Trading Update20 Jan 2022 07:17
2021 full year trading update
Continued strong growth
Luceco plc ("the Group" or "Luceco"), the manufacturer and distributor of wiring accessories, LED lighting and portable power products, is pleased to provide the following update on trading for the year ended 31 December 2021 ('FY 2021') and to confirm that it expects to report Adjusted Operating Profit of £39m, in line with previous guidance.
Q4 2021 performance
· Like for like revenue growth of 36% versus a pre-COVID FY 2019 comparative, in line with H1 2021, with market share gains continuing.
· All sales channels delivered significant growth in the final quarter of the year.
· Continuing to outperform the market due to new business wins, superior channel access and superior product availability despite global supply chain disruption.
· Increasing contribution to growth from selling price increases implemented in response to cost inflation.
· Modest reduction in volume growth within our Hybrid and Professional Wholesale channels, as expected, as UK Residential RMI Construction markets normalise after an exceptional start to FY 2021.
· Accelerated volume growth within our Professional Projects channel, as confidence returns to UK Non-Residential RMI Construction markets, and from our overseas businesses, underlining the benefit of our sales channel diversity.
Update on cost inflation & supply chain performance
· We have progressively increased selling prices to pass through industry-wide input cost inflation, delivering the expected benefits without adversely impacting demand.
· Reduction in inflationary pressure in Q4 compared with Q3 2021, but we remain vigilant.
· Selling price increases, once in full effect, will fully protect profit from current cost inflation.
· Superior product availability maintained thanks to agile changes in capacity at our vertically-integrated production facility and proactive inventory management.
FY 2021 performance
· Expect to report record results for the year ended 31 December 2021, in line with previous guidance:
o Revenue of £228m, including a £4m contribution from DW Windsor
o Adjusted Operating Profit of £39m
o Adjusted Operating Margin of 17%, in line with FY 2020, with profitability unaffected by significant input cost inflation
o Lower than expected net debt (pre-IFRS 16) equal to 0.7x Adjusted EBITDA, following strong cash generation in H2, allowing ample capacity for investment in future growth.
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