Luceco posted a drop in full-year profit and revenue on Tuesday, as trading normalised after a record performance a year earlier.
In the year to the end of December 2022, pre-tax profit declined to £11.7m from £33.3m the year before, as revenue fell 9.6% to £206.3m.
Luceco said the results reflect a normalisation after its 2021 performance was lifted by increased demand due to the Covid lockdown. It pointed to a slowdown in residential repair, maintenance and improvement demand after lockdown, and a “significant but temporary” headwind from distributor customer destocking.
Chief executive John Hornby said: “These results are significantly ahead of pre-pandemic levels and, although they don’t match the record benchmark set last year, they underline the strategic progress we have made over recent years.
“Our trading performance relative to prior year reflects the particularly buoyant demand we experienced in 2021, boosted by Covid lockdowns and stocking up by our distributor customers.
“It also reflects slower demand in 2022 as residential RMI markets have normalised and as our customers have run their stocks down. I am pleased to report that destocking by our customers is nearly complete.”
The company said trading in early 2023 has been in line with its expectations, with tailwinds from reduced customer destocking, improved gross margin and lower input costs balancing reduced residential RMI activity.
Luceco is a supplier of wiring accessories, EV chargers, LED lighting, and portable power products.
At 1115 GMT, the shares were down 7.7% at 120p.
