Markets

This FTSE listed LED maker’s shares have fallen 46 per cent: Here’s why

Luceco was the biggest faller on the main market today after it revealed an accounting error.

The LED maker's financial controller has resigned after it emerged that a weak margin had not been identified, due to a miscalculation of the group's value.

Read more: This diamond producer's share price has dropped more than 35 per cent

Profit after tax for the year to 31 December will now be around £13.2m, rather than market expectations of £16.7m.

Ongoing weakness in the pound and the strength of the Chinese yuan compared to the US dollar were blamed for the narrowing of the margin to around 33 per cent.

Luceco said in a statement to the market today: "The group will be able to mitigate some of these headwinds through internal efficiency savings and overhead reductions, with margins expected to recover to long term expectations in H2 2018 as a result of these actions.

"The group also intends to increase its foreign exchange and commodity price hedging activities with particular focus on the Chinese RMB versus the US Dollar."

Read more: The pound is tumbling: Here's why

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