Last checked at 10 May 2023 07:00
10 May 2023
LUCECO PLC - Q1 2023 TRADING UPDATE
Encouraging start to the year Optimistic although remain conscious of macro uncertainties. Full year expectations unchanged |
Luceco plc ("Luceco", "the Group" or "the Company"), the supplier of wiring accessories, EV chargers, LED lighting, and portable power products, provides the following update on trading for the three months ended 31 March 2023 ("Q1 2023" or "the quarter").
Q1 2023 |
Trading
· The Group traded in line with expectations in Q1 2023, with the slower residential RMI market seen in the second half of 2022 continuing in Q1 2023. The comparatives get easier as the year progresses.
· Q1 2023 revenue at £48m is 5% lower than Q1 2022, 9% lower on a like-for-like basis.
· The stronger gross margin we experienced in the second half of 2022 of above 38% has continued into the first quarter of 2023.
· The current activity levels across the Group are in line with our expectations. Customer destocking was broadly in line with our expectations for Q1 2023 and we continue to estimate that customers only need to reduce their inventory levels by a total of c.£5m in 2023 to achieve their current targeted inventory cover.
Balance Sheet and Dividend
· Our covenant net debt ratio of 0.9x remains below our target range of 1-2x EBITDA.
· The Group has significant facilities available for future investment both organically and through M&A.
· The Board is proposing to pay a final dividend of 3.0p, subject to approval at the AGM today. This final dividend takes the full-year dividend to 4.6p representing a payout of 41% of 2022 earnings and 100% increase on 2019.
· The final dividend will be paid on 19 May 2023 to shareholders on the register on 11 April 2023.
Outlook |
· Trading in the first quarter of 2023 has been in line with our expectations.
· Macroeconomic conditions remain difficult to judge, with leading indicators continuing to suggest residential RMI markets will remain challenging.
· The tailwind from slowing cost inflation outlined at the full year 2022 results continues and should show benefits later in the year, once it has worked its way through our inventory.
· Non-residential project demand has also continued its favourable trend.
Commenting on the results, Chief Executive Officer, John Hornby said:
"We continued to trade in line with expectations in the first quarter of the year and are encouraged that our business performance is beginning to gain momentum. We are optimistic for the remainder of 2023, whilst maintaining an element of caution recognising that macroeconomic conditions remain difficult to judge. We are excited by a number of product developments which provide us with medium and long-term opportunities to grow the business."
Luceco plc | Contact |
John Hornby, Chief Executive Officer | 020 3128 8276 (Via MHP) |
Will Hoy, Chief Financial Officer | 020 3128 8276 (Via MHP) |
MHP | Contact |
Tim Rowntree | 020 3128 8004 |
Ollie Hoare | 020 3128 8276 |
This announcement is released by Luceco plc and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR). It is disclosed in accordance with the Company's obligations under Article 17 of MAR. Upon the publication of this announcement, this information is considered to be in the public domain.
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.