REG - Luceco PLC - 2024 Full Year Results
26/03/2025 07:16
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RNS Number : 1556C Luceco PLC 26 March 2025
26 March 2025
LUCECO PLC - 2024 FULL YEAR RESULTS
Results at the upper end of revised expectations, with strong demand in the
final quarter of 2024. Early trading in Q1 gives confidence for further growth
in 2025
Luceco plc, the supplier of wiring accessories, EV chargers, LED lighting, and
portable power products, today announces its audited results for the year
ended 31 December 2024 ("2024" or "the year").
2024 Summary Results
Year ended 31 December 2024 2024 2023 Change (%)
(£m unless otherwise stated)
Revenue 242.5 209.0 +16.0%
Adjusted Results(1)
Adjusted operating profit 29.0 24.0 +20.8%
Adjusted profit before tax 24.9 21.2 +17.5%
Adjusted profit after tax 19.2 17.3 +11.0%
Adjusted basic earnings per share 12.5p 11.1p +12.6%
Statutory Results
Operating profit(2) 23.2 22.2 +4.5%
Profit before tax 18.9 18.9 -
Profit after tax 14.6 16.7 (12.6%)
Basic earnings per share 9.5p 10.8p (12.0%)
Metrics
Adjusted(1) operating margin % 12.0% 11.5% +0.5ppts
Bank net debt 68.6 18.4 +272.6%
Bank net debt : EBITDA(2) 1.6x 0.6x +166.7%
Adjusted(1) free cash flow 3.5 18.0 (80.6%)
Proposed full year dividend per share 5.0p 4.8p +4.2%
1. The definitions of the adjustments made and reconciliations to the
reported figures can be found in note 1 of the consolidated financial
statements
2. Includes pro-forma adjustment for EBITDA of acquired businesses, as
shown in note 1 of the consolidated financial statements
Performance highlights
· 2024 results at the upper end of market expectations:
o Revenue: up 16.0% to £242.5m and like-for-like revenue up 5.8% versus the
prior year
o Adjusted operating profit: up 20.8% to £29.0m reflecting strong revenue
growth and operating leverage
o Adjusted operating margin: up 50 basis points to 12.0% which is within our
desired range
o Adjusted EPS: up 12.6% to 12.5p from 11.1p
o Bank Net Debt : EBITDA ratio at 1.6x remains within our target range of
1.0-2.0x following two acquisitions during the year
o Full year dividend increased by 4.2% to 5.0p, with a final proposed dividend
of 3.3p
· Another strong year of growth powered by our superior channel access
and innovative product portfolio:
o Continuing to take market share with strong organic growth of 5.8% against a
wider market decline of 2.4%
o Acceleration in our EV product offering with sales up 25.6% during the year
o Strong growth in our DIY Retail sector which is showing early signs of
recovery, whilst infrastructure markets remain more challenging
· Impressive sales growth at the end of the year led to increased
working capital that will reverse in 2025:
o Free cash flow adversely affected by strong sales growth at the end of the
year from the Group's RMI divisions. December 2024 like-for-like sales were
£8.5m higher than December 2023
o Free cash generation of £93.7m since 2019 has provided optionality for
capital allocation drivers
· Integration of in-year acquisitions progressing well, with synergies
already coming through from D-Line and supply chain cost improvement projects
underway for CMD:
o February 2024 acquisition of D-Line for £7.8m - cable solutions provider
with a presence in the US/Europe which provides synergies for our UK and
international territories
o September 2024 acquisition of CMD for £29.7m - designer and manufacturer of
a comprehensive range of wiring accessories for commercial premises where it
holds a leading UK market position
Outlook
· 2025 has started well, with the strong momentum at the end of 2024
continuing in the first quarter of the year
· With UK interest rates beginning to ease we are hopeful that overall
consumer and economic confidence will begin to return, providing a further
tailwind for our markets in 2025 and beyond
· Strong new product pipeline in high growth markets: EV Chargers for
Commercial Premises, as well as a Home Energy Management system ("HEMs") for
integrating Residential Batteries, EV Chargers, PV Solar Systems and Heating
Controls
· Luceco is well positioned to benefit from continued operational
leverage through its integrated, resilient and agile business model
Commenting on the results, Chief Executive Officer, John Hornby said:
"These results represent a strong year of growth in 2024, despite a lacklustre
UK macroeconomic environment, with a particularly encouraging final quarter of
the year. This trading momentum has continued in the opening quarter of 2025
and we look forward to further growth this year - particularly with improving
end-market dynamics. We have a strong and evolving product portfolio to meet
the expected demand in our high growth target markets of Electric Vehicle
charging and Home Energy Management system spaces. I am encouraged by our
improving lead market indicators, and our underlying trading since the year
end which leaves us well positioned for further growth as we progress through
2025."
Results information
A meeting for analysts will be held at 9:30am GMT today, Wednesday 26 March
2025 at the offices of Deutsche Numis, 45 Gresham Street, London EC2V 7BF. To
register to attend please email luceco@mhpgroup.com
(mailto:luceco@mhpgroup.com) . To register to watch a live webcast of the
meeting, please follow this link:
https://brrmedia.news/LUCE_FY_24
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Luceco plc Contact
John Hornby, Chief Executive Officer 07817 458804 (Via MHP)
Will Hoy, Chief Financial Officer
MHP Contact
Tim Rowntree 07817 458804
Ollie Hoare
For the purposes of MAR and Article 2 of Commission Implementing Regulation
(EU) 2016/1055 as it forms part of the domestic law of the UK by virtue of the
European Union (Withdrawal) Act 2018, 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.
Luceco plc ("Luceco", "the Group" or "the Company").
For more information, please visit www.lucecoplc.com
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.
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.
Use of alternative performance measures
The commentary in both the Chief Executive Officer's and Chief Financial
Officer's Reviews uses alternative performance measures, which are described
as "Adjusted". Definitions of these measures can be found in note 1 of the
consolidated financial statements. The measures provide additional information
for users on the underlying performance of the business, enabling consistent
year-on-year comparisons.
Chief Executive's review
Performance highlights
I am pleased to report that in 2024, we generated strong momentum, achieving
meaningful growth despite a lacklustre macroeconomic environment in the UK.
Revenue increased to £242.5m (2023: £209.0m) and strong profit conversion
resulted in Adjusted Operating Profit reaching £29.0m (2023: £24.0m). We
outperformed a market which remains soft, taking market share and growing
revenue by 5.8% on a like-for-like basis. Our performance was driven by our
broad product portfolio offered to the DIY Retail sector, which is showing
early signs of recovery, and the impressive growth of our emerging range of
excellent EV chargers.
I have also been pleased by the sustained improvement we are seeing in our
Adjusted Operating Margin, made even
more impressive when we consider the year-on-year increases in copper and sea
freight, linked to the events in the Red Sea. Our margin improvement has been
delivered through internal initiatives such as continually improving factory
efficiency, lean practices and competitive supplier sourcing.
Our Bank Net Debt position moved to £68.6m, having increased following the
successful acquisitions of D-Line and CMD, nevertheless our balance sheet
remains robust with Bank Net Debt leverage of 1.6x being comfortably within
our target range of 1.0-2.0x. Our free cash generation was lower than we have
seen in previous years, as at times we have needed to carry additional
inventory to counter potential supply issues linked to the events in the Red
Sea. This strategy proved successful in the fourth quarter, when our excellent
product availability meant we were able to capitalise on improving market
conditions and grow organic revenue 20.8% over this period.
Macroeconomic factors
In 2024, like many businesses, we navigated an environment shaped by more
dynamic macroeconomic and geopolitical
influences than we have seen historically. For different reasons, these
sometimes rapid changes have been a recurring
theme of recent years, so I am pleased with the way we have embraced these
shifts to consistently outperform a volatile backdrop. Shipping costs, which
stabilised at relatively low levels in 2023, began to rise in early 2024
following the events in the Red Sea. Although shipping costs have been a
headwind in 2024, they appear to have peaked in July and have returned to
lower levels since this time. Importantly, despite fluctuation, shipping costs
in 2024 remained significantly below the unprecedented heights seen during the
pandemic, both in scale and duration. The peak in July 2024 was approximately
80% lower than October 2021 and lasted one month compared to the elevated
levels we experienced between May 2021 and August 2022.
We continue to mitigate the full effect of changes in shipping costs through
our Free On Board ("FOB") arrangements with our major Retail and Hybrid
customers, who take delivery in China and manage their own shipping processes.
This arrangement provides us with a degree of insulation from broader market
volatility. Material costs have also been a moderate headwind as we have moved
through 2024, where rising demand and supply constraints have increased
commodity prices. Although this has been particularly prevalent to the price
of copper, we have hedging arrangements in place that offered short-term
protection against this exposure, helping to manage cost pressures
effectively. We are comfortable with the rates at which our 2025 hedges have
renewed.
In spite of these macroeconomic factors, we are pleased to deliver a 50 basis
points increase in our Adjusted Operating Margin. With our own selling prices
being kept relatively stable to support consumer demand, this improvement has
been driven by excellent work both in the UK and China to drive down cost with
both suppliers and in our own well-invested factory, which is built to deliver
further benefits as we scale as a business. Overall, I am delighted to see our
Adjusted Operating Margin return to through-the-cycle levels.
Underlying demand
A key driver for our 5.8% like-for-like revenue growth was 27% like-for-like
growth within our international businesses. When we first entered these
markets less than a decade ago, we anticipated it would take time to establish
a strong foothold. It is therefore particularly rewarding to see the hard work
of our international sales teams paying off this year. All our international
businesses delivered year-on-year top-line revenue growth, with standout
performances in Dubai and Ireland. Dubai grew 28.0% and has cemented its
position as a leading provider of LED Lighting and Wiring Accessories for
large-scale projects in the region.
Meanwhile, Ireland achieved 55.0% growth, driven by robust demand in both the
Retail and Professional Wholesale sectors. As our international businesses
continue to scale, we anticipate further improvements in margins, which is an
encouraging prospect for the Group overall. Our like-for-like revenue growth
of 2.1% in the UK is put into context when we compare ourselves to the wider
UK construction market, with data from the Construction Products Association
("CPA") indicating that output of our addressable markets reduced 2.4% in the
same timeframe.
Approximately 60% of our UK business is focused on delivering residential
repair, maintenance and improvement ("RMI") solutions to professional
installers and general consumers performing DIY. Using CPA data, we estimate
that this market's output reduced 2.8% in 2024. Housing transactions, which
drive improvement work both in the lead-up
to a housing sale as well as following it, continue to remain subdued. Retail
DIY markets also face challenges with the Barclays Consumer Spending Index
reporting a 6.7% average reduction in DIY spending over the course of 2024.
Despite these challenges, our own UK residential RMI businesses grew 7.1%,
bolstered by a strong close to the year. Our retail DIY portfolio experienced
a robust recovery in 2024, we continue to hold key strategic positions within
the Hybrid sales
channel and with demand for sustainable solutions growing, our EV charger
business is beginning to flourish.
