Luceco PLC (LSE:LUCE) shares rose 5% in early trading after the electrification products group said it was firmly on course to meet full-year expectations, underpinned by strong growth in its electric vehicle (EV) charging business.
Revenue for the six months to 30 June rose 15% to £125.7 million, helped by contributions from recent acquisitions and a near-doubling of EV product sales. Like-for-like growth stood at 2%, with solid UK demand offsetting weakness in some international markets.
Adjusted operating profit increased almost 10% to £13.8 million, though margins dipped slightly as the company invested in its energy transition products and integration of acquisitions.
Adjusted earnings per share improved 3.5% to 5.9p, while free cash flow swung to £10.3 million from an outflow last year. The interim dividend was lifted 6% to 1.8p.
EV charging remained the standout performer, with revenue up 93% in the half, boosted by a new contract to supply Centrica-owned Hive, the UK’s largest eco-tech brand.
Chief executive John Hornby said the performance reflected Luceco’s “superior channel access” and ability to use its product innovation and vertically integrated manufacturing base to expand into growth categories.
Net debt rose to £68 million following acquisitions, representing 1.6 times earnings before interest, tax, depreciation and amortisation, which Luceco said was comfortably within its target range. A new £120 million revolving credit facility also gives the company scope to pursue further acquisitions.
Looking ahead, Luceco said confidence in its end markets was improving and that trading momentum strengthened between the first and second quarters.
Management reaffirmed expectations for adjusted operating profit of £31.2 million for the full year, in line with analyst consensus.
Hornby said: “We are optimistic that confidence in our sectors of the economy will recover further in the second half of 2025. The group’s trading remains in line with expectations for further growth.”