Luceco profits jump on market share gains
Lighting firm Luceco saw its shares rise 13% on Tuesday after reporting strong annual results.
Luceco (LSE: LUCE), a lighting manufacturer and distributor, saw its shares jump 13% on Tuesday after reporting a 62% increase in pretax profit to £18.9 million for 2023, up from £11.7 million a year earlier. Despite challenging market conditions, the company achieved revenue growth of 1.3% to £209.0 million, aided by market share gains.
To combat input cost inflation, Luceco raised selling prices without impacting its competitiveness. As supply chain disruptions eased post-pandemic, lead times normalized in 2022 and remained stable in 2023, allowing the company to benefit from lower material, freight, and duty costs.
The company declared a final dividend of 3.2 pence per share, bringing the total payout for the year to 4.8 pence, a 4.3% increase from the previous year's 4.6 pence.
Chief Executive Officer John Hornby commented on the results, citing the group's strong market positions, strategy, and business model as key drivers of success. He expressed confidence in the company's prospects for further growth through organic initiatives and acquisitions in 2024, supported by its operational leverage and robust financial position.
While acknowledging the potential impact of the uncertain economic environment on its markets in 2024, Luceco maintained an unchanged outlook for the current financial year, relying on its attractive market positions, business model, and strategy. Luceco's shares have risen 23% over the past 12 months.
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