REG - Luceco PLC - 2025 Interim Results
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RNS Number : 4969Y Luceco PLC 09 September 2025
9 September 2025
LUCECO PLC - 2025 INTERIM RESULTS
Continued solid performance with c.10% adjusted operating profit growth
assisted by strong growth in EV
Full year expectations unchanged
Luceco plc ("Luceco" or the "Group") the leading designer and manufacturer of
residential and commercial electrification products and systems, is pleased to
provide the following update for the unaudited six months ended 30 June 2025
("H1 2025" or "first half").
Financial overview:
Six months ended 30 June H1 2025 H1 2024 Change
(£m unless otherwise stated)
Revenue 125.7 109.6 +14.7%
Adjusted Results(1)
Adjusted operating profit 13.8 12.6 +9.5%
Adjusted profit before tax 10.8 11.2 -3.6%
Adjusted profit after tax 8.9 8.8 +1.1%
Adjusted basic earnings per share 5.9p 5.7p +3.5%
Statutory Results
Operating profit 11.6 10.1 +14.9%
Profit before tax 7.8 8.7 -10.3%
Profit after tax 6.6 6.9 -4.3%
Basic earnings per share 4.4p 4.5p -2.2%
Metrics
Adjusted(1) operating margin % 11.0% 11.5% -0.5ppts
Bank net debt 68.0 39.4 +72.6%
Bank net debt : EBITDA(2) 1.6x 1.1x +45.5%
Adjusted(1) free cash flow 10.3 (1.7) +£12.0m
Dividend per share 1.8p 1.7p +5.9%
1. The definitions of the adjustments made and reconciliations to the
reported figures can be found in note 1 of the condensed consolidated
financial statements
2. Includes pro-forma adjustment for EBITDA of acquired businesses, as
shown in note 1 of the condensed consolidated financial statements
Solid performance in H1:
· Revenue up 14.7% to £125.7m (H1 2024: £109.6m), with strong
contributions from recent acquisitions and EV charging products:
o Like-for-like growth of 2.0% consisting of stronger growth of 3.6% in the UK
offset by weaknesses in some of the Group's international markets
o EV charging continues to accelerate with revenue growth of 93.0% in the
first half of the year. Recently awarded supply of EV chargers for
Centrica-owned Hive, the UK's largest eco-tech brand
o Acquisitions have contributed 14.1% growth in H1 2025
· Adjusted operating profit up 9.5% to £13.8m (H1 2024: £12.6m), with
lower operating margin reflecting investment in both the energy transition
opportunity and the delivery of synergies from recent acquisitions
· Adjusted EPS of 5.9p (H1 2024: 5.7p), up 3.5% reflecting costs of
funding new acquisitions
· Strong cash generation with Adjusted Free Cash Flow of £10.3m (H1
2024: £(1.7)m) driven by the unwind of the temporary increase in working
capital built up at the end of 2024
· Dividend per share of 1.8p (H1 2024: 1.7p), up 5.9%
· Bank Net Debt: EBITDA ratio of 1.6x, within the Group's target range
of 1-2x
Well-positioned for future growth, full year expectations unchanged:
· The Group remains firmly on track to deliver full year expectations*
with a strong order book entering H2
· Encouraging acceleration of revenue from quarter one to quarter two
with quarter one like-for-like growth of 0.6% and quarter two like-for-like
growth accelerating to 3.2%
· Very limited direct exposure to US/China tariffs, which represented
only c.£1m of sales in H1
· Well positioned to deliver future growth, underpinned by Luceco's
competitive advantages, the structural growth opportunity from new products to
aid decarbonisation and electrification
· New £120m RCF provides further balance sheet optionality to invest
organically and through M&A in line with the Group's stated capital
allocation policy
Commenting on the results, Chief Executive Officer, John Hornby said:
"I am pleased with the first half trading performance and these results
reflect a robust performance built on Luceco's superior channel access, our
proven ability to build strong positions in new categories by leveraging our
product innovation capabilities and vertically integrated manufacturing
facilities, and our ability to identify, execute and fund high quality
acquisitions.
"We are optimistic that confidence in our sectors of the economy will recover
further in the second half of 2025. The Group's trading remains in line with
expectations for further growth in the year ending December 2025."
* Analyst consensus at 8 September 2025, full year 2025 Adjusted Operating
Profit £31.2m
Results information
A meeting for analysts will be held at 9:30am BST today, Tuesday 9 September
2025 at the offices of Deutsche Numis, 45 Gresham Street, London EC2V 7BF. To
register to attend please email luceco@client.sodali.com
(mailto:luceco@client.sodali.com) . To register to watch a live webcast of the
meeting, please follow this link:
https://brrmedia.news/LUCE_HY25 (https://brrmedia.news/LUCE_HY25)
Luceco plc Contact
John Hornby, Chief Executive Officer (Via Sodali & Co)
Will Hoy, Chief Financial Officer
Sodali & Co Contact
Pete Lambie +44(0) 79 3535 1934
James White Luceco@client.sodali.com (mailto:Luceco@client.sodali.com)
Tilly Abraham
Note to Editors
Luceco plc - Bringing Power To Life
Luceco plc (LSE:LUCE) is a leading designer and manufacturer of residential
and commercial electrification products and systems. The Group designs and
manufactures its market-leading range of wiring accessories, EV chargers, LED
lighting, and portable power products at its state-of-the-art manufacturing
facilities, distributing them through professional, wholesale and retail
channels.
For more information, please visit www.lucecoplc.com
(http://www.lucecoplc.com) .
Forward-looking statements
This announcement contains forward‑looking statements that are subject to
risk factors associated with, among other things, the economic and business
circumstances occurring from time to time in the countries, sectors and
markets in which the Group operates. It is believed that the expectations
reflected in these statements are reasonable, but they may be affected by a
wide range of variables which could cause actual results to differ materially
from those currently anticipated. No assurances can be given that the
forward‑looking statements in this announcement will be realised.
The forward‑looking statements reflect the knowledge and information
available at the date of preparation of this announcement and the Company
undertakes no obligation to update these forward‑looking statements. Nothing
in this announcement should be construed as a profit forecast.
Use of alternative performance measures
The commentary in both the Chief Executive Officer's and Chief Financial
Officer's Reviews uses alternative performance measures, which are described
as "Adjusted". Definitions of these measures can be found in note 1 of the
condensed consolidated financial statements. The measures provide additional
information for users on the underlying performance of the business, enabling
consistent year-on-year comparisons.
Chief Executive's review
Performance highlights
During the first half of 2025, we delivered revenue of £125.7m (H1 2024:
£109.6m) and Adjusted Operating Profit of £13.8m (H1 2024: £12.6m), which
is at the top end of the range reported in our July trading update. Revenue
growth was supported by £15.5m of revenue from acquisitions, in addition to
2.0% like-for-like organic growth, once again outperforming our key end
markets.
Our lean operating model has enabled us to deliver a strong Adjusted Gross
Profit Margin of 42.0%, with an Adjusted Operating Margin of 11.0% despite the
impact of some seasonality and investment in the integration of the CMD and
D-Line acquisitions.
Continued market outperformance driven by competitive advantages
Our commercial position and continued outperformance is underpinned by
Luceco's core competitive advantages.
1. Strong, well-invested brands across our segments, with
well-established positions with key customers and multiple sales channels
providing a significant competitive moat and predictable volumes in our core
product segments.
2. The strength of our brands and relationships is underpinned by our
vertically-integrated central manufacturing hub in Jiaxing, China, which gives
us full control of our supply chain and flexibility in our manufacturing
operations, allowing us to both continuously improve our operations and
provide best-in-class customer service.
3. In turn, this flexibility and control facilitates our continuous
product improvement and innovation, providing an unparalleled level of agility
in product development to continuously enhance the functionality of our
existing product range, along with organically developing new products in
adjacent categories to enhance our growth prospects.
The economic growth conditions remain suppressed in the UK and challenging in
some of our other territories such as Mexico, Asia Pacific and the USA.
However, despite the subdued market backdrop, our innovative product portfolio
and superior sales channel access have ensured that we have continued to see
resilient residential RMI markets.
