REG - Luceco PLC - Q3 2024 Trading Update

LucecoAnnouncement

24/10/2024 07:00

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RNS Number : 3755J  Luceco PLC  24 October 2024

24 October 2024

 

LUCECO PLC - Q3 2024 TRADING UPDATE

 

 

 Encouraging Q3 performance with healthy revenue growth

 Full year expectations unchanged and cautiously optimistic for 2025

 

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 for the three months ended 30 September 2024 ("Q3 2024" or
the "third quarter").

 

Q3 2024 Trading

 

·   The Group achieved 3.0% year-on-year revenue growth in Q3 2024, and
year-to-date growth of 6.4%.

·    Gross margin has remained in line with expectations for this quarter
at just below 40%.

·    On a like-for-like basis Q3 2024 revenue was down 3.6%. However,
strong fourth quarter order book supports like-for-like revenue growth
expectations for the second half.

·    Encouraging sales growth in the Group's Residential RMI related
divisions (circa two thirds of Group sales). This more than compensates for
the reduction in infrastructure revenue (c.15% of Group sales) reflecting its
dependence on individual project timings.

·    Our Residential EV Charging business is growing strongly (up by 44%
in Q3 year-on-year).

 

M&A activity

·    £30m acquisition of CMD announced on 30 September 2024, adding a
market-leading designer and manufacturer of wiring accessories for the
workplace. Its products include under-floor and under-desk power distribution
solutions, on-desk and in-desk sockets, and a range of award-winning ergonomic
products.

·    The Group is pleased by the good progress towards unlocking the
significant sourcing and other operational synergies which are a feature of
the two acquisitions made during the year.

·    Luceco continues to review a healthy pipeline of M&A
opportunities.

 

Balance Sheet

 

·    Bank Net Debt at the third quarter end of £67.4m, giving a Bank Net
Debt : EBITDA leverage ratio of 1.8x, comfortably within our target leverage
range of 1-2x. Given the Group's excellent track record of strong cash
generation, we expect to be towards the middle of this range by the end of
2025.

·    In order to facilitate further investment in growth, the Group has
recently exercised its option for its £40m accordion facility to provide a
total bank debt facility of £120m.

·    Strong balance sheet and cash flow generation provides optionality
for further organic and M&A opportunities consistent with the Group's
stated capital allocation objective.

 

Outlook

·    The Group's profit expectations remain in line with full year
consensus*.

·    Healthy order book underpins our expectations for like-for-like
revenue growth in the second half, and for full year total revenue growth to
exceed 10%.

·    Recent growth in UK residential property transactions suggests
improving residential RMI sentiment, giving us cause for optimism for 2025 and
beyond.

·    Container shipping costs have eased considerably during the quarter
and are now close to historic norms.

·    We are excited by the imminent launch of EV Chargers for Commercial
Premises, as well as a Home Energy Management System for integrating
Residential Batteries, EV Chargers, PV Solar Systems and Heating Controls.

·    We are mindful of macroeconomic uncertainty but remain very confident
in the Group's long term prospects.

 

Commenting on trading, Chief Executive Officer, John Hornby said:

 

"Luceco continues to deliver growth despite a challenging market backdrop and
we are excited by the recent acquisition of CMD, a market-leading manufacturer
of wiring accessories for the workplace. Improving market sentiment underpins
our belief that 2025 will see a return to more normalised growth in our
markets. The Group's diverse portfolio and channels have contributed to the
good trading performance in the year to date and our profit expectations for
the full year remain unchanged."

 

*consensus at 23(rd) October 2024, full year 2024 Adjusted Operating Profit
£26.5m (Analyst Range £26.0m - £27.2m)

 

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

 MHP                                   Contact
 Tim Rowntree                          07817 458804
 Ollie Hoare

 

 

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
(https://protect.checkpoint.com/v2/___http:/www.lucecoplc.com___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzoxOTNlNDlhMDUwZTAwYWRhZDA4ZTViZjQzYzMyNmM4ODo2OmE4YmU6OTYwMjE1YzE2YzEyY2NkN2UwZWIzYTZmOTk1MWQ1YWE4MDhmYzJjMjk5YWI5MzlmMjM4NjRjZTAxNzlmZWMzMTpwOlQ6Tg)
.

 

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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