Luceco plc raised its full-year adjusted operating profit outlook to exceed market expectations, citing a 13.4% increase in first-half revenue to £142.6 million. The growth was driven largely by energy-transition products, which saw revenue more than double to £18 million during the period.
Chief Executive Thorsten Müller, who joined the company in September, stated that the group maintained momentum from 2025 across all operating segments and geographies. Chief Financial Officer Will Hoy noted that like-for-like revenue growth accelerated to 14.9% in the second quarter of the half, with currency effects reducing reported revenue by £0.6 million.
The board increased the interim dividend by 16.7% to £0.021 per share. Adjusted profit before tax rose 19.4% to £12.9 million, while adjusted earnings per share increased 13.6% to £0.067. The adjusted gross margin remained stable at 41.9% despite higher material costs, supported by manufacturing productivity and pricing discipline.
Portable Power was the primary driver of profit growth, contributing an additional £2.3 million to adjusted operating profit. Wiring Accessories profit declined by £0.4 million due to the timing of material-cost increases, a trend management expects to reverse as pricing actions take effect. LED lighting revenue increased by £0.9 million, aided by contributions from DW Windsor.
Cash flow dynamics presented a near-term challenge, with adjusted free cash flow recording an outflow of £2.1 million compared with an inflow of £10.3 million in the prior year. Hoy attributed this shift to unusual working-capital timing and a £10.1 million headwind from inventory build-up for anticipated second-half demand. Inventory levels rose to £71.2 million, with inventory days increasing to 145 from 136.
Bank net debt stood at £69.6 million, improving leverage to 1.5 times EBITDA from 1.6 times a year earlier. This level remains within the company's target range of 1 to 2 times EBITDA. Luceco holds £44.4 million in undrawn facilities, with its current facility maturing in May 2029.
The company sees long-term opportunities in transport and heating electrification, noting that a renewables-ready home requires an estimated £200 to £300 more in electrical product content than a traditional home. Its Demand Flexibility charger-management platform currently supports more than 30,000 active chargers. Management indicated that growth in EV charger sales should support recurring revenue from this platform, although the regulatory market remains evolving and value per charger may change over time.
Müller outlined priorities for the coming months, including tighter capital allocation and process excellence, while maintaining a decentralized structure. The company plans product launches across high-power DC charging, vehicle-to-grid capability and smart portable EV chargers, alongside circuit-protection and lighting products.