Luceco Plc Regulatory News (LUCE)

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 (£7.2m), 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-

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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.