The UK non-residential arm of our business, which accounts for approximately
20% of UK revenue, remained broadly flat year-on-year. This resilient
performance followed an exceptionally strong 2023 and outperformed a market
where output contracted by 0.5%. Although organisations continue to be mindful
of the cost pressures they are facing, we consistently outperform the market
in this field as a result of the efficiency savings delivered by our products
and the strong end-to-end service we deliver. After a series of strong
performances in recent years, our Exterior LED Lighting businesses had a more
challenging year with an 11.3% reduction in revenue. Although the CPA
estimates that UK infrastructure market output reduced 0.9% in the year, this
does not fully reflect the challenges faced by large-scale LED lighting
projects in 2024, where uncertainty driven by the UK election and the Autumn
budget led organisations to defer significant capital investments.
As we look ahead to 2025, the order books for both DW Windsor and Kingfisher
Lighting are encouraging, positioning us well for a recovery as market
conditions stabilise. Within the new housing market, elevated interest rates
continue to make market conditions tough for housebuilders, with the CPA
estimating a contraction in output of 9.1% in 2024. However, we estimate this
market makes up less than 5.0% of our sales and despite market conditions, we
were still able to grow this smaller part of our business by 7.9%, aided by
increasing sales of EV chargers.
Whilst it is clear that our markets in more recent years have been challenging
as cost of living increases have reduced discretionary spending, there are
signs that consumer confidence is returning. Housing transactions in quarter
four were
18.2% higher than the prior year and the CPA forecasts a return to growth for
the construction industry, supported by falling interest rates and sustained
real wage growth. The fundamental growth drivers supporting our industry and
business remain. The drive towards net zero, continuous regulatory change, new
technology and an underlying need to
invest in UK housing stock mean we can be confident that our markets will
deliver healthy and stable growth over the long term.
Strategic highlights
Throughout 2024, we remained committed to our purpose of helping people
harness power sustainably in everyday life. Alongside delivering strong
financial results, I am pleased with the progress we have made in advancing
our strategic priorities to Innovate, Grow and Sustain.
Innovate
Innovation is the foundation of our purpose - to help people harness power
sustainably in everyday life. Our ability to
see and do things differently creates value for stakeholders, fuels business
growth, sustains our competitive advantage, and contributes to the transition
to net zero. We remain focused on developing new products and enhancing our
existing range with increased functionality tailored to customer needs. Our
global team of over 100 product development specialists drives a
customer-centric, rapid and low-risk development process, which has been
instrumental in the Group's success. In 2024, we made significant strides in
expanding our product portfolio. To reflect the evolution of BG Sync EV's
offering beyond EV charging, we rebranded to Sync Energy - a name that better
encompasses our broader range of sustainable energy solutions.
A major milestone has been the development of our own Home Energy Management
system ("HEMs"), set to launch in early 2025. This system enables energy
storage in modular batteries from both the grid and renewable sources, such as
solar panels, allowing consumers to use lower cost energy at optimal times.
With growing demand for EV charging, increasing renewable energy adoption and
persistently high energy costs, home energy management is expected to become a
key growth area both in the UK and internationally. This next step for Sync
Energy aligns perfectly with our mission to support a more sustainable future.
We have also continued advancing our EV charging solutions with the release of
our first commercially focused "Pro Charge" range in 2024. This is
complemented by our new EV Balancer, which connects up to 16 chargers,
dynamically managing power distribution to ensure safe and efficient charging
expansion without exceeding a building's power limits. Another key milestone
has been the launch of our proprietary Sync Energy App, designed specifically
for our EV chargers. This app enhances user control through features like
"Tariff Sense" which optimises charging times based on energy tariffs, and
"Solar Mode" allowing users with solar panels to maximise self-generated
energy. Looking ahead, access to charging data will enable us to collaborate
with energy suppliers to recommend tailored tariffs, further improving the
customer experience.
Beyond EV solutions, one of our most exciting innovations in 2024 has been the
launch of the award-winning Titan All-in-One LED Highbay Light, sold under the
Luceco Lighting brand. Designed for ultimate flexibility, it features
adjustable
wattage, colour temperature and beam angle, ensuring optimal lighting within
industrial applications such as warehouses, factories and workshops.
We continue to enhance our Wiring Accessories and Masterplug product lines.
Our vertically integrated manufacturing model allows us to make rapid,
low‑cost adjustments to align with evolving market trends. In 2024, we
capitalised on this agility by launching Superfast USB-C sockets under the BG
brand and new USB-C wall chargers under the Masterplug brand - both of which
cater to the increasing demand for fast-charging solutions. Our commitment to
innovation with
purpose is a core driver of our strategy, enabling us to gain market share and
create value through differentiated, high‑margin products.
Grow
Despite challenging market conditions, we continue to grow the business both
organically as well as through targeted M&A in line with our capital
allocation policy. Our range of Wiring Accessories had another very strong
year. In an industry where project deadlines are tight and time is an
incredibly valuable commodity, electricians place a high value on our products
which are easy to install, reliable and have excellent availability. As a
result, many electricians have been using our Wiring Accessories products
throughout their entire careers. We are incredibly proud of their loyalty, but
we never take it for granted.
Once again, this year we have invested in our industry, providing over 8,500
online electrical courses via Luceco Academy, focusing in particular on
trainee electricians who we hope will become the next generation of BG
Electrical users. The long-standing deep relationships we have with our
customers means we can work together to ensure the right products are being
made available to the end consumer. Our sales teams continue to work closely
with our R&D teams to extend existing product ranges to generate new
business wins. In 2024, we released our first EV chargers sold under the
Masterplug brand. This product extends our reach by utilising our existing
strong customer relationships and leveraging our strong Masterplug brand.
We are delighted by the progress our range of EV chargers have made during the
year and we are now seeing consistent
top-line sales growth. We started the year with revenue from EV charging
products typically generating £0.6m per month and ended with the range
generating in excess of £1.0m per month. Ultimately, our customers choose our
products as they know they can sell them to the end consumer with confidence
in their quality and reliability; this leaves us well placed for future
organic growth.
We have complemented the Group's long history of organic growth with
acquisitions funded by our consistently strong cash flow and in February 2024,
we were delighted to complete the acquisition of D-Line (Europe) Limited
("D-Line"). Headquartered in Tyne & Wear in the UK, D-Line designs and
supplies a range of innovative cable management solutions, including
decorative cable trunking and accessories, fire-rated cable supports, floor
cable protectors and cable organisers. Employing approximately 60 people,
D-Line serves Retail, Wholesale and eCommerce customers across the UK, Europe
and North America, with a dedicated sales and distribution facility in
Kentucky, USA. D-Line's product range is a natural fit alongside our existing
categories. The business has developed a strong brand both in the UK and
internationally, and we see significant potential in leveraging D-Line's North
American operations to support our expanding presence in the region.
Following this, in September 2024, we were pleased to announce the acquisition
of CMD Limited ("CMD"). Founded in 1984, CMD designs and manufactures a
comprehensive range of wiring accessories for commercial premises, where it
holds a leading position in the UK. Products include under-floor and
under-desk power distribution solutions, on-desk and in-desk sockets, and a
range of ergonomic products including the award-winning Miro monitor support
arm. CMD has an experienced senior management team which will remain with the
business, continuing to operate from its headquarters in Rotherham.
With Luceco already well-established as a leading supplier of Wiring
Accessories to the UK Residential market, CMD's strong presence in the
commercial sector makes it a highly complementary addition. Our expertise in
product development, manufacturing and sourcing will enable us to accelerate
range innovation and improve margins for CMD. Additionally, CMD's
well-established relationships with specifiers and contractors present a
valuable opportunity to introduce Luceco's professional LED Lighting range to
a broader customer base. Both D-Line and CMD are strong businesses with
significant potential. We look forward to unlocking the opportunities these
acquisitions present while continuing to drive organic growth that outperforms
our markets.
Sustain
Our Sustain strategy is focused on taking action to contribute to society's
sustainability goals as well as investing in our people and our industry.
Taking these actions now will ensure we sustain our competitive advantage into
the future. Our operations continue to offer one of the lowest operational
carbon footprints in our industry and this was reaffirmed with a "B" rating
from the Carbon Disclosure Project in the first quarter of 2024. This is our
third year of reporting to the platform, so we are delighted our progress
integrating climate‑related factors into our business operations has been
reflected with a strong grade.
We remain committed to our validated targets from the Science Based Targets
initiative ("SBTi") of reducing operational emissions by 46.2% and reducing
value chain emissions by 27.5% by 2031. To help us achieve our targets we will
continue to source 100% renewable electricity and extend this commitment to
our newly acquired companies. In September 2024, we completed the installation
of our second solar PV array at our manufacturing facility in Jiaxing, China.
When fully operational we anticipate that 13% of the site's electricity
consumption will be self-generated. Ensuring we use energy efficiently across
heating, manufacturing processes and transportation will play an important
role in reducing our use of fossil fuels.
Together with our SBTi targets, in 2021 we also set ourselves a challenging
objective of reaching £100m of revenue from low carbon products by 2025.
Whilst we are pleased with the progress we have made, having generated £82.6m
of low
carbon sales in 2024, we are mindful that consumer uptake of electric vehicles
has been slower when compared to market forecasts at the time we set our
targets. We hope to make further progress during 2025.
Sustainability remains at the heart of our product innovation. Our new Titan
All‑in‑One LED Highbay Light replaces 72 SKUs with just four, reducing
manufacturing, packaging and logistics waste while offering greater
flexibility to distributors and contractors. Our Sync Energy portfolio,
including EV chargers and the upcoming Home Energy Management system, supports
the transition to cleaner energy. Home Energy Management systems enable
homeowners to store and manage energy from both the grid and renewables,
reducing emissions and optimising energy use. By enhancing efficiency and
promoting low carbon solutions, our products play a key role in driving
sustainable progress. Beyond environmental sustainability, we continue to
invest in the next generation of skilled professionals. We are proud to
sponsor the highly acclaimed SPARKS Learner of the Year awards, which
celebrate the most talented young electricians in the UK - vital contributors
to the future of our industry.
To sustain and accelerate future growth, we have also made further investments
in optimising our production and procurement processes in China. In 2024, we
took key steps to generate cost savings while enhancing our manufacturing
capabilities. I am particularly pleased with the progress we have made in
expanding and automating the production of EV chargers and DW Windsor
products, laying a strong foundation for future scaling and efficiency.
Outlook
Trading in early 2025 has started well, although consumer confidence remains
relatively subdued, we are beginning to see green shoots of recovery within
our markets. Whilst the macroeconomic outlook for 2025 remains difficult to
judge, I am encouraged by our continued underlying trading momentum which
leaves us well positioned to make further progress in the year ahead.
JOHN HORNBY
Chief Executive Officer
25 March 2025
Chief Financial Officer's review
Summary of reported results
Summary results (£m) Reported 2024 Reported
2023
Revenue 242.5 209.0
Operating profit 23.2 22.2
Profit before tax 18.9 18.9
Taxation (4.3) (2.2)
Profit for the period 14.6 16.7
Operating profit of £23.2m was £1.0m higher than 2023 as a result of strong
revenue and gross profit growth from both organic and acquisition activity.
