Luceco PLC Closure of US business (1011Q)
June 04 2018 - 1:00AM
UK Regulatory
TIDMLUCE
RNS Number : 1011Q
Luceco PLC
04 June 2018
4 June 2018
Luceco plc ("Luceco" or "the Group")
Closure of US business
Luceco, the manufacturer and distributor of high quality and
innovative LED lighting products, wiring accessories and portable
power products, is today announcing the forthcoming closure of its
US business.
In 2017, the Houston-based business delivered revenue of GBP4.2m
and an operating loss of GBP1.9m. One-off closure costs are
estimated to be approximately GBP2m but will be cash neutral. The
business is expected to cease operations in Q3 2018.
John Hornby, CEO of Luceco, commented:
"Our US business was one of six new markets opened in the last
five years as part of our strategy of international expansion.
Whilst this strategy has been overwhelmingly successful and our new
businesses in Europe, Mexico and Asia are delivering rapid revenue
growth and market share gains, the US has proven a more difficult
market to penetrate. We have therefore taken the difficult decision
to prioritise our other, more compelling international growth
opportunities."
Further enquiries:
For further information, please contact
Luceco plc via MHP Communications
John Hornby, Chief Executive Officer 020 3128 8100
Matt Webb, Chief Financial Officer
MHP Communications 020 3128 8100
Tim Rowntree
James White
Ollie Hoare
Notes to Editors:
Luceco is a rapidly growing manufacturer and distributor of high
quality and innovative LED lighting products and wiring accessories
for a global customer base.
The Group supplies trade distributors, retailers, wholesalers
and project developers with a wide range of products which broadly
fall into the following market recognised brands:
- Luceco: energy efficient LED lighting products and associated accessories;
- British General (BG): wiring accessories (including switches,
sockets), circuit protection and cable management products;
- Masterplug: cable reels, extension leads, surge protection, timers and adaptor products; and
- Ross: television wall mounts, audio visual accessories and other items.
The Luceco LED lighting brand continues to benefit from the
disruptive shift away from mature lighting technologies as a result
of the material advancement in LED technology in recent years. The
brand has continued to successfully leverage the Group's existing
customer base and low cost Chinese manufacturing facility.
Consequently, it remains well positioned to build on its impressive
organic growth trajectory to date.
In the electrical wiring accessories market, Luceco's BG and
Masterplug brands have continued to reinforce their market leading
positions through further new product development initiatives,
expanding into new product adjacencies and gaining market
share.
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END
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