Last checked at 28 Jan 2020 07:00
Luceco plc
28 January 2020
Full Year Trading Update
2019 & 2020 profits expected to be ahead of market expectations
Luceco plc (the "Group" or "Luceco"), today announces its trading update for the year ended 31 December 2019. 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.
Highlights
·; 2019 Revenue of £172.0m (2018: £163.9m):
o Revenue growth of 4.9%.
o Slower growth in H2 2019 as expected reflecting tougher comparatives and more hesitant UK demand caused by political & economic uncertainty.
o Healthy growth overseas, particularly in Europe.
·; 2019 Adjusted Operating Profit expected to be in the range of £17.5m to £18.0m (2018: £8.5m):
o Strong profit growth in H2 2019 from further gross margin expansion and diligent control of overheads.
o 2019 Adjusted Operating Margin in the range of 10.2% to 10.5% (2018: 5.2%).
·; Strong cash conversion:
o 2019 Adjusted Free Cash Flow of approximately £18.0m (2018: £7.7m).
o Closing net debt of approximately 1.0x Adjusted LTM EBITDA (2018: 2.21x), comfortably at the lower end of the Group's targeted range of 1.0 - 2.0x.
·; Confident of further improvement in performance in 2020:
o Expect 2020 Adjusted Operating Profit in the range of £20.5m to £21.5m.
·; 2019 full year results to be announced on 31 March 2020.
John Hornby, Chief Executive Officer, said:
"The Group has made strong progress on a number of fronts in 2019 thanks to the hard work and dedication of the entire Luceco team. Our continued focus on margin expansion and cash generation against the backdrop of tough UK market conditions has more than doubled the Group's profits and halved the Group's leverage in 2019. A more certain UK political environment should yield better market conditions in 2020, but we are not building this into our expectations for the year at this stage. We are confident that the actions we are taking to expand our profitability will contribute to another improved performance in 2020."
1 Including the impact of IFRS 16 adoption
Supporting note:
The Board considers market expectations are best defined by taking the range of forecasts published by analysts who consistently follow the Group. The average of the Adjusted Operating Profit forecasts at 28 January 2020 is as follows: 2019: £17.3m and 2020: £19.4m.
Further enquiries:
For further information, please contact:
Luceco plc John Hornby, Chief Executive Officer Matt Webb, Chief Financial Officer
| via MHP Communications 020 3128 8572 |
MHP Communications Tim Rowntree Ollie Hoare | 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.