1
Increase sales to professional customers

Case study

2
2
Increase sales to international customers

Case study

4
3
Enter new product segments

Case study

1
4
Maximise return on capital from our existing business and seek targeted acquisitions

Case study

4
5
Invest in, and enhance, our advantaged business model

Case study

3
6
Develop our environmental, social and governance credentials

Luceco’s products provide power and light throughout the built environment. They contribute increasingly to the net zero economy.

They illuminate your bathroom as you shower. They power the kettle boiling your morning tea. Increasingly, they charge your car for the morning commute. They light your road to work. They provide power and data to your office computer. They spread WiFi throughout your house. They turn on your lights automatically when you return home.

Luceco’s increasing presence in the built environment has been driven by innovation. We have built our product range from within. Innovation is in our DNA.

We invest in it. We celebrate it. We pioneer it. We take pride in improving the experiences of our customers. It is a key part of our advantaged business model. 50% of the revenue we have today is from products launched within the last three years. The timeline below illustrates some of the key milestones in our innovation journey:

2013

Luceco Lighting brand launched

2014

First to launch
USB-enabled sockets

2017

First to launch
WiFi repeating
wiring accessories

2019

Launch of home automation range

2020

Launch of electric vehicle chargers

2021

Launch of commercial
power range

Wiring Accessories

Revenue

£81.3m

LED Lighting

Revenue

£49.5m

Portable Power

Revenue

£45.4m

Power and light are essential elements of modern life. They must be distributed widely, consistently and safely. The cost of getting it wrong can be high. Our customers trust us to get it right.

We design all our own products
Our customers know where our products come from
We make many of them ourselves
Our customers know our products will be delivered when and where they want
We work closely with trusted OEMs to guarantee the quality of products we don’t make
They increasingly look to Luceco to help hit their climate targets
We have world-class testing facilities
Professional installers know using our brands means a job done right
With over 70 years of experience, our BG, Luceco, Kingfisher, Masterplug and Ross brands are market leaders in key electrical categories.

We have pressed ahead with our manufacturing transformation project at our factory in China despite the disruption of COVID-19.

This project has already delivered a 9% reduction in product costs over three years. We believe there is the potential for a similar improvement over the next three years.

Key to our progress has been the introduction of a new factory management team. They have redirected the team’s efforts from a previous focus on capacity expansion towards efficiency improvement. A new sourcing team conducted 250 tender processes in 2020, yielding significant savings. We have introduced automation to high volume manufacturing processes.

We have introduced lean concepts to product assembly. A Company‑wide cost-saving ideas initiative has proved very popular, generating 500 ideas from team members, of which three-quarters have already been implemented. This highlights the power of our people-focused, enabling culture.

But our search for operational excellence is not confined to manufacturing. We are also investing in our fulfilment capability and in best-in-class systems across the business.

Automation introduced in 2020:
Socket assembly
Injection moulding
Metal stamping
Raw material central feeding

Customers
across
73
countries

Number of
employees
c2,500

Research and
Development staff
80

Number of New
product SKUs
c.600

Number of
customers
c.2,600

Investment in environmental and automation efficiencies

Our business is diverse but synergistic.

We sell a broad but coherent range of products that share sales channels and manufacturing footprint.

Our products are installed by consumers and professionals alike.

They are used in many different environments from residential to commercial to institutional.

They are most often installed in existing premises rather than new, reducing cyclicality.

A diverse but synergistic product range sold through diverse sales channels offers resilience when demand changes in individual market sectors.

COVID-19 proved the benefit of our diversity. In the first half of the year, Retail channels performed well when Professional Wholesale channels slowed. This then reversed in the second half.

Our portfolio of products and channels is the key to our sustainable growth.

We are also increasing our presence overseas to reduce reliance on the UK market and maximise revenue from our product portfolio. International sales growth is one of our six strategic priorities.

Product segmental revenue by sales channel (as % of total) – FY 2020

Wiring Accessories

LED Lighting

Portable Power/Other

Total

    Product segmental revenue by sales channel (as % of total) – FY 2020