Luceco raises 2027 profit outlook after stronger first-half trading

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Luceco 2027 profit outlook raised

Highlights

Luceco reports first-half 2026 revenue up 13% year on year to £143 million and adjusted operating profit up 14% to £15.8 million.
Revenue from Energy Transition products, including EV charging and Demand Flexibility, surges about 120% year on year, driving second-quarter acceleration to 15% growth.
Luceco raises its 2027 adjusted operating profit outlook above current market expectations due to operational efficiency and Demand Flexibility economics, citing further upside potential.

First-half growth and updated guidance

As reported by London Stock Exchange, citing the Regulatory News Service, Luceco says revenue for the six months ended 30 June 2026 rises around 13% year on year to £143 million, while adjusted operating profit increases about 14% to around £15.8 million.

Growth accelerates in the second quarter, with revenue up about 15% versus 11% in the first quarter. The company says momentum is driven by Energy Transition products, including EV charging and Demand Flexibility, where revenue grows about 120% year on year, while core products deliver around 6% growth.

Adjusted operating profit margin improves slightly to 11.1% from 11.0% a year earlier, despite continued pressure from some input commodity prices. Luceco says disciplined pricing and operating efficiency support that performance.

The board says first-half revenue growth exceeds its expectations and continues to point to adjusted operating profit above £40 million for 2026. With greater clarity on Demand Flexibility economics and further operational efficiency gains in the UK, it also expects 2027 adjusted operating profit to come in above current market expectations, with potential for further significant outperformance depending on Demand Flexibility.

Balance sheet position and management plans

Bank net debt at the end of the half edges up to £69.6 million from £68.0 million a year earlier, reflecting inventory investment ahead of the second half. Even so, bank net debt to EBITDA leverage falls to 1.5 times from 1.6 times, remaining within the group's target range of 1 to 2 times.

Luceco says its balance sheet, leverage improvement and cash generation give it flexibility to continue investing in organic growth initiatives and selective bolt-on acquisitions under its capital allocation policy. It also says changes to the regulated mechanics of Demand Flexibility begin to crystallise and are expected to lower recurring revenue per EV charger to a more sustainable level early in the second half, in line with board expectations.

Separately, the board says it is progressing the recruitment of a permanent chief executive officer and is in advanced discussions with several candidates. Luceco expects to publish its half-year 2026 results on 22 September 2026.

In our earlier article on the jump in UK consumer confidence, we noted that sentiment improved by the most in nearly three years, alongside firmer data on GDP growth, retail sales and business activity. We also highlighted that while confidence surveys can be volatile, the rise in willingness to make major purchases may support household spending, even as energy costs and global trade risks continue to weigh on the outlook.

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