Slide 1: Interim Results September 2024
2024 Interim Results September 2024 www.lucecoplc.com
Slide 2: Agenda
Agenda Highlights Financial Review Business Review Outlook Q&A Note: ‘Adjusted’ has been used throughout this presentation and is defined in note 1 of the consolidated financial statements 2 Luceco plc 2024 Interim Results Presentation
Slide 3: Highlights
Highlights Adjusted Adjusted Revenue Operating profit Operating Profit Operating Margin £109.6m £10.1m £12.6m 11.5% +8.4% +36.5% +16.7% +0.8ppts vs H1 2023 vs H1 2023 vs H1 2023 vs H1 2023 Adjusted Bank Adjusted EPS Dividend Free Cash Flow Net Debt Ratio (£1.7m) 1.1x 5.7p 1.7p +£6.3m Improved by 0.2
Slide 4: Highlights (continued)
Highlights (continued) • Strong first half revenue increase and 17% operating profit growth: – Strong revenue growth of +8.4% driven by organic and acquisition-led growth – Organic growth of 3.6% despite a challenging market decline of c.3% – Operating profit up 16.7% to £12.6m with operating margin
Slide 5: Financial Review
Financial Review Will Hoy CFO
Slide 6: Income statement
Income statement Adjusted £m H1 2024 H1 2023 Change (%) Revenue 109.6 101.1 +8.4% • Revenue of £109.6m: Gross profit 44.9 39.8 +12.8% – Up 8.4% through both organic growth and acquisitions Gross margin % 41.0% 39.4% +1.6ppts – Residential RMI particularly strong at nearly 10% Overhead costs (32.3) (
Slide 7: Revenue bridge
Revenue bridge £m • Revenue increase of 8.4% 3.6 – Like-for-like increase of 3.6% – Acquisitions/closures reflect the addition of 5.9 LFL D-Line in February 2024. +3.6% (5.0%) (1.0) 109.6 • Currency unfavourable for USD revenue in year Currency Acquisitions/ 101.1 movements closures (1.0%) +5.8% • R
Slide 8: Adjusted Operating Profit bridge
Adjusted Operating Profit bridge £m • Strong organic growth – Driven by efficiency improvements in factory and lower material and product cost savings 1.3 – Elevated freight prices but well below pandemic (5.0%) highs 0.5 – Underlying growth in gross profit partially offset Organic Growth 12.6 by ov
Slide 9: Improving momentum in 2024
Improving momentum in 2024 2022 2023 2024 H1 24 vs. Adjusted £m H1 H2 H1 H2 H1 H1 23 H2 23 Revenue 106.4 99.9 101.1 107.9 109.6 +8.5 +1.7 Gross profit 36.2 38.1 39.8 42.5 44.9 +5.1 +2,4 Gross margin % 34.0% 38.1% 39.4% 39.4% 41.0% +1.6ppts +1.6ppts Overhead costs (24.7) (27.6) (29.0) (29.3) (32.3) (
Slide 10: Operating segment review
Operating segment review Revenue Bridge (£m) 2.2 7.8 (1.5) • Wiring Accessories LED Portable – Strong growth in revenue despite market Lighting Power (1.5%) +2.2% – D-Line integrating well 109.6 – Good operating profit drop-through from additional Wiring revenue Accessories 101.1 +7.7% • LED – LED l
Slide 11: Free Cash and Bank Net Debt
Free Cash and Bank Net Debt Working capital management Bank Net Debt / (Cash) (£m) Covenant 147 140 145 H1 2024 Excluding acquisitions 132 141 leverage FY 2023 Sync EV purchase 56.6 54.0 D-Line purchase 1.3x 1.1x 47.5 H1 2023 45.7 81 83 0.7x 39.4 40.8 76 77 76 FY 2022 37.6 30.6 0.8x 7.8 FY 2021 10.3
Slide 12: Business Review
Business Review John Hornby CEO
Slide 13: Underlying demand
Underlying demand Barclays Consumer Spending year-on-year UK residential property transactions (‘000s) 15% Home Improvements 100 UK (seasonally adjusted) 10% Non-essential Spend 95 Best fit (UK (seasonally adjusted)) 5% 90 - 85 (5%) 80 (10%) 75 (15%) 70 Addressable market forecast • DIY home improve
Slide 14: To help people harness power sustainably in everyday life
Strategic review Our Strategy Our purpose To help people harness power sustainably in everyday life 14 Luceco plc 2024 Interim Results Presentation
Slide 15: Innovate: Functionality our customers need