Alternative Performance Measures and adjusting items
Certain alternative performance measures ("APMs") have been included within
this report. These APMs are used by the Board to monitor and manage the
performance of the Group, in order to ensure that decisions taken align with
the Group's long-term interests. A table summarising the reconciliation of
adjusted measures to statutory measures is included in note 1 of the
consolidated financial statements. The following adjusting items were applied
in the year:
· Amortisation of acquired intangibles: £2.3m and
acquisition-related costs of £3.8m
· Fair value movements of hedging portfolio which have not
completed in the period a £0.3m credit and interest rate swaps of £0.2m
costs
Adjusted Operating Profit for the year, excluding the items above, was
therefore £29.0m (2023: £24.0m).
Income statement
Revenue
Revenue bridge: £m Change %
2023 209.0
Acquisitions/closures 23.9 +11.4%
Like-for-like increase(1) 12.2 +5.8%
Constant Currency(2) 245.1 +17.2%
Currency movements (2.6) -1.2%
TOTAL 242.5 +16.0%
1. Like-for-like revenue increase excludes the impact of currency
movements and acquisitions, see note 10 of the consolidated financial
statements
2. 2024 revenue translated at 2023 exchange rates
Revenue of £242.5m was £33.5m (16.0%) higher than 2023 as business growth
returned. Like-for-like revenue, excluding the impact of currency, increased
by £12.2m in the period, up 5.8%. The Group continues to take market share,
with Luceco's overall addressable market experiencing a 2.4% decline, the
Group's performance in 2024 compares highly favourably. Within the UK, our
infrastructure-related businesses had a more difficult period falling by over
11%, however excluding these businesses UK growth was over 5.7%. Our
international businesses had a strong year with like-for-like growth of 27%,
with growth across all key international regions.
The Group performed strongly in the Residential RMI DIY market, with results
up 15.6% on a like-for-like basis. The Group also grew by 9.3% in the new
residential sector and had growth of 6.7% in residential RMI professional
sector. Within the non-residential sector, the Group's result improved by 4.7%
on a like‑for‑like basis, however the infrastructure sector struggled with
a decline of 11.0% on a like-for-like basis.
We group our customers into the following sales channels:
· Retail: Distributors serving consumers only, including DIY sheds,
pure-play online retailers and grocers
· Hybrid: Distributors serving both consumers and professionals,
typically with multi-channel service options
· Professional Wholesale: Distributors serving professionals only,
largely via a branch network
· Professional Projects: Sale agreed by Luceco direct with
professionals, but largely fulfilled via Professional Wholesale
Performance by sales channel was as follows:
Like-for-like revenue by sales channel: 2024 2024 2023 Change vs 2023 %
£m % of total % of total
Retail 58.5 26.4% 22.4% +23.4%
Hybrid 48.4 21.9% 23.9% -1.8%
Professional Wholesale 57.8 26.1% 25.2% +6.5%
Professional Projects 56.5 25.6% 28.5% -2.6%
Like-for-like revenue 221.2 100.0% 100.0% +5.8%
Currency impact (2.6)
Acquisitions/closures 23.9
TOTAL 242.5 +16.0%
Our Hybrid and Retail channels represent just under half of the Group's
like-for-like revenue in the year and combined grew by 10.5%, with strong
volume growth in Portable Power, LED and EV products. The Professional
channel, including Wholesale and Projects, grew by 1.8% overall in the period,
reflecting a more difficult channel to market, largely as a result of declines
in LED impacted by the infrastructure market.
The Group is particularly encouraged by the EV charger performance, which has
grown by over 26% in the year. We are beginning to see traction in the
commercial markets which will provide a strong growth opportunity for 2025 and
beyond, together with our retail proposition.
Revenue by geographical location of customer: 2024 2023 Change vs
£m £m 2023 %
UK 184.2 173.6 +6.1%
Americas 22.5 8.6 +161.6%
Europe 21.5 12.9 +66.7%
Middle East and Africa 10.3 8.3 +24.1%
Asia Pacific 4.0 5.6 -28.6%
Total revenue 242.5 209.0 +16.0%
Revenue by geography and location of the customer highlights the strong
international progress we have seen across the Middle East, Europe and
Americas. European sales in Spain were encouraging in 2024 as the business
began to get traction in the Spanish market. Sales improved in the Americas,
largely as a result of stronger sales from Portable Power in North America and
our growing South American LED offering. Sales in the Middle East and Africa
surpassed expectations with a strong second half in 2024.
Profitability
Adjusted Operating Profit of £29.0m for 2024 was £5.0m ahead of 2023. The
key drivers were as follows:
Bridge from Bridge from
Adjusted Operating profit 2023 2022
£m £m
2023/2022 24.0 22.0
Acquisitions/closures 1.9 0.6
Like-for-like increase(1) 3.0 3.5
Currency movements 0.1 (2.1)
2024/2023 29.0 24.0
1. Like-for-like profit movements exclude the impact of currency
movements and acquisitions/closures
The net impact of acquisitions and closures was £1.9m, which reflects the
acquisitions of D-Line and CMD during the year. Overall Adjusted Operating
Profit, excluding acquisitions/closures and at Constant Currency improved by
£3.0m, driven largely by the stronger performance across the UK channels.
The currency tailwind in the year was £0.1m on Adjusted Operating Profit,
which was a combination of favourable RMB on Chinese products and adverse USD
on the sales of products. Adjusted Operating Costs increased by £10.2m at
Constant Currency. The majority of the increase came from wage increases and
associated costs. Excluding the impact of acquisitions, costs increased by
£4.3m, which was a 7.4% increase on a Constant Currency basis. Overall
Adjusted Operating Margin of 12.0% is a strong result, up 50 basis points on
the prior year. We continue to believe the Group's strong operating leverage
can improve operating margins further within the range of 12%-15%.
The table below provides a more detailed view of the currency impact in the
year:
Adjusted Currency impact Adjusted 2024 Constant Currency Adjusted
2024 at Constant variance to 2023 2023
actual(1) Currency(2) actual
£m £m £m
£m % £m %
Revenue 242.5 (2.6) (1.2%) 245.1 36.1 +17.2% 209.0
Cost of sales (145.3) 2.4 (1.9%) (147.7) (21.0) +16.6% (126.7)
Gross profit 97.2 (0.2) (0.2%) 97.4 15.1 +18.3% 82.3
Gross margin % 40.1% +0.4ppts 39.7% +0.3ppts 39.4%
Operating costs (68.2) 0.3 (0.5%) (68.5) (10.2) +17.5% (58.3)
Operating profit 29.0 0.1 +0.4% 28.9 4.9 +20.4% 24.0
Operating margin % 12.0% +0.2ppts 11.8% +0.3ppts 11.5%
1. Year ended 31 December 2024 translated at 2024 average exchange
rates
2. Year ended 31 December 2024 translated at 2023 average exchange
rates
Net finance expense
Adjusted Net Finance Expense increased by £1.3m, reflecting an increase in
our facility, which is in place to support the Group's acquisitions and
working capital requirements as the Group grows.
Taxation
The effective tax rate on Adjusted Profit Before Tax increased by 4.5ppts to
22.9% in 2024 following some advantageous tax rates in 2023 and a higher
proportion of the Group on a UK tax rate of 25%.
Adjusted Free Cash Flow
Adjusted(1) Adjusted(1) 2023
Adjusted Free Cash Flow (£m) 2024
Operating profit 29.0 24.0
Depreciation and amortisation 7.9 7.4
EBITDA 36.9 31.4
Changes in working capital (17.2) 0.2
Other items 2.0 1.0
Operating Cash flow 21.7 32.6
Operating cash conversion(2) 74.8% 135.8%
Net capital expenditure (7.8) (8.2)
Interest paid (4.1) (2.8)
Tax paid (6.3) (3.6)
Free Cash Flow 3.5 18.0
Free Cash Flow as % Revenue 1.4% 8.6%
1. A reconciliation of the reported to Adjusted results is shown
within note 1 of the consolidated financial statements
2. Adjusted Operating Cash Conversion is defined as Adjusted
Operating Cash Flow divided by Adjusted Operating Profit
The Group 's Adjusted Free Cash Flow of £3.5m in the period was impacted by a
strong final quarter which resulted in a year-end timing difference on trade
and other receivables. Trade and other receivables were a cash outflow of
£17.1m in 2024 compared to a £3.1m outflow in 2023. Our expectation is that
this will reverse in 2025.
Capital expenditure
The Group's net capital expenditure consists of capitalised product
development costs and the purchase of physical assets. Capex was £7.8m (2023:
£8.2m) and represented 3.2% of revenue (2023: 3.9%) which is in our target
range of 3‑4%. We continue to see opportunities to invest in low risk, high
return automation projects in our Chinese production facility and continue to
invest in R&D projects, particularly in relation to acquired businesses.
Capital structure and returns
Return on capital
Return on Capital Invested was lower than the prior year at 20.2% (2023:
20.6%) which remains above our target range of 20% or higher. As previously
flagged, our returns will naturally moderate as Luceco transitions from a
Group created organically to one growing via M&A as well (with its
required investment in goodwill).
Capital structure
The business continues to consistently generate ample cash flow to support its
dividend policy and fund M&A activity.
£m 2024 2023 Change
Reported net debt £75.1m £22.8m +229.3%
Less: IFRS 16 finance leases (£7.2m) (£5.1m) +41.5%
Finance Leases - pre-IFRS 16 £0.7m £0.7m -
Bank Net Debt £68.6m £18.4m +272.6%
Bank Net Debt : Bank EBITDA 1.6x 0.6x 166.7%
During the year, the Group acquired two businesses for a total of £37.5m
including cash received on acquisition which has impacted the reported net
debt in the period together with a timing issue on trade and other receivables
at the end of the year of £17.1m. The Group's non‑utilised facilities
totalled £54.3m. The Group's existing revolving credit facility was expanded
by £40m in the period, via the accordion facility available under the terms
of its syndicated bank facilities. The Group is currently in discussions
regarding a new banking facility in order to replace the existing facility;
these discussions are progressing in line with expectations.
The Company's covenant position and headroom at 31 December 2024 was as
follows:
2024 covenant position Covenant Actual Headroom
Bank Net Debt : Bank EBITDA 3.0 : 1 1.6 : 1 Bank Net Debt headroom: £56.5m
Bank EBITDA headroom: £18.8m
Bank EBITDA : Adjusted Net Finance Expense 4.0 : 1 10.2 : 1 Bank EBITDA headroom: £25.3m
Net Finance Expense headroom: £6.3m
The key measures which management use to evaluate the Group's use of its
financial resources and capital management are set out below:
2024 2023
Adjusted(1) Earnings Per Share (pence) 12.5 11.1
Covenant Net Debt : Covenant EBITDA (times) 1.6x 0.6x
Adjusted(1) Free Cash Flow (£m) 3.5 18.0
1. Note 1 in the notes to the consolidated financial statements
provides an explanation of the Group's alternative performance measures.
