TIDMLUCE
RNS Number : 2878G
Luceco PLC
18 July 2023
18 July 2023
LUCECO PLC - H1 2023 TRADING UPDATE
Encouraging first half performance.
Full year guidance towards the upper end of market expectations.
Remain vigilant to the changing economic environment.
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 on trading for
the six months ended 30 June 2023 ("H1 2023").
Highlights
Trading
-- The Group ended H1 2023 ahead of our expectations with
revenue of c. GBP101M, c. 5.0% lower than H1 2022 and c. 5.7% lower
on a like-for-like basis, as the current economic environment
reduces residential RMI spending.
-- Gross margin percentage has continued to improve from the second half of 2022.
-- Adjusted Operating Profit is expected to be no less than GBP10.5m, ahead of our expectations.
-- Post-pandemic customer destocking appears to have ended.
Balance Sheet
-- Our covenant net debt ratio of 1.3x remains at the lower end
of the target range of 1.0 - 2.0x EBITDA.
-- Working capital increased during H1 2023 as activity recovers
following the impact of customer destocking at the end of 2022. We
expect cash generation to improve in the second half.
-- The Group has significant available facilities to fund both organic investment and M&A.
Outlook
-- Trading in H1 2023 has been ahead of expectations, with
non-residential project demand continuing its favourable trend, and
the newly acquired businesses of SynvEV and D W Windsor both
performing well.
-- Despite the less encouraging macro-economic indicators,
current activity levels across the Group are healthy and supported
by a strong Q3 order book.
-- Assuming demand continues at current levels and is not
impacted by macro-economic headwinds, we anticipate that Adjusted
Operating Profit for the full year will be towards the upper end of
the range of current market expectations*.
Commenting on the results, Chief Executive Officer, John Hornby
said:
"It is encouraging to again see our gross profit margin
improving and reassuring that our order book supports a good
outlook for Q3. Material and freight cost pressures continue to
ease on the whole, but wage pressures remain. We are excited by a
number of product developments which provide us with good medium
and long-term opportunities for growth, particularly within the EV
business. We continue to build an attractive M&A pipeline.
Historically the Group has enjoyed a stronger second half and,
whilst we are mindful of the current economic environment, we
expect a similar profile again this year."
* consensus at the 17(th) July 2023, full year 2023 Adjusted
Operating Profit GBP20.3m (Analyst Range GBP19.2 - 21.9m)
Luceco plc Contact
============================= =======================
John Hornby, Chief Executive 020 3128 8276 (Via MHP)
Officer
Will Hoy, Chief Financial 020 3128 8276 (Via MHP)
Officer
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.
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END
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