Record-breaking year for lighting manufacturer as profits soar

Shropshire lighting manufacturer Luceco says it outperformed the UK market last year after almost doubling its profits during 2020.

The firm saw profits before tax rise to £33.6 – up from £17.1m in 2019, while revenues also rose – by 2.4% to £176.2m in what was a record-breaking year.

Luceco says the ground lost during the first half of 2020 was more than made up by strong growth in H2 as it undertook an “early and comprehensive” response to Covid-19.

Chief executive officer, John Hornby said: “Our record-breaking performance in 2020 is a testament to our structural resilience, operational agility and our committed, hard working employees. I would like to take this opportunity to thank my Luceco colleagues for their contribution and support during this most challenging of years.

“We have started 2021 with strong momentum despite tighter social distancing measures in some markets. Revenue growth has accelerated from the high levels achieved at the end of last year as new business wins, increased home improvement spending, superior access to high growth channels and product availability combine to sustain further market share gains.

“We have seen inflation in raw material and freight costs in 2021 as economies recover from COVID-19. These can be expected to create some temporary gross margin pressures for all manufacturers until they are passed through the value chain or otherwise subside. However, we expect our strong sales momentum and tight control of overheads to mitigate the impact of inflation on operating margins, which should be similar to those achieved in 2020. We therefore remain confident of further revenue and profit progression in 2021.”