Luceco to achieve record profits

In the last three months of the year, the Telford-based group saw strong trading with sales growth of 23 per cent.

As a result of the strong trading performance in the second half of the year, Luceco, which has its factory at Stafford Park. took the decision to repay in full furlough support of £1 million received from the UK Government.

Chief executive John Hornby said: "I am very pleased to report that we ended the year as strongly as expected, with record full year profits against the backdrop of Covid.

"We have started the new year with good momentum despite tighter social distancing measures. Increased home improvement spending is likely to continue and new business wins, superior channel access and product availability should sustain further market share gains.

"Whilst we are now entering a more challenging inflationary environment, we aim to defend the significant margin gains we have made. Unless future lockdown measures severely disrupt our sales channels or distribution operations, we are confident of further revenue and profit progression in 2021."

Demand for Luceco products remained high in the quarter as consumers spent more of their time and money at home.

Its higher share of e-commerce and multi-channel capable customers provided a continued route to market when traditional distribution channels temporarily closed and demand in traditional channels recovered relatively quickly as lockdown controls eased as the year progressed.

Luceco's manufacturing operations remain fully operational and Covid is currently not disrupting its sales channels or distribution operations.

Revenue for 2020 was approximately £176m – up 2.3 per cent from £172.1m in 2019 and adjusted operating profit was about £30m compared to £18m, primarily driven by significant margin improvement.

The group's final results for the year will be released on March 23.