REG - Luceco PLC - Closure of US business

LucecoAnnouncement

04/06/2018 07:05

RNS Number : 1011Q
Luceco PLC
04 June 2018
 


4 June 2018
 
Luceco plc ("Luceco" or "the Group")
 
Closure of US business
 
Luceco, the manufacturer and distributor of high quality and innovative LED lighting products, wiring accessories and portable power products, is today announcing the forthcoming closure of its US business.
 
In 2017, the Houston-based business delivered revenue of £4.2m and an operating loss of £1.9m.  One-off closure costs are estimated to be approximately £2m but will be cash neutral.  The business is expected to cease operations in Q3 2018.
 
John Hornby, CEO of Luceco, commented:
 
"Our US business was one of six new markets opened in the last five years as part of our strategy of international expansion.  Whilst this strategy has been overwhelmingly successful and our new businesses in Europe, Mexico and Asia are delivering rapid revenue growth and market share gains, the US has proven a more difficult market to penetrate.  We have therefore taken the difficult decision to prioritise our other, more compelling international growth opportunities." 
 
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                                                             020 3128 8100
Tim Rowntree
James White
Ollie Hoare
 
Notes to Editors:
 
Luceco is a rapidly growing 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 has continued to successfully leverage the Group's existing customer base and low cost Chinese manufacturing facility.  Consequently, it remains well positioned to build on its impressive organic growth trajectory to date.
 
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.   
 




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