Luceco PLC (LON:LUCE) shot up on Monday after announcing plans to reinstate its interim dividend, though it will be confirmed in September’s results.
The LED lighting group said adjusted operating profit for the year to December is expected to be “materially ahead of current analyst expectations” and to “at least” be in line with last year’s £18mln.
But if the second half sees further lockdowns similar to what had been seen in the first half, the monthly impact on adjusted operating profit would be £750,000.
In the six months to June 30, revenue slipped 14% but demand improved as COVID-19 restrictions eased.
Adjusted gross margin was 3.5% better than last year at 38.5% thanks to better sourcing, improved manufacturing efficiency and more favourable currency rates.
As a result, adjusted operating profit jumped 20% to £9mln, also because of cost-saving measures implemented amid the coronavirus crisis.
The group, which is not making use of state support, had net debt of £22.7mln at the end of the period.
Analysts at Peel Hunt upped the target price to 135p from 102p, as well as raising profit before tax forecasts for the current year to £17.5mln from £10mln.
Shares jumped 24% to 126.84p on Monday at the opening bell.
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