Luceco PLC on Tuesday said it is well positioned to benefit from operational leverage as it targets further growth, following a profit jump.
The London-based lighting manufacturer and distributor said pretax profit surged 62% to £18.9 million in 2023 from £11.7 million a year prior.
Luceco shares jumped 10% to 133.44 pence each on late Tuesday morning in London.
Revenue edged up 1.3% to £209.0 million from £206.3 million. Luceco noted that it secured market share gains despite challenging markets.
Noting input inflation, the firm said: ‘We identified these trends early and reset selling prices accordingly without impacting our competitive position. Lead times normalised in 2022, following the peaks during the pandemic, and have remained consistent in 2023. This more normalised demand has meant that we have seen cost inflation subside, with material and freight and duty prices easing in 2023.’
The company declared a final dividend of 3.2 pence per share, up from 3.0p a year prior, bringing the total payout to 4.8p, 4.3% higher than 4.6 paid for 2022.
Chief Executive Officer John Hornby said: ‘These results are testament to the strength of the group’s market positions, clear strategy and business model. As a result of the team’s constant hard work, the group is exceedingly well placed for growth through organic and further mergers & acquisitions activity in 2024 with its strong operational leverage and strong balance sheet.’
Looking ahead, Luceco said: ‘Whilst we remain mindful of the uncertain macroeconomic environment and the potential impact it may have on our markets in 2024, the outlook for the current financial year remains unchanged thanks to our attractive market positions, strong business model and robust strategy.’
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