Our like-for-like revenue growth for the UK business was 3.6% in the first
half of 2025 which is put into context when we compare ourselves to the wider
construction market, with data from the Construction Products Association
("CPA") indicating that output of our addressable markets is forecast to
increase by 1.9% for calendar year 2025. We expect our UK business to once
again outperform the market in 2025.
Within the CPA data, there is expected growth of 2.1% in the UK Residential
sector in 2025 for the combined new build and the Repair, Maintenance and
Improvement ("RMI") sectors. The Non-residential market growth is expected to
be 0.9% with infrastructure growth of 1.9% for the calendar year 2025.
The flexibility and control over our manufacturing operations has also allowed
us to improve our Adjusted Gross Profit Margin to 42.0% (HY 2024: 41.0%),
providing further confidence that the steps the business has taken in recent
years leave us well positioned to continue to outperform market conditions.
Well-positioned to deliver growth
The strength of Luceco's commercial position and competitive advantages
position us well to pursue structural growth trends to provide further
opportunities for above market growth.
The fundamental growth drivers supporting our industry and business are:
· The drive towards net zero,
· Ongoing regulatory change,
· New technology and legislation changes and
· An underlying need to invest in UK housing stock, providing
confidence that our markets will deliver healthy and stable growth over the
medium and long term.
We are particularly excited by the growth opportunities within the Electric
Vehicle ("EV") market. The UK's EV market is experiencing rapid growth due to
a combination of factors driven by the global climate agenda, resulting in
increased government incentives and therefore rising consumer interest,
resulting in an expansion of EV charging infrastructure. The UK has seen an
increase in used EV sales as more affordable options become available and
consumer battery concerns are addressed. During the period, the Group's EV
product sales increased by 93% and we are excited by the increasing market
opportunity and our strong product offering.
We have continued to make significant strategic progress during the period,
positioning Luceco to deliver through-the-cycle, above market growth. The two
strategic priorities to deliver market growth are:
1. Product innovation to grow our presence in higher-growth segments,
such as EV chargers, and to enhance our market position in existing markets.
2. Targeted M&A to expand the breadth and depth of our product
ranges and customer relationships while simultaneously delivering synergistic
growth from our manufacturing facility in Jiaxing, China.
Delivering above market growth through product innovation
Energy transition product development
The structural opportunity posed by decarbonisation and the energy transition
continues to drive our product innovation; for instance, our Titan All-in-One
LED Highbay Light consolidates 72 SKUs into four, reducing waste and
increasing flexibility for distributors and contractors. Our Sync Energy
portfolio, including EV chargers and the recently launched Home Energy
Management system (HEMs), facilitates clean energy transitions. The Home
Energy Management system empowers homeowners to manage both grid and renewable
energy more effectively, supporting emission reductions and energy
optimisation. By prioritising efficiency and low carbon solutions, our
products contribute significantly to sustainable advancement.
In 2024, we launched Sync Energy to reflect our expanded range of sustainable
energy solutions. A major milestone was the development of our HEMs, which
launched during H1 2025. This system stores energy in modular batteries from
the grid and renewable sources, allowing consumers to use lower-cost energy at
optimal times. With the growing demand for EV charging and renewable energy,
home energy management is a key growth area.
We advanced our EV charging solutions with the "Pro Charge" range and the EV
Balancer, which connects up to 16 chargers, ensuring safe and efficient
charging. Our Sync Energy App enhances user control with features like "Tariff
Sense" and "Solar Mode," optimising charging times and maximizing
self-generated energy.
Ongoing innovation in Lighting and Wiring Accessories
Wiring Accessories delivered another robust performance this period with our
products consistently recognised by electricians for their ease of
installation, reliability, and superior availability. Consequently, many
industry professionals have utilised our Wiring Accessories throughout their
careers and whilst we take pride in their loyalty, it remains something we
continually strive to maintain. The enduring strength of our customer
relationships enables us to collaboratively meet end consumer needs. Our sales
and R&D teams remain closely integrated, driving extension of product
lines and securing new business opportunities.
We also enhanced our Wiring Accessories and Masterplug product lines,
launching Superfast USB-C sockets and new USB-C wall chargers to meet the
demand for fast-charging solutions. Our commitment to purposeful innovation
drives our strategy, with our speed to market enabling us to gain market share
and create value through differentiated, high-margin products.
In the Group's Lighting division, we are seeing success from the award-winning
Titan All-in-One LED Highbay Light under the Luceco Lighting brand, which
launched in the latter half of 2024, offering adjustable wattage, colour
temperature, and beam angle for optimal industrial lighting.
Delivering above market growth through M&A
The business has demonstrated sustained growth both organically and through
strategic mergers and acquisitions, aligned with our capital allocation
framework and supported by our solid cash generation. Our core competitive
advantages allow us to acquire complementary businesses, utilise our superior
channel access to enhance growth through new market entry and product
categories, and simultaneously achieve synergistic growth through our Jiaxing
manufacturing site.
In September 2024, the acquisition of CMD Limited ("CMD") was completed.
Established in 1984, CMD is a leading manufacturer of wiring accessories for
commercial buildings in the UK, including advanced distribution solutions and
ergonomic office products. In February 2024, we concluded the acquisition of
D-Line (Europe) Limited ("D-Line"), headquartered in Tyne & Wear, UK.
D-Line specialises in innovative cable management products and serves diverse
customers across the UK, Europe, and North America, with operations including
a dedicated facility in Kentucky, USA. These businesses are integrating well
and we are capturing the synergies identified through the acquisition process.
With our strong cash generation we continue to explore M&A opportunities
that have a strong strategic fit and the potential to deliver future growth,
with a particular focus on acquisition targets that complement our energy
transition related product categories.
A further period of cash generation, driven by organic growth in addition to
synergy delivery from previous acquisitions, means we end the half year with
Bank Net Debt of £68.0m with a Bank leverage ratio of 1.6x which is
comfortably within our 1-2x range.
Outlook
The Group's diverse portfolio and channels and in particular its strong
product performance in the emerging EV sector have ensured continued growth in
both revenues and profits, despite the challenging UK economic conditions. The
balance sheet remains robust, with debt levels comfortably within our target
range, providing flexibility to invest in new organic growth initiatives and
M&A opportunities aligned with our capital allocation policy.
We are optimistic that confidence in our sectors of the economy will recover
further in the second half of 2025. The Group's trading remains in line with
expectations for further growth in the year ending December 2025.
JOHN HORNBY
Chief Executive Officer
8 September 2025
Chief Financial Officer's review
Summary of reported results
Summary results (£m) H1 2025 H1 2024
Revenue 125.7 109.6
Operating profit 11.6 10.1
Profit before tax 7.8 8.7
Taxation (1.2) (1.8)
Profit for the period 6.6 6.9
Operating profit of £11.6m was ahead of the prior year by 14.9% - a strong
result considering the challenging macroeconomic backdrop. Improvements in
gross margin continue as cost pressures ease ensuring that margins are moving
towards through-the-cycle levels. Profit before tax was behind the prior year
but this reflects a higher interest charge with our new £120m facility.
Adjusting items
Certain alternative performance measures ("APMs") have been included within
this report. These APMs are used by the Board to monitor and manage the
performance of the Group, in order to ensure that decisions taken align with
the Group's long-term interests. A table summarising the reconciliation of
adjusted measures to statutory measures is included in note 1 of the condensed
consolidated financial statements. Adjusting items are those which we consider
unusual by virtue of their size or incidence and therefore not representative
of our underlying trading performance. We have identified £2.2m of such items
within our reported operating profit for 2025 (H1 2024: £2.5m). They consist
of:
· Amortisation of acquired intangibles: £1.7m (H1 2024: £1.0m)
· Acquisition related costs: £0.4m (H1 2024: £1.5m)
· Fair value movements of hedging portfolio: £0.1m (H1 2024: nil)
Adjusted Operating Profit for the period, excluding the items above, was
therefore £13.8m (H1 2024: £12.6m). Additionally there were £0.8m of net
finance cost items which form part of the profit before tax adjustments -
these relate to loan fee write-offs and interest rate swaps.
