REG - Luceco PLC - Q1 2024 Trading Update

LucecoAnnouncement

14/05/2024 07:00

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RNS Number : 2435O  Luceco PLC  14 May 2024

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                            Contact
 John Hornby, Chief Executive Officer  07817 458804 (Via MHP)
 Will Hoy, Chief Financial Officer

 MHP                                   Contact
 Tim Rowntree
 Ollie Hoare                           07817 458804

 

 

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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