Luceco H1 Revenue Hits £142.6M as Energy Transition Output Doubles
Luceco reported a 13.4% revenue rise to £142.6m, with energy-transition sales more than doubling to £18m despite negative free cash flow.
Key points
- Luceco H1 revenue rose 13.4% to £142.6m, with adjusted operating profit up 14.5% to £15.8m.
- Energy-transition revenue more than doubled to £18m, driving 119.5% growth in that segment.
- Interim dividend increased 16.7% to 2.1p, while full-year profit guidance was raised above market expectations.
Luceco plc reported first-half revenue of £142.6 million, a 13.4% increase year-over-year, while adjusted operating profit climbed 14.5% to £15.8 million. The performance was driven primarily by its energy-transition segment, where revenue more than doubled to £18 million from £2 million in the same period of 2022. Adjusted profit before tax rose 19.4% to £12.9 million, and adjusted earnings per share increased 13.6% to 6.7 pence.
Chief Executive Thorsten Müller noted that the group maintained momentum built in 2025, with growth recorded across all three operating segments, four sales channels, and every geography. CFO Will Hoy highlighted that like-for-like revenue growth accelerated from 12.9% in the first quarter to 14.9% in the second quarter. On a constant-currency basis, revenue was £143.2 million, with currency effects reducing reported figures by £0.6 million.
Energy Transition Drives Segment Growth
The Portable Power segment contributed £12.8 million of additional revenue, serving as the primary driver of group profit growth. This segment added £2.3 million to adjusted operating profit. Wiring Accessories revenue rose by £3.8 million, supported by a healthy order book from CMD, while LED lighting revenue increased by £0.9 million, aided by contributions from DW Windsor. Core business revenue outside the energy-transition category grew 6.5%.
Adjusted gross profit increased to £59.8 million, with the margin holding steady at 41.9% despite higher material costs. Hoy attributed this stability to manufacturing productivity, cost controls, and pricing discipline. Adjusted operating costs rose by approximately £5 million to £44 million, reflecting investments in electric vehicle infrastructure, marketing, and technical capabilities, as well as wage increases and the consolidation of D-Line warehousing.
Dividend Increased and Guidance Raised
The board raised the interim dividend by 16.7% to 2.1 pence per share. Management stated that full-year adjusted operating profit is expected to exceed market expectations. The company also identified long-term recurring revenue potential in its Demand Flexibility charger-management platform, which currently supports more than 30,000 active chargers. Leverage improved to 1.5 times EBITDA during the period.
Cash Flow Reflects Inventory Build
Adjusted free cash flow was a negative £2.1 million, compared with a positive £10.3 million in the prior period. This outflow resulted from building inventory for anticipated second-half demand and investing in EV infrastructure. According to Yahoo Finance, these investments are positioned to support growth as pricing actions take effect to offset material cost increases.
