Revenue and profits rise for Luceco

The Telford-based group has reported revenue rose to £108.2 million for the six months to June 30, up from £71.6 million in the same period of 2020.

The listed business also posted a pre-tax profit of £16.6 million, rising from £8.8 million.

The firm, which manufactures and distributes wiring accessories, LED lighting and portable power products, said it made progress in favourable conditions "maximised by a steady pipeline of new business wins" and took action to increase product availability despite widespread supply chain delays during the pandemic.

CEO John Hornby said: “The group has outperformed the market throughout its history thanks to its leading brands, strong channel relationships, well-invested product innovation and operational agility. The competitive advantages of our business model have been accentuated during Covid, accelerating our market share gains. As a result, in the first half, we have increased group revenue by 31 per cent and doubled adjusted operating profit against pre-pandemic levels.

“Covid has also brought severe supply chain disruption to our industry, driving significant cost inflation and making it harder for all participants to serve the customer. We have navigated these challenges comparatively well, adjusting inventory cover, production levels and prices proactively. We have managed to protect our overall margins and deliver strong profit growth in favourable market conditions. Cost pressures are expected to increase in the near-term as the global economy gathers steam at the end of the pandemic. Our gross margins will inevitably see some temporary compression during this phase, but I expect this to be compensated by good operating leverage from sales growth.

“Thanks in large measure to the dedication of the entire Luceco team, I believe the group is well positioned to continue to prosper as markets eventually adapt to a post-pandemic future.”