20 January 2022

Luceco plc

2021 full year trading update

Continued strong growth

Luceco plc ("the Group" or "Luceco"), the manufacturer and distributor of wiring accessories, LED lighting and portable power products, is pleased to provide the following update on trading for the year ended 31 December 2021 ('FY 2021') and to confirm that it expects to report Adjusted Operating Profit of £39m, in line with previous guidance.

Q4 2021 performance

·      Like for like revenue growth of 36% versus a pre-COVID FY 2019 comparative, in line with H1 2021, with market share gains continuing.

·      All sales channels delivered significant growth in the final quarter of the year.

·      Continuing to outperform the market due to new business wins, superior channel access and superior product availability despite global supply chain disruption.

·      Increasing contribution to growth from selling price increases implemented in response to cost inflation.

·      Modest reduction in volume growth within our Hybrid and Professional Wholesale channels, as expected, as UK Residential RMI Construction markets normalise after an exceptional start to FY 2021.

·      Accelerated volume growth within our Professional Projects channel, as confidence returns to UK Non-Residential RMI Construction markets, and from our overseas businesses, underlining the benefit of our sales channel diversity.

Update on cost inflation & supply chain performance

·      We have progressively increased selling prices to pass through industry-wide input cost inflation, delivering the expected benefits without adversely impacting demand. 

·      Reduction in inflationary pressure in Q4 compared with Q3 2021, but we remain vigilant.

·      Selling price increases, once in full effect, will fully protect profit from current cost inflation.

·      Superior product availability maintained thanks to agile changes in capacity at our vertically-integrated production facility and proactive inventory management.

FY 2021 performance

·      Expect to report record results for the year ended 31 December 2021, in line with previous guidance:

o  Revenue of £228m, including a £4m contribution from DW Windsor

o  Adjusted Operating Profit of £39m

o  Adjusted Operating Margin of 17%, in line with FY 2020, with profitability unaffected by significant input cost inflation

o  Lower than expected net debt (pre-IFRS 16) equal to 0.7x Adjusted EBITDA, following strong cash generation in H2, allowing ample capacity for investment in future growth.

FY 2022 outlook

·      H1 2021 presents a tough comparative due to unusually buoyant UK Residential RMI market conditions and temporary margin compression from cost inflation which is expected to peak in early FY 2022.

·      Despite this, we expect to make steady organic progress in FY 2022 as a whole, with a heavier H2 weighting.

·      Performance will be enhanced by the profits from the acquisition of DW Windsor and potential future M&A opportunities.

John Hornby, Chief Executive Officer, said:

"The Group has successfully navigated COVID-related challenges to more than double its profit over the last two years.  This underlines the strength of our business model, the dedication of our employees, and the virtues of our "can do" culture.

Whilst it will prove challenging to make progress against a buoyant comparative in the first half of 2022, I am confident that the same attributes that drove our record performance over the last two years will allow us to make further steady progress in 2022 as a whole, supplemented by our reinvigorated M&A strategy."

- ENDS-

For further information, please contact:

This announcement is released by Luceco plc and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR).  It is disclosed in accordance with the Group's obligations under Article 17 of MAR.  Upon the publication of this announcement, this information is considered to be in the public domain.

For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of Luceco plc by Matt Webb, Chief Financial Officer.

Note to Editors

Luceco plc - Bringing Power To Life

Luceco plc (LSE:LUCE) is a manufacturer and distributor of high quality and innovative wiring accessories, LED lighting and portable power products for a global customer base.

For more information, please visit www.lucecoplc.com.

Forward-looking statements

This announcement contains forward-looking statements that are subject to risk factors associated with, among other things, the economic and business circumstances occurring from time to time in the countries, sectors and markets in which the Group operates.  It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a wide range of variables which could cause actual results to differ materially from those currently anticipated.  No assurances can be given that the forward-looking statements in this announcement will be realised.

The forward-looking statements reflect the knowledge and information available at the date of preparation of this announcement and the Group has no obligation to update these forward-looking statements.  Nothing in this announcement should be construed as a profit forecast.