Q3 2023 Trading Update

Encouraging Q3 2023 performance despite continuing economic headwinds. Full year guidance unchanged.

Luceco plc ("Luceco" or "the Group"), the supplier of wiring accessories, EV chargers, LED lighting, and portable power products, is pleased to provide the following update on trading for the three months ended 30 September 2023 ("Q3 2023").

Q3 2023 Trading

• Trading in Q3 2023 has been in line with expectations.
• The Group's revenue in Q3 was 8.3% ahead of the prior year equivalent - results continue to be encouraging and comparatives continue to ease into Q4.
• The professional projects channel continued to show strong growth in Q3, and demand remains favourable. The hybrid channel has remained stable in the period. This outweighed some softening in the retail and trade channels.
• Adjusted Operating margin was just below 12% in Q3, against a first half Adjusted Operating margin of 10.7%.

Balance Sheet

• Our balance sheet remains strong, with Covenant Net Debt ratio of 0.9x below our target range of 1.0 - 2.0x EBITDA.
• Cash generation has improved, as expected, with Q3 Adjusted free cash flow of £12.5m due in part to normalising working capital flows.
• The Group's net debt was £30.5m at 30 September 2023 (£42.8m at 30 June 2023), a reduction of approx. 30% since the half year.

Commenting on the results, Chief Executive Officer, John Hornby said:

"The Group continues to perform in line with our expectations. Whilst demand from energy saving professional projects continues its positive path; we are seeing some impact of reduced demand in certain of our end markets as the UK consumer continues to experience economic headwinds. Luceco's strong cash generation in the quarter was particularly encouraging, and with our low levels of net debt, the Group is well placed to invest in growth and enhance earnings in line with strategic priorities."

For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of Luceco plc by Will Hoy, Chief Financial Officer.