Luceco PLC (LSE:LUCE) pleased investors on Thursday after saying it expects to report adjusted operating profits at the upper end of guidance together with record cash generation figures.
Shares soared 26% higher on the news as the supplier of wiring accessories, EV chargers, LED lighting and portable power products also highlighted an improvement in gross margins in the second half, as expected, to 37.5% from 34% in the first half of the year.
Guiding analysts to the top end of the previous £20mln to £22mln range the company said trading was in line with expectations in quarter four with a 22% fall in revenues from the previous year reflecting accelerated destocking by retail and hybrid customers.
Cash generation was “exceptionally strong” Luceco said, with free cash flow of around £21mln in quarter four, adding to the £11mln generated in quarter three, driven by inventory optimisation and disciplined cash collection.
For the full-year, the group said it expects to report revenue of around £206mln with net debt as of 31 December 2022 at £24mln, down from £53.9mln as of 30 June 2022, reflecting the improved free cash flow picture.