incurred 0.8 0.7 2.4
Depreciation of property, plant and equipment
and right-of-use assets 2.1 2.2 6.0
Amortisation of acquired intangible assets 0.2 0.2 0.4
Amortisation of internally developed intangible
assets 0.7 1.2 1.9
================================================ ================== ================== =======
4. Income tax expense
A tax charge for the six-month period has been included in the
Condensed Consolidated Income Statement at GBP1.6m (H1 2019:
GBP1.2m) and has been calculated using the anticipated effective
tax rate on the taxable profit of the Group. The anticipated
effective tax rate for the year ended 31 December 2020 was
calculated at 19.0% (H1 2019: 22.3%).
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 2020 H1 2019 FY 2019
GBPm GBPm GBPm
=========================================== ========= ========= =========
Reported earnings for calculating basic
earnings per share 6.8 4.1 13.1
Adjusted for:
VAT repayment - - (0.9)
Cost recovery - - (1.4)
Closure of US operations - - (0.3)
Amortisation of acquired intangibles and
related acquisition costs 0.2 0.2 0.4
(Gain)/loss on remeasurement to fair value
of hedging portfolio (0.3) 0.6 0.9
Income tax on above items - - 0.3
===========================================
Adjusted earnings for calculating adjusted
basic earnings per share 6.7 4.9 12.1
=========================================== ========= ========= =========
H1 2020 H1 2019 FY 2019
Number Number Number
million million million
============================================== ======= ======= =======
Weighted average number of ordinary shares
Basic 155.2 157.8 156.9
Dilutive effect of share options on potential
ordinary shares 1.8 0.9 1.1
============================================== ======= ======= =======
Diluted 157.0 158.7 158.0
============================================== ======= ======= =======
H1 2020 H1 2019 FY 2019
Pence Pence Pence
==================================== ======= ======= =======
Basic earnings per share 4.4 2.6 8.3
==================================== ======= ======= =======
Diluted earnings per share 4.3 2.6 8.3
==================================== ======= ======= =======
Adjusted basic earnings per share 4.3 3.1 7.7
==================================== ======= ======= =======
Adjusted diluted earnings per share 4.3 3.1 7.7
==================================== ======= ======= =======
6. Dividend
Reflecting the Board's satisfaction with the way in which the
business has navigated the coronavirus pandemic thus far and its
confidence for the remainder of the year a dividend of 3.2 pence
per share will be paid to shareholders on 23 October 2020. This
comprises an interim dividend of 1.5p and an additional payment of
1.7p in lieu of the 2019 final dividend.
7. Property, plant and equipment
During the six months ended 30 June 2020, the Group purchased
assets, net of disposals, at a cost of GBP1.3m (30 June 2019:
GBP0.4m, 31 December 2019: GBP3.2m). Capital expenditure totalled
GBP1.3m; including plant and equipment GBP0.3m, construction in
progress GBP0.6m, tooling GBP0.3m and GBP0.1m relating to the
manufacturing facility in China. There were no asset disposals
(2019: GBP0.2m). Total depreciation for the period was GBP1.5m (30
June 2019: GBP1.6m; 31 December 2019 GBP5.1m). The translation of
fixed assets held by overseas companies in their native currencies
to sterling at the 30 June 2020 spot exchange rates has generated a
foreign exchange benefit of GBP0.8m.
During the period there were lease additions totalling GBP0.8m
and a depreciation charge of GBP0.6m. A transfer of GBP0.2m was
made from right-of-use assets to property, plant and equipment. The
net book value of right-of-use assets at 30 June 2020 was GBP3.0m
(30 June 2019: GBP2.8m, 31 December 2019: GBP3.0m).
The Group has not included any borrowing costs in additions for
either 2020 or 2019. 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 2020, the
Group incurred internally generated development costs of GBP0.4m
(30 June 2019: GBP1.0m, 31 December 2019: GBP1.6m). Amortisation
for the period on development costs was GBP0.7m (30 June 2019:
GBP1.2m; 31 December 2019 GBP2.3m). There were no capitalised
borrowing costs.
The Group recognised an amortisation charge of GBP0.2m in the
first half year (six months to 30 June 2019: GBP0.2m; 31 December
2019: GBP0.4m) in respect of acquired intangible assets from
Kingfisher Lighting. 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 review
of goodwill since the review undertaken as part of the year ended
31 December 2019. Goodwill has been allocated to cash-generating
units and can be referred to in the Group's 2019 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 19 in the 2019 Annual Report and Accounts.