Income statement
Revenue
Revenue of £125.7m was £16.1m (14.7%) higher than H1 2024 with the main
movements summarised below:
Bridge from H1 2024
Revenue bridge: £m Change %
2024 109.6
Acquisitions/closures 15.5 +14.1%
Like-for-like increase(1) 2.2 +2.0%
Constant Currency(2) 127.3 16.1%
Currency movements (1.6) (1.4%)
2025 125.7 14.7%
1. Like-for-like revenue increase excludes the impact of currency
movements and acquisitions, see note 10 of the condensed consolidated
financial statements
2. 2025 revenue translated at 2024 exchange rates
Total revenue increased by 14.7% which includes the impact of the acquisitions
of D-Line in February 2024 and CMD in September 2024. Like-for-like revenue
increased by 2.0% during the period - however we have seen an acceleration in
revenue from quarter one to quarter two. Quarter one like-for-like growth was
0.6% and quarter two like-for-like growth was 3.2%.
We group our customers into the following sales channels:
· Retail: Distributors serving consumers only, including DIY sheds,
pure-play online retailers and grocers
· Hybrid: Distributors serving both consumers and professionals,
typically with multi-channel service options
· Professional Wholesale: Distributors serving professionals only,
largely via a branch network
· Professional Projects: Sale agreed by Luceco direct with
professionals, but largely fulfilled via Professional Wholesale
Performance by sales channel was as follows:
Like-for-like revenue by sales channel: H1 2025 H1 2025 Change v H1 2024 %
£m % of total
Retail 30.2 27.0% +1.7%
Hybrid 24.4 21.8% (2.0%)
Professional Wholesale 30.5 27.3% +8.5%
Professional Projects 26.7 23.9% (0.7%)
Like-for-like revenue 111.8 100.0% +2.0%
Currency impact (1.6)
Acquisitions 15.5
TOTAL 125.7 14.7%
There are different trends across the sales channels with particularly strong
growth in the Professional Wholesale sector of 8.5% - this has largely been
driven by strong EV performance. The Retail and Hybrid channel was flat in the
period although the timing of Chinese New Year has impacted the comparatives
due to the larger proportion of "Free on Board" ("FOB") sales in Q4 2024 which
impacted sales in Q1 2025. The Professional Projects channel shrank by 0.7%
over the half year but there is a strong order book for the second half so we
expect growth in this channel by the end of the year.
Revenue by geographical location of customer: H1 2025 H1 2024 Change v
£m £m H1 2024 %
UK 102.0 86.8 +17.5%
Europe 10.7 9.5 +12.6%
Middle East and Africa 2.3 2.8 (17.9%)
Asia Pacific 1.3 1.7 (23.5%)
Americas 9.4 8.8 +6.8%
Total revenue 125.7 109.6 +14.7%
The change in revenue by geography has a number of characteristics by location
of the customer. Within the UK, the acquisition of CMD has contributed £11.3m
in the period, which means the underlying growth in the UK was over 3%.
With the acquisition of D-Line, this has boosted our sales representation in
both Europe and the Americas during the prior year and this - with overall
sales growth increasing by 12.6% and 6.8% in Europe and the Americas
respectively.
There was a reduction in growth in the Middle East and Africa which largely
reflects timing issues in revenue.
Profitability
Adjusted Operating Profit of £13.8m for H1 2025 was £1.2m higher than H1
2024. The key drivers were as follows:
Bridge from Bridge from
Adjusted Operating profit H1 2024 H1 2023
£m £m
2024/23 12.6 10.8
Acquisitions/closures 1.5 0.5
Organic increase/(decrease)(1) (0.3) 1.3
2025/24 13.8 12.6
1. Organic movements exclude the impact of acquisitions
The organic operating profit movement includes the cost of targeted
investments in some key areas of the Group's capabilities designed to generate
future value, including marketing, EV charging and the lighting teams.
Overhead wage inflation has been somewhat less pronounced than that
experienced coming into 2025. As previously outlined, the Group has strong
operational leverage, so with future growth we expect operating margin to make
further progress.
Looking forward, we continue to drive efficiency improvements within our
manufacturing facility which will serve to benefit 2025 and beyond.
Operating costs
Adjusted operating costs increased by £6.7m to £39.0m (+20.7%), which a
significant part reflects the acquisitions of CMD and D-line. Removing these
acquisitions, underlying operating costs increased by £1.9m of which £0.3m
relates to variable costs, £0.8m relates to living wage cost increases and
£0.8m relates to investment in the business and customer experience.
Net finance expense
The Adjusted Net Finance Expense was £3.0m in the first half (H1 2024:
£1.4m). Our policy is to mitigate the interest risk by swaps which fix the
interest rate applicable to approximately 70% of our borrowings on a rolling
three-year basis with 30% of our borrowings remaining at floating interest
rates.
Taxation
We currently expect a Group adjusted effective tax rate of c.21% for the year
ending 31 December 2025. There was a deferred tax asset recognised in the
period in relation to the utilisation of USA tax losses.
Adjusted Free Cash Flow
Adjusted(1) Adjusted(1) H1 2024
Adjusted(1) Free Cash Flow (£m) H1 2025
Operating profit 13.8 12.6
Depreciation and amortisation 4.5 3.6
EBITDA 18.3 16.2
Changes in working capital (2.4) (11.8)
Other items 0.7 0.7
Operating Cash flow 16.6 5.1
Operating cash conversion(2) 120.3% 40.5%
Net capital expenditure (3.8) (2.8)
Interest paid (2.9) (1.3)
Tax received/(paid) 0.4 (2.7)
Free Cash Flow 10.3 (1.7)
Free Cash Flow as % revenue 8.2% (1.6%)
1. A reconciliation of the reported to Adjusted results is shown
within note 1 of the condensed consolidated financial statements
2. Adjusted Operating Cash Conversion is defined as Adjusted
Operating Cash Flow divided by Adjusted Operating Profit
Adjusted free cash flow was strong in the first half of the year with an
inflow of £10.3m versus an outflow of £1.7m in the prior year. Lower tax was
paid in the period predominantly due to refunds from 2022/3 and RDEC.
Capital expenditure
The Group's net capital expenditure consists of capitalised product
development costs and the purchase of physical assets. Capital expenditure was
£3.8m in the first half (H1 2024: £2.8m) and was 3.0% of revenue (H1 2024:
2.6%) hitting our target range. We continue to see opportunities to invest in
low risk, high return automation projects in our Chinese production facility
and continue to invest in R&D projects, particularly in relation to
acquired businesses.
Capital structure and returns
Return on capital
Return on Capital Invested was in line with the prior year at 20.0% (H1 2024:
19.6%). We expect average Return on Capital Invested through the economic
cycle to be 20% or higher as recent acquisitions are fully integrated into the
Group.
Capital structure
The business continues to consistently generate ample cash flow to support its
dividend policy and fund M&A activity.
£m H1 2025 H1 2024 Change
Reported net debt £74.0m £45.7m +61.9%
Less: IFRS 16 Finance Leases (£6.4m) (£7.0m) (8.6%)
Finance Leases - pre-IFRS 16 £0.4m £0.7m (42.9%)
Bank Net Debt £68.0 £39.4m +72.6%
Bank Net Debt : EBITDA 1.6x 1.1x +45.5%
The Group's Bank Net Debt : EBITDA ratio of 1.6x remains comfortably within
the 1-2x target range - which is in line with the year-end number. The
Group's non-utilised facilities totalled £52.4m and the facility matures in
May 2028. The Group is therefore in a position both to invest organically and
execute its M&A strategy.
