Luceco PLC Full Year Trading Statement (3331O)
29 January 2019 - 6:00PM
UK Regulatory
TIDMLUCE
RNS Number : 3331O
Luceco PLC
29 January 2019
29 January 2019
Luceco plc
("the Group")
Full Year Trading Statement
An improved second half delivers an in-line performance
Luceco plc, the manufacturer and distributor of high quality and
innovative LED lighting products, wiring accessories and portable
power products, today announces its scheduled trading statement for
the year ended 31 December 2018 ahead of announcing its full year
results on 9 April 2019.
The Group is pleased to report good progress in the second half
of the year despite challenging UK market conditions. Margins have
been successfully restored and the Group therefore expects full
year Adjusted Operating Profit to be in line with market
expectations. The business has also been de-risked by reducing net
debt, improving working capital efficiency and investing in an
enhanced finance function, creating a sound foundation for future
growth.
The Group expects to report full year revenue of GBP164m, down
2% on the prior year, largely as a result of previously reported
destocking amongst consumer-facing retail customers and adverse
foreign currency movements in H1. Whilst these headwinds reduced in
the second half, overall progress on the revenue line was held back
by slower demand from UK professional customers due to a more
uncertain economic environment. The Group continued to achieve
double-digit growth rates overseas. The full year effect of
acquiring Kingfisher Lighting increased revenue by GBP8.5m,
although this was offset by a GBP1.3m revenue reduction due to the
previously reported closure of loss-making US operations.
In line with our expectations, margins improved in the second
half. This reflects the benefit of a continuing strategic shift
towards higher margin business in the professional channel, pricing
changes and a more favourable input cost environment, aided in part
by the Group's currency hedging programme. These improvements,
together with overhead savings and losses avoided following the US
closure, allowed the Group to deliver year-on-year growth in H2
Adjusted Operating Profit.
Net debt at 31 December 2018 was GBP32.3m, which is expected to
represent 2.0x Adjusted EBITDA, having reduced by GBP9.1m in the
second half due to restored profitability and a sharp improvement
in inventory days. The Group recently extended the maturity of its
main banking facilities to 31 December 2021 on terms which have
allowed the Group to improve its liquidity position by reducing
reliance on invoice financing in favour of more committed and
dependable traditional bilateral bank lending. The Group is
targeting a further reduction in net debt in 2019.
John Hornby, Chief Executive Officer, said:
" We are pleased to conclude what has been a challenging year
for Luceco with second half trading in line with expectations, when
operating margins returned close to the double-digit levels we have
previously achieved. We are focused on building a stronger platform
to de-risk future growth with significant investment in enhanced
finance systems, processes and resources. We begin 2019 with a
stronger balance sheet, improved profitability and cautious
optimism, notwithstanding the current UK economic and political
uncertainty."
-ENDS-
Further enquiries:
For further information, please contact
Luceco plc via MHP Communications
John Hornby, Chief Executive Officer 020 3128 8100
Matt Webb, Chief Financial Officer
MHP Communications
Tim Rowntree
Ollie Hoare
Florence Mayo 020 3128 8771
Notes to Editors:
Luceco is a manufacturer and distributor of high quality and
innovative LED lighting products and wiring accessories 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:
- Luceco: energy efficient LED lighting products and associated accessories;
- British General (BG): wiring accessories (including switches,
sockets), circuit protection and cable management products;
- Masterplug: cable reels, extension leads, surge protection, timers and adaptor products; and
- Ross: television wall mounts, audio visual accessories and other items.
The Luceco LED lighting brand continues to benefit from the
disruptive shift away from mature lighting technologies as a result
of the material advancement in LED technology in recent years. The
brand continues to successfully leverage the Group's existing
customer base and low cost Chinese manufacturing facility.
Consequently, it remains well positioned to continue to deliver
healthy organic growth.
In the electrical wiring accessories market, Luceco's BG and
Masterplug brands have continued to reinforce their market leading
positions through further new product development initiatives,
expanding into new product adjacencies and gaining market
share.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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