Lighting group warns of Brexit headaches despite smashing £100m revenue ceiling

Lighting group FW Thorpe has announced strong full year results, breaking through the £100m revenue ceiling for the first time.

However, the Redditch-based manufacturer has already warned shareholders that the success of 2016/17 will be tough to replicate.

In the full year to June 30, 2017, group revenue reached £105.4m (2016: £88.9m), an increase of 18.6%. Pre-tax profit rose 12.8% to £18.4m (2016: £16.3m), a rise of 13.8%. Basic earnings per share rose 11.6% to 12.54p (2016: 11.24p).

All companies in the group improved their trading performances, with especially strong results at Thorlux Lighting and Lightronics in the Netherlands.

The group said it was also pleasing that other subsidiaries had also made good contributions. A good proportion of revenue is now generated from overseas operations, reducing the group’s reliance on the UK economy and helping to offset risk.

While highlighting the strong year, new chairman Mike Allcock warned that economic headwinds were likely to stifle performance during the current year.

In outlook, he said: “This year’s excellent performance will be difficult to replicate, as we will have to contend with ongoing economic uncertainty from Brexit, government instability and exchange rate variations.

“We see ourselves better placed to respond to these issues nowadays, with manufacturing facilities in the UK and in mainland Europe, as well as revenue generated in a number of different countries from our own local sales offices.

“We continue to review options for further acquisitions. We have the financial capacity, so it could be said that it is easy to acquire, and there are indeed frequent options for us to review. To find the right acquisition – one that meets our criteria and does not become a future liability – is not as easy as it might seem.”

He said the group’s intention was to maintain “the same path of steady, sustainable growth”.