REG - Luceco PLC - H1 2023 Trading Update

LucecoAnnouncement

18/07/2023 07:00

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RNS Number : 2878G  Luceco PLC  18 July 2023

18 July
2023

 

 

LUCECO PLC - H1 2023 TRADING UPDATE

 

 

 Encouraging first half performance.

 Full year guidance towards the upper end of market expectations.

 Remain vigilant to the changing economic environment.

 

Luceco plc ("Luceco" or "the Group"), the supplier of wiring accessories, EV
chargers, LED lighting, and portable power products, is pleased to provide the
following update on trading for the six months ended 30 June 2023 ("H1 2023").

 

 

 Highlights

 

Trading

 

·    The Group ended H1 2023 ahead of our expectations with revenue of c.
£101M, c. 5.0% lower than H1 2022 and c. 5.7% lower on a like-for-like basis,
as the current economic environment reduces residential RMI spending.

·    Gross margin percentage has continued to improve from the second half
of 2022.

·    Adjusted Operating Profit is expected to be no less than £10.5m,
ahead of our expectations.

·    Post-pandemic customer destocking appears to have ended.

 

Balance Sheet

 

·   Our covenant net debt ratio of 1.3x remains at the lower end of the
target range of 1.0 - 2.0x EBITDA.

·   Working capital increased during H1 2023 as activity recovers following
the impact of customer destocking at the end of 2022. We expect cash
generation to improve in the second half.

·   The Group has significant available facilities to fund both organic
investment and M&A.

 

 

 Outlook

 

·    Trading in H1 2023 has been ahead of expectations, with
non-residential project demand continuing its favourable trend, and the newly
acquired businesses of SynvEV and D W Windsor both performing well.

·    Despite the less encouraging macro-economic indicators, current
activity levels across the Group are healthy and supported by a strong Q3
order book.

·    Assuming demand continues at current levels and is not impacted by
macro-economic headwinds, we anticipate that Adjusted Operating Profit for the
full year will be towards the upper end of the range of current market
expectations*.

 

Commenting on the results, Chief Executive Officer, John Hornby said:

 

"It is encouraging to again see our gross profit margin improving and
reassuring that our order book supports a good outlook for Q3. Material and
freight cost pressures continue to ease on the whole, but wage pressures
remain. We are excited by a number of product developments which provide us
with good medium and long-term opportunities for growth, particularly within
the EV business.  We continue to build an attractive M&A pipeline.
Historically the Group has enjoyed a stronger second half and, whilst we are
mindful of the current economic environment, we expect a similar profile again
this year."

 

*consensus at the 17(th) July 2023, full year 2023 Adjusted Operating Profit
£20.3m (Analyst Range £19.2 - 21.9m)

 

 Luceco plc                            Contact
 John Hornby, Chief Executive Officer  020 3128 8276 (Via MHP)
 Will Hoy, Chief Financial Officer     020 3128 8276 (Via MHP)

 MHP                                   Contact
 Tim Rowntree                          020 3128 8004
 Ollie Hoare                           020 3128 8276

 

This announcement is released by Luceco plc and contains inside information
for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014
(MAR). It is disclosed in accordance with the Company's obligations under
Article 17 of MAR. Upon the publication of this announcement, this information
is considered to be in the public domain.

 

For the purposes of MAR and Article 2 of Commission Implementing Regulation
(EU) 2016/1055, this announcement is being made on behalf of Luceco plc by
Will Hoy, Chief Financial Officer.

 

Note to Editors

 

Luceco plc - Bringing Power To Life

 

Luceco plc (LSE:LUCE) is a supplier of wiring accessories, EV chargers, LED
lighting, and portable power products.

 

For more information, please visit www.lucecoplc.com
(http://www.lucecoplc.com) .

 

Forward-looking statements

 

This announcement contains forward‑looking statements that are subject to
risk factors associated with, among other things, the economic and business
circumstances occurring from time to time in the countries, sectors and
markets in which the Group operates. It is believed that the expectations
reflected in these statements are reasonable, but they may be affected by a
wide range of variables which could cause actual results to differ materially
from those currently anticipated. No assurances can be given that the
forward‑looking statements in this announcement will be realised.

 

The forward‑looking statements reflect the knowledge and information
available at the date of preparation of this announcement and the Company
undertakes no obligation to update these forward‑looking statements. Nothing
in this announcement should be construed as a profit forecast.

 

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