TIDMLUCE
RNS Number : 8887O
Luceco PLC
04 June 2020
4 June 2020
Luceco plc
AGM Trading Update
Luceco plc ("the Group"), the manufacturer and distributor of
high quality and innovative wiring accessories, LED lighting and
portable power products, is pleased to provide the following update
on trading ahead of its Annual General Meeting to be held later
today.
The trading performance of the business has improved since we
announced our results on 23 April 2020, as highlighted below:
Revenue
-- Q1 2020 - 10% lower than 2019 impacted by coronavirus-driven
supply chain issues, which were resolved by the end of Q1.
-- Q2 2020 - started at a run rate of 50% lower than 2019
because of coronavirus lockdowns in most of the Group's markets,
with demand steadily improving thereafter as lockdown conditions
have eased. Revenue for Q2 expected to be circa 25% lower than
2019, outperforming the UK market.
Profit
-- Profitability protected in both quarters by stringent and progressive overhead reduction.
-- Expecting H1 2020 Adjusted Operating Profit to be at least in
line with H1 2019 (GBP7.2m), with double-digit Adjusted Operating
Margin.
Cash
-- Expecting to be cash generative in H1 2020. Working capital
and capex both tightly controlled. Extra vigilance on cash
collection and no new bad debts.
-- Expecting net debt : LTM Adjusted EBITDA to be no higher than 31 December 2019 (1.06x).
Outlook
The Group responded quickly and decisively to protect the
business and our employees from the coronavirus. We took action to
reduce costs, preserve cash and add extra resilience to the Group's
liquidity and financing arrangements. As a result, the Board
expects profit and cash generation in H1 2020 to be at least as
strong as H1 2019.
Although the performance to date has been encouraging, macro
uncertainty continues to prevent us from offering full year
guidance. New guidance will be given as soon as it can be
reasonably assessed.
John Hornby, Chief Executive Officer, said:
"The Group is responding well to the severe and sobering
challenges presented by the coronavirus outbreak to the markets and
the communities in which we operate.
The Group's trading has improved over recent weeks and we now
expect a first half performance at least as strong as last
year.
I would like to thank the entire Luceco team for their
invaluable contribution to this robust performance and for their
fortitude amid considerable uncertainty.
The coronavirus crisis has highlighted the strength of our
forward planning, resilience and operational agility and serves to
reinforce my confidence in the Group's long-term prospects."
- ENDS-
Further enquiries:
For further information, please contact:
Luceco plc via MHP Communications
John Hornby, Chief Executive Officer 020 3128 8572
Matt Webb, Chief Financial Officer
MHP Communications
Tim Rowntree
James Bavister 020 3128 8572
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 has no obligation to update
these forward-looking statements. Nothing in this announcement
should be construed as a profit forecast.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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