The Group complied with its covenant requirements throughout the year with
significant headroom on all metrics. The Group has conducted a full going
concern review and this is outlined on page 130 of the Annual Report and
Financial Statements. The Group has a strong balance sheet and significant
facility headroom under even a severe but plausible downside scenario. No
covenant breaches occur in any of our severe but plausible downside scenarios,
all of which are before any mitigating actions, illustrating our financial
resilience.
Dividends
The Board is proposing to pay a final dividend of 3.3p, taking the full‑year
dividend to 5.0p, representing a payout of 40% of earnings. The final dividend
will be paid on 22 May 2025 to shareholders on the registrar on 11 April 2025.
Operating segment review
The revenue and profit generated by the Group's operating segments are shown
below. Operating profits are stated after the proportional allocation of fixed
central overheads.
Wiring Accessories
Adjusted(1) Reported
2024 2023 Change 2024 2023 Change
Revenue £108.9m £82.6m +31.8% £108.9m £82.6m +31.8%
Operating profit £19.1m £15.0m +27.3% £14.9m £15.3m -2.6%
Operating margin % 17.5% 18.2% -0.7ppts 13.7% 18.5% -4.8ppts
1. A reconciliation of the reported to Adjusted results is shown
within note 1 of the consolidated financial statements
Wiring Accessories is the Group's most profitable segment, generating 66% of
the Group's operating profit and 45% of its revenue, under a brand established
over 80 years ago.
Sales into the Wiring Accessories segment were £108.9m, which was a
significant increase of 32% over 2023, largely driven by the Hybrid and Retail
channels. The Adjusted Operating Margin was 17.5% (2023: 18.2%) which remains
a key driver for the Group's overall profitability.
LED Lighting
Adjusted(1) Reported
2024 2023 Change 2024 2023 Change
Revenue £78.4m £79.0m -0.8% £78.4m £79.0m -0.8%
Operating profit £4.1m £4.7m -12.8% £2.7m £3.2m -15.6%
Operating margin % 5.2% 5.9% -0.7ppts 3.4% 4.1% -0.7ppts
1. A reconciliation of the reported to Adjusted results is shown
within note 1 of the consolidated financial statements
The Group entered the lighting market in 2013 as the industry adopted LED
technology and it now represents 32% of Group revenue.
Revenue was 0.8% behind the prior year as a result of the headwinds we have
faced in the Infrastructure channel, however this was nearly all offset by
gains in the international businesses and a recovery in the UK markets and
channels. Operating profit was behind the prior year, reflecting wage
inflation in the UK, with operating margin at 5.2%. Demand remains
particularly strong in the Professional Projects space, as demand for
energy-saving retrofits within the non-residential and infrastructure sectors
continues to grow.
Portable Power
Adjusted(1) Reported
2024 2023 Change 2024 2023 Change
Revenue £55.2m £47.4m +16.5% £55.2m £47.4m +16.5%
Operating profit £5.8m £4.3m +34.9% £5.6m £3.7m +51.4%
Operating margin % 10.5% 9.1% +1.4ppts 10.1% 7.8% +2.3ppts
1. A reconciliation of the reported to Adjusted results is shown
within note 1 of the consolidated financial statements
The Portable Power segment consists of two main elements:
· Cable reels, extension leads and associated accessories sold
under the Masterplug brand
· EV chargers sold under the Sync Energy brand
The Group enjoys a leading position in the UK portable power market. The
business generates 23% of Group revenue and 20% of Group Adjusted Operating
Profit. Revenue increased by a significant 16% in the period with strong
performance in the Americas and UK regions.
EV charger sales totalled £9.8m, a growth rate of 26% in the period, which
was highly encouraging. We remain excited about the opportunities, in both
retail and commercial spaces, that this new sector will provide as the vehicle
market moves towards electrification.
Going concern
The Directors have a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable future and
as such have applied the going concern principle in preparing the Annual
Report and Financial Statements. This is considered in more detail in note 1
of the consolidated financial statements. The Group's Viability Statement can
be found on pages 69 to 70 and the Group's Going Concern Statement can be
found on page 130 of the Annual Report and Financial Statements.
WILL HOY
Chief Financial Officer
25 March 2025
Environmental, Social and Governance ("ESG") update
We continue to make progress on our ESG workstreams:
· We committed to the Science Based Targets Initiative (SBTi) and this
was validated by the SBTi during the first half of the year. This means we
have committed to reductions in carbon emissions over the near-term consistent
with the Paris Agreement
· Achievement of an improved management-level score ("B") attained in
March 2024 from the Carbon Disclosure Project
· We have delivered significant progress against our low carbon product
revenue target and continue to work towards £100m of such revenue
· We continue to improve our packaging specifications, particularly
around plastic packaging.
Key achievements by area
Products and services
· Acquisition of Sync EV and launch of single-phase Mode 3 EV chargers
under the joint BG Sync EV brand
· £83m of revenue from low carbon product categories in full year
2024, delivering significant progress against our £100m low carbon product
revenue target for 2025
· 3.5-fold increase in revenue from the sale of lighting control
devices into lighting projects in full year 2023
Supply Chain
· Insourcing of EV charger production within our China manufacturing
facility with 100% renewable electricity supply
· Evaluation of key suppliers' physical climate risk exposure to
understand vulnerabilities within our supply chain
Research and Development
· Specialist R&D function in China and the UK
· Development of higher power, three-phase EV chargers for larger homes
and commercial premises
· Investigating on-street EV charging solutions within DW Windsor
· Dedicated optical engineer focusing on improvements to lens design to
improve lighting efficiency
· Working towards the development of environmental product declarations
(EPD) and industry best practise on circular design in lighting
Operations
· Sourced renewable electricity for all group operations for 2024 and
2023, bringing our scope 2 emissions to zero.
· Offsetting residual Scope 1 emissions for 2024 and 2023
· Investment into energy efficiency and automation projects within the
China manufacturing facility including investment in our second solar PV array
· Evaluation of our key locations (manufacturing and distribution
centres) to better understand physical climate risk exposure to understand
vulnerabilities across direct operations
· All plastic packaging is recyclable with a minimum 30% recycled
content
· Installation of EV chargers in our Telford operation
Our ESG objectives for 2025 are as follows:
· Develop our Home Energy Management system
· Grow EV further in the domestic space and expand into the
commercial space
· Grow LED in our UK Trade and Projects channels and our product
proposition
· Deeper engagement with suppliers and customers
· Fully incorporate the recent acquisitions of CMD and D-Line into
our GHG reporting and our science-based targets
Principal risks and uncertainties
The Board is responsible for identifying, reviewing and managing business and
operational risk. It is also responsible for determining the level of risk
appetite it is prepared to take in the ordinary course of business to achieve
the Group's strategic objectives and to ensure that appropriate and sufficient
resource is allocated to the management and mitigation of risk.
In addition to the risk management framework, the Board has delegated
responsibility to the Audit Committee for reviewing the overall process of
assessing business risks and managing the impact on the Group. The Group's
risk management process is set out below.
The principal risks identified, and actions taken to minimise their potential
impact are included below. This is not an exhaustive list but those the Board
believes may have an adverse effect on the Group's cash flow and
profitability.
See also pages 64 to 68 in the 2024 Annual Report and Financial Statements.
In determining whether it is appropriate to adopt the going concern basis in
the preparation of the financial statements, the Directors have considered
these principal risks and uncertainties. The Viability Statement on pages 69
to 70 of the 2024 Annual Report and Financial Statements considers the
prospects of the Group should a number of these risks crystallise together.
Principal risks
Concentration risks associated with operations:
Risk and impact: Mitigation
· The Group's products are overwhelmingly sourced from one country · UK buffer stock is held in the event of supply disruption in China
(China) and a large proportion are made in one location (Jiaxing)
· All suppliers are provided with visibility of forward orders and supply
· Disruption to our Jiaxing facility could compromise our ability to issues are discussed upfront
serve our customers, including issues arising from a constrained global energy
market · Production facilities in China are spread across multiple buildings on
the same site to mitigate risk
· General disruption, including to shipping routes between China and
our selling markets (particularly the UK) could increase our costs or limit · The Group owns its product designs and production tooling, allowing
our ability to serve our markets. There has been some disruption in the Red manufacturing to be moved between suppliers more easily
Sea throughout 2024
· Business Continuity Plans are in place for Jiaxing site
· China could be impacted by events in Ukraine/Russia, which impacts
our ability to manufacture products · Business Interruption Insurance is in place for the Jiaxing site,
Telford site and our OEM supplier of Portable Power products
Concentration risks associated with customers and products:
Risk and impact: Mitigation
· The Group has a number of key customers representing circa 50% of · Key customers typically follow a tender process, providing visibility of
Group revenue. A change in demand from these customers could result in reduced business wins and losses
sales and profits
· Large customers typically take 6-12 months to implement a large range
· The Group's committed order book extends 2-3 months forward. change throughout their networks, giving us time to react
Orders thereafter are uncommitted
· The cost of range changes for large customers is high, reducing the
· Geopolitical instability creates prices changes and shortages of likelihood of occurrence
materials and the impact of inflation on input costs from energy and material
costs impacting product cost and profitability. This has been prevalent with · Relationships with the Group's large customers are particularly
copper-based products due to increasing global demand as electrification established
escalates in many sectors
· Capacity at our factory and at our OEM partners in China can be changed
· A change in energy prices could increase the Group's operating quickly and cost effectively
costs, reduce profits and/or price competitiveness
· The Group hedges its USD:RMB and copper exposures according to a
· The Group has a material exposure to the purchase price of Board-approved policy. The hedging matches the duration of any fixed selling
copper. An adverse move could reduce profits and/or price competitiveness price commitment offered to customers
· The Group has fixed price gas and electricity contracts covering a
significant proportion of its energy use
· Application of the hedging policy is reviewed by the Board
Macroeconomic, political and environmental:
Risk and impact: Mitigation
· A deterioration in trade relations between the UK and China could · We have clear ESG objectives tied to management compensation plans. Our
disrupt product supply and/or increase costs. Tariff impacts are possible progress is visible via independent bodies such as CPD and SBTi
with the USA and China which could have knock-on impacts for other tariff
