Luceco warns against ‘slow’ home improvement spending

Luceco, the supplier of wiring accessories, EV chargers, LED lighting, and portable power products, has warned that profits look set to come near the bottom end of analyst expectations this year.

The firm said that it expect to report revenue of around £106m (H1 2021: £108.2m) and adjusted operating profit of approximately £11.5m (H1 2021: £19.2m) for H1 2022. This follows record results in 2021 and a “particularly strong” first half 2021 performance.

A statement from the Telford company said: “Consumer spending on home improvement continues to slow as disposable incomes reduce in the face of rising inflation.

“A continued slowdown in consumer demand at rates similar to that experienced to date, combined with broadly stable professional demand, would leave 2022 adjusted operating profit at the bottom end of current analyst expectations. The final outcome will largely depend upon how consumers and our distributor customers react to macroeconomic developments in the second half of the financial year.”