Luceco, the prominent supplier of wiring accessories, EV chargers, LED lighting, and portable power products, has announced reasonable revenue growth for the first but warned key industry metrics remained weak.
The company’s shares were 1.78% lower at the time of writing as investors reacted to concerns about the outlook.
Revenue for the first half of 2024 reached approximately £109 million, representing an 8% increase year-on-year. On a like-for-like basis, revenue growth stood at 3.5%, indicating organic expansion across the company’s product lines.
Profitability has shown marked improvement, with adjusted operating profit expected to reach £12.5 million, a substantial 15% increase compared to the same period last year. The company’s focus on operational efficiency is evident in the adjusted operating margin, which improved by over 80 basis points to reach approximately 11.5%.
“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, with adjusted operating profit up around 15% in H1 2024,” said Chief Executive Officer, John Hornby.
“Our acquisition of D-Line, which completed in February 2024, is expected to add circa £15m 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.”