Luceco (LUCE) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 rose 14.7% year-over-year to £125.7 million, 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 software.

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

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

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

Financial highlights

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

• Adjusted EPS increased 3.5% to 5.9p.

• Bank net debt at June was £68 million, with a leverage ratio of 1.6x, within the 1-2x target range.

• Adjusted profit before tax was £10.8 million, down 3.6% year-over-year, mainly 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 expectations remain unchanged, with a strong order book and confidence in further growth for 2025.

• Like-for-like growth for the year is targeted closer to 5% organically, with further demand pickup in Q3.

• Continued above-market growth is expected, especially in energy transition and EV segments.

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

• £120 million revolving credit facility secured to support organic and M&A investment.