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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Luceco - Net debt to be virtually eliminated by FY24

May 2023

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 is shaping up to be a potential winner for 2023. Although results showed revenue down 10% to £206.3m and adjusted EBIT of £22m (down 43.5%) these are backward looking. Gross margin has  improved from 37.1% in FY’21 to 38.1% in H2 ‘22 and cost inflation (energy, freight rates) and de-stocking are expected to reverse. De-stocking affected its most profitable wiring accessories business (switches and sockets, circuit protection, junction boxes, cable management) as large customers such as Screwfix reduced orders in response to DIY demand being switched off when the Ukraine crisis hit, after previously booming when people were locked down. Wiring accessories’ EBIT margins fell from 27.9% to 18.9%, dragging EBIT profit down 52% ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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