Luceco : Earnings Document

BRINGING POWER TO LIFE

Our purposeOur mission

To help people harness power sustainably in everyday life.

To build a leading portfolio of thoughtfully designed and diligently made products that provide environmentally responsible electrical and lighting solutions to our customers.

To continually invest to sustain the competitive advantage provided by our people, culture and business model.

Our strategyOur culture

Grow - to maximise sales of both existing and new products to an increasing customer base

Innovate - we are led by our customers to innovate brilliant products in an agile and entrepreneurial manner

Sustain - to invest across our business from manufacturing and fulfilment to customer service, to sustain our competitive advantage and to contribute increasingly to society's sustainability goalsCustomer-driven - we understand what our customers want Team-focused - our people are our key differentiator, they are agile, loyal and energetic Bold and innovative - our rapid growth is due to bold implementation of innovative thinking

Principled - We do what is right and we hold ourselves to the highest ethical standards

Find out more on pages 28 and 29

Find out more on pages 32 and 33

Financial and ESG highlights

Revenue

£228.2m

2020: £176.2m

Gross profit

£84.7m

2020: £70.2m

Operating profit

£35.3m

2020: £29.6m

Adjusted1 Operating Profit

£39.0m

2020: £30.0m

Earnings per share

17.6p

2020: 18.0p

Adjusted1 Earnings Per Share

20.2p

2020: 15.5p

ESG - emissions

ESG - low carbon sales

Carbon Neutral 25%

operations in 2021

ESG - employee satisfaction2

90.5%

revenue from low carbon products in 2021

2020: 86.1%

• 1. The definitions of the adjustments made and reconciliations to the statutory figures can be found in note 1 of the consolidated financial statements on page 118 and are used throughout this document. The measures provide additional information for users on the underlying performance of the business, enabling consistent year‑on‑year comparisons.

• 2. Percentage of UK employees fairly or very satisfied with their employer.

What's inside

Strategic Report

Directors' Report

Financial Statements

• 01 Financial and ESG highlights

• 02 How we Bring Power to Life

• 06 At a Glance

• 07 Three Reasons to Invest in Us

• 08 Review of the Year

• 10 Chairman's Statement

• 12 Chief Executive Officer's Review

• 16 Chief Financial Officer's Review

• 26 Our Attractive Markets

• 28 Our Advantaged Business Model

• 30 Business Model in Action

• 32 Strategy

• 34 Strategy in Action

• 40 Key Performance Indicators

• 42 Environment, Social and Governance

• 56 Our Stakeholders

• 60 Principal Risks and Uncertainties

• 66 Viability Statement

• 68 Chairman's Introduction

• 70 Board of Directors

• 72 Corporate Governance Report

• 78 Nomination Committee Report

• 80 Audit Committee Report

• 84 Remuneration Committee Report

• 100 Other Statutory Disclosures

• 104 Statement of Directors' Responsibilities

• 105 Independent Auditor's Report

• 113 Consolidated Income Statement

• 113 Consolidated Statement of Comprehensive Income

• 114 Consolidated Balance Sheet

• 115 Consolidated Statement of Changes in Equity

• 116 Consolidated Cash Flow Statement

• 117 Notes to the Consolidated Financial Statements

• 154 Company Balance Sheet

• 155 Company Statement of Changes in Equity

• 156 Notes to the Company Financial Statements

• 160 Company Information

• 162 Advisers

• 164 Notes

HOW WE BRING POWER TO LIFE

Design

We are the innovators within the product categories we serve. Innovation allows us to up-sell and improve profitability.

• • We bring new ideas to market quickly

• • Our designs offer great quality at a great price

• • Our designs start with the customer in mind

We constantly strive to find new ways to further improve the performance of our products. Ultimately, our goal is to create cutting-edge designs, which result in happy customers with a lower carbon footprint too.

SIMON SHENTON

HEAD OF LED DEVELOPMENT

HOW WE BRING POWER TO LIFE

Make

• • We operate a vertically integrated manufacturing model

• • Our production output is agile, particularly during COVID-19

• • Our facilities are well invested, allowing us to make high quality, low cost products

• • We have long-established OEM partners

• • Our customers know where our products come from and the conditions in which they are made

Our products are designed to maximise automation in our sites; we benefit from scale and our fully owned, well-invested manufacturing facility means we have visibility regarding supply and more control over cost.

RONNIE YU

ASIA MANAGING DIRECTOR