LUG S.A. announces global collaboration with CISCO and publishes record third quarter results
15 November 2017
14.11.2017 was the day of publication of record financial results for the third quarter of 2017 of LUG SA Capital Group. A significant event accompanying the presentation of the results was the signing by CISCO and LUG of a close cooperation agreement aimed at providing innovative solutions in the area of Smart City.
LUG S.A. Capital Group, one of the leading producers of system solutions for professional lighting technology, has published its growing financial results for the third quarter of 2017. After three quarters of 2017, the company achieved the highest revenue ever in the company's history, improving performance at all levels. Consolidated revenues of LUG Capital Group in the third quarter of 2017 amounted to 39.24 million PLN, an increase of 17.5% compared to the third quarter of 2016. Gross profit from sales amounted in the third quarter of this year 18.21 million PLN, which is an increase of 41.6% in relation to the second quarter of 2017 and by 38.2% in relation to the third quarter of 2016. Net profit in the third quarter of this year amounted to 2.12 million PLN and represents half of the net profit realized after three quarters of this year, rising by 65.7%. compared to the third quarter of 2016. Net profitability was 5.4% and was higher by 1.6pp y/y. After nine months of the year, the net profit amounted to 4.26 million PLN, an increase of 136.8% in comparison with the comparable period of the previous year.
The third quarter of 2017 is full of events that strengthen the company's position on the market. Among the most important were: the registration of LUG Argentina SA and the establishment of a new technology company BIOT S.A., which strengthens the group's potential in the field of new technologies development. Temp has been involved in the construction of a production facility in Argentina, and the first batch of lighting, under contract valued at nearly € 21 million, was sold to South America. The second largest dividend in the company's history was paid to the Shareholders. The Company paid over PLN 1.07m (PLN 14m per share) to its shareholders. In addition, the company has added two new awards: the title of the Lubuskie Business Leader and The Best Annual Report 2016. The first prize in the Lubuskie Business Leader competition in the category of large companies was awarded to LUG Light Factory. The company's work in the area of investor relations was also appreciated, granting LUG S.A. The Best Annual Report 2016 in the NewConnect market category, for high reporting standards.
- The results of the last quarter and events related to the development of technologically advanced lighting solutions have confirmed us to be right in the decision to further expand into foreign markets. - comments Ryszard Wtorkowski, the President of LUG S.A. - Increasing our scale has brought us higher profits, but we continue to invest in export growth by expanding our trading teams in export markets. We also focus on the development of modern lighting technologies, because they are the direction of the market and they are the foundation of our growth in the years to come.
Global cooperation of LUG S.A. and CICSO Systems Inc.
LUG S.A. and CISCO, have signed a Solution Technology Integrator Agreement and have announced business collaboration to create a leading position in Smart City. Combining the strengths of the two leaders in their fields will offer customers in the local government sector comprehensive services in the field of street lighting management and the ability to integrate multiple city processes management into a single platform.
In the initial phase of cooperation, partners plan to focus on localized projects in Europe and Latin America. However, the first joint project under the LUG brand and CISCO is located in Israel and has already entered the strategic phase of implementation. One of the local government units in this country will receive a solution that will enable it to use intelligent lighting components and to provide comprehensive city management services.
"Intelligent lighting solutions are becoming increasingly popular, and the street lighting market is at the center of transformation, quickly switching to LED-based solutions with the ability to add different sensors to the lighting components. Light management services and Smart City are also directions of our development. We are looking for a partner who will complement our innovative offer with advanced technology solutions. One of our partners is CISCO, a global brand that does not need to be presented to our customers" comments Ryszard Wtorkowski, CEO of LUG S.A. "Today the competitive advantage of the company is its ability to innovate and the ability to build strategic alliances. We hope that our cooperation will prove to be a success for both companies." - adds Wtorkowski.
The usage of modern luminaires and the replacement of conventional yellow light with white light, allows cities to reach 50% cost savings in electricity costs. Adding a professional lighting project and applying a lighting management system that optimizes lighting efficiency can provide an additional 20-30 percent. savings. The economic efficiency of the system and the comfort of life can be further enhanced by integrating LUG lighting fixtures from the CISCO system to achieve the synergy effect of an interactive lighting system as part of a city's smart management strategy.
Two new companies in the Capital Group
BIOT Sp. z o.o. - new technology company in LUG Capital Group
In September, a new entity has joined LUG S.A. Capital Group. The BIOT technology company was created to complement the Group's services portfolio. The main area of activity of the new company is to conduct research and stimulate development in the area of new lighting technologies. This is another step to make the Group's strategic development directions set in June. The activities of BIOT Sp. z o.o. will be focused around the search for lighting synergy and the latest technology.
Registration of LUG Argentina SA and first delivery to the Argentine market
LUG Argentina SA officially started its business on the day of its entry into the Argentinean register of entrepreneurs - August 30, 2017. The proccess of construction of the production plant in Argentina is almost completed. Completion and production start-up is planned for the first quarter of next year. This did not stop the company from fulfilling its first order and preparing delivery of two thousand pieces of modern LED luminaires. This is the first part of a record contract worth nearly 21 million euros. The first batch of luminaires was set up in the LUG S.A. plant in Zielona Góra. Next deliveries will already be installed in the new factory in Argentina. The production line will produce modern luminaires designed to illuminate urban spaces such as streets, parks, parking lots and public buildings.