The Company's bank ratio position and headroom at 30 June 2025 were as
follows:
H1 2025 Bank position Covenant Actual Headroom
Bank Net Debt : EBITDA 3.0 : 1 1.6 : 1 Bank Net Debt headroom: £57.7m
Bank EBITDA headroom: £19.2m
Bank EBITDA : Adjusted Net Finance Expense 4.0 : 1 14.0 : 1 Bank EBITDA headroom: £29.9m
Net Finance Expense headroom: £7.5m
The key measures which management use to evaluate the Group's use of its
financial resources and capital management are set out below:
H1 2025 H1 2024
Adjusted(1) Earnings Per Share (pence) 5.9 5.7
Bank Net Debt : EBITDA (times) 1.6x 1.1x
Adjusted(1) Free Cash Flow (£m) 10.3 (1.7)
1. Note 1 in the notes to the condensed consolidated financial
statements provides an explanation of the Group's alternative performance
measures.
The Group complied with its bank requirements throughout the first half with
significant headroom on all metrics. The Group has conducted a going concern
review for the first half of 2025 and this is outlined in note 1 of the
condensed consolidated financial statements. The Group has a strong balance
sheet and significant facility headroom under even a realistic severe but
plausible downside scenario. No bank breaches occur in any of our severe but
plausible downside scenarios, all of which are before any mitigating actions,
illustrating our financial resilience.
Dividends
The Board will pay an interim dividend of 1.8p per share, up 5.9% over the
prior year. This will be paid to shareholders on 24 October 2025 who are on
the register on 19 September 2025, and the shares will be marked ex-dividend
on 18 September 2025. The last day for dividend reinvestment ("DRIP")
elections is 3 October 2025. The interim dividend is a payout ratio of 40%,
with one third paid at the interim and the remaining two thirds being paid at
the final dividend.
Operating segment review
The revenue and profit generated by the Group's operating segments are shown
below. Operating profits are stated after the proportional allocation of fixed
central overheads. The Group's central allocation of head office and shared
services costs were £4.5m for Wiring Accessories, £3.0m for LED Lighting and
£3.1m for Portable Power.
Wiring Accessories
Adjusted(1) Reported
H1 2025 H1 2024 Change H1 2025 H1 2024 Change
Revenue £61.0m £48.9m +24.7% £61.0m £48.9m +24.7%
Operating profit £9.3m £9.4m (1.1%) £8.0m £7.8m +2.6%
Operating margin % 15.2% 19.2% (4.0ppts) 13.1% 16.0% (2.9ppts)
1. A reconciliation of the reported to Adjusted results is shown
within note 1 of the condensed consolidated financial statements
Wiring Accessories is the Group's most profitable segment, generating nearly
70% of the Group's operating profit and 49% of its revenue, under a brand
established over 80 years ago.
Sales from the Wiring Accessories segment were £61.0m which was a significant
improvement of 24.7% over the prior period, in part due to the acquisition of
D-Line and CMD, both of which arrive with lower operating margins than the
core Wiring Accessories segment.
LED Lighting
Adjusted(1) Reported
H1 2025 H1 2024 Change H1 2025 H1 2024 Change
Revenue £36.7m £36.3m +1.1% £36.7m £36.3m +1.1%
Operating profit £2.3m £0.7m +228.6% £1.5m nil n/a
Operating margin % 6.3% 1.9% +4.4ppts 4.1% nil% 4.1ppts
1. A reconciliation of the reported to Adjusted results is shown
within note 1 of the condensed consolidated financial statements
The Group entered the lighting market in 2013 as the industry adopted LED
technology which represents about 29% of Group revenue and 17% of the Group's
operating profit.
Revenue from the LED Lighting segment was slightly ahead of the prior year by
1.1%. Demand has been particularly strong in the professional projects space
in the period, as demand for energy-saving retrofits grows. Adjusted Operating
Profit of £2.3m was significantly ahead of the prior year by £1.6m with
improvements from DW Windsor particularly pleasing.
Portable Power
Adjusted(1) Reported
H1 2025 H1 2024 Change H1 2025 H1 2024 Change
Revenue £28.0m £24.4m +14.8% £28.0m £24.4m +14.8%
Operating profit £2.2m £2.5m (12.0%) £2.1m £2.3m (8.7%)
Operating margin % 7.9% 10.2% (2.3ppts) 7.5% 9.4% (1.9ppts)
1. A reconciliation of the reported to Adjusted results is shown
within note 1 of the condensed consolidated financial statements
The Portable Power segment consists of two main elements:
· Cable reels, extension leads and associated accessories sold under
the Masterplug brand
· EV chargers sold under the Sync Energy brand
This business segment generates 22% of Group revenue and 16% of Group Adjusted
Operating Profit. Revenue in the period was 14.8% up although operating margin
reduced slightly.
EV charger sales totalled £8.3m, with outstanding growth of 93% in the
period. We remain excited about the opportunities, in both retail and
commercial spaces, that this new sector will provide as the vehicle market
moves closer towards electrification.
Going concern
The directors have reviewed the current financial performance and liquidity of
the business and assessed its resilience
to a reduction in sales through a series of scenarios. The directors report
that, having reviewed current performance
and forecasts, they have a reasonable expectation that the Group has adequate
resources to continue its operations for
the foreseeable future. For this reason, they have continued to adopt the
going concern basis in preparing the interim
financial statements.
WILL HOY
Chief Financial Officer
8 September 2025
Environmental, Social and Governance ("ESG") update
We continue to make progress on our ESG workstreams:
· We committed to the Science Based Targets Initiative (SBTi) and
this was validated by the SBTi during the first half of the year. This means
we have committed to reductions in carbon emissions over the near-term
consistent with the Paris Agreement
· Achievement of an improved management-level score ("B") attained
in March 2025 from the Carbon Disclosure Project
· We have delivered significant progress against our low carbon
product revenue target and continue to work towards £120m of such revenue by
2030
· We continue to improve our packaging specifications, particularly
around plastic packaging.
Key achievements by area
Products and services
· Acquisition of Sync EV and launch of single-phase Mode 3 EV
chargers under the Sync EV brand
· £83m of revenue from low carbon product categories in the full
year 2024, with significant progress during the first half of 2025 with
revenue of £42m
Supply Chain
· Insourcing of EV charger production within our China
manufacturing facility with 100% renewable electricity supply
· Evaluation of key suppliers' physical climate risk exposure to
understand vulnerabilities within our supply chain
Research and Development
· Specialist R&D function in China and the UK
· Development of higher power, three-phase EV chargers for larger
homes and commercial premises
· Investigating on-street EV charging solutions within DW Windsor
· Dedicated optical engineer focusing on improvements to lens
design to improve lighting efficiency
· Working towards the development of environmental product
declarations (EPD) and industry best practise on circular design in lighting
Operations
· Sourced renewable electricity for all group operations for
2024 and 2023, bringing our scope 2 emissions to zero.
· Offsetting residual Scope 1 emissions for 2024 and 2023
· Investment into energy efficiency and automation projects within
the China manufacturing facility including investment in our second solar PV
array
· Evaluation of our key locations (manufacturing and distribution
centres) to better understand physical climate risk exposure to understand
vulnerabilities across direct operations
· All plastic packaging is recyclable with a minimum 30% recycled
content
· Installation of EV chargers in our Telford operation
Our ESG objectives for 2025 are as follows:
· Develop our Home Energy Management system
· Grow EV further in the domestic space and expand into the
commercial space
· Grow LED in our UK Trade and Projects channels and our product
proposition
· Deeper engagement with suppliers and customers
· Fully incorporate the recent acquisitions of CMD and D-Line into
our Green House Gas ("GHG") reporting and our science-based targets
Principal risks and uncertainties
The Board is responsible for identifying, reviewing and managing business and
operational risk. It is also responsible for determining the level of risk
appetite it is prepared to take in the ordinary course of business to achieve
the Group's strategic objectives and to ensure that appropriate and sufficient
resource is allocated to the management and mitigation of risk.
In addition to the risk management framework, the Board has delegated
responsibility to the Audit Committee for reviewing the overall process of
assessing business risks and managing the impact on the Group. The Group's
risk management process is set out below.
The principal risks identified, and actions taken to minimise their potential
impact are detailed on pages 65 to 70 in the Annual Report and Accounts. This
is not an exhaustive list but those the Board believes may have an adverse
effect on the Group's cash flow and profitability.
