**Summary**
Luceco PLC, a leading designer and manufacturer of residential and commercial electrification products, released its 2025 full-year trading update on January 29, 2026, highlighting a strong performance that exceeded market expectations. Key points include
1. **Financial Performance**
Revenue grew by 12% to £271 million, driven by a 6% like-for-like growth in the second half and a significant 85% increase in EV charging sales to £18 million.
Adjusted Operating Profit rose by 15% to at least £33.5 million, surpassing the top end of market expectations, with margins exceeding 12%.
2. **Operational Highlights**
Strong momentum in EV charging and solid growth in wiring accessories and LED products.
Manufacturing efficiency improvements and synergies from acquisitions, including CMD production synergies and consolidation of the D-Line UK facility, are enhancing margins.
3. **Outlook for 2026**
Positive momentum continues into 2026, supported by exposure to structural growth in the energy transition sector.
The Board has increased revenue and Adjusted Operating Profit expectations for 2026, comfortably exceeding market consensus.
4. **Financial Position**
Strong cash flow generation of £30 million and reduced net debt to £53 million, lowering the leverage ratio to 1.3x.
Robust balance sheet provides flexibility for further investment in organic growth and M&A.
5. **CEO Commentary**
CEO John Hornby attributed the success to sustainable competitive advantages, including superior channel access, agile product innovation, and vertically integrated manufacturing. He expressed confidence in delivering profitable growth in 2026 and beyond, particularly in the energy transition sector.
Overall, Luceco’s 2025 performance reflects strong growth, improved margins, and a positive outlook for 2026, supported by strategic initiatives and a solid financial position.