Luceco sees fall in revenue and profits but 'well positioned to progress'
Telford's Luceco saw a fall in revenue and profits as it revealed its financial results for 2022 but bosses insist the business is 'well positioned to progress'.
The LED lighting maker reported revenue of £206.3m for the year ending December 31, compared to 228.2m last year, although still significantly higher than the £172.1m figures of 2019.
Pre-tax profits were reported at £11.7m, a fall from £33.3m and £17.1m in 2021 and 2019 respectively while, after tax, profits stood at 11m compared to 27.1m last year and 13.1m in 2019.
Chief Executive Officer, John Hornby said: "Although they don't match the record benchmark set last year, these results underline the strategic progress we have made over recent years. A record cash flow performance for the year has also left our balance sheet in great shape.
"Our trading performance relative to prior year reflects the particularly buoyant demand we experienced in 2021, boosted by COVID lockdowns and stocking up by our distributor customers.
"It also reflects slower demand in 2022 as residential RMI markets have normalised and as our customers have run their stocks down. I am pleased to report that destocking by our customers is nearly complete.
"Trading in early 2023 has been in line with our expectations, with tailwinds from reduced customer destocking, improved gross margin and lower input costs balancing less residential RMI activity.
"Whilst the macroeconomic outlook for 2023 remains difficult to judge, I am encouraged by the healthy underlying trading momentum we are carrying into the year which leaves us well positioned to progress as market conditions improve."