Luceco, the London-listed electrical-products manufacturer, has announced that its third-quarter revenue has increased by 8.3% compared to the same period last year. While the company has experienced reduced demand in certain UK end markets due to economic headwinds, it remains in line with the board’s expectations.
Strong Growth in Professional Projects Channel
According to Luceco, its professional projects channel has exhibited robust growth during this period, with demand remaining favourable. The stability of the hybrid channel has also helped offset some softening in the retail and trade channels.
Improved Operating Margin
Luceco revealed that its adjusted operating margin for the quarter was just below 12%, a positive improvement from 10.7% in the first half of the year.
Debt Reduction and Cash Generation
The company’s net debt as of September 30 stood at £30.5 million ($37.6 million), a decrease from £42.8 million at the end of June. Luceco’s strong cash generation during the quarter is particularly encouraging, placing the group in a favourable position to invest in growth and enhance earnings in line with strategic priorities.
With the Q3 results exceeding expectations and showing encouraging signs of growth, Luceco remains optimistic about its performance going into the fourth quarter. However, at 0813 GMT, shares were down 7.7% at 8.40 pence.