Innovate: Functionality our customers need Why we Innovate Key achievements 1. Drives growth of the business 1. EV Chargers • £7m revenue in H1 2024 from new products • Imminent launch of our first commercially 2. Sustains our competitive advantage focused “Pro Charge” range • Developing new low-car
Slide 16: Growth of the Home Energy Management Solution
Growth of the Home Energy Management Solution UK Residential clean energy installations1 (units, m) Growth Drivers EV Chargers • Future Homes Standard effective in 2025 PV Solar systems requires new homes achieve a 75-80% reduction in carbon emissions • Will drive implementation of electric heating,
Slide 17: Grow: Above market organic growth
Grow: Above market organic growth Market growth drivers 1. Regulatory change and new technology 2. Investment in the built environment • New UK Wiring Regulations every c. 2 years • 4 million UK homes below Decent Homes Standard • +60% Increase in Luceco consumer unit sales 3. Climate emergency duri
Slide 18: Sustain: Maintaining our competitive advantage
Sustain: Maintaining our competitive advantage Investing in our business Investing in people 1. Kingfisher Lighting investment 1. Contractor training and development • £2.5m investment to purchase Kingfisher • 47 CPD training events held in FY23 Lighting an enhanced manufacturing facility • Training
Slide 19: Net zero pathway: Our interconnected strategy
Net zero pathway: Our interconnected strategy Sustain • £40bn annual investment required for UK to meet net zero • Future Homes Standard effective in 2025 • 1 million homes per year to be converted to low carbon electric heating solutions Innovate • Broad, high quality and electrified core product r
Slide 20: Capital allocation policy and M&A
Capital allocation policy and M&A 1. Dividends 2. Capex D-Line • 29 February 2024, acquisition of D-line for £8.6m 40-60% payout 2-4% of annual revenue Progressive Product development • Supplier of cable management solutions consisting of decorative cable trunking and accessories, fire-rated cable M
Slide 21: Outlook
Outlook John Hornby CEO LUCECO pic
Slide 22: Outlook
Outlook • The group continues to perform in line with full year expectations • With UK interest rates easing we are hopeful that confidence in our sectors of the economy will begin to return, providing reasons to be more optimistic for 2025 and beyond • Our Residential EV Charging business is growin
Slide 23: Q&A
Q&A John Hornby CEO Will Hoy CFO
Slide 24: Appendix
Appendix LUCECO ote
Slide 25: Group Overview
Group Overview Our purpose 3 reasons to invest in us Our strategy Our culture To help people harness power 01 We operate in Innovate Customer-driven attractive markets sustainably in everyday life Grow Team-focused 02 We have an advantaged business model Sustain Bold and innovative What we sell 03 W
Slide 26: What we sell: Wiring Accessories - British General
What we sell Wiring Accessories - British General Established 1941 Revenue as a % of Group total1 45% Revenue 4-year CAGR %2 4% Operating margin1 19.2% Switches and sockets, Circuit protection, Weatherproof, Junction Product Categories boxes, Cable management 1. H1 2024 2. 2019 to 2023 in constant c
Slide 27: What we sell: Wiring Accessories - D-Line
What we sell Wiring Accessories - D-Line Established July 2004 Decorative cable trunking and accessories, Fire-rated cable Product Categories supports, Floor cable protector and Cable organisers 27 Luceco plc 2024 Interim Results Presentation
Slide 28: What we sell: Commercial Power - Nexus
What we sell Wiring Accessories - Commercial Power - Nexus Established 2021 Decorative power & data modules, Cable management, Cables and Product Categories connectors, Power distribution, Energy & user data management, Ergonomic accessories, Task lighting 28 Luceco plc 2024 Interim Results Presenta
