Telford's Luceco boosted by revenue increase and profit growth
Telford's Luceco, supplier of wiring accessories, EV chargers, LED lighting, and portable power products, has been buoyed by a boost in revenue and profit.
In unaudited results for the six months to June 30, the business reported a strong half with a healthy revenue increase and 17 per cent operating profit growth, due to both organic and acquisition led growth.
It was a particularly positive performance given challenging conditions in the group’s core markets.
Luceco grew market share through 3.6 per cent organic growth in the first half, despite UK residential property transactions running below the historical average and the overall market expected to shrink this year.
Equally, Luceco has been encouraged by sales growth of nearly 10 per cent in the residential RMI sector, which accounts for around 64 per cent of Group sales.
The Group’s Residential EV charging business continued to grow strongly prospects for this part of the business are strong, with the imminent launch of EV Chargers for Commercial Premises, facilitating the ongoing energy transition.
Overall, adjusted operating profit for the six months was £12.6m, compared to £10.8m in the first half of last year while operating profit stood at £10.1m, compared to £7.4m in the first half of 2023.
Chief Executive Officer, John Hornby said: “These are strong results despite a challenging market backdrop.
"The Group's diverse portfolio and channels have ensured that we continue to grow and achieve an improved financial performance, with adjusted operating profit up in H1 2024.
"We have already successfully integrated D-Line, which we acquired in February and we expect it to add around £15m of sales in 2024.
"The balance sheet remains strong with debt levels towards the lower end of our target range, giving us flexibility to continue to invest in new organic and M&A opportunities in line with our indicated capital allocation policy.”
