Luceco — Focus shifts to energy transition, and synergies

Luceco delivered a solid H125, with revenue up 14.7% y-o-y to £125.7m and adjusted operating profit of £13.8m (+9.5%), equating to 44% of FY25 consensus (£31.2m) versus 43% in H124. Luceco appears broadly on track to hit consensus, given normal seasonality. Adjusted EPS rose 3.5% y-o-y to 5.9p, supported by improved operating cash flow of £16.6m in H125 versus £5.1m in H124. The interim dividend was raised 5.9% to 1.8p. Bank net debt increased to £68.0m (1.6x last 12-month EBITDA) following the acquisitions of CMD and D-Line, but remains within the group’s target range of 1.0–2.0x. Management is confident the company will meet consensus expectations which, according to LSEG, include £31.2m adjusted operating profit for FY25, implying H2 operating profit of £17.4m.