Closure of US business

RNS Number : 1011Q

Luceco PLC

04 June 2018

 

4 June 2018

Luceco plc ("Luceco" or "the Group")

Closure of US business

Luceco, the manufacturer and distributor of high quality and innovative LED lighting products, wiring accessories and portable power products, is today announcing the forthcoming closure of its US business.

In 2017, the Houston-based business delivered revenue of £4.2m and an operating loss of £1.9m.  One-off closure costs are estimated to be approximately £2m but will be cash neutral.  The business is expected to cease operations in Q3 2018.

John Hornby, CEO of Luceco, commented:

"Our US business was one of six new markets opened in the last five years as part of our strategy of international expansion.  Whilst this strategy has been overwhelmingly successful and our new businesses in Europe, Mexico and Asia are delivering rapid revenue growth and market share gains, the US has proven a more difficult market to penetrate.  We have therefore taken the difficult decision to prioritise our other, more compelling international growth opportunities." 

Further enquiries:

For further information, please contact

Luceco plc                                                                                   via MHP Communications

John Hornby, Chief Executive Officer                                     020 3128 8100

Matt Webb, Chief Financial Officer

MHP Communications                                                             020 3128 8100

Tim Rowntree

James White

Ollie Hoare

Notes to Editors:

Luceco is a rapidly growing manufacturer and distributor of high quality and innovative LED lighting products and wiring accessories for a global customer base.

The Group supplies trade distributors, retailers, wholesalers and project developers with a wide range of products which broadly fall into the following market recognised brands:

-      Luceco: energy efficient LED lighting products and associated accessories;

-      British General (BG): wiring accessories (including switches, sockets), circuit protection and cable management products;

-      Masterplug: cable reels, extension leads, surge protection, timers and adaptor products; and

-      Ross: television wall mounts, audio visual accessories and other items.

The Luceco LED lighting brand continues to benefit from the disruptive shift away from mature lighting technologies as a result of the material advancement in LED technology in recent years.  The brand has continued to successfully leverage the Group's existing customer base and low cost Chinese manufacturing facility.  Consequently, it remains well positioned to build on its impressive organic growth trajectory to date.

In the electrical wiring accessories market, Luceco's BG and Masterplug brands have continued to reinforce their market leading positions through further new product development initiatives, expanding into new product adjacencies and gaining market share.   

 

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