Luceco PLC Update on Trading (8017G)
March 06 2018 - 3:00AM
UK Regulatory
TIDMLUCE
RNS Number : 8017G
Luceco PLC
06 March 2018
6 March 2018
Luceco plc ("Luceco" or "the Group")
Update on Trading
Luceco, the manufacturer and distributor of high quality and
innovative LED lighting products, wiring accessories and portable
power products, is today issuing the following update.
Trading conditions since the Group's trading update on 15
December 2017 have remained difficult in our UK consumer facing
business, which is approximately 25% of Group revenue, as a result
of well publicised weak consumer confidence and a weaker dollar.
These factors have caused us to revise our estimates for the
outturn for the year to December 2018. We now anticipate reporting
2018 profit after tax in the range of GBP12.0-14.5m, on revenue
growth on 2017 of 5-10% at current exchange rates.
Whilst UK retail sales remain subdued as retailers destock
following a weaker than expected Christmas period, the Group is
seeing continued strong growth among higher margin trade, projects
and international customers. In addition, our previously outlined
improvement actions remain on track to return margins to long term
expectations during H2 2018.
As part of the ongoing audit for the year ended 31 December 2017
and the review by our newly appointed Chief Financial Officer, we
now expect to report profit after tax of GBP11.0m compared to the
estimate of GBP13.2m given in December 2017. The shortfall relates
primarily to continued margin pressure and the treatment of certain
costs which had been earmarked for capitalisation but are now being
taken through the profit and loss account. Revenue is expected to
be GBP168.6m and net debt at 31 December 2017 was GBP36.9m.
John Hornby, Chief Executive Officer of Luceco, said:
"I am extremely disappointed by these developments. However,
most parts of the business continue to grow strongly, highlighting
the benefits of our long-term diversification strategy. Our margin
mitigating actions outlined in our December update are on track to
deliver the expected margin improvement during H2 2018."
Giles Brand, Non-Executive Chairman of Luceco, said:
"Though a further update on trading is unwelcome, the Board is
pleased that we have a new CFO and the prospects for 2018 have been
clarified. The business remains well placed to capitalise on its
market leading position and EPIC Investments LLP, the Group's
largest shareholder, is fully supportive."
Further enquiries:
For further information, please contact
Luceco plc via MHP Communications
John Hornby, Chief Executive 020 3128 8100
Officer
Matt Webb, Chief Financial
Officer
MHP Communications
Tim Rowntree
James White
Ollie Hoare 020 3128 8100
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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