Luceco (LUCE) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached £125.7 million, up 14.7% year-over-year, driven by acquisitions and 93% growth in EV charger sales.

• Adjusted operating profit increased 9.5% to £13.8 million, with an 11.0% margin, slightly down due to investments in energy transition and acquisition costs.

• Interim dividend increased 5.9% to 1.8p per share, reflecting confidence in full-year expectations.

• Integration of CMD and D-Line progressing well, delivering synergies and supporting future growth.

• New product launches in home energy management and EV charging underpin growth strategy.

Financial highlights

• Gross margin improved to 42.0% due to raw material cost control and manufacturing efficiencies.

• Adjusted EPS rose 3.5% to 5.9p; interim dividend payout ratio at 40%.

• Bank net debt at £68 million, leverage ratio at 1.6x within target range.

• Adjusted profit before tax was £10.8 million, down 3.6% year-over-year due to higher interest costs.

• Adjusted free cash flow reached £10.3 million, supported by reversal of prior working capital outflow.

Outlook and guidance

• Full-year operating margin expected to be ahead of last year, with H2 typically stronger and robust order book.

• Like-for-like growth for the year targeted at 5% as supply issues resolve and demand picks up.

• Analyst consensus for full year 2025 adjusted operating profit is £31.2 million.

• Continued strong growth anticipated in EV chargers and new energy transition products.

• Limited direct exposure to US/China tariffs; only about £1 million of H1 sales affected.