14 May 2024
LUCECO PLC - Q1 2024 TRADING
UPDATE
Strong start to the year,
with performance up on last year
Confident outlook supported
by strong order book - full year expectations
unchanged
|
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 31 March 2024 ("Q1
2024" or the "quarter").
Q1
2024 Trading
·
The Group has performed strongly in the
quarter.
·
Q1 2024 revenue at £51m, +6.2% year on year and
+4.5% on a like-for-like basis.
· Adjusted operating profit increased 30% year on year,
benefitting from the end of de-stocking pressures which ended in H1
2023.
· Adjusted operating margin improvement year on year, driven by
strong operational leverage.
Balance Sheet and Dividend
·
Covenant Net Debt : EBITDA ratio remains at 0.8x,
below our target range of 1-2x.
·
Purchase of D-line for £8.6m (plus contingent
deferred consideration of £3.8m) at the end of February 2024
creates opportunity for synergies in our UK and international
territories.
·
Strong balance sheet and cash flow generation
provides optionality for further M&A consistent with the
Group's stated capital allocation policy.
·
The Board is proposing to pay a final dividend of
3.2p, subject to approval at the AGM today. This final dividend
takes the full-year dividend to 4.8p representing a payout of 43%
of 2023 earnings.
Outlook
· The Group is encouraged by the strong start to the year and is
performing comfortably in line with market expectations.
· We continue to monitor the copper price and developments in
the Red Sea but note that we have hedging arrangements in place
that offer an element of short-term protection for copper and
freight costs have eased from the elevated levels seen at the start
of the year.
· Key industry metrics, though still in decline, are beginning
to trend in our favour, providing some optimism for the second half
of the year.
· We are pleased with the strength of our order books, which
should yield H1 like-for-like organic growth of c. 5%.
Commenting on trading, Chief Executive Officer, John Hornby
said:
"Luceco has performed strongly in the first quarter of the
year and we are trading comfortably in line with expectations. Key
industry metrics are starting to suggest more favourable
conditions, and this provides optimism for the second half of the
year. The Group is continuing to identify new organic and M&A
opportunities for investment, leveraging our market position and
aided by our strong cash flow and balance sheet."
Luceco plc
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Contact
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John Hornby, Chief Executive
Officer
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07817 458804 (Via MHP)
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Will Hoy, Chief Financial
Officer
|
|
|
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MHP
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Contact
|
Tim Rowntree
|
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Ollie Hoare
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07817 458804
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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.
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.