LED products manufacturer Luceco said Tuesday reduced demand by UK professional customers would hurt revenues, though underlying operating profit was expected in line with market expectations.
Luceco expected full year adjusted operating profit to be in line with market expectations, while revenue was expected to fall 2% to £164m.
The estimated decline in revenue was blamed on destocking amongst consumer-facing retail customers and adverse foreign currency movements in the first half of the year, and slowing demand from UK professional customers due to a more uncertain economic environment.
Margins improved the second half of the year, boosted by the strategic shift towards higher margin business in the professional channel, pricing changes and a more favourable input cost environment, aided in part by the group's currency hedging programme, Luceco said.
'We are pleased to conclude what has been a challenging year for Luceco with second half trading in line with expectations, when operating margins returned close to the double-digit levels we have previously achieved,' said John Hornby, Chief Executive Officer.
'We begin 2019 with a stronger balance sheet, improved profitability and cautious optimism, notwithstanding the current UK economic and political uncertainty.'
At 9:33am: (LON:LUCE) Luceco Plc share price was +2p at 55.2p