arrangements · The Group is expanding and developing its product range of low carbon
products (e.g. LED lighting and electric vehicle chargers)
· The Group has a concentrated exposure to the UK market. UK
economic headwinds could reduce profits · The Group is diversified by market segment within the UK, reducing risk
· A failure to respond to governmental, cultural, customer or · The Group is largely exposed to the RMI cycle, which is less
investor requirements on ESG in the following areas: changing customer susceptible to macroeconomic forces
behaviour and demands (e.g. electric vehicle charging), increased stakeholder
concern, negative feedback or non-compliance on ESG strategy, increased · The Group's overseas businesses are expected to grow faster than the
severity and frequency of extreme weather events accelerating ESG progress. UK, diluting the UK exposure
All of which could result in reduced profits or a reduced share price
· UK buffer stock is held in the event of supply disruption in China
· A "China Plus 1" sourcing strategy is being developed
· Management liaises closely with investors and customers to understand
their future ESG needs and responds accordingly
Loss of IT / data:
Risk and impact: Mitigation
· Loss of IT functionality would compromise operations, leading to · Market-leading cyber security tools and monitoring are in place
increased costs or lost sales
· Market-leading data backup tools are in place
· Loss of sensitive data from our IT environment would expose the
Group to regulatory, legal or reputational risk · IT disaster recovery plans are in place throughout the Group
· Increased cloud server usage increases risk of data loss or · We conduct regular penetration testing
compromise and cyber risk is on a upward trend impacting operations and
reputational risk · We conduct regular Group-wide cyber security training for employees
· IT incidents are reported to the Board
People and labour shortages:
Risk and impact: Mitigation
· Loss of key employees could damage business relationships or · Key relationships are typically shared between more than one employee
result in a loss of knowledge
· The Group's service offering is multi-faceted, reducing the risk that
· A shortage of available labour for key roles could disrupt the loss of an employee would result in lost sales
operations and impact long-term progress
· Retention of key employees is driven by long-term personal development
· Depending on the job role and team, COVID-19 has changed and incentive plans and ensuring compensation is regularly benchmarked for
employee's and employer's work place expectations. A more fluid working competitiveness. These plans are reviewed by the Nomination and Remuneration
environment in both the office and home is more common place. The risk of not Committees
adapting to this change in working practices could lead to loss of employees
and an inability to attract talent · Workforce engagement surveys ensure employee needs are identified and
addressed, promoting retention
· Adoption of hybrid practices within appropriate teams and locations
Acquisitions:
Risk and impact: Mitigation
· An ill-judged acquisition could reduce Group profit and return on · Our acquisition strategy is set by the Board
capital
· Board members possess significant M&A experience
· Unable to grow or develop an acquired business in line with
expectations, leading to lower profits · The acquisition strategy is implemented by an experienced in-house team
· The Group's acquisition strategy could compromise/distract the · The Group's key markets are relatively stable, meaning acquisition
execution of strategy in other areas targets typically have an established track record
· Individual acquisitions are typically small relative to the size of the
Group, reducing the impact of each deal and reducing potential distraction
· The Group conducts extensive due diligence prior to acquisition
· All acquisitions are approved by the Board
Legal and Regulatory:
Risk and impact: Mitigation
· The Group could infringe upon the IP of others, leading to legal · The Group receives IP advice from external experts
claims
· The Group's products are certified for use prior to launch by
· The Group's products could fail to meet regulatory requirements or external experts
experience quality failures, resulting in legal claims and/or reputational
damage · The Group has extensive quality assurance resources in the UK and
China
· The Group's businesses could fail to meet regulatory requirements
in their countries of operation · Suppliers are required to adhere to a strict Code of Conduct
· The Group could fail to comply with local tax laws, particularly · Supplier compliance with the Code of Conduct is audited by our
regarding transfer pricing in-house teams
· Product liability claims are reported to the Board
· Product liability insurance is in place globally
· The Group's transfer pricing policies are reviewed regularly with
the help of external experts
Finance and treasury:
Risk and impact: Mitigation
· The Group could fail to provide sufficient funding liquidity for · The Group hedges its currency exposures according to a
its operations Board-approved policy. The hedging matches the duration of any fixed selling
price commitment offered to customers
· The Group has a material exposure to movements in the USD and RMB
currency rates. An adverse move could reduce short-term profits and/or · The Group has a clear Capital Structure policy that is designed
long-term competitiveness to provide sufficient liquidity
· The Group could fail to report its financial performance · The Capital Structure policy is implemented by Treasury experts
accurately, leading to inappropriate decision-making and regulatory breaches and monitored by the Board
· The Group could suffer fraud across its widespread operations · The Treasury team prepares regular cash flow forecasts
· The Group's financial statements require relatively few
judgements or estimates, reducing the risk of misstatement
· The Group's accounting policies and internal accounting manual
are approved by the Board
· The Group operates two main accounting centres in the UK and
China, which are overseen closely by the Group Finance team
· The Group has invested in market-leading financial accounting
and reporting software
Statement of Directors' responsibilities
The following statement will be contained in the 2024 Annual Report and
Financial Statements.
We confirm that to the best of our knowledge:
· The financial statements, prepared in accordance with the
applicable set of accounting standards, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the Company and
the undertakings included in the consolidation taken as a whole; and
· The Strategic Report includes a fair review of the development
and performance of the business and the position of the issuer and the
undertakings included in the consolidation, taken as a whole, together with a
description of the principal risks and uncertainties that they face.
· We consider the Annual Report and Financial Statements, taken as
a whole, is fair, balanced and understandable and provides the information
necessary for shareholders to assess the Group's position and performance,
business model and strategy.
JOHN HORNBY
Chief Executive Officer
WILL HOY
Chief Financial Officer
25 March 2025
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2024
2024 2023
Note £m £m
Revenue 2 242.5 209.0
Cost of sales (145.0) (126.2)
Gross profit 97.5 82.8
Distribution expenses (11.3) (8.6)
Administrative expenses (63.0) (52.0)
Operating profit 2,3 23.2 22.2
Finance expense (4.3) (3.3)
Net finance expense (4.3) (3.3)
Profit before tax 18.9 18.9
Taxation 4 (4.3) (2.2)
Profit for the period 14.6 16.7
Earnings per share (p)
Basic 5 9.5p 10.8p
Fully diluted 5 9.5p 10.7p
1. Re-presented in respect of 2022 is detailed in note 1
Adjusted(1) Results
2024 2023
Note £m £m
Adjusted operating profit 1 29.0 24.0
Adjusted profit before tax 1 24.9 21.2
Adjusted profit after tax 1 19.2 17.3
Adjusted basic earnings per share 5 12.5p 11.1p
Adjusted diluted earnings per share 5 12.5p 11.1p
1. See note 1 for alternative performance measures
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2024
2024 2023
£m £m
Profit for the period 14.6 16.7
Other comprehensive income - amounts that may be reclassified to profit or
loss in the future:
Foreign exchange translation differences - foreign operations (0.1) (2.5)
Foreign currency translation differences on investments in overseas entities (1.4) -
Other comprehensive income - amounts that will not be reclassified to profit
or loss:
Changes in the fair value of equity investments at fair value through other (0.8) 0.6
comprehensive income
Total comprehensive income for the year 12.3 14.8
All results are from continuing operations.
The accompanying notes form part of these financial statements.
CONSOLIDATED BALANCE SHEET
At 31 December 2024
2024 2023
Note £m £m
Non-current assets
Property, plant and equipment 7 24.7 20.0
Right-of-use assets 9.7 7.6
Intangible assets 8 65.1 40.1
Investment 1.8 2.3
Financial assets measured at fair value through profit or loss - 0.4
Deferred tax asset 0.9 2.5
102.2 72.9
Current assets
Inventories 53.8 40.8
Trade and other receivables 80.1 55.7
Financial assets measured at fair value through profit or loss 0.4 0.3
Current tax asset 4.2 2.5
Cash and cash equivalents 4.1 4.6
142.6 103.9
Total assets 244.8 176.8
Current liabilities
Trade and other payables 59.2 47.9
Financial liabilities measured at fair value through profit or loss 1.2 1.5
Other financial liabilities 2.8 2.0
63.2 51.4
Non-current liabilities
Interest-bearing loans and borrowings 9 72.0 22.3
Other financial liabilities 4.4 3.1
Deferred tax liability 5.2 3.6
Financial liabilities measured at fair value through profit or loss 0.2 0.3
Provisions 4.0 2.3
85.8 31.6
Total liabilities 149.0 83.0
Net assets 95.8 93.8
Equity attributable to equity holders of the parent
Share capital 0.1 0.1
Share premium 24.8 24.8
Other reserve (1.6) 0.7
Treasury reserve (11.6) (8.6)
Retained earnings 84.1 76.8
Total equity 95.8 93.8
The accompanying notes form part of these financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2024
Share Share Translation Financial Retained Treasury Total
capital premium reserve Assets at FVOCI earnings reserve equity
£m £m £m £m £m £m £m
Balance at 1 January 2023 0.1 24.8 2.6 - 67.9 (8.7) 86.7
Total comprehensive income
Profit for the period - - - - 16.7 - 16.7
Investment revaluation - - - 0.6 - - 0.6
Currency translation differences - - (2.5) - - - (2.5)
Total comprehensive income for the period - - (2.5) 0.6 16.7 - 14.8
Transactions with owners in their
capacity as owners:
Dividends - - - - (7.2) - (7.2)
Purchase of own shares - - - - - (1.6) (1.6)
Disposal of own shares - - - - (1.7) 1.7 -
Deferred tax on share-based payment transactions - - - - 0.2 - 0.2
Share-based payments charge - - - - 0.9 - 0.9
Total transactions with owners in their capacity as owners - - - - (7.8) 0.1 (7.7)
Balance at 31 December 2023 0.1 24.8 0.1 0.6 76.8 (8.6) 93.8
Balance at 1 January 2024 0.1 24.8 0.1 0.6 76.8 (8.6) 93.8
Total comprehensive income
Profit for the period - - - - 14.6 - 14.6
Investment revaluation - - - (0.8) - - (0.8)
Foreign currency translation differences on investments in overseas entities - - (1.4) - - - (1.4)
Currency translation differences - - (0.1) - - - (0.1)
Total comprehensive income for the period - - (1.5) (0.8) 14.6 - 12.3
Transactions with owners in their
capacity as owners:
Dividends - - - - (7.5) - (7.5)
Purchase of own shares - - - - - (4.7) (4.7)
Disposal of own shares - - - - (1.7) 1.7 -
Deferred tax on share-based payment transactions - - - - (0.2) - (0.2)
Corporation tax on foreign currency translation differences on investments in - - - - 0.4 - 0.4
overseas entities
Corporation tax on share-based payment transactions - - - - 0.2 - 0.2
Share-based payments charge - - - - 1.5 - 1.5
Total transactions with owners in their capacity as owners - - - - (7.3) (3.0) (10.3)
Balance at 31 December 2024 0.1 24.8 (1.4) (0.2) 84.1 (11.6) 95.8
The accompanying notes form part of theses financial statements.