In determining whether it is appropriate to adopt the going concern basis in
the preparation of the financial statements, the Directors have considered
these principal risks and uncertainties. The Viability Statement on pages 69
to 70 of the 2024 Annual Report and Accounts considers the prospects of the
Group should a number of these risks crystallise together.
Statement of Directors' responsibilities
We confirm that to the best of our knowledge:
· the condensed set of financial statements has been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted for use in the
UK;
· the interim management report includes a fair, balanced and
understandable review of the information required by:
(a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed set of financial
statements; and a description of the principal risks and uncertainties for the
remaining six months of the year; and
(b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related party transactions that have taken place in the first six months of
the current financial year and that have materially affected the financial
position or performance of the entity during that period; and any changes in
the related party transactions described in the last annual report that could
do so.
Approved by a Committee of the Board on 8 September 2025 and signed on its
behalf.
JOHN HORNBY
Chief Executive Officer
WILL HOY
Chief Financial Officer
8 September 2025
CONDENSED CONSOLIDATED INCOME STATEMENT (unaudited)
For the period ended 30 June 2025
H1 2025 H1 2024
Note £m £m
Revenue 2 125.7 109.6
Cost of sales (73.0) (64.7)
Gross profit 52.7 44.9
Distribution expenses (7.4) (4.7)
Administrative expenses (33.7) (30.1)
Operating profit 2,3 11.6 10.1
Finance expense (3.8) (1.4)
Net finance expense (3.8) (1.4)
Profit before tax 7.8 8.7
Taxation 4 (1.2) (1.8)
Profit for the period 6.6 6.9
Earnings per share (p)
Basic 5 4.4p 4.5p
Fully diluted 5 4.3p 4.5p
Adjusted(1) Results
H1 2025 H1 2024
Note £m £m
Adjusted operating profit 1 13.8 12.6
Adjusted profit before tax 1 10.8 11.2
Adjusted profit after tax 1 8.9 8.8
Adjusted basic earnings per share 5 5.9p 5.7p
Adjusted diluted earnings per share 5 5.9p 5.7p
1. See note 1 for alternative performance measures
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (unaudited)
For the period ended 30 June 2025
H1 2025 H1 2024
£m £m
Profit for the period 6.6 6.9
Other comprehensive income - amounts that may be reclassified to profit or
loss in the future:
Changes in the fair value of equity investments at fair value through other - (0.3)
comprehensive income
Foreign exchange translation difference on investments in overseas entities 0.5 (0.6)
Foreign exchange translation differences - foreign operations (3.3) (0.4)
Total comprehensive income for the year 3.8 5.6
All results are from continuing operations.
The accompanying notes form part of these financial statements.
CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
At 30 June 2025
H1 2025 H1 2024 FY 2024
Note £m £m £m
Non-current assets
Property, plant and equipment 7 23.9 20.4 24.7
Right-of-use assets 8.7 9.6 9.7
Intangible assets 8 64.1 44.0 65.1
Investment in equity instruments 1.8 2.3 1.8
Financial assets measured at fair value through profit or loss - - -
Deferred tax asset 2.2 1.2 0.9
100.7 77.5 102.2
Current assets
Inventories 59.2 54.0 53.8
Trade and other receivables 74.8 63.4 80.1
Financial assets measured at fair value through profit or loss 0.8 0.3 0.4
Current tax asset 0.7 2.4 4.2
Cash and cash equivalents 7.5 4.7 4.1
143.0 124.8 142.6
Total assets 243.7 202.3 244.8
Current liabilities
Trade and other payables 59.2 53.5 59.2
Financial liabilities measured at fair value through profit or loss 1.8 1.2 1.2
Other financial liabilities 2.5 2.5 2.8
63.5 57.2 63.2
Non-current liabilities
Interest-bearing loans and borrowings 9 75.1 43.4 72.0
Other financial liabilities 3.9 4.5 4.4
Deferred tax liability 4.7 2.4 5.2
Financial liabilities measured at fair value through profit or loss 0.5 0.2 0.2
Provisions 3.9 4.1 4.0
88.1 54.6 85.8
Total liabilities 151.6 111.8 149.0
Net assets 92.1 90.5 95.8
Equity attributable to equity holders of the parent
Share capital 0.1 0.1 0.1
Share premium 24.8 24.8 24.8
Other reserves (4.4) (0.6) (1.6)
Treasury reserve (14.3) (11.6) (11.6)
Retained earnings 85.9 77.8 84.1
Total equity 92.1 90.5 95.8
The accompanying notes form part of these financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (unaudited)
For the period ended 30 June 2025
Share Share Translation Financial Retained Treasury Total
capital premium reserve assets at FVOCI earnings reserve equity
£m £m £m £m £m £m £m
Balance at 1 January 2024 0.1 24.8 0.1 0.6 76.8 (8.6) 93.8
Total comprehensive income
Profit for the period - - - - 6.9 - 6.9
Investment revaluation - - - (0.3) - - (0.3)
Currency revaluations of investments - - (0.6) - - - (0.6)
Currency translation differences - - (0.4) - - - (0.4)
Total comprehensive income for the period - - (1.0) (0.3) 6.9 - 5.6
Transactions with owners in their
capacity as owners:
Dividends - - - - (4.9) - (4.9)
Purchase of own shares - - - - - (4.7) (4.7)
Disposal of own shares - - - - (1.7) 1.7 -
Deferred tax on share-based payment transactions - - - - 0.1 - 0.1
Share-based payments charge - - - - 0.6 - 0.6
Total transactions with owners in their capacity as owners - - - - (5.9) (3.0) (8.9)
Balance at 30 June 2024 0.1 24.8 (0.9) 0.3 77.8 (11.6) 90.5
Balance at 1 January 2025 0.1 24.8 (1.4) (0.2) 84.1 (11.6) 95.8
Total comprehensive income
Profit for the period - - - - 6.6 - 6.6
Investment revaluation - - - - - - -
Currency revaluations of investments - - 0.5 - - - 0.5
Currency translation differences - - (3.3) - - - (3.3)
Total comprehensive income for the period - - (2.8) - 6.6 - 3.8
Transactions with owners in their
capacity as owners:
Dividends - - - - (5.0) - (5.0)
Purchase of own shares - - - - - (3.1) (3.1)
Disposal of own shares - - - - (0.4) 0.4 -
Deferred tax on share-based payment transactions - - - - (0.1) - (0.1)
Share-based payments charge - - - - 0.7 - 0.7
Total transactions with owners in their capacity as owners - - - - (4.8) (2.7) (7.5)
Balance at 30 June 2025 0.1 24.8 (4.2) (0.2) 85.9 (14.3) 92.1
The accompanying notes form part of these financial statements.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT (unaudited)
For the period ended 30 June 2025
Note H1 2025 H1 2024
£m £m
Cash flows from operating activities
Profit for the period 6.6 6.9
Adjustments for:
Depreciation and amortisation 7,8 6.2 4.6
Finance expense 3.8 1.4
Taxation 4 1.2 1.8
Share-based payments charge 0.7 0.6
Increase in provisions - 0.1
Non-cash items 0.1 -
Operating cash flow before movement in working capital 18.6 15.4
Decrease/(increase) in trade and other receivables 4.8 (5.0)
(Increase) in inventories (6.4) (8.0)
(Decrease)/increase in trade and other payables (0.4) 2.5
Cash from operations 16.6 4.9
Tax paid 0.4 (2.7)
Net cash from operating activities 17.0 2.2
Cash flows from investing activities
Acquisition of property, plant and equipment 7 (2.4) (1.6)
Acquisition of other intangible assets 8 (1.5) (1.3)
Disposal of tangible assets 7 0.1 0.1
Acquisition of subsidiary - (7.8)
Investments - (0.3)
Net cash used in investing activities (3.8) (10.9)
Cash flows from financing activities
Origination of borrowings 2.6 21.1
Interest paid (2.9) (1.3)
Dividends paid (5.0) (4.9)
Finance lease liabilities (1.3) (1.3)
Purchase of own shares (3.1) (4.7)
Net cash from financing activities (9.7) 8.9
Net increase in cash and cash equivalents 3.5 0.2
Cash and cash equivalents at 1 January 4.1 4.6
Effect of exchange rate fluctuations on cash held (0.1) (0.1)
Cash and cash equivalents at 30 June 7.5 4.7
The accompanying notes form part of these financial statements.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
For the period ended 30 June 2025
1. Basis of preparation
Luceco plc (the "Company") is a company incorporated and domiciled in the
United Kingdom. These condensed consolidated interim financial statements
("interim financial statements") for the period ended 30 June 2025 comprise
the Company and its subsidiaries (together referred to as the "Group"). The
Group is primarily involved in the supply of wiring accessories, EV chargers,
LED lighting and portable power products to global markets (see note 2).
