Luceco reports rise in revenue despite tough UK market conditions
Telford-based lighting products maker Luceco has reported an increase in revenue in 2019, and said it is confident in its improvement and performance in the upcoming year.
The company said for the year ended December 31, revenue rose five per cent to £172 million from £163.9 million in 2018.
The company said growth was slower in the second half of the year, as expected, reflecting "tougher comparatives and more hesitant UK demand caused by political and economic uncertainty".
However, "healthy growth" was reported overseas, particularly in Europe.
Luceco expects adjusted operating profit to be in the range of £17.5 million to £18 million, more than double the £8.5 million in 2018.
The company reported strong profit growth in the second half of 2019 from "further gross margin expansion and diligent control of overheads".
Luceco said it is confident in its further improvement and performance, and expects 2020 adjusted operating profit to be in the range of £20.5 million to £21.5 million.
CEO John Hornby said: "The group has made strong progress on a number of fronts in 2019 thanks to the hard work and dedication of the entire Luceco team. Our continued focus on margin expansion and cash generation against the backdrop of tough UK market conditions has more than doubled the group’s profits and halved the group’s leverage in 2019.
"A more certain UK political environment should yield better market conditions in 2020, but we are not building this into our expectations for the year at this stage.
"We are confident that the actions we are taking to expand our profitability will contribute to another improved performance in 2020."
