LONDON (Alliance News) - Luceco PLC on Monday said it is to close its US business at a cost of approximately GBP2 million.
The Houston-based business, which Luceco said will end operations during the third quarter of the year, posted revenue of GBP4.2 million in 2017 but an operating loss of GBP1.9 million.
The closing costs are a one-off, but will be cash neutral, Luceco said.
Chief Executive John Hornby said: "Our US business was one of six new markets opened in the last five years as part of our strategy of international expansion. Whilst this strategy has been overwhelmingly successful and our new businesses in Europe, Mexico and Asia are delivering rapid revenue growth and market share gains, the US has proven a more difficult market to penetrate.
"We have therefore taken the difficult decision to prioritise our other, more compelling international growth opportunities."
Shares in the LED lighting products firm were down 2.0% on Monday at 64.32 pence each.
Luceco (LUCE)