This condensed set of financial statements has been prepared in accordance
with IAS 34 Interim Financial Reporting as adopted for use in the UK.
The annual financial statements of the Group for the year ending 31 December
2024 have been prepared in accordance with UK-adopted international accounting
standards. As required by the Disclosure Guidance and Transparency Rules of
the Financial Conduct Authority, the condensed set of financial statements has
been prepared applying the accounting policies and presentation that were
applied in the preparation of the company's published consolidated financial
statements for the year ended 31 December 2024 which were prepared in
accordance with UK-adopted international accounting standards ("UK-adopted
IFRS").
The interim financial statements do not comprise statutory accounts within the
meaning of section 434 of the Companies Act 2006. Statutory accounts for the
year ended 31 December 2024 were approved by the Board of Directors and have
been delivered to the Registrar of Companies. The audit report on those
accounts was unqualified and did not contain any statement under section
498(2) or (3) of the Companies Act 2006.
The interim financial statements have not been audited or reviewed by auditors
pursuant to the Auditing Practices Board's guidance on the review of interim
financial information.
Risks and uncertainties
An outline of the key risks and uncertainties faced by the Group is described
in the 2024 Annual Report and Accounts. Risk is an inherent part of doing
business and the Directors believe that the Group is well placed to manage the
key risks it faces.
Going concern
The Directors have concluded that it is reasonable to adopt a going concern
basis in preparing the financial statements. This is based on an expectation
that the Company and the Group have adequate resources to continue in
operational existence for at least 12 months from the date of signing these
accounts and our cash flow forecasts support this. The Group has reported a
profit before tax of £7.8m for the six months to June 2025 (H1 2024: £8.7m),
has net current assets of £79.5m (30 June 2024: £67.6m and 31 December 2024:
£79.4m) and net assets of £92.1m (30 June 2024: £90.5m and 31 December
2024: £95.8m), net debt of £74.0m (30 June 2024: £45.7m and 31 December
2024: £75.1m) and net cash inflow from operating activities of £17.0m (six
months to 30 June 2024: inflow £2.2m and 12 months to 31 December 2024:
inflow £14.7m). The bank facilities mature on 21 May 2028 (with a 2 year
extension option, subject to agreement).
The capital resources at the Group's disposal at 30 June 2025:
· A revolving credit facility of £120.0m, £75.1m drawn at 30 June
2025
The revolving credit facility requires the Group to comply with the following
quarterly financial bank ratios:
· Closing Bank Net Debt of no more than 3.0 times Bank EBITDA for the
preceding 12-month period
· Bank EBITDA of no less than 4.0 times Bank Net Finance Expense for
the preceding 12‑month period
The Directors ran scenario tests on the severe but plausible downside case at
the 2024 year end and for the first half of 2025 have completed a reverse
stress test which is implausible. The assumptions in the 2024 year end
scenarios were as follows: concentration risks with associated operations (25%
reduction in revenue for three months followed by 50% reduction for three
months and 20% increase in shipping costs during the period) and
macroeconomic, political and environmental risks (18-month recession with a
10% reduction in revenue and gross profit). These severe but plausible
downside scenarios do not lead to any breach in bank ratio nor any breach in
facility. All modelling has been conducted without any mitigation activity.
There have been no changes to post balance sheet liquidity positions. The
Directors are confident that the Group and Company will have sufficient funds
to continue to meet its liabilities as they fall due for at least 12 months
from the date of approval of the financial statements and therefore have
prepared the financial statements on a going concern basis.
Statutory and non-statutory measures of performance - adjusted measures
The financial statements contain all the information and disclosures required
by the relevant accounting standards and regulatory obligations that apply to
the Group.
The Group's performance is assessed using a number of financial measures which
are not defined under IFRS (the financial reporting framework applied by the
Group). Management uses the adjusted or alternative performance measures
(APMs) as a part of their internal financial performance monitoring and when
assessing the future impact of operating decisions. The APMs disclose the
adjusted performance of the Group excluding specific items. The measures allow
a more effective year-on-year comparison and identification of core business
trends by removing the impact of items occurring either outside the normal
course of operations or as a result of intermittent activities such as a
corporate acquisition. The Group separately reports acquisition costs, other
exceptional items and other specific items in the condensed consolidated
income statement which, in the Directors' judgement, need to be disclosed
separately by virtue of their nature, size and incidence in order for users of
the financial statements to obtain a balanced view of the financial
information and the underlying performance of the business.
In following the guidelines on Alternative Performance Measures (APMs) issued
by the European Securities and Markets Authorities, the Group has included a
condensed consolidated income statement and condensed consolidated cash flow
statement that have both Statutory and Adjusted performance measures. The
definitions of the measures used in these results are below and the principles
to identify adjusting items have been applied on a basis consistent with
previous years.
Nature of measure Related IFRS measure Related IFRS source Definition Use/relevance
Adjusted Gross Profit Margin Gross Profit Margin Condensed consolidated income statement Based on the related IFRS measure but excluding the adjusting items. A Allows management to
breakdown of the adjusting items from H1 2025 and H1 2024, which reconciles
assess the performance
the adjusted measures to statutory figures, can be found later in this
document of the business after
removing large/unusual
items or transactions that
are not reflective of the
underlying business
operations
Adjusted Operating Costs Operating Gross profit less Operating profit Condensed consolidated income statement
Adjusted Operating Profit Operating profit Condensed consolidated income statement
Adjusted Basic EPS Basic EPS Condensed consolidated income statement
Constant Currency Current period reviewed translated at the average exchange rate of the prior Allows management
period
to identify the relative
year-on-year performance
of the business by removing
the impact of currency
movements that are outside
of management's control
EBITDA Operating profit Condensed consolidated income statement Consolidated earnings before interest, tax, depreciation and amortisation Provides management with an approximation of cash generation from the Group's
operational activities
Low Carbon Sales Revenue Segmental operating revenue EV charger revenue and LED revenue less sales from lighting columns Provides management with a measure of low
and downlight accessories carbon sales
Adjusted EBITDA Operating profit Condensed consolidated income statement EBITDA excluding the adjusting items excluded from Adjusted Operating Profit Provides management with an approximation of cash generation from the Group's
except for any adjusting items that relate to depreciation and amortisation underlying operating activities
Bank EBITDA Operating profit Condensed consolidated income statement As above definition of "Adjusted EBITDA" but including EBITDA generated from Aligns with the definition of EBITDA used for bank covenant testing
acquisitions between 1 January and the date of acquisition and excluding
share-based payment expense
