COVID-19 lockdown lights Beacon’s annual result

Aussies stuck at home have rushed to spruce up their fixtures and fittings, putting a rocket under Beacon’s profits.

Beacon said it was not possible to predict whether the current high level of sales would continue.

Spending on household fit-outs is likely to continue as Australians continue to work from home, and as the prospect of an overseas holiday continues to seem farfetched, according to Beacon Lighting chief executive Glen Robinson.

Beacon Lighting is one retailer that has benefited from the trend to work from home driven by the COVID-19 restrictions, as stuck-at-home Aussies spruce up their fixtures and fittings with the spare cash they have that would have otherwise been spent on an overseas holiday.

“Customers are spending more time at home and will probably continue to do that because they won’t be able to travel as easily overseas or interstate even and therefore their home becomes more important,” Mr Robinson told the Australian.

“I think people are also seeing that their home is a place that they don’t mind investing in during these types of times … if you’re trying to be more sensible about how you spend your money, probably investing in your home isn’t a bad outcome.

“We’re likely to continue to get the benefit of that in the near future because I don’t see that people are going to be travelling anytime within the next year or so at least.”

The lighting retailer unveiled a bumper full-year profit on Thursday, up 38.5 per cent to $22.2m after sales grew to $252.2m for the 12 months through June. On an underlying basis, which strips out the impact of Beacon’s exit from its solar business as well as the sale of a distribution centre, net profit after tax lifted 16.8 per cent to $19.1m.

Beacon directors declared a final dividend of 2.4 cents a share, up from 2c a share the prior year.

“We see Beacon on track to deliver a strong first half performance given the shift towards in-home spending,” Citi analyst Sam Teeger said.

Shares in the retailer closed steady at $1.34 each, having rallied strongly in the lead-up to the results announcement.

While Beacon didn’t give a guidance due to the uncertainties of the future of the pandemic, the company said it was encouraged by the continued support from its associates, customers and from the community heading into the 2021 financial year.