Slide 29: What we sell: LED Lighting - Luceco
What we sell LED Lighting - Luceco Established 2013 Revenue as a % of Group total1,2 33% Revenue 4-year CAGR %2,3 9% (2% organic) Operating margin1 1.9% Residential interior, Residential exterior, Commercial interior, Product Categories Commercial exterior, Work & site lighting 1. H1 2024 2. For tot
Slide 30: What we sell: LED Lighting - Kingfisher
What we sell LED Lighting - Kingfisher Established 1988 Product Categories Private realm exterior lighting 30 Luceco plc 2024 Interim Results Presentation
Slide 31: What we sell: LED Lighting - DW Windsor
What we sell LED Lighting - DW Windsor Established 1975 Product Categories Private realm exterior lighting 31 Luceco plc 2024 Interim Results Presentation
Slide 32: What we sell: Portable Power - Masterplug and BG Sync EV
What we sell Portable Power - Masterplug and BG Sync EV Established 1988 Revenue as a % of Group total1 22% Revenue 4-year CAGR %2 -1% (-5% organic) Operating margin1 10.2% Product Categories Extension leads, Cable reels, Adaptors and accessories, EV Chargers 1. H1 2024 2. 2019 to 2023 in constant c
Slide 33: Who we sell to
Who we sell to Product segmental sales by sales channel (as % of total) – H1 2024 1% 1% 24% 26% 38% Professional Projects 72% Professional Wholesale 23% 24% Hybrid Retail 36% 23% 52% 11% 25% 5% 27% 12% Wiring LED Portable Total Accessories Lighting Power 33 Luceco plc 2024 Interim Results Presentati
Slide 34: Where we operate
Where we operate Distribution Selling Sourcing to market markets 1% 2% 5% 4% 6% 9% 45% Asia Pacific Europe 66% Sold in end market Middle East and Africa UK Collected in China Americas China – OEM Europe China - manufactured 79% UK 49% 34% Group revenue Column1 Group revenue Column2 Group revenue by
Slide 35: Group history
Group history The group has developed through business combinations and organic expansion into new products and territories Management Luceco LED Jiaxing expanded British General buyout of Management Jiaxing projects to 52,500m2 wiring BG and buyout backed facility sales team Acquisition accessories
Slide 36: Five year revenue progression
Five year revenue progression Revenue by operating segment £m 2019 2020 2021 2022 2023 Wiring Accessories 70.1 81.3 104.5 73.7 82.6 LED Lighting 54.2 49.5 63.2 81.4 79.0 Portable Power 47.8 45.4 60.5 51.2 47.4 Total Group 172.1 176.2 228.2 206.3 209.0 Revenue by geographical location of customer £m
Slide 37: Ten year financials: Income statement
Ten year financials Adjusted metrics Income Statement £m 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Revenue 82.3 103.1 133.7 167.6 163.9 172.1 176.2 228.2 206.3 209.0 Growth % 25.5% 25.3% 29.7% 25.4% (2.2%) 5.0% 2.4% 29.5% (9.6)% 1.3% Gross Profit 25.1 33.8 40.5 48.4 50.6 62.3 70.2 84.7 74.3
Slide 38: Ten year financials: Cash flow statement
Ten year financials Adjusted metrics Cash flow statement £m 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Operating Profit 8.4 11.5 14.5 14.7 8.5 18.0 30.0 39.0 22.0 24.0 Depreciation & amortisation 1.9 2.6 3.2 4.4 6.5 7.9 6.1 6.7 7.1 7.4 EBITDA 10.3 14.1 17.7 19.1 15.0 25.9 36.1 45.7 29.1 31.4
Slide 39: Ten year financials: Balance Sheet
Ten year financials Adjusted metrics Balance Sheet £m 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Fixed assets 24.6 27.5 33.5 47.2 44.8 42.6 43.9 69.4 70.5 72.8 Inventory 23.8 26.2 35.4 44.2 32.8 32.2 37.2 56.6 47.5 40.8 Trade receivables 17.1 20.4 26.5 33.4 39.5 42.8 70.1 67.9 50.4 53.1 Trade
Slide 40: Disclaimer
Disclaimer This presentation and information communicated verbally to you may contain certain projections and other forward-looking statements with respect to the financial condition, results of operations, businesses and prospects of Luceco plc. These statements are based on current expectations an