Contribution profit Operating profit and operating costs Condensed consolidated income statement Contribution profit is after allocation of directly attributable adjusted Provides management with an assessment of profitability by operating segment
operating expenses for each operating segment
Contribution margin Operating profit and operating costs Condensed consolidated income statement Contribution margin is contribution profit, as above, divided by revenue for Provides management with an assessment of margin by operating segment
each operating segment
Adjusted Operating Cash Flow Cash flow from operations Condensed consolidated cash flow statement Adjusted Operating Cash Flow is the cash from operations but excluding the Provides management with an indication of the amount of cash available for
cash impact of the adjusting items excluded from Adjusted Operating Profit discretionary investment
Adjusted Free Cash Flow Net increase/(decrease) in cash and cash equivalents Condensed consolidated cash flow statement Adjusted Free Cash Flow is calculated as Adjusted Operating Cash Flow less Provides management with an indication of the free cash generated by the
cash flows in respect of investing activities (except for those in respect of business for return to shareholders or reinvestment in M&A activity
acquisitions or disposals), interest and taxes paid
Adjusted Net Cash Flow Net increase/(decrease) in cash and cash equivalents Condensed consolidated cash flow statement Adjusted Free Cash Flow less cash flows relating to dividend payments and the Provides management with an indication of the net cash flows generated by the
purchase of own shares business after dividends and share purchases
Adjusted Operating Cash Conversion None Condensed consolidated cash flow statement and condensed consolidated income Operating Cash Conversion is defined as Adjusted Operating Cash Flow divided Allows management to monitor the conversion of operating profit into cash
statement by Adjusted Operating Profit
Return on Capital Invested ("ROCI") None Operating profit and Net assets Adjusted Operating Profit divided into the sum of net assets and net debt To provide an assessment of how profitability capital is being deployed in the
(average for the last two years) expressed as a percentage business
The following table reconciles all adjustments from the reported to the
adjusted figures in the income statement:
Adjusted Amortisation of acquired intangibles and related acquisition costs(1) Re-measurement H1 2025 Reported
H1 2025 £m to fair value of hedging portfolio and Loan fees(2) Adjustments H1 2025
£m £m £m £m
Revenue 125.7 - - - 125.7
Cost of sales (72.9) - (0.1) (0.1) (73.0)
Gross profit 52.8 - (0.1) (0.1) 52.7
Distribution expenses (7.4) - - - (7.4)
Administrative expenses (31.6) (2.1) - (2.1) (33.7)
Operating profit 13.8 (2.1) (0.1) (2.2) 11.6
Net finance expense (3.0) - (0.8) (0.8) (3.8)
Profit before tax 10.8 (2.1) (0.9) (3.0) 7.8
Taxation (1.9) 0.5 0.2 0.7 (1.2)
Profit for the period 8.9 (1.6) (0.7) (2.3) 6.6
Gross margin 42.0% - - - 41.9%
1. Relating to Kingfisher Lighting, DW Windsor, Sync EV, D-Line and CMD
2. Relating to currency/interest hedges/loan fee write-offs
Adjusted Amortisation of acquired intangibles and related acquisition costs(1) Re-measurement H1 2024 Reported
H1 2024 £m to fair value of hedging portfolio(2) Adjustments H1 2024
£m £m £m £m
Revenue 109.6 - - - 109.6
Cost of sales (64.7) - - - (64.7)
Gross profit 44.9 - - - 44.9
Distribution expenses (4.7) - - - (4.7)
Administrative expenses (27.6) (2.5) - (2.5) (30.1)
Operating profit 12.6 (2.5) - (2.5) 10.1
Net finance expense (1.4) - - - (1.4)
Profit before tax 11.2 (2.5) - (2.5) 8.7
Taxation (2.4) 0.6 - 0.6 (1.8)
Profit for the period 8.8 (1.9) - (1.9) 6.9
Gross margin 41.0% - - - 41.0%
1. Relating to Kingfisher Lighting, DW Windsor and Sync EV
2. Relating to currency/interest hedges
The following tables indicate how alternative performance measures are
calculated:
H1 2025 H1 2024
Adjusted 12 months rolling EBITDA £m £m
Adjusted Operating Profit 30.2 25.8
Adjusted Depreciation and Amortisation 8.8 7.2
Adjusted 12 months rolling EBITDA 39.0 33.0
H1 2025 H1 2024
Bank EBITDA £m £m
Adjusted 12 months rolling EBITDA 39.0 33.0
EBITDA from acquisitions from 1 January to the date of acquisition and share 2.9 1.8
based payment expense
Bank EBITDA 41.9 34.7
H1 2025 H1 2024
Adjusted Operating Cash Conversion £m £m
Cash from operations (from condensed consolidated cash flow statement) 16.6 4.9
Adjustments to operating cash flow - 0.2
Adjusted Operating Cash Flow 16.6 5.1
Adjusted Operating Profit 13.8 12.6
Adjusted Operating Cash Conversion 120.3% 40.5%
H1 2025 H1 2024
Adjusted Net Cash Flow as % of revenue £m £m
Adjusted Free Cash Flow (see below) 10.3 (1.7)
Purchase of own shares (3.1) (4.7)
Dividends (5.0) (4.9)
Adjusted Net Cash Flow 2.2 (11.3)
Revenue 125.7 109.6
Adjusted Net Cash Flow as % of revenue 1.8% (10.3%)
H1 2025 H1 2024
Adjusted Free Cash Flow as % of revenue £m £m
Adjusted Operating Cash Flow (see table above) 16.6 5.1
Net Cash used in investing activities excluding acquisitions (from condensed (3.8) (2.8)
consolidated cash flow statement)
Interest paid (from condensed consolidated cash flow statement) (2.9) (1.3)
Tax paid (from condensed consolidated cash flow statement) 0.4 (2.7)
Adjusted Free Cash Flow 10.3 (1.7)
Revenue 125.7 109.6
Adjusted Free Cash Flow as % of revenue 8.2% (1.6%)
H1 2025 H1 2024
Return on Capital Investment £m £m
Net assets 92.1 90.5
Net debt 74.0 45.7
Capital invested 166.1 136.2
Average capital invested (from last two years) 151.2 131.9
Adjusted Operating Profit (from above) 30.2 25.8
Return on Capital Invested (Adjusted Operating Profit/average capital 20.0% 19.6%
invested)
Standards and interpretations issued
The following UK-adopted IFRS have been issued and have been applied in these
financial statements. Their adoption did not have a material effect on the
financial statements, unless otherwise indicated, from 1 January 2025:
• Amendments to IAS21: Lack of Exchangeability
The following UK adopted IFRS have been issued but have not been applied and
adoption is not expected to have a material effect on the financial
statements, unless otherwise indicated, from 1 January 2026:
• Amendments to IFRS 9 and 7: Classification and Measurement of Financial
Instruments and Contracts Referencing Nature-dependent Electricity
• Annual Improvements to IFRS accounting standards - Volume 11
2. Operating segments
The Group's principal activities are in the manufacturing and supply of Wiring
Accessories, LED Lighting and Portable Power equipment. For the purposes of
management reporting to the Chief Operating Decision-Maker (the Board), the
Group consists of three operating segments which are the product categories
that the Group distributes. The Board does not review the Group's assets and
liabilities on a segmental basis and, therefore, no segmental disclosure is
included. Inter-segment sales are not material. Revenue and operating profit
are reported under IFRS 8 Operating Segments.
Adjusted Reported Adjusted Reported
H1 2025 Adjustments H1 2025 H1 2024 Adjustments H1 2024
£m £m £m £m £m £m
Revenue
Wiring Accessories 61.0 - 61.0 48.9 - 48.9
LED Lighting 36.7 - 36.7 36.3 - 36.3
Portable Power 28.0 - 28.0 24.4 - 24.4
125.7 - 125.7 109.6 - 109.6
Operating profit
Wiring Accessories 9.3 (1.3) 8.0 9.4 (1.6) 7.8
LED Lighting 2.3 (0.8) 1.5 0.7 (0.7) nil
Portable Power 2.2 (0.1) 2.1 2.5 (0.2) 2.3
Operating profit 13.8 (2.2) 11.6 12.6 (2.5) 10.1
Revenue by location of customer
H1 2025 H1 2024
£m £m
UK 100.8 86.8
Europe 10.5 9.5
Middle East and Africa 2.3 4.8
Asia Pacific 2.8 1.7
Americas 9.3 6.8
Total revenue 125.7 109.6
3. Expenses recognised in the condensed consolidated income statement
Included in the condensed consolidated income statement are the following:
H1 2025 H1 2024
£m £m
Research and development costs expensed as incurred 2.4 2.4
Depreciation of property, plant and equipment and right-of-use assets 3.7 3.0
Amortisation of intangible assets 2.5 1.6
4. Income tax expense
A tax charge for the six-month period has been included in the condensed
consolidated income statement of £1.2m (H1 2024: £1.8m). The anticipated
adjusted effective tax rate for the year ending 31 December 2025 is expected
to be c21%.
