Luceco (LON:LUCE) outlined a year of higher revenue, stronger profitability, and improved leverage during its 2025 results presentation, while emphasizing that growth accelerated into the second half and has continued into early 2026 despite subdued conditions across its core markets.
2025 highlights: revenue, profit, dividend and leverage
Management reported that 2025 revenue rose 12% to GBP 271.4 million, supported by a strong finish to the year. On a like-for-like basis, revenue increased 4.6%, with the company noting like-for-like growth of 2% in the first half and close to 7% in the second half, followed by further acceleration in the first quarter of 2026.
On shareholder returns, the board recommended a higher dividend, including a final dividend of GBP 0.042 and a full-year dividend of GBP 0.06, up 20% versus last year. Adjusted earnings per share were GBP 0.15, also up 20%.
The company said its bank net debt ratio improved to 1.2x from 1.6x, remaining within its stated comfort range of 1x–2x. Luceco also replaced its bank facilities during 2025, extending them to September 2028 with two one-year extension options to September 2030.
EV charging and “energy transition” as key growth drivers
A central theme of the call was the contribution from EV charging. Management said approximately two-thirds of 2025 organic growth came from EV charging, reflecting continued market share gains in a structurally growing segment. EV charger sales were reported to be up 85% year over year, and the company said momentum remains strong into 2026.
Energy transition sales—comprising mostly EV chargers—rose to GBP 18.1 million in 2025 from GBP 9.8 million the year before.
Looking to the U.K. EV charging market, management said it expects to sell approximately 75,000 residential EV chargers this year and indicated an estimated market share of around 15%, up from roughly 5% when the business was acquired in 2022. The company argued that, at maturity, the overall market could be “approximately 6x larger” than it is today.
Channel and regional performance; acquisitions and integration progress
Luceco said its hybrid and professional wholesale channels had an especially strong year, growing over 11% with over 8% like-for-like growth, with EV charger products described as “clearly attractive.”
Overseas operations were described as more challenging in 2025 after strong improvement in 2024, with management citing broader economic impacts. The Middle East performed well in 2025, weighted toward the fourth quarter, though management cautioned that the region “may be challenged in 2026.” In Mexico, the company said projects market conditions were “very tough,” citing the impact of U.S. tariffs.
In the U.K., the new housebuilding market was again described as challenging and deteriorating in early 2026, though management said it is achieving market share gains. Housebuilding represents approximately 5% of revenue, according to the presentation.
On acquisitions, Luceco said its 2024 purchases of D-Line and CMD are performing well, have been integrated effectively, and are beginning to deliver synergies. A full year of ownership increased group sales by around GBP 21 million, and the company said the acquisitions contributed about GBP 2.6 million to 2025 operating profit. Management reiterated that synergy benefits typically emerge 18–24 months after completion, noting progress at CMD as component production is designed and tooled for in-house manufacturing.
As part of the integration plan, Luceco said the D-Line warehouse facility in the North of England will be closed in the summer as operations are consolidated into Luceco’s existing footprint.
Margins, costs, tax and cash flow
Gross margin improved to 41.8%, which management said was the highest annual performance achieved, despite an uptick in some raw material costs such as copper. Productivity gains, operational leverage, and overhead savings at the company’s Jiaxing production facility were cited as key contributors. Currency was also a factor: Luceco noted the U.S. dollar was a revenue headwind in 2025, while a weaker RMB benefited the cost base, with the company’s use of forward cover tempering the timing of currency impacts.
Overheads were approximately GBP 80 million, up about GBP 11 million year over year. Most of the increase was attributed to the acquired businesses (GBP 6.6 million), alongside targeted investment—particularly in energy transition activities such as marketing, technical capabilities, and support. The company also noted that an increase in national insurance rates to 15% implemented in April 2025 added approximately GBP 1 million to its U.K. cost base.
On tax, management said it benefited from unlocking previously unusual losses, creating a one-time GBP 1.6 million benefit to the 2025 tax charge. Luceco expects its effective tax rate in 2026 to be “materially above” 2025, noting it is heavily weighted to the U.K., where the headline corporation tax rate is 25%.
The company highlighted strong cash generation of GBP 30 million in 2025 and said working capital management is “in a good place,” with improved debtor days. Management contrasted the result with 2024, when free cash flow was GBP 3.5 million, attributing the prior year’s weaker conversion to working-capital effects, including higher in-transit inventory from Red Sea route changes and a late-2024 surge in receivables.
Freight conditions were described as relatively calm through much of 2025 but with recent increases tied to indirect disruption from the Iran conflict. The company said its Asia-to-Europe shipping routes have been going around the Cape for over 18 months, which keeps goods in transit at around GBP 12 million, roughly double historic levels, increasing working capital needs.
Outlook: Q1 strength, margin progression, and 2026 profit guidance
Luceco said momentum from late 2025 continued into early 2026, citing like-for-like double-digit revenue growth for the first two months of 2026 across most categories, channels, and territories. While noting recent global economic disruption and uncertainty tied to the conflict in the Middle East, management said the group is positioned to manage operations with resilience and contingency measures.
With operational leverage in manufacturing and distribution, investments in manufacturing efficiency, and acquisition synergies, the board expects further operating margin progression. Luceco guided that adjusted operating profit for 2026 is expected to exceed GBP 37 million, with the potential for further outperformance dependent on “demand flexibility.”
Management described demand flexibility—particularly enrolling EV chargers into wholesale flexibility markets—as a potentially meaningful revenue stream, noting about 10,000 chargers are currently enrolled and that additional units are added monthly. However, it emphasized forecasting is difficult due to the “nascent regulatory environment” and Ofgem-controlled pricing formulas.
About Luceco (LON:LUCE)
Luceco plc manufactures and distributes wiring accessories and LED lighting and portable power products in the United Kingdom, Europe, the Middle East, the Americas, the Asia Pacific, and Africa. It offers wiring accessories, including switches and sockets, circuit protection products, outdoor wiring devices, junction boxes, cable management products, and commercial power and accessories under the British General and Nexus brands. The company also provides LED lighting products, such as residential and commercial, interior and exterior, mains and solar, and work and site lighting products under the Luceco, Kingfisher Lighting, and DW Windsor brand names; and portable power products comprising electric vehicle chargers, extension leads, cable reels, and adapters and accessories under the Masterplug, Ross, and Sync EV brands.
