Telford manufacturer 'disappointed' with 2017 performance
Bosses of Telford lighting manufacturer Luceco say plans are in place to improve the group's performance after admitting to being "disappointed" by last year's financial results.
The Stafford Park-based company saw group revenue increase by 25.4 per cent to £167.6 million.
The figures, which cover the year ending December 31 last year, also show operating profit increased by 19.3 per cent to £14.2 million, profit increase by 51.5 per cent to £10 million and cash flow from operations increase from £2.6 million to £17.2 million.
But the firm, which has its UK sales base on Stafford Park in Telford, where it employs 200 people at a 110,000 sq ft site, said it did not generate the profit growth that it had planned last year.
CEO John Hornby said: “The last few months have clearly been a particularly challenging period for the group but we have learned a number of lessons from this experience and are fully committed to building a stronger platform for future sustainable growth. We are confident in our long-term strategy to expand the group’s product ranges and geographic reach and believe that our profits will return to attractive levels in due course.
"The strong revenue growth achieved in 2017 did not generate the profit growth that we had planned. Gross margins had been adversely impacted by movements in currency and commodity prices. We have put in place mitigating actions, which we expect will have a beneficial effect on gross margins in 2018. Our competitive position remains strong and we are confident that the potential margins achievable in our business have not changed. Continued growth in our business should provide resilience to the weak UK consumer environment.”
Chairman Giles Brand added: “I am disappointed by the group’s performance in 2017. It has not, however, shaken our belief in the group’s prospects. We command enviable positions in key markets, underpinned by long-standing customer relationships. We are successfully executing our growth and diversification strategy, our product pipeline is healthier than ever and we have an experienced management team and a committed workforce.
"I would like to thank our shareholders for their patience and continued support whilst we take the necessary steps to build a better future for Luceco. The group’s balance sheet remains strong and the board continues to assess opportunities to invest in the future growth of the business.”
The group supplies trade distributors, retailers, wholesalers and project developers with a wide range of products.
