TIDMLUCE
RNS Number : 4483Y
Luceco PLC
13 May 2021
13 May 2021
Luceco plc
2021 AGM Trading Update
Strong momentum continues in 2021
Luceco plc ("the Group" or "Luceco"), the manufacturer and
distributor of wiring accessories, LED lighting and portable power
products, is pleased to provide the following update on trading for
the four months ended 30 April 2021, ahead of its AGM to be held
later today.
Our strong trading momentum has continued in 2021. We have seen
robust demand in all major sales channels, with revenue growth
accelerating as expected against a comparative period weakened by
the first wave of COVID lockdowns. We have taken swift action to
protect our margins from rapid, industry-wide inflation in raw
material and freight prices and kept overheads under tight
control.
In light of the above, for the first half of 2021 ("H1 2021") we
now expect revenue of approximately GBP105m and Adjusted Operating
Profit of approximately GBP18m.
Our order book indicates that we should carry healthy sales
momentum into the start of H2 2021, albeit that our rate of revenue
growth will inevitably slow against an unusually buoyant
post-lockdown comparative in H2 2020.
Performance for the four months ended 30 April 2021
-- Revenue growth of 43% versus 2020 and 22% versus 2019
-- Strong growth versus 2019 underlines the extent of our ongoing market share gains, particularly during COVID
-- Residential demand continues to be strong, with revenue boosted by new business wins, superior channel access and
heightened home improvement activity
-- Commercial and institutional demand has improved, with confidence gradually returning to the LED project market
-- Revenue performance by sales channel:
% of % growth % growth /
Sales channel Group revenue versus 2020 (decline)
versus 2019
------------------------------- -------------------------- ------------------------ -------------------------------
Retail 31% 29% 11%
Hybrid 30% 107% 93%
Professional
Wholesale 26% 31% 16%
Professional
Projects 13% 15% (14%)
Total 100% 43% 22%
-- Robust action taken to offset industry-wide cost inflation left our Adjusted Gross Margin % slightly ahead of the
comparative period
-- High sales growth, protected gross margin and controlled overheads resulted in Adjusted Operating Profit more
than double the comparative period
H1 2021 outlook
-- Revenue of approximately GBP105m (H1 2020: GBP71.6m; H1 2019: GBP82.7m):
-- Revenue growth of 47% versus H1 2020 and 27% versus H1 2019
-- Adjusted Gross Margin % to be similar to H1 2020's level of 38.4%, with further benefit expected in H2 from
actions taken to mitigate cost inflation
-- Adjusted Operating Profit of approximately GBP18m, double the comparative period (H1 2020: GBP9.0m; H1 2019:
GBP7.2m)
-- Adjusted Operating Margin % of approximately 17%, in line with full year 2020
-- Working capital investment required to support continued high sales growth is expected to shift some cash
conversion from H1 to H2 2021
-- Net debt to Adjusted LTM EBITDA at 30 June 2021 is expected to be similar to 31 December 2020, leaving ample
capacity to support the Group's acquisition strategy which is progressing well
John Hornby, Chief Executive Officer, said:
"The factors that drove our strong trading at the end of last
year continue to sustain our progress in 2021. New business wins,
superior channel access and the agility of our vertically
integrated manufacturing model have allowed us to gain share in an
improving market. Greater business confidence is driving a gradual
increase in commercial project activity and broadening our sources
of growth beyond continued strong residential demand. We have been
successful in protecting our margins from unprecedented
industry-wide inflation and remain alert to further cost increases
in a recovering global economy. Strong sales momentum and sustained
profitability mean that we expect to double our profits for the
first half against last year and retain this healthy combination as
we enter the second half."
- ENDS-
For further information, please contact:
Luceco plc Contact
============================= ======================================
John Hornby, Chief Executive 020 3128 8572 (Via MHP Communications)
Officer
Matt Webb, Chief Financial 020 3128 8572 (Via MHP Communications)
Officer
MHP Communications Contact
============================= ======================================
Tim Rowntree 020 3128 8572
James Bavister 020 3128 8572
Florence Mayo 020 3128 8572
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 Group'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 Matt Webb, Chief Financial Officer.
Business summary
Luceco is a manufacturer and distributor of high quality and
innovative wiring accessories, LED lighting and portable power
products 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:
-- British General ("BG"): wiring accessories including switches
and sockets, circuit protection and cable management products;
-- Luceco and Kingfisher Lighting: energy efficient LED lighting
products and associated accessories; and
-- Masterplug: cable reels, extension leads, EV chargers, surge
protection, timers and adaptor products.
Luceco's long-established BG brand commands a loyal following
amongst professional electrical contractors in both the UK and
overseas. It is synonymous with quality, safety, innovation and
value for money. The production of BG wiring accessories is the
main focus of the Group's Chinese manufacturing facility, allowing
it to control product quality, cost and availability.
The Luceco and Kingfisher LED lighting brands combine to present
a comprehensive range of indoor and outdoor LED lighting solutions.
The range focuses largely on professionally installed products with
an emphasis on performance and quality. The Group is able to
support these products by offering customers access to its in-house
installation design team.
Masterplug is the market leading brand in the UK Portable Power
category. It is sold largely to consumers through retail
distribution and online. Its products are offered in a wide range
of global electrical standards and they are sold in every territory
in which the Group operates.
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 Group has no obligation to update
these forward-looking statements. Nothing in this announcement
should be construed as a profit forecast.
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END
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