Australia’s largest retailer of residential lighting and ceiling fans, Beacon Lighting Group (BLX), has followed a path on the share market in its listed life that is similar to several other small-cap floats in recent years: a successful debut, market euphoria, sudden disappointment through a profit downgrade, and price collapse.
The strong share price performance by Beacon Lighting Group since its IPO two years ago seems justified with the company achieving record sales and a record profit for the December half year. Sales revenue was $98.5 million, up $7.7 million or 8.5 per cent on the December 2014 half. The net profit was $11.1 million, up $2 million or 22 per cent.
The broker has pulled back its earnings forecasts for Beacon because retail is quite simply very tough at present. The company’s offshore exposure and other segments, such as street lighting, provide some diversity but there’s also evidence of Master’s exit having provided a short term boost.