LONDON (ShareCast) - (Sharecast News) - Luceco said in an update on Tuesday that its full-year profitability was now expected to be towards the upper end of market expectations, after the electrical products manufacturer delivered double-digit revenue growth in the third quarter, led by continued momentum in its electric vehicle (EV) charging business.
Revenue rose 19.5% year-on-year in the three months ended 30 September, with like-for-like growth of around 10% against a soft comparative period.

EV charging revenue jumped 64%, while most other product categories also delivered encouraging growth.

It marked Luceco's third consecutive quarter of sequential improvement, with like-for-like revenue growth of 0.6% in the first quarter, 3.2% in the second and around 10% in the third.

Operating margins increased by 40 basis points compared with a year earlier.

The group said its strong revenue performance and robust fourth-quarter order book meant full-year adjusted operating profit was likely to reach the top end of guidance.

Luceco's confidence, it said, was underpinned by its "market position, manufacturing capability and cash-generative business model."

Bank net debt stood at £68.4m at the end of the quarter, giving a leverage ratio of 1.6 times EBITDA, comfortably within its target range of one to two times.

The company said the balance sheet and cash generation provided flexibility for both organic investment and acquisitions in line with its capital allocation policy.

"Luceco's sustainable competitive advantages of superior channel access, agile product innovation capabilities, and vertically integrated manufacturing have supported double-digit revenue growth in the third quarter," said chief executive John Hornby.

"As a result, Luceco is on track to achieve another year of strong revenue and profit growth and our profit expectations for the full year will now be towards the upper end of market expectations."

He added that EV products remained in strong demand, with the company's Link EV Chargers now stocked through leading distribution channels.

"Longer term, Luceco remains well positioned to deliver above-market growth, driven by a combination of the structural opportunities from electrification, our sustainable competitive advantages and our clear, consistent strategy," Hornby said.

At 1324 GMT, shares in Luceco were up 6.42% at 142.6p.

Reporting by Josh White for Sharecast.com.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE