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

 

Note to Editors

www.lucecoplc.com.

Forward-looking statements

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 forwardlooking statements. Nothing in this announcement should be construed as a profit forecast.

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