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Luceco - Eps upgraded after commercial acquisition

October 2024

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.

  • Epic Code:
  • LUCE
  • Price:
  • 151p
A superb eps enhancing deal this month. Luceco has acquired CMD for £30m on a cash and debt-free basis. Established in 1984, CMD is the No.1 in wiring accessories for commercial premises, including underfloor powertrack and power hub power distributions systems, floor boxes and AV/data modules for monitors. Over the last three years, revenues have grown from £18.8m to £23.1m, and last year saw a £4m EBITDA. Gross margins are consistently high and head and shoulders over Luceco’s at c.59% (vs 41%) and could rise even further as it transitions to Luceco’s Far East supply chain. Earlier in the month Luceco’s own interims saw an 8.4% spike in revenues to £109.6m, with D-Line chipping in £5.8m and organic growth of 3.6%. The latter sho ...

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