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Strategic Report
Business Overview Lucy Electric
Vision To be the leader in engineering intelligent switchgear solutions Intelligent future-focused solutions With over 100 years of engineering excellence and development, deep industry knowledge and strong technical expertise Lucy Electric engineers intelligent, future-focused, secondary power distribution solutions which enable the safe and efficient distribution of electricity to homes and businesses worldwide. An international network of design, manufacture and supply channels allied to collaboration with specialist third parties, including Lucy Zodion for the development of electric vehicle infrastructure, enables Lucy Electric to provide innovative, flexible and valueadding solutions for our customers in a rapidly evolving marketplace.
A year of success in uncertain conditions Despite undoubted challenges arising from the continuing impact of the Covid-19 pandemic throughout all of Lucy Electric’s markets, the business and its employees rose to meet these head on with record sales and profitability and full year order intake substantially exceeding expectation. The business achieved significant year on year sales growth of 26%, resulting in a material increase in profit before tax, although there were some regional variations with those performing above expectation offsetting those that experienced lower activity arising from the impact of Covid-19 restrictions and its economic and financial consequences. There was an increase in revenue generated by sales of our digital products, including smart ring main units and Gridkey monitoring
Annual Report and Accounts
technology which supports National Highways’ capability to manage the road network efficiently and effectively. We also continued to focus on developing electric vehicle (“EV”) and renewable energy markets with ring main units supplied for solar, wind and biomass projects in several countries and support for EV charging infrastructure in the UK. Additionally, steps were taken to broaden Lucy Electric’s geographical and commercial footprint with the recruitment of sales resources in Argentina and Vietnam and work to establish a presence in the Australian market. Whilst 2021 was undoubtedly a successful year for the business we started to see the impact of commodity price increases flowing through the supply chain with increased raw material costs impacting gross margins in the year which is expected to continue into and through 2022. Increased focus was also required from our procurement and logistics teams to manage the widely reported difficulties flowing from the effects of Covid-19 on global supply chains, which included reduced availability of semi-conductors, and resultant significantly higher freight costs.
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Investment and development for the future We recognise the benefits of investing in all aspects of our business, including product development, information systems, our business network and geographical footprint and, of course, our people. This enables Lucy Electric to meet the requirements of its diverse range of customers from a network of local offices throughout the territories in which we operate whilst supported by integrated manufacturing facilities and a professional head office. Product development and innovation, underpinned by strong value-led engineering, remains a cornerstone of Lucy Electric’s delivery of long-term sustainable revenue, margins and profitability. Our ongoing strategy is to review, develop and supplement our existing product range to meet the expectations of a rapidly evolving marketplace
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Laser sheet metal cutting in Saudi Arabia Energy services team on site in the UK Energy services Double Side Break Disconnector installation in the UK
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