Luceco on track despite profit slide

Lighting specialist Luceco reported a fall in half-year profits and revenues on Tuesday, but said it remained on track to meet full-year targets.

Revenues for the six months to 30 June came in at £106.4m, compared to £108.2m in the same period in 2021, while pre-tax profits were £4.6m, down from £16.6m. Adjusted operating profits were £11.5m, compared to £19.2m a year previously.

The firm, which makes and supplies wiring accessories, LED lighting and portable power products, said the results reflected "some normalisation" since the 2021 results, including a slowdown in DIY demand and distributor destocking.

But it added that the results remained ahead of pre-pandemic levels, with revenue up 29% on the same period in 2019 and adjusted operating profits 60% stronger.

John Hornby, chief executive, said: "While we were not able to match the record benchmark set last year, our results remains significantly ahead of pre-pandemic levels, underlying the strategic progress we have made in recent years.

"The current headwind from customer destocking is likely to continue into early 2023 but is fundamentally temporary in nature. Our margins and cash generation are improving, and our balance sheet is in good shape."

Looking to the current half, the firm said trading in July and August had been in line with expectations, and it was on track to meet current market forecasts for full-year earnings.

As at 11.30 BST, shares in Luceco were ahead 18% at 92p.