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2024
Note 2024 2023
£m £m
Cash flows from operating activities
Profit for the period 14.6 16.7
Adjustments for:
Depreciation and amortisation 7,8 10.2 9.3
Finance expense 4.3 3.3
Taxation 4 4.3 2.2
Loss on disposal of tangible assets 0.5 0.2
Share-based payments charge 1.5 0.8
Other non-cash items (0.3) (0.5)
Operating cash flow before movement in working capital 35.1 32.0
(Increase) in trade and other receivables (17.1) (3.1)
(Increase)/decrease in inventories (2.8) 5.9
Increase/(decrease) in trade and other payables 5.8 (2.2)
Cash from operations 21.0 32.6
Tax paid (6.3) (3.6)
Net cash from operating activities 14.7 29.0
Cash flows from investing activities
Acquisition of property, plant and equipment(2) 7 (5.0) (6.4)
Acquisition of other intangible assets 8 (2.9) (1.8)
Disposal of tangible assets 7 0.1 -
Acquisition of subsidiary 10 (37.5) -
Investment (0.3) (1.7)
Net cash used in investing activities (45.6) (9.9)
Cash flows from financing activities
Origination/(Repayment) of borrowings 49.5 (6.1)
Interest paid (4.1) (2.8)
Dividends paid (7.5) (7.2)
Finance lease liabilities (2.7) (2.1)
Purchase of own shares (4.7) (1.6)
Net cash from financing activities 30.5 (19.8)
Net (decrease)/increase in cash and cash equivalents (0.4) (0.7)
Cash and cash equivalents at 1 January 4.6 5.3
Effect of exchange rate fluctuations on cash held (0.1) -
Cash and cash equivalents at 31 December 4.1 4.6
The accompanying notes form part of theses financial statements.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
1. Basis of preparation
Luceco plc (the "Company") is a company incorporated and domiciled in the
United Kingdom. These consolidated financial statements for the year ended 31
December 2024 comprise the Company and its subsidiaries (together referred to
as the "Group"). The Group is primarily involved in the manufacturing and
distributing of high quality and innovative wiring accessories, LED lighting
and portable power products to global markets (see note 2).
The financial information is derived from the Group's consolidated financial
statements for the year ended 31 December 2024, which have been prepared on
the going concern basis in accordance with UK adopted international accounting
standards (UK adopted IFRS) in conformity with the requirements of the
Companies Act 2006. The financial statements have been prepared on the
historical cost basis except for certain financial instruments which are
carried at fair value.
The financial information set out above does not constitute the Company's
statutory accounts for the years ended 31 December 2024 and 31 December 2023
but is derived from those accounts. Statutory accounts for 2023 have been
delivered to the Registrar of Companies, and those for 2024 will be delivered
in due course. The Auditors have reported on the 2024 statutory accounts;
their report was (i) unqualified and (ii) did not contain a statement under
Section 498 (2) or (3) of the Companies Act 2006. The text of the Auditors'
report can be found in the Company's full 2024 Annual Report and Financial
Statements on pages 116 to 123.
The 2024 Annual Report and Financial Statements and the Notice of the 2024
Annual General Meeting will be published on the Company's website
at http://www.lucecoplc.com
(https://protect.checkpoint.com/v2/r06/___http:/www.lucecoplc.com/___.ZXV3MjpuZXh0MTU6YzpvOmQwNjg5ZDY0MDMxZDE1YTAxNGY1ODU0M2JjZjQ5MmE0Ojc6OTFjNTo2YmExZmQ3MzkzYWIzNjRjNDVlYmI3NDhkNGJiYjU2ODA0YWJhYjk3YzJiNTY1ZmQ2MWExM2Y1MjRkM2Y2M2UwOnA6VDpU)
as soon as practicable. They will also be submitted to the National Storage
Mechanism where they will be available for inspection at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://protect.checkpoint.com/v2/r06/___https:/data.fca.org.uk/___.ZXV3MjpuZXh0MTU6YzpvOmQwNjg5ZDY0MDMxZDE1YTAxNGY1ODU0M2JjZjQ5MmE0Ojc6ZjgxMzphZTQzYjEyNzZjMjA5YWQ4YjAzMWVhYjA5MDQ1ODA4MjhlMGRkM2VmZTdhNDVkMjdmMGU1YjhmMzRmOTMxNGI0OnA6VDpU#/nsm/nationalstoragemechanism)
.
The Group's accounting policies can be referred to in note 1 of the
consolidated financial statements in the 2023 Annual Report and Financial
Statements.
Going concern
The Directors have concluded that it is reasonable to adopt a going concern
basis in preparing the financial statements. This is based on an expectation
that the Company and the Group have adequate resources to continue in
operational existence for at least 12 months from the date of signing these
accounts and our cash flow forecasts support this. The Group has reported a
profit before tax of £18.9m for the year to 31 December 2024 (2023: £18.9m),
has net current assets of £79.4m (2023: £52.5m) and net assets of £95.8m
(2023: £93.8m), net debt of £75.1m (2022: £22.8m) and net cash from
operating activities of £14.7m (2023: £29.0m). The bank facilities mature on
30 September 2026. The Group is currently in discussions regarding a new
banking facility in order to replace the existing facility and discussions are
progressing in line with expectations.
The capital resources at the Group's disposal at 31 December 2024 and 28
February 2025:
· A revolving credit facility of £120.0m, £65.7m drawn at 31 December
2024 and £65.3m drawn at 28 February 2025
The revolving credit facility requires the Group to comply with the following
quarterly financial covenants:
· Closing Covenant Net Debt of no more than 3.0 times Covenant EBITDA
for the preceding 12-month period
· Covenant EBITDA of no less than 4.0 times Covenant Net Finance
Expense for the preceding 12‑month period
The Directors ran scenario tests on the severe but plausible downside case.
The assumptions in this scenario were as follows: concentration risks with
associated operations (25% reduction in revenue for three months followed by
50% reduction for three months and 20% increase in shipping costs during the
period) and macroeconomic, political and
environmental risks (18-month recession with a 10% reduction in revenue and
gross profit). These severe but plausible downside scenarios do not lead to
any breach in covenants nor any breach in facility. All modelling has been
conducted without any mitigation activity. There have been no changes to post
balance sheet liquidity positions.
The Directors are confident that the Group and Company will have sufficient
funds to continue to meet its liabilities as they fall due for at least 12
months from the date of approval of the financial statements and therefore
have prepared the financial statements on a going concern basis.
Statutory and non-statutory measures of performance - adjusted measures
The financial statements contain all the information and disclosures required
by the relevant accounting standards and regulatory obligations that apply to
the Group.
The Group's performance is assessed using a number of financial measures which
are not defined under IFRS (the financial reporting framework applied by the
Group). Management uses the adjusted or alternative performance measures
(APMs) as a part of their internal financial performance monitoring and when
assessing the future impact of operating decisions. The APMs disclose the
adjusted performance of the Group excluding specific items. The measures allow
a more effective year-on-year comparison and identification of core business
trends by removing the impact of items occurring either outside the normal
course of operations or as a result of intermittent activities such as a
corporate acquisition. The Group separately reports acquisition costs, other
exceptional items and other specific items in the consolidated income
statement which, in the Directors' judgement, need to be disclosed separately
by virtue of their nature, size and incidence in order for users of the
financial statements to obtain a balanced view of the financial information
and the underlying performance of the business.
In following the guidelines on Alternative Performance Measures (APMs) issued
by the European Securities and Markets Authorities, the Group has included a
consolidated income statement and consolidated cash flow statement that have
both Statutory and Adjusted performance measures. The definitions of the
measures used in these results are below and the principles to identify
adjusting items have been applied on a basis consistent with previous years.
Nature of measure Related IFRS measure Related IFRS source Definition Use/relevance
Adjusted Gross Profit Margin Gross Profit Margin Consolidated income statement Based on the related IFRS Allows management to
measure but excluding the assess the performance
adjusting items. of the business after
A breakdown of the removing large/unusual
adjusting items from 2024 items or transactions that
and 2023, which reconciles are not reflective of the
the adjusted measures to underlying business
statutory figures, can be operations
found later in this document
Adjusted Operating Costs Operating Gross profit less Operating profit Consolidated income statement
Adjusted Operating Profit Operating profit Consolidated income statement
Adjusted Basic EPS Basic EPS Consolidated income statement
Constant Currency Current period reviewed translated at the average exchange rate of the prior Allows management
period
to identify the relative
year-on-year performance
of the business by removing
the impact of currency
movements that are outside
of management's control
EBITDA Operating profit Consolidated income statement Consolidated earnings before interest, tax, depreciation and amortisation Provides management with an approximation of cash generation from the Group's
operational activities
Low Carbon Sales Revenue Segmental operating revenue EV charger revenue and LED revenue less sales from lighting columns Provides management with a measure of low
and downlight accessories carbon sales
Adjusted EBITDA Operating profit Consolidated income statement EBITDA excluding the adjusting items excluded from Adjusted Operating Profit Provides management with an approximation of cash generation from the Group's
except for any adjusting items that relate to depreciation and amortisation underlying operating activities
Covenant EBITDA Operating profit Consolidated income statement As above definition of "Adjusted EBITDA" but including EBITDA generated from Aligns with the definition of EBITDA used for bank covenant testing
acquisitions between 1 January and the date of acquisition and excluding
share-based payment expense
Contribution profit Operating profit and operating costs Consolidated income statement Contribution profit is after allocation of directly attributable adjusted Provides management with an assessment of profitability by operating segment
operating expenses for each operating segment
Contribution margin Operating profit and operating costs Consolidated income statement Contribution margin is contribution profit, as above, divided by revenue for Provides management with an assessment of margin by operating segment
each operating segment
Adjusted Operating Cash Flow Cash flow from operations Consolidated cash flow statement Adjusted Operating Cash Flow is the cash from operations but excluding the Provides management with an indication of the amount of cash available for
cash impact of the adjusting items excluded from Adjusted Operating Profit discretionary investment
Adjusted Free Cash Flow Net increase/(decrease) in cash and cash equivalents Consolidated cash flow statement Adjusted Free Cash Flow is calculated as Adjusted Operating Cash Flow less Provides management with an indication of the free cash generated by the
