23rd Jul 2024 13:55
(Alliance News) - Luceco PLC on Tuesday said its interim revenue and profit have both increased, and that despite headwinds it is "encouraged" by this "strong start".
The London-based firm "performed strongly in the first half of [2024]", with revenue increasing 8% or around 3.5% on a like-for-like basis to approximately GBP109 million.
Luceco also expects its operating profit to have risen by about 15% to about GBP12.5 million, with the adjusted operating margin increasing over 80 basis points to around 11.5%.
Luceco, which manufactures and distributes lighting equipment, said this "improving performance" was "against a continued challenging market backdrop".
The company said it was "encouraged by the strong start to the year with performance expectations for the full year in line with market expectations".
"Luceco performed strongly in the first half against a challenging market backdrop. The group's diverse portfolio and channels have ensured that we continue to deliver progress," commented Chief Executive Officer Josh Hornby.
However, Luceco continues "to closely monitor the cost of container shipping, which has recently increased significantly", and noted that "key industry metrics remain weak".
Nonetheless, Luceco said, "we remain confident that growth in our core markets will return in the not too distant future".
Hornby added: "Our acquisition of D-Line, which completed in February 2024, is expected to add circa [GBP15 million] of sales this year and has integrated well into the group.
"The balance sheet remains strong with debt levels towards the lower end of our target range, giving us flexibility to pursue new organic and M&A opportunities in line with our indicated capital allocation policy."
In London on Tuesday afternoon, Luceco shares traded 0.4% lower at 168.40 pence.
By Emma Curzon, Alliance News reporter
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