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Luceco - Leverage falls below 1x

January 2024

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • LUCE
  • Price:
  • 113p
Luceco’s Q3 update confirmed full year expectations are in line with the earlier upgrade. Revenues in Q3 rose 8.3% year-on-year and with comparatives easing in Q4 that should show good momentum. Professional Projects was the brightest, with LED Lighting especially strong helped by continued appetite for improving energy efficiency while sales in its hybrid channel were stable and retail a little softer. Adjusted operating margin came in at 12% in Q3 against a first half margin of 10.7%.  Meanwhile, net debt fell by £12m to just £30.5m at 30 September with 0.9x net debt / EBITDA, below its target range of 1-2x. Separately, Luceco has invested £1.75m into eEnergy, which provides energy efficiency, renewable generation and EV ...

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