Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.
Animal spirits returned to Luceco after it said it now expects to report operating profits of £28.5-29m, which is £2m or almost 8% ahead of previous forecasts. The improving trend in order intake experienced in Q3 accelerated through Q4 with strong demand driving organic growth of 5%. Margins “moved towards 12%” (2023:11.5%).
The strong order book from Q3, combined with increased trade and retail orders, led to impressive sales growth at the end of the year in the Residential RMI divisions. The Residential EV Charger division performed exceptionally well, up 50%, reflecting both a strengthening market and successful new product launches. Luceco has also made progress in realising the cost synergies from the two 2024 acquisitions, D-Line and CMD.
Deutsche Bank has upgraded its forecast for the year ended by 9% to eps of 12.5p, with 14.4p pencilled in this year to drop the PE to under 11x. Buy.
With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.
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