H1 2020 H1 2019 FY 2019
GBPm GBPm GBPm
------------------------ ------- ------- -------
Non-current liabilities
Secured bank loans 14.5 18.5 -
Bank term loan 4.9 20.0 26.0
------------------------ ------- ------- -------
19.4 38.5 26.0
------------------------ ------- ------- -------
Secured bank loans are secured by a fixed and floating charge
over the assets of the Group and are committed to 31 March
2023.
10. Exchange rates
The following significant Sterling exchange rates were applied
during the year:
Hedged rate Reporting date spot
rate
------------------------------ --------------------------------
H1 2020 H1 2019 H1 2020 H1 2019
------ -------------- -------------- --------------- ---------------
USD 1.26 1.29 1.23 1.27
EUR(1) 1.14 1.15 1.10 1.11
RMB 9.04 8.89 8.72 8.70
------ -------------- -------------- --------------- ---------------
1. As the Euro is not hedged these rates represent the average rate
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 2019. There have been no changes to the risk management
policies since the year ended 31 December 2019.
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
2020 to 30 June 2020 and was approved by the Board on 8 September
2020. Further copies of the interim financial information can be
accessed in the Investor section on the Luceco plc website:
www.lucecoplc.com .
INDEPENDENT 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 2020 which comprises Condensed
consolidated income statement, Condensed consolidated statement of
comprehensive income, Condensed consolidated statement of changes
in equity, Condensed consolidated statement of total financial
position, Condensed consolidated statement of cash flows 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 2020 is not prepared, in all material respects, in accordance
with IAS 34 Interim Financial Reporting as adopted by the EU and
the Disclosure Guidance and Transparency Rules ("the DTR") of the
UK's Financial Conduct Authority ("the UK FCA").
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity issued by the Auditing Practices Board 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.
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 International Financial
Reporting Standards as adopted by the EU. 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 by the EU.
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.
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.
Michael Froom
for and on behalf of KPMG LLP
Chartered Accountants
One Snowhill
Snow Hill Queensway
Birmingham
B4 6GH
8 September 2020
Additional information
Financial calendar
Interim ex-dividend date 17 September 2020
========================================================= =================
Last date for Dividend Reinvestment Plan (DRIP) elections 2 October 2020
========================================================= =================
2020 Q3 trading update 20 October 2020
========================================================= =================
Interim dividend payment date 23 October 2020
========================================================= =================
2020 Year end 31 December 2020
========================================================= =================
2020 Full year trading update 21 January 2021
========================================================= =================
2020 Full year results statement 23 March 2021
========================================================= =================
AGM 13 May 2021
========================================================= =================
2021 Half year end 30 June 2021
========================================================= =================
2021 Half year trading update 20 July 2021
========================================================= =================
2021 Half year interim results statement 7 September 2021
========================================================= =================
Company's registered office
Luceco plc
Building E Stafford Park 1
Stafford Park
Telford TF3 3BD
www.lucecoplc.com
Independent auditor
KPMG LLP
Chartered Accountants
One Snowhill
Snow Hill Queensway
Birmingham B4 6GH
Financial advisors and brokers
Numis Securities
The London Stock Exchange Building
10 Paternoster Square
London EC4M 7LT
Liberum
Ropemaker Place
Level 12, 25 Ropemaker Street
London EC2Y 9LY
Principal Bankers
HSBC Bank plc
8 Canada Square
London E14 5HQ
Company Registrar
Link Asset Services
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Email: shareholderenquiries@linkgroup.co.uk
Tel: UK: 0371 664 0300 (calls are charged at the standard
geographic rate and will vary by provider)
International: +44 (0)371 664 0300
Company Secretariat
Company Matters (part of Link Group)
6(th) Floor, 65 Gresham Street
London EC2V 7NQ
Email: luceco@linkgroup.co.uk
Tel: 020 7954 9599
Media and Investor Relations
MHP Communications
6 Agar Street
London WC2N 4HN
Email: luceco@mhpc.com
Tel: 020 3128 8572
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END
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September 08, 2020 02:00 ET (06:00 GMT)
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