Business
First Half Trading Update
First Half Trading Update.
About this update from Luceco Plc
[{"type":"text","content":"\n \n \n RNS Number : 7334S\n Luceco PLC\n 13 July 2020\n \n \n \n \n 13 July 2020\n \n \n Luceco plc\n \n \n \n \n \n First Half Trading Update\n \n \n \n \n \n Luceco plc (\"the Group\"), the manufacturer and distributor of high quality and innovative wiring accessories, LED lighting and portable power products, is pleased to provide an update on trading for the six months ended 30 June 2020 and reinstate guidance which has been suspended since the emergence of COVID-19.\n \n \n \n \n \n Our performance has continued to improve since we last updated the market ahead of our Annual General Meeting on 4 June 2020, as detailed below.\n \n \n \n \n \n H1 2020 performance\n \n \n \n \n \n · \n Revenue 14% lower than H1 2019 with \n demand steadily improving as lockdown conditions have eased. Outperforming the UK market thanks to our disproportionate share of online / multi-channel capable customers and consumer/DIY markets, where demand has been more resilient. Sales stabilising at circa 90% of prior year levels by period end.\n \n \n \n \n \n · \n Adjusted Gross Margin 3.5% better than H1 2019 at circa 38.5%. Increased margins arising from better sourcing, improved manufacturing efficiency and more favourable currency rates. Further modest margin enhancement targeted for H2 2020.\n \n \n \n \n \n · \n Adjusted Overheads 15% lower than H1 2019, matching the reduction in revenue and reflecting the COVID mitigating actions set out in our 2019 Full Year results. \n \n \n \n \n \n · \n Adjusted Operating Profit of circa £9.0m, £1.8m better than H1 2019 with gross margin improvement and stringent control of overheads sufficient to more than offset COVID-related disruption. Adjusted Operating Margin of circa 12.5%, in the middle of the Group's targeted range of 10-15%.\n \n \n \n \n \n · \n Adjusted Free Cash Flow doubled to circa £10.0m, sufficient to reduce net debt and off-balance sheet debt factoring by £4.7m and £3.5m respectively. Closing net debt of £22.7m equal to circa 0.8x LTM Adjusted EBITDA. The Group is not making use of any government lending or tax deferral schemes.\n \n \n \n \n \n · \n Given the Group's strong profitability and healthy liquidity, the Board considers it likely that dividends will be reinstated at int...