5. Earnings per share
Earnings per share is calculated based on the profit for the period
attributable to the owners of the Group. Adjusted earnings per share is
calculated based on the adjusted profit for the period, as detailed below,
attributable to the owners of the Group. These measures are divided by the
weighted average number of shares outstanding during the period.
H1 2025 H1 2024 FY 2024
£m £m £m
Earnings for calculating basic earnings per share 6.6 6.9 14.6
Adjusted for:
Amortisation of acquired intangibles and related acquisition costs 2.1 2.5 6.1
Remeasurement to fair value of currency hedging portfolio 0.1 - (0.3)
Remeasurement to fair value of interest swaps 0.4 - 0.2
Loan fees write off 0.4 - -
Income tax on above items (0.7) (0.6) (1.4)
Other tax items - - -
Adjusted earnings for calculating adjusted basic earnings per share 8.9 8.8 19.2
H1 2025 H1 2024 FY 2024
Number Number Number
Weighted average number of ordinary shares Million Million Million
Basic 151.1 153.8 153.2
Dilutive effect of share options on potential ordinary shares 0.8 0.9 0.9
Diluted 151.9 154.7 154.1
H1 2025 H1 2024 FY 2024
Pence Pence Pence
Basic earnings per share 4.4 4.5 9.5
Diluted earnings per share 4.3 4.5 9.5
Adjusted basic earnings per share 5.9 5.7 12.5
Adjusted diluted earnings per share 5.9 5.7 12.5
6. Dividend
An interim dividend of 1.8 pence per share will be paid to shareholders on 24
October 2025. This compares to a 1.7 pence interim dividend in 2024.
7. Property, plant and equipment
During the six months ended 30 June 2025, the Group purchased assets at a cost
of £2.4m (H1 2024: £2.1m and FY 2024: £5.0m); including plant and equipment
£1.1m, tooling £1.1m, construction in progress (£0.7m), land and buildings
£0.5m and fixtures and fittings £0.4m. Assets with a book value of £0.1m
were disposed of (H1 2024: £0.1m and FY 2024 £0.3m). Total depreciation for
the period was £2.2m (H1 2024: £1.8m and FY 2024: £3.8m).
During the period there were lease additions totalling £0.7m and a
depreciation charge of £1.5m. The net book value of right-of-use assets at 30
June 2025 was £8.7m (30 June 2024: £9.6m and 31 December 2024: £9.7m).
The Group has not included any borrowing costs within additions in 2025 (2024:
£nil). There were no funds specifically borrowed for the assets and the
amount eligible as part of the general debt instruments pool (after applying
the appropriate capitalisation rate) is not considered material.
8. Intangible assets and goodwill
Development expenditure is capitalised and included in intangible assets when
it meets the criteria laid out in IAS 38, "Intangible Assets". During the six
months ended 30 June 2025, the Group incurred internally generated development
costs of £1.5m (H1 2024: £0.8m and FY 2024: £1.9m). The Group has not
included any borrowing costs within capitalised development costs. There were
no funds specifically borrowed for this asset and the amount eligible as part
of the general debt instruments pool (after applying the appropriate
capitalisation rate) is not considered material. Amortisation for the six
months ended 30 June 2025 was £2.5m (H1 2024: £1.6m and FY 2024: £3.7m).
In the condensed consolidated income statement these amounts have been
included within "adjustments" in calculating the Adjusted Operating
Profit/loss (refer to note 1 in the Notes to the condensed consolidated
financial statements).
There have been no triggers to necessitate an impairment of goodwill since the
review undertaken as part of the year ended 31 December 2024. Goodwill has
been allocated to cash-generating units and can be referred to in the Group's
2024 Annual Report and Accounts.
9. Interest-bearing loans and borrowings
This note provides information about the contractual terms of the Group's
interest-bearing loans and borrowings, which are measured at amortised cost.
For more information about the Group's exposure to interest rate and foreign
currency risk, please refer to note 20 in the 2024 Annual Report and
Accounts.
H1 2025 H1 2024 FY 2024
£m £m £m
Non-current liabilities
Revolving credit facility 75.1 43.4 70.5
Overdrafts - - 1.5
75.1 43.4 72.0
Bank loans are secured by a fixed and floating charge over the assets of the
Group.
10. Exchange rates
The following significant Sterling exchange rates were applied during the
year:
Average rate Reporting date spot rate
H1 2025 H1 2024 H1 2025 H1 2024
USD 1.30 1.27 1.37 1.26
EUR 1.19 1.17 1.17 1.18
RMB 9.40 9.13 9.83 9.18
11. Financial risk management and financial instruments
The Group's activities expose it to a variety of financial risks that include
currency risk, interest rate risk, credit risk and liquidity risk.
These interim financial statements do not include all financial risk
management information and disclosures required in
the Annual Report and Accounts. They should therefore be read in conjunction
with the Group's Annual Report and Accounts for the year ended 31 December
2024. There have been no changes to the risk management policies since the
year ended 31 December 2024.
12. Related party transactions
The Group has related party relationships with its subsidiaries and with its
Directors. Transactions between Group companies, which are related parties,
have been eliminated on consolidation and are not disclosed in this note.
There have been no related party transactions with Directors other than in
respect of remuneration.
13. Date of approval of financial information
The interim financial information covers the period 1 January 2025 to 30 June
2025 and was approved by the Board on 8 September 2025. Further copies of the
interim financial information can be found at www.lucecoplc.com
(http://www.lucecoplc.com) .
Additional information
Financial calendar
Item Date
2025 Interim dividend record date 19 September 2025
2025 Interim dividend reinvestment elections (DRIP) 03 October 2025
2025 Interim dividend payment date 24 October 2025
2025 Q3 trading update 11 November 2025
2025 Year end 31 December 2025
2025 Full year trading update 29 January 2026
2025 Full year results statement 24 March 2026
2026 AGM 19 May 2026
Contacts
Type Name Address Website/Email/Phone
Company's registered office Luceco plc Building E www.lucecoplc.com
(https://protect.checkpoint.com/v2/___http:/www.lucecoplc.com___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzoxZTdjNThmZDI5NDQ2ZTE3ODUzZjY1YmYxOTkwZGQ0Njo2OjVmMjM6NDY5ZTI1ZTcyZmUwN2YyM2JjZjVmMDYyMWM3MzgxOTE0ZjI1NTc3YzA0NzZkMGI5MDNhNTM1ZDZiY2Q4ODk3MTpwOlQ6Tg)
Stafford Park 1
ir@luceco.com
Stafford Park
Telford
TF3 3BD
Independent auditor KPMG LLP Chartered Accountants www.kpmg.co.uk
(https://protect.checkpoint.com/v2/___http:/www.kpmg.co.uk___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzoxZTdjNThmZDI5NDQ2ZTE3ODUzZjY1YmYxOTkwZGQ0Njo2OmFiOGI6N2QyMzY0MDkzNzhiNWZlYWJjZmRjNjE1ZDhjNmRlMmYyZThkMzlmYjJkNmVlYzdkMTlmOWQ3ODRmNWJjODU2NjpwOlQ6Tg)
One Snowhill
Snow Hill Queensway
Birmingham
B4 6GH
Financial advisors and brokers Deutsche Numis 45 Gresham Street www.dbnumis.com (http://www.dbnumis.com)
London
EC2V 7BF
Peel Hunt 100 Liverpool Street www.peelhunt.com (http://www.peelhunt.com)
London
EC2M 2AT
Company registrar MUFG Central Square shareholderenquiries@cm.mpms.mufg.com
(mailto:shareholderenquiries@cm.mpms.mufg.com)
29 Wellington Street
Leeds
Tel: +44 (0)371 664 0300
LS1 4DL
Company Secretary MUFG 19(th) Floor luceco@mpms.mufg.com
51 Lime Street
London Tel: +44 (0)333 300 1932
EC3M 7DQ
Financial PR Sodali 122 Leadenhall St luceco@client.sodali.com (mailto:luceco@client.sodali.com)
City of London
EC3V 4AB Tel: +44 (0)79 3535 1934
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