Luceco H1 2025 results: revenue up 14.7% and EV charging surges 93%
Luceco has delivered a solid first half, helped by a booming EV charging business and the first full period of its recent acquisitions. Guidance is unchanged, which in this market is a small win in itself.
Here’s what stood out and why it matters for investors.
Headline numbers investors need to know
| Metric | H1 2025 | H1 2024 | Change |
|---|---|---|---|
| Revenue | £125.7m | £109.6m | +14.7% |
| Adjusted operating profit | £13.8m | £12.6m | +9.5% |
| Adjusted operating margin | 11.0% | 11.5% | -0.5 ppts |
| Adjusted PBT | £10.8m | £11.2m | -3.6% |
| Adjusted EPS | 5.9p | 5.7p | +3.5% |
| Statutory PBT | £7.8m | £8.7m | -10.3% |
| Adjusted free cash flow | £10.3m | £(1.7)m | +£12.0m |
| Bank net debt | £68.0m | £39.4m | +72.6% |
| Leverage (Bank net debt: EBITDA) | 1.6x | 1.1x | +45.5% |
| Interim dividend | 1.8p | 1.7p | +5.9% |
Jargon watch: “Adjusted” strips out items like acquisition-related costs and amortisation of acquired intangibles to show underlying performance. “Leverage” is debt divided by EBITDA – a common measure of balance sheet risk.
Growth engine: EV charging and acquisitions
The big swing factor is EV charging. Revenue in this category grew 93% to £8.3m within Portable Power. That is material momentum, supported by the newly awarded supply of chargers for Hive. It reinforces Luceco’s pitch that decarbonisation and electrification are durable growth trends.
Acquisitions did a lot of heavy lifting too, adding 14.1% to revenue in the half. Like-for-like growth (which excludes acquisitions and currency) was 2.0% overall, with the UK up 3.6% and some international markets softer.
Channel and geography mix tells a story
- Professional Wholesale like-for-like rose 8.5% – EV is the main driver here.
- Retail and Hybrid were broadly flat, partly due to the timing of Chinese New Year affecting shipping patterns.
- Professional Projects was down 0.7% but management flags a strong H2 order book.
- By region, the UK was up 17.5% to £102.0m, with underlying growth of over 3% after stripping out the CMD contribution.
- Europe grew 12.6% and the Americas 6.8%, while the Middle East and Africa and Asia Pacific were weaker.
Margins: gross up, operating down a touch
Gross margin improved to 42.0% (from 41.0%), reflecting operational efficiency and easing cost pressures. The adjusted operating margin slipped to 11.0% (from 11.5%) as Luceco invested in EV, lighting and integration of D-Line and CMD. That trade-off is sensible if it translates into faster growth and synergies through H2 and 2026.
Adjusted PBT dipped 3.6% as the interest bill rose under the new £120m revolving credit facility. Statutory PBT fell 10.3% for the same reason plus acquisition amortisation. The financing cost is the main headwind to watch.
Cash flow and balance sheet: better cash, higher debt
Cash generation was strong. Adjusted free cash flow of £10.3m compares to a £1.7m outflow last year, helped by the unwind of the working capital build at the end of 2024 and lower tax paid. That cash discipline gives management options as they scale EV and integrate acquisitions.
On debt, Bank net debt rose to £68.0m with leverage at 1.6x – within the 1-2x target range and backed by a £120m facility running to May 2028. Headroom looks comfortable and the Group notes very limited direct exposure to US/China tariffs at circa £1m of H1 sales.
Segment performance: where profits are made
- Wiring Accessories: Revenue £61.0m, +24.7%; adjusted operating profit £9.3m, -1.1%. It remains the profit engine, but margins diluted by the lower-margin mix from acquisitions.
- LED Lighting: Revenue £36.7m, +1.1%; adjusted operating profit £2.3m, up sharply from £0.7m. Retrofit demand and DW Windsor contributed to the rebound.
- Portable Power: Revenue £28.0m, +14.8%; adjusted operating profit £2.2m, -12.0%. EV charger growth is impressive, though overall margin dipped.
Put simply: Lighting is recovering, EV is scaling quickly, and Wiring Accessories continues to anchor group profitability even as mix evolves.
Outlook and guidance: steady as she goes
Management says trading is on track to meet full year expectations, supported by a strong order book and an encouraging acceleration from Q1 like-for-like growth of 0.6% to 3.2% in Q2. Analyst consensus for full year 2025 Adjusted Operating Profit sits at £31.2m.
The investment case leans on four structural drivers the company calls out: net zero, regulation, technology and the need to upgrade UK housing stock. With EV charger production now insourced and a broader Sync Energy platform (including Home Energy Management), Luceco is positioning itself for the energy transition across the home and commercial environment.
Dividend details
The interim dividend is 1.8p per share, up 5.9%. Key dates: shares go ex-dividend on 18 September 2025, record date 19 September, and payment on 24 October 2025. The payout ratio remains 40% with one third paid at the interim.
My take: positives, watch-outs, and what to track next
What looks good
- EV momentum: 93% revenue growth and a notable supply win point to further scale opportunities.
- Cash conversion: 120.3% adjusted operating cash conversion and £10.3m adjusted FCF is a meaningful swing.
- Lighting profitability: margin recovery in a segment that had been under pressure is encouraging.
- Order book and H2 set-up: visible pipeline in Professional Projects and accelerating like-for-like through Q2.
Where I’d stay cautious
- Interest costs: adjusted PBT fell despite higher operating profit. If rates stay elevated, profit translation will stay capped.
- Leverage and integration: 1.6x is fine, but debt is up and synergy delivery from CMD and D-Line needs to keep flowing.
- Channel/geo softness: Retail/Hybrid timing effects should unwind, but MEA and APAC weakness bears watching.
- Margin mix: acquisitions are lower margin than the core Wiring Accessories business; execution will determine whether group margins grind higher again.
Key markers for H2
- EV sales growth rate and margins within Portable Power.
- Conversion of the Professional Projects order book in Lighting.
- Gross margin sustainability around 42% as input costs and FX move.
- Cash generation and leverage trend toward year end.
Bottom line
This is a well-balanced update. Revenue growth is healthy, EV charging is scaling fast, cash generation has improved, and guidance is intact. The trade-off is a higher interest bill and slightly lower operating margin as Luceco invests behind the energy transition and integrates acquisitions.
If management lands the H2 order book and keeps EV momentum, the set-up for 2026 looks promising. For now, this is steady operational delivery with a clear growth vector in electrification – exactly what long-term holders want to see.
