24 October 2024
LUCECO PLC - Q3 2024 TRADING
UPDATE
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Encouraging Q3 performance
with healthy revenue growth
Full year expectations
unchanged and cautiously optimistic for 2025
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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 for the three months ended 30 September 2024 ("Q3
2024" or the "third quarter").
Q3
2024 Trading
· The Group achieved 3.0% year-on-year revenue growth in Q3
2024, and year-to-date growth of 6.4%.
·
Gross margin has remained in line with
expectations for this quarter at just below 40%.
·
On a like-for-like basis Q3 2024 revenue was down
3.6%. However, strong fourth quarter order book supports
like-for-like revenue growth expectations for the second
half.
·
Encouraging sales growth in the Group's
Residential RMI related divisions (circa two thirds of Group
sales). This more than compensates for the reduction in
infrastructure revenue (c.15% of Group sales) reflecting its
dependence on individual project timings.
·
Our Residential EV Charging business is growing
strongly (up by 44% in Q3 year-on-year).
M&A activity
·
£30m acquisition of CMD announced on 30 September
2024, adding a market-leading designer and manufacturer of wiring
accessories for the workplace. Its products include under-floor and
under-desk power distribution solutions, on-desk and in-desk
sockets, and a range of award-winning ergonomic
products.
·
The Group is pleased by the good progress towards
unlocking the significant sourcing and other operational synergies
which are a feature of the two acquisitions made during the
year.
·
Luceco continues to review a healthy pipeline of
M&A opportunities.
Balance Sheet
·
Bank Net Debt at the third quarter end of £67.4m,
giving a Bank Net Debt : EBITDA leverage ratio of 1.8x, comfortably
within our target leverage range of 1-2x. Given the Group's
excellent track record of strong cash generation, we expect to be
towards the middle of this range by the end of 2025.
·
In order to facilitate further investment in
growth, the Group has recently exercised its option for its £40m
accordion facility to provide a total bank debt facility of
£120m.
·
Strong balance sheet and cash flow generation
provides optionality for further organic and M&A opportunities
consistent with the Group's stated capital allocation
objective.
Outlook
·
The Group's profit expectations remain in line
with full year consensus*.
·
Healthy order book underpins our expectations for
like-for-like revenue growth in the second half, and for full year
total revenue growth to exceed 10%.
·
Recent growth in UK residential property
transactions suggests improving residential RMI sentiment, giving
us cause for optimism for 2025 and beyond.
·
Container shipping costs have eased considerably
during the quarter and are now close to historic norms.
·
We are excited by the imminent launch of EV
Chargers for Commercial Premises, as well as a Home Energy
Management System for integrating Residential Batteries, EV
Chargers, PV Solar Systems and Heating Controls.
·
We are mindful of macroeconomic uncertainty but
remain very confident in the Group's long term
prospects.
Commenting on trading, Chief Executive Officer, John Hornby
said:
"Luceco continues to deliver growth despite a challenging
market backdrop and we are excited by the recent acquisition of
CMD, a market-leading manufacturer of wiring accessories for the
workplace. Improving market sentiment underpins our belief that
2025 will see a return to more normalised growth in our markets.
The Group's diverse portfolio and channels have contributed to the
good trading performance in the year to date and our profit
expectations for the full year remain unchanged."
*consensus at 23rd October 2024, full year 2024
Adjusted Operating Profit £26.5m (Analyst Range £26.0m -
£27.2m)
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Luceco plc
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Contact
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John Hornby, Chief Executive
Officer
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(Via MHP)
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Will Hoy, Chief Financial
Officer
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(Via MHP)
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MHP
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Contact
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Tim Rowntree
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07817 458804
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Ollie Hoare
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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.