Eco Investor October 2015

Core Securities

Record Results for Beacon Lighting

After a strong rise, Beacon Lighting's share price has been trending sideways since February, despite achieving record sales and record profits in 2014-15.

The company said the results were driven by strong sales growth, solid gross profit growth and expense productivity gains. Sales growth was 19 per cent to $179.4 million. After tax profit rose 43 per cent to $16.9 million. The fully franked dividend rose 200 per cent to 4.2 cents per share.

During the year Beacon Lighting opened seven new stores, purchased a franchise store, and undertook two major refurbishments. The investments were funded by cash flow and trade finance facilities.

At the end of the year Beacon Lighting had 78 company stores, 13 franchise stores and 4 commercial sales offices.

The company issued a positive outlook, saying market conditions remain supportive for the lighting industry with low interest rates, confidence in property prices and an increasing number of dwelling approvals. The rapid development of new LED technologies, new energy efficiency regulations and lighting becoming more fashionable will continue to drive growth.

The company will continue to open new company stores, continue work on improving the performance of its existing stores, and continue to aim to be the first to market with the latest fashions, trends and technology lighting products. (ASX: BLX)

Beacon Lighting - 2014-15 Results





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