REG - Luceco PLC - Q1 2023 Trading Update

LucecoAnnouncement

10/05/2023 07:00

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RNS Number : 8592Y  Luceco PLC  10 May 2023

 

10 May
2023

 

 

LUCECO PLC - Q1 2023 TRADING UPDATE

 

 

 Encouraging start to the year

 Optimistic although remain conscious of macro uncertainties. Full year
 expectations unchanged

 

Luceco plc ("Luceco", "the Group" or "the Company"), the supplier of wiring
accessories, EV chargers, LED lighting, and portable power products, provides
the following update on trading for the three months ended 31 March 2023 ("Q1
2023" or "the quarter").

 

 

 Q1 2023

 

Trading

 

·    The Group traded in line with expectations in Q1 2023, with the
slower residential RMI market seen in the second half of 2022 continuing in Q1
2023. The comparatives get easier as the year progresses.

·    Q1 2023 revenue at £48m is 5% lower than Q1 2022, 9% lower on a
like-for-like basis.

·   The stronger gross margin we experienced in the second half of 2022 of
above 38% has continued into the first quarter of 2023.

·   The current activity levels across the Group are in line with our
expectations. Customer destocking was broadly in line with our expectations
for Q1 2023 and we continue to estimate that customers only need to reduce
their inventory levels by a total of c.£5m in 2023 to achieve their current
targeted inventory cover.

 

Balance Sheet and Dividend

 

·   Our covenant net debt ratio of 0.9x remains below our target range of
1-2x EBITDA.

·   The Group has significant facilities available for future investment
both organically and through M&A.

·    The Board is proposing to pay a final dividend of 3.0p, subject to
approval at the AGM today.  This final dividend takes the full-year dividend
to 4.6p representing a payout of 41% of 2022 earnings and 100% increase on
2019.

·    The final dividend will be paid on 19 May 2023 to shareholders on the
register on 11 April 2023.

 

 

 

 Outlook

 

·    Trading in the first quarter of 2023 has been in line with our
expectations.

·    Macroeconomic conditions remain difficult to judge, with leading
indicators continuing to suggest residential RMI markets will remain
challenging.

·    The tailwind from slowing cost inflation outlined at the full year
2022 results continues and should show benefits later in the year, once it has
worked its way through our inventory.

·    Non-residential project demand has also continued its favourable
trend.

 

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

 

"We continued to trade in line with expectations in the first quarter of the
year and are encouraged that our business performance is beginning to gain
momentum. We are optimistic for the remainder of 2023, whilst maintaining an
element of caution recognising that macroeconomic conditions remain difficult
to judge. We are excited by a number of product developments which provide us
with medium and long-term opportunities to grow the business."

 

 

 

 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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