Business
Update on Trading
Update on Trading.
About this update from Luceco Plc
[{"type":"text","content":"\n \nRNS Number : 8017G Luceco PLC 06 March 2018 \n\n6 March 2018\nLuceco plc (\"Luceco\" or \"the Group\")\n Update on Trading\n \nLuceco, the manufacturer and distributor of high quality and innovative LED lighting products, wiring accessories and portable power products, is today issuing the following update.\nTrading conditions since the Group's trading update on 15 December 2017 have remained difficult in our UK consumer facing business, which is approximately 25% of Group revenue, as a result of well publicised weak consumer confidence and a weaker dollar. These factors have caused us to revise our estimates for the outturn for the year to December 2018. We now anticipate reporting 2018 profit after tax in the range of £12.0-14.5m, on revenue growth on 2017 of 5-10% at current exchange rates.\nWhilst UK retail sales remain subdued as retailers destock following a weaker than expected Christmas period, the Group is seeing continued strong growth among higher margin trade, projects and international customers. In addition, our previously outlined improvement actions remain on track to return margins to long term expectations during H2 2018.\nAs part of the ongoing audit for the year ended 31 December 2017 and the review by our newly appointed Chief Financial Officer, we now expect to report profit after tax of £11.0m compared to the estimate of £13.2m given in December 2017. The shortfall relates primarily to continued margin pressure and the treatment of certain costs which had been earmarked for capitalisation but are now being taken through the profit and loss account. Revenue is expected to be £168.6m and net debt at 31 December 2017 was £36.9m. \nJohn Hornby, Chief Executive Officer of Luceco, said:\n\"I am extremely disappointed by these developments. However, most parts of the business continue to grow strongly, highlighting the benefits of our long-term diversification strategy. Our margin mitigating actions outlined in our December update are on track to deliver the expected margin improvement during H2 2018.\"\nGiles Brand, Non-Executive Chairman of Luceco, said:\n\"Though a further update on trading is unwelcome, the Board is pleased that we have a new CFO and the prospects for 2018 have been clarified. The business remains well plac...