Luceco chief is happy with strong end to the year

And the Telford-based company also anticipates an operating profit of up to £22m.

The Group traded in line with expectations in quarter four of 2022.

Revenue was 22% lower than in quarter four of 2021 and 10% higher than 2019.

Underlying demand from the residential construction market in quarter four of 2022 was 10% lower than last year in volume terms.

Demand from the non-residential construction market remained buoyant and higher than last year, with higher energy prices driving increased interest in LED lighting retrofit projects.

Gross margin improved as expected, from 34% in the first half of the year to 37.5% in the second half, reflecting the full benefit of recent selling price increases.

John Hornby, Chief Executive Officer of Luceco said: "While our overall result for 2022 was inevitably held back by customer destocking activity, I am pleased with the way we ended the year.

"Our increased share of the professional contractor market, which we have focused on building over recent years, has undoubtedly helped to mitigate the slowdown in consumer-led construction activity. I am also pleased with our improving gross margin and strong cash generation, which underline the strength of our business model. A healthy balance sheet enables us to plan with confidence.

"We remain appropriately cautious about near-term prospects until the unusually wide range of macroeconomic outcomes for 2023 begins to narrow. However, solid progress at the end of 2022 serves to underline that our robust business model and operational platform mean that we are well positioned to prosper as market conditions improve."