Lighting group produces much brighter profit forecasts

Luceco's lighting installed in an open plan office

LED lighting group Luceco expects to smash profit forecasts as its turnaround continues to deliver results.

Sales in the first four months of 2019 mean it believes its adjusted operating profit for the year will be “materially ahead” of current market expectations. In 2018 it saw a 42% drop in that profit figure despite revenues only slipping by 2%, to £163.9m.

It is the latest good news for the Telford-based group which had previously been affected by customers destocking its lighting products.

Its share price has surged in 2019, up from a January low of 33p to close last night at 102p. However its value remains a long way below the level enjoyed in 2017, when it mostly traded above 200p.

In a statement issued ahead of its AGM today, the company said: “The Group has built upon the improved trading performance delivered in the second half of 2018.

“Whilst sales to UK professional customers continue to be subdued in the uncertain economic environment, we are making strong progress in overseas markets. Furthermore, margins that benefited from an improved input cost environment, manufacturing savings and pricing changes in the second half of 2018 have improved further in 2019.”

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