Become a Member
  • Track your favourite stocks
  • Create & monitor portfolios
  • Daily portfolio value
Sign Up
Quickpicks
Add shares to your
quickpicks to
display them here!

Q1 2024 Trading Update

14th May 2024 07:00

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.

 

Forward-looking statements

 

This announcement contains forwardlooking 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 forwardlooking statements in this announcement will be realised.

 

The forwardlooking 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.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
TSTQKNBNABKDCPD

Related Shares:

Luceco
FTSE 100 Latest
Value8,087.59
Change-387.15