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Luceco learns lessons from 'particularly challenging period'
After issuing several profit warnings in recent months, LED lighting products maker Luceco reported some benefits from its continued investment in higher margin sales opportunities across the UK, as full year revenues and profits rose by double digits.
Group revenue increased 25.4% to £167.6m, pushing operating profits ahead 19.3% to £14.2m despite margins slipping from 30.3% to 28.9%.
Cash flow from Luceco's operations soared from £2.6m to £17.2m and earnings per share lit up 34.8% to 6.2p each.
Following an incorrect assessment of the value of its stock back in December, which led to the resignation of its chief financial officer, Luceco released a profit warning where it revised down its estimated profits as a result of a "weak consumer confidence and a weaker dollar".
Chief executive John Hornby said: "The last few months have clearly been a particularly challenging period for the group but we have learned a number of lessons from this experience and are fully committed to building a stronger platform for future sustainable growth."
"We are confident in our long-term strategy to expand the group's product ranges and geographic reach and believe that our profits will return to attractive levels in due course," he added.
Net debt widened 24.4% to £36.7m.
As of 1040 BST, shares had declined 2.54% to 65.10p.