cash flows in respect of investing activities (except for those in respect of business for return to shareholders or reinvestment in M&A activity
acquisitions or disposals), interest and taxes paid
Adjusted Net Cash Flow Net increase/(decrease) in cash and cash equivalents Consolidated cash flow statement Adjusted Free Cash Flow less cash flows relating to dividend payments and the Provides management with an indication of the net cash flows generated by the
purchase of own shares business after dividends and share purchases
Adjusted Operating Cash Conversion None Consolidated cash flow statement and consolidated income statement Operating Cash Conversion is defined as Adjusted Operating Cash Flow divided Allows management to monitor the conversion of operating profit into cash
by Adjusted Operating Profit
Return on Capital Invested ("ROCI") None Operating profit and Net assets Adjusted Operating Profit divided into the sum of net assets and net debt To provide an assessment of how profitability capital is being deployed in the
(average for the last two years) expressed as a percentage business
The following table reconciles all adjustments from the reported to the
adjusted figures in the income statement:
2024 Amortisation of acquired intangibles and related acquisition costs(1) Re-measurement 2024 Adjusted
£m £m to fair value of hedging portfolio(2) Adjustments 2024
£m £m £m
Revenue 242.5 - - - 242.5
Cost of sales (145.0) - (0.3) (0.3) (145.3)
Gross profit 97.5 - (0.3) (0.3) 97.2
Distribution expenses (11.3) - - - (11.3)
Administrative expenses (63.0) 6.1 - 6.1 (56.9)
Operating profit 23.2 6.1 (0.3) 5.8 29.0
Net finance expense (4.3) - 0.2 0.2 (4.1)
Profit before tax 18.9 6.1 (0.1) 6.0 24.9
Taxation (4.3) (1.4) - (1.4) (5.7)
Profit for the period 14.6 4.7 (0.1) 4.6 19.2
1. Relating to Kingfisher Lighting, DW Windsor, Sync EV, D-Line and CMD
2. Relating to currency hedges/interest swaps
2023 Amortisation of acquired intangibles and related acquisition costs(1) Re-measurement 2023 Adjusted
£m £m to fair value of hedging portfolio(2) Adjustments 2023
£m £m £m
Revenue 209.0 - - - 209.0
Cost of sales (126.2) - (0.5) (0.5) (126.7)
Gross profit 82.8 - (0.5) (0.5) 82.3
Distribution expenses (8.6) - - - (8.6)
Administrative expenses (52.0) 2.3 - 2.3 (49.7)
Operating profit 22.2 2.3 (0.5) 1.8 24.0
Net finance expense (3.3) - 0.5 0.5 (2.8)
Profit before tax 18.9 2.3 - 2.3 21.2
Taxation (2.2) (1.7) - (1.7) (3.9)
Profit for the period 16.7 0.6 - 0.6 17.3
1. Relating to Kingfisher Lighting, DW Windsor and Sync EV
2. Relating to currency hedges/interest swaps
The following tables indicate how alternative performance measures are
calculated:
2024 2023
Adjusted 12 months rolling EBITDA £m £m
Adjusted Operating Profit 29.0 24.0
Adjusted Depreciation and Amortisation 7.9 7.4
Adjusted 12 months rolling EBITDA 36.9 31.4
2024 2023
Covenant EBITDA £m £m
Adjusted 12 months rolling EBITDA 36.9 31.4
EBITDA from acquisitions from 1 January to the date of acquisition and share 4.8 0.8
based payment expense
Covenant EBITDA 41.7 32.2
2024 2023
Adjusted Operating Cash Conversion £m £m
Cash from operations (from consolidated cash flow statement) 21.0 32.6
Adjustments to operating cash flow (from consolidated cash flow statement) 0.7 -
Adjusted Operating Cash Flow 21.7 32.6
Adjusted Operating Profit 29.0 24.0
Adjusted Operating Cash Conversion 74.8% 135.8%
2024 2023
Adjusted Net Cash Flow as % of revenue £m £m
Adjusted Free Cash Flow (see below) 3.5 18.0
Purchase of own shares (4.7) (1.6)
Dividends (7.5) (7.2)
Adjusted Net Cash Flow (8.7) 9.2
Revenue 242.5 209.0
Adjusted Net Cash Flow as % of revenue (3.6%) 4.4%
2024 2023
Adjusted Free Cash Flow as % of revenue £m £m
Adjusted Operating Cash Flow (see table above) 21.7 32.6
Net Cash used in investing activities excluding acquisitions (from (7.8) (8.2)
consolidated cash flow statement)
Interest paid (from consolidated cash flow statement) (4.1) (2.8)
Tax paid (from consolidated cash flow statement) (6.3) (3.6)
Adjusted Free Cash Flow 3.5 18.0
Revenue 242.5 209.0
Adjusted Free Cash Flow as % of revenue 1.4% 8.6%
2024 2023
Return on Capital Investment £m £m
Net assets 95.8 93.8
Net debt 75.1 22.8
Capital invested 170.9 116.6
Average capital invested (from last two years) 143.8 116.4
Adjusted Operating Profit (from above) 29.0 24.0
Return on Capital Invested (Adjusted Operating Profit/average capital 20.2% 20.6%
invested)
Standards and interpretations issued
The following UK-adopted IFRS have been issued and have been applied in these
financial statements. Their adoption did not have a material effect on the
financial statements, unless otherwise indicated, from 1 January 2024:
• Non-current Liabilities with Covenants - Amendments to IAS 1
• Classification of Liabilities as Current or Non-current - Amendments to IAS 1
• Lease Liability in a Sale and Leaseback - Amendments to IFRS 16
• Supplier Finance Arrangements - Amendments to IAS 7 and IFRS 7
The following UK adopted IFRS have been issued but have not been applied and
adoption is not expected to have a material effect on the financial
statements, unless otherwise indicated, from 1 January 2025:
• Lack of Exchangeability - Amendments to IAS 21 (1 January 2026)
• Classification and Measurement of Financial Instruments - Amendments to IFRS 9
and IFRS 7 Annual Improvements to IFRS Accounting Standards - Volume 11 (1
January 2026)
• IFRS 18 Presentation and Disclosure in Financial Statements IFRS 19
Subsidiaries without Public Accountability: Disclosures (1 January 2027)
2. Operating segments
The Group's principal activities are in the manufacturing and supply of Wiring
Accessories, LED Lighting and Portable Power equipment. For the purposes of
management reporting to the Chief Operating Decision-Maker (the Board), the
Group consists of three operating segments which are the product categories
that the Group distributes. The Board does not review the Group's assets and
liabilities on a segmental basis and, therefore, no segmental disclosure is
included. Inter-segment sales are not material. Revenue and operating profit
are reported under IFRS 8 Operating Segments.
Adjusted Reported Adjusted Reported
2024 Adjustments 2024 2023 Adjustments 2023
£m £m £m £m £m £m
Revenue
Wiring Accessories 108.9 - 108.9 82.6 - 82.6
LED Lighting 78.4 - 78.4 79.0 - 79.0
Portable Power 55.2 - 55.2 47.4 - 47.4
242.5 - 242.5 209.0 - 209.0
Operating profit
Wiring Accessories 19.1 (4.2) 14.9 15.0 0.3 15.3
LED Lighting 4.1 (1.4) 2.7 4.7 (1.5) 3.2
Portable Power 5.8 (0.2) 5.6 4.3 (0.6) 3.7
Operating profit 29.0 (5.8) 23.2 24.0 (1.8) 22.2
Revenue by location of customer
2024 2023
£m £m
UK 184.2 173.6
Americas 22.5 8.6
Europe 21.5 12.9
Middle East and Africa 10.3 8.3
Asia Pacific 4.0 5.6
Total revenue 242.5 209.0
Non-current assets by location
2024 2023
£m £m
UK 86.4 57.3
China 14.4 15.3
Other 0.5 0.3
Non-current assets 101.3 72.9
3. Expenses recognised in the consolidated income statement
Included in the consolidated income statement are the following:
2024 2023
£m £m
Research and development costs expensed as incurred 3.2 2.3
Depreciation of property, plant and equipment and right-of-use assets 6.5 5.9
Amortisation of intangible assets 3.7 3.4
4. Income tax expense
2024 2023
£m £m
Current tax expense
Current year - UK 4.8 2.9
Current year - overseas 0.2 -
Adjustment in respect of prior years 0.1 (0.5)
Current tax expense 5.1 2.4
Deferred tax expense/(credit)
Origination and reversal of temporary differences (1.1) 0.9
Foreign taxation 0.3 -
Adjustment in respect of prior years - (1.3)
Effect of tax rate change on opening balance - 0.2
Deferred tax (credit) (0.8) (0.2)
Total tax expense 4.3 2.2
2024 2023
Reconciliation of effective tax rate £m £m
Profit for the year 14.6 16.7
Total tax expense 4.3 2.2
Profit before taxation 18.9 18.9
Tax using the UK corporation tax rate of 25.0% (effective from 1 April 2023) 4.7 4.4
R&D tax credits (0.5) (0.4)
Non-deductible expenses 0.5 0.1
Adjustment in respect of previous periods 0.1 (1.8)
Effect of rate change in calculation of deferred tax - 0.3
Foreign tax differences in rates (0.6) (0.5)
Deferred tax on share-based payments (0.1) -
Movement in deferred tax not recognised - 0.1
Acquisitions of entities 0.2 -
Total tax expense 4.3 2.2
5. Earnings per share
Earnings per share is calculated based on the profit for the period
attributable to the owners of the Group. Adjusted earnings per share is
calculated based on the adjusted profit for the period, as detailed below,
attributable to the owners of the Group. These measures are divided by the
weighted average number of shares outstanding during the period.
2024 2023
£m £m
Earnings for calculating basic earnings per share 14.6 16.7
Adjusted for:
Restructuring of European operations - -
Amortisation of acquired intangibles and related acquisition costs 6.1 2.3
Remeasurement to fair value of hedging portfolio (0.3) (0.5)
Remeasurement to fair value of interest swaps 0.2 0.5
Income tax on above items (1.4) (0.5)
Other tax items - (1.2)
Adjusted earnings for calculating adjusted basic earnings per share 19.2 17.3
2024 2023
Number Number
Weighted average number of ordinary shares Million Million
Basic 153.2 155.2
Dilutive effect of share options on potential ordinary shares 0.9 1.3
Diluted 154.1 156.5
2024 2023
Pence Pence
Basic earnings per share 9.5 10.8
Diluted earnings per share 9.5 10.7
Adjusted basic earnings per share 12.5 11.1
Adjusted diluted earnings per share 12.5 11.1
6. Dividend
Amounts recognised in the financial statements as distributions to equity
shareholders as follows:
2024 2023
£m £m
Final dividend for the year ended 31 December 2023 of 3.2p (2022: 3.0p) per 4.9 4.7
ordinary share
Interim dividend for the year ended 31 December 2024 of 1.7p (2023: 1.6p) per 2.6 2.5
ordinary share
Total dividend recognised during the year 7.5 7.2
The Board is proposing a final dividend for the year ended 31 December 2024 of
3.3p which is a £5.1m cash payment (2023: £4.9m).
7. Property, plant and equipment
During the year, the Group purchased assets at a cost of £5.0m (2023:
£6.4m); including land and buildings £1.8m, plant and equipment £1.5m,
tooling £1.3m, and fixtures and fittings and motor vehicles £0.4m. Assets
with a net book value of £0.3m were disposed (2023 £0.2m). Total
depreciation for the period was £3.8m (2023: £3.9m).
During the year there were lease additions totalling £1.9m and a depreciation
charge of £2.7m. The net book value of right-of-use assets at 31 December
2024 was £9.7m (2024: £7.6m).
The Group has not included any borrowing costs within additions in 2024 (2023:
£nil). There were no funds specifically borrowed for the assets and the
amount eligible as part of the general debt instruments pool (after applying
the appropriate capitalisation rate) is not considered material.
8. Intangible assets and goodwill
Development expenditure is capitalised and included in intangible assets when
it meets the criteria laid out in IAS 38, "Intangible Assets". During the
year, the Group incurred internally generated development costs of £1.9m
(2023: £1.8m). The Group has not included any borrowing costs within
capitalised development costs. There were no funds specifically borrowed for
this asset and the amount eligible as part of the general debt instruments
pool (after applying the appropriate capitalisation rate) is not considered
material. Amortisation for the year was £3.7m (2023: £3.4m).
