Last checked at 30 Jan 2024 07:00
30 January 2024
LUCECO PLC - 2023 FULL YEAR TRADING UPDATE
Profitability ahead of expectations despite economic headwinds and challenging residential markets, continued growth and strong free cash flow generation. |
Luceco plc ("Luceco" or "the Group"), the supplier of wiring accessories, EV chargers, LED lighting, and portable power products, is pleased to provide the following update on trading for the year ended 31 December 2023 ("2023").
Q4 2023 Trading
· Adjusted Operating Profit in Q4 2023 was ahead of expectations.
· Group revenue in Q4 was 9.5% ahead of the prior year equivalent (at constant exchange rates).
· Adjusted Operating margin in H2 2023 is expected to be over 11% which compares favourably against a first half Adjusted Operating margin of 10.7%.
2023 Full Year Results
· The Group expects to report full year 2023 revenue of c.£209m and Adjusted Operating Profit in the region of £23.5m - £24m, ahead of expectations and shows good progress over 2022 despite the challenging economic conditions.
· Our balance sheet remains strong, with our Covenant Net Debt ratio expected to be less than 0.6x - well below our target range of 1.0 - 2.0x EBITDA.
· Cash generation was better than expected driven by higher operating profit and improving working capital efficiency, leaving the Group's net debt at circa £23m at 31 December 2023.
Recent Trends / Considerations
· The Group is closely monitoring the situation in the Red Sea. We have not experienced any material impact to date.
· Whilst the RMI market has been challenging, we continue to achieve growth and once the macroeconomic conditions ease, Luceco is well positioned to benefit from operational leverage given its integrated model.
Commenting on the trading, Chief Executive Officer, John Hornby said:
"Luceco has performed well in the second half, producing strong results despite ongoing macroeconomic headwinds in the UK and challenges in residential markets. As a result, we expect to report Adjusted Operating Profit for the full year above current market expectations. Further strengthening of the Group's balance sheet has been driven by the continuation of our track record of strong cash generation, leaving the Group well placed to invest for growth and enhance earnings in line with our strategic priorities."
Luceco plc | Contact |
John Hornby, Chief Executive Officer | 020 3128 8100 (Via MHP) |
Will Hoy, Chief Financial Officer | 020 3128 8100 (Via MHP) |
MHP | Contact |
Tim Rowntree | 020 3128 8100 |
Ollie Hoare | 020 3128 8100 |
For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of Luceco plc by Will Hoy, Chief Financial Officer.
Note to Editors
Luceco plc - Bringing Power To Life
Luceco plc (LSE:LUCE) is a supplier of wiring accessories, EV chargers, LED lighting, and portable power products.
For more information, please visit www.lucecoplc.com.
Forward-looking statements
This announcement contains forward?looking statements that are subject to risk factors associated with, among other things, the economic and business circumstances occurring from time to time in the countries, sectors and markets in which the Group operates. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a wide range of variables which could cause actual results to differ materially from those currently anticipated. No assurances can be given that the forward?looking statements in this announcement will be realised.
The forward?looking statements reflect the knowledge and information available at the date of preparation of this announcement and the Company undertakes no obligation to update these forward?looking statements. Nothing in this announcement should be construed as a profit forecast.