Manufacturer bucks trend to boost profits
Luceco, the manufacturer and distributor of wiring accessories, LED lighting and portable power products, says it is outperforming the UK market in newly-released results for the first six months of 2020.
Despite revenue being 14% lower than the first six months of 2019, the firm says its disproportionate share of online/multi-channel capable customers and consumer/DIY markets, means demand has been more resilient – and that sales were “stabilising” at around 90% of prior year levels by period end.
The firm says it expects to posts profits of around £9m for the period – up £1.8m from last year. On the back of this, Luceco says it is likely that it will reinstate dividend payments and that full-year results will be “materially ahead” of expectations.
John Hornby, chief executive, said: “Growing our profit, improving our margin and doubling our free cash flow amidst the unprecedented challenges of COVID are, I believe, a fitting testament to the Group’s forward planning, resilience and agility whilst further underlining our long-term potential.
“We look forward to making further progress in the second half whilst remaining vigilant to the ongoing macroeconomic risks.
“I would like to extend my sincere thanks to the entire Luceco team for their invaluable contribution to this strong performance.”