In the consolidated income statement these amounts have been included within
"adjustments" in calculating the Adjusted Operating Profit/loss (refer to note
1 in the Notes to the consolidated financial statements).
There have been no triggers to necessitate an impairment of goodwill since the
review undertaken as part of the year ended 31 December 2024. Goodwill has
been allocated to cash-generating units and can be referred to in the Group's
2024 Annual Report and Financial Statements.
9. Interest-bearing loans and borrowings
This note provides information about the contractual terms of the Group's
interest-bearing loans and borrowings, which are measured at amortised cost.
For more information about the Group's exposure to interest rate and foreign
currency risk, please refer to note 20 in the 2024 Annual Report and
Financial Statements.
2024 2023
£m £m
Non-current liabilities
Revolving credit facility 70.5 22.3
Overdrafts 1.5 -
72.0 22.3
Bank loans are secured by a fixed and floating charge over the assets of the
Group.
10. Acquisitions
D-line
The Group acquired the entire issued share capital of D-Line (Europe) Limited
("D-Line") on 29 February 2024 for £8.6m initial cash consideration and up to
£3.8m of contingent consideration which is estimated to be £0.8m. D-Line is
a supplier of cable management solutions offering an additional product
opportunity for the Group, consisting of decorative cable trunking and
accessories, fire-rated cable supports, floor cable protector and cable
organisers, with headquarters in Tyne and Wear in the UK. The business
supplies retail, wholesale and eCommerce customers mainly in the UK, Europe
and North America. The business supports its customers in North America from a
sales and distribution facility in Kentucky, USA. The fair value, which is
currently provisional (as the Group will continue to review these during the
measurement period), of the consideration paid and the consolidated net assets
acquired, together with the goodwill arising in respect of this acquisition,
was as follows: acquired On 29 February 2024, the Group acquired the entire
issued share capital of D-Line, the supplier of cable management solutions for
initial consideration of £8.6m. The fair value (which is currently being
assessed in conjunction with our independent valuation experts who have not
issued their final report) of the consideration paid and the consolidated net
assets acquired, together with the goodwill arising in respect of this
acquisition, was as follows:
Provisional fair value estimate on acquisition
£m
Intangible assets (contract related and other intangibles arising on 2.8
acquisition)
Property, plant and equipment 2.8
Inventories 5.6
Trade and other receivables 2.0
Cash 0.8
Finance lease (1.7)
Corporation tax (liability) (0.1)
Deferred tax (liability) (1.1)
Provisions (0.9)
Trade and other payables (2.2)
Total 8.0
Consideration - cash 8.6
Contingent consideration 0.8
Goodwill arising 1.4
Goodwill of £1.4m has been provisionally allocated with £0.7m to the Wiring
Accessories CGU and £0.7m to D-Line CGU reflecting the synergised business
case opportunities. Since acquisition revenue from D-Line has been £18.9m
with operating profit of £1.7m.
CMD
The Group acquired the entire share capital of CMD ("CMD") on 27 September
2024 for £29.8m initial cash consideration on a debt-free basis. The
consideration paid was £14.0m plus the pay down of £15.8m of debt. CMD
(www.cmd-ltd.com), founded in 1984, designs and manufactures a comprehensive
range of wiring accessories for commercial premises and therefore is a strong
strategic fit for the Group, where it holds a leading position in the UK.
Products include under-floor and under-desk power distribution solutions,
on-desk and in-desk sockets, and a range of ergonomic products including the
award-winning Miro monitor support arm. CMD has an experienced senior
management team which will remain with the business, continuing to operate
from its headquarters in Rotherham. The fair value, which is currently
provisional (as the Group will continue to review these during the measurement
period), of the consideration paid and the consolidated net assets acquired,
together with the goodwill arising in respect of this acquisition, was as
follows:
Provisional fair value estimate on acquisition
£m
Intangible assets (contract related and other intangibles arising on 8.9
acquisition)
Property, plant and equipment 4.6
Inventories 5.3
Trade and other receivables 4.4
Cash 0.1
Finance lease (1.2)
Corporate tax asset 0.2
Deferred tax (liability) (2.6)
Provisions -
Trade and other payables (2.5)
Total 17.2
Consideration - cash 29.8
Goodwill arising 12.6
Goodwill of £12.6m has been provisionally allocated with £6.4m to the CMD
CGU, £3.9m to the Wiring Accessories CGU and £2.3m to the LED CGU reflecting
the synergised business case opportunities identified. Since acquisition
revenue from CMD has been £4.8m with operating profit of £0.1m.
11. Exchange rates
The following significant Sterling exchange rates were applied during the
year:
Average rate Reporting date spot rate
2024 2023 2024 2023
USD 1.28 1.24 1.25 1.27
EUR 1.18 1.15 1.21 1.15
RMB 9.20 8.81 9.15 9.00
12. Related party transactions
Transactions with key personnel
Key personnel include executive and non-executive Board members and the senior
management team. The compensation of key management personnel, including
executive directors is as follows:
2024 2023
£m £m
Remuneration (including benefits in kind) 4.7 5.1
Element of share-based payments expense 1.4 0.9
6.1 6.0
13. Post balance sheet events
There are no post balance sheet events.
14. Annual General Meeting (AGM)
The 2025 AGM will take place on 20 May 2025 at Peel Hunt LLP, 100 Liverpool
Street, London, EC2M 2AT. The notice of AGM and any related documents will
be sent to shareholders within the prescribed timescales. Shareholders will be
encouraged to submit their proxy votes online.
15. Date of approval of financial information
The financial information covers the year 1 January 2024 to 31 December 2024
and was approved by the Board on 25 March 2025. A copy of the 2024 Annual
Report and Financial Statements will be published on the Luceco PLC investor
relations website, www.lucecoplc.com
(https://protect.checkpoint.com/v2/r06/___http:/www.lucecoplc.com___.ZXV3MjpuZXh0MTU6YzpvOmQwNjg5ZDY0MDMxZDE1YTAxNGY1ODU0M2JjZjQ5MmE0Ojc6YjZlODo5YjU3ZWMzMmY2ZTE5NTI5NTAwNDYyZGM0NTliYWJlODFlYWI0NDg0YjA2YzYwMDU2NGUxODQxYTQzMTAyODdhOnA6VDpU)
as soon as practicable.
Additional information
Financial calendar
Item Date
Ex-dividend date 10 April 2025
Dividend record date 11 April 2025
Dividend reinvestment plan final date for election 30 April 2025
Annual General Meeting 20 May 2025
Dividend paid 22 May 2025
2025 Half year end 30 June 2025
2025 Half year trading update 22 July 2025
2025 Half year results 09 September 2025
2025 Q3 Trading update 22 October 2025
2025 Year end 31 December 2025
2025 Year end preliminary statement March 2026
Contacts
Type Name Address Website/Email/Phone
Company's registered office Luceco plc Building E Stafford Park 1 www.lucecoplc.com
(https://protect.checkpoint.com/v2/r06/___http:/www.lucecoplc.com___.ZXV3MjpuZXh0MTU6YzpvOmQwNjg5ZDY0MDMxZDE1YTAxNGY1ODU0M2JjZjQ5MmE0Ojc6YjZlODo5YjU3ZWMzMmY2ZTE5NTI5NTAwNDYyZGM0NTliYWJlODFlYWI0NDg0YjA2YzYwMDU2NGUxODQxYTQzMTAyODdhOnA6VDpU)
Stafford Park
ir@luceco.com
Telford
TF3 3BD
Independent auditor KPMG LLP Chartered Accountants www.kpmg.co.uk
(https://protect.checkpoint.com/v2/r06/___http:/www.kpmg.co.uk___.ZXV3MjpuZXh0MTU6YzpvOmQwNjg5ZDY0MDMxZDE1YTAxNGY1ODU0M2JjZjQ5MmE0Ojc6MzRiOTpkYjYyZWFjN2QyNzIxNDEzODRhMTI3OTMzNmQ0OThiNTIyYmZhYmJlOGFkMjc1ZmUxZjEyNDdhMTkzY2JmMTNjOnA6VDpU)
One Snowhill
Snow Hill Queensway
Birmingham
B4 6GH
Financial advisors and brokers Deutsche Numis 45 Gresham Street www.numis.com
(https://protect.checkpoint.com/v2/r06/___http:/www.numis.com___.ZXV3MjpuZXh0MTU6YzpvOmQwNjg5ZDY0MDMxZDE1YTAxNGY1ODU0M2JjZjQ5MmE0Ojc6MzRkNDoxMzI1NTcxNzFhZWZjNzI1MzU0MzVlYmFjZTZkZmRlZWExN2Y4ODJhMmM2NGUyYWZjYmQ4NWFlMzQyOTBlZThiOnA6VDpU)
London
EC2V 7BF
Peel Hunt Moor House www.p
(https://protect.checkpoint.com/v2/r06/___http:/www.peelhunt.com___.ZXV3MjpuZXh0MTU6YzpvOmQwNjg5ZDY0MDMxZDE1YTAxNGY1ODU0M2JjZjQ5MmE0Ojc6Y2E2OTo2NzhmNzkyZWVlN2U3NjUzZmI2ZWU3YjRhZThjNTY0MjgzNDc3MjViNzdkNzM4MWEyODhmNzZhMDhhNDEzYTEyOnA6VDpU)
100 Liverpool Street eelhunt
(https://protect.checkpoint.com/v2/r06/___http:/www.peelhunt.com___.ZXV3MjpuZXh0MTU6YzpvOmQwNjg5ZDY0MDMxZDE1YTAxNGY1ODU0M2JjZjQ5MmE0Ojc6Y2E2OTo2NzhmNzkyZWVlN2U3NjUzZmI2ZWU3YjRhZThjNTY0MjgzNDc3MjViNzdkNzM4MWEyODhmNzZhMDhhNDEzYTEyOnA6VDpU)
London .com
(https://protect.checkpoint.com/v2/r06/___http:/www.peelhunt.com___.ZXV3MjpuZXh0MTU6YzpvOmQwNjg5ZDY0MDMxZDE1YTAxNGY1ODU0M2JjZjQ5MmE0Ojc6Y2E2OTo2NzhmNzkyZWVlN2U3NjUzZmI2ZWU3YjRhZThjNTY0MjgzNDc3MjViNzdkNzM4MWEyODhmNzZhMDhhNDEzYTEyOnA6VDpU)
EC2M 2AT
Company registrar MUFG Central Square shareholderenquiries@cm.mpms.mufg.com
(mailto:shareholderenquiries@cm.mpms.mufg.com)
29 Wellington Street
Tel: +44 (0)371 664 0300
Leeds
LS1 4DL
Company Secretary MUFG 19(th) Floor luceco@cm.mpms.mufg.com
51 Lime Street Tel: +44 (0)333 300 1932
London
EC3M 7DQ
Financial PR MHP Communications 60 Great Portland Street luceco@mhpgroup.com (mailto:luceco@mhpgroup.com)
London Tel: +44 (0)20 3128 8100
W1W 7RT
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