LED light manufacturers Luceco PLC (LON: LUCE) said they saw trading in line with expectations during H1 2019, despite a challenging H2 2018.
The Group booked solid performance with 10% year-on-year revenue growth, which is strong especially when compared to what the Company described as ‘a weak comparative’.
Margin improvement during H2 2018 continued into H1 2019 and H1 operating margin is forecast to be 9%, led by product and channel mix and product cost improvements.
Luceco comments
John Hornby, Chief Executive Officer, stated,
“The Group has produced a solid performance in the first half underlining the benefit of the actions taken by the Group. Despite a more challenging second half comparative and continued weakness in UK professional demand due to the uncertain economic and political environment, we are confident of achieving ongoing growth in both revenue and operating profit in line with market expectations.”
“The strength of our brands and customer relationships are driving improved margins which, together with on-going investment in people, infrastructure and processes, will ensure the Group continues to make sustained progress.”
Investor notes
After a slight recovery, the Company’s shares are currently trading down 14.45% or 17.2p at 101.80p a share 30/07/19 13:17 BST. Peel Hunt analysts reiterated their ‘Add’ stance on Luceco stock. The Group’s p/e ratio is 41.03 and their dividend yield is 0.59%.
Elsewhere in the tech sector, there were updates from; Biome Technologies plc (LON: BIOM), Midwich Group PLC (LON: MIDW), Boku Inc (LON: BOKU) and Telit Communications Plc (LON: TCM).