Luceco – next week’s Trading Update should help to push the shares, now 260p, a lot higher very soon
- Mark Watson-Mitchell
- 4 minutes ago
- 4 min read
Mark Watson-Mitchell - 23.07.2026
“Aiming to help people to harness power sustainably in everyday life.”
I am looking forward to next Tuesday, 28th July, when Luceco (LON:LUCE) announces its Interim Trading Update for the first half year to end-June.
The statement should read very well and point the market to expect better returns than currently anticipated.
The £382m-capitalised group is engaged in the manufacturing and distribution of wiring accessories, light emitting diode (LED) lighting and portable power products for global markets.
In the last year the group’s shares have ranged from a Low of 111.60p to a 292p High – they are now trading at around the 260p level.
Assuming a positive statement next Tuesday, I see the shares soon breaking through the 300p barrier.
The Business
The Telford-based group is a leading designer and manufacturer of residential and commercial electrification products and systems.
The company designs and manufactures its market-leading range of wiring accessories, EV chargers, LED lighting, and portable power products at its state-of-the-art manufacturing facilities, distributing them through professional, wholesale and retail channels.
It offers a range of some 11,500 products and derives 34% of group revenue from low-carbon products.
With over 1,800 employees, Luceco serves thousands of loyal customers in 73 countries from its nine operating locations around the world.
It has a Factory and Product Development Centre in Jiaxing, Zhejiang Province, China, and with Sales offices in Spain, UAE, USA and Mexico.
It operates under the brand names of British General, Luceco Lighting, Masterplug, Kingfisher Lighting, DW Windsor, D-Line, CMD, Sync Energy and Ross.
AGM Trading Update
On Tuesday, 19th May, the group issued a Trading Update ahead of its AGM, covering its first quarter of the current year.
The company reported a strong first quarter for 2026, with revenue reaching approximately £68m, an 11% year-on-year increase driven by broad-based growth and sustained momentum in the Energy Transition sector.
Notably, EV charging revenue surged by 80%, with over 18,000 chargers now participating in Demand Flexibility.
Core products additionally contributed over 6% organic revenue growth.
The company also upgraded its full-year 2026 Adjusted Operating Profit expectations to exceed £40m, surpassing analyst consensus, with potential for further outperformance contingent on Demand Flexibility.
Bank net debt stood at approximately £66m, resulting in a leverage ratio of around 1.4x, well within the target range.
Outlook
The group stated that it continues to see strong demand across the majority of its product categories, channels and territories, with Q1 growth, including Demand Flexibility, ahead of Management's expectations.
There is a momentum in the expansion of the group's installed base of eligible EV chargers remaining strong, with more than 18,000 chargers now participating in Demand Flexibility.
While the Board remains mindful of the broader economic backdrop, including the impact of the conflict in the Middle East, the strength of Q1 trading and sustained Energy Transition momentum means that expectations for full-year 2026 Adjusted Operating Profit now exceed £40m, with the potential for further significant outperformance dependent on Demand Flexibility.
Management Comment
Soon to be retiring, CEO John Hornby stated that:
"Our first‑quarter performance represents a strong start to the year, continuing the momentum built through 2025.
Growth of 80% in the EV charging category, including Demand Flexibility, is a clear highlight and I am particularly pleased by the strong growth achieved by the Group's core products.
Our Increasing exposure to the rapidly growing Energy Transition market, together with positive leading indicators across the business, supports our confidence in the Group's prospects for 2026 and beyond.
Given the sustained strong momentum delivered to date in 2026, we are upgrading our expectations for the full year."
On Monday, 15th June, John Hornby announced his intention to retire from the business, effective Thursday, 31st December 2026.
He is currently on sabbatical until late August, while the Board has commenced the process of identifying a permanent successor.
The Equity
There are some 160.8m shares in issue.
Larger shareholders include EPIC Private Equity (21.01%), John Hornby, CEO, (15.56%), Apex Financial Services (Trust Co.) (8.46%), Giles Brand, Dir, (5.59%), BlackRock Investment Management (UK) (4.99%), Janus Henderson Investors (3.62%), Montanaro Asset Management (2.97%), Chelverton Asset Management (1.74%), JP Morgan Asset Management (1.67%), River Global Investors (1.09%), Premier Fund Managers (0.73%), Schroder Investment Management (0.62%), Dimensional Fund Advisors (0.57%), AXA Investment Managers (0.51%), Downing (0.35%), and PEH Wertpapier AG (Germany) (0.29%).
Broker’s Views
Four analysts follow the group, all calling the shares as a Buy.
The consensus average Target Price is 277p, with the Lowest at 255p and the Highest at 320p.
Jefferies rates Buy, with a 320p Target Price, Berenberg has a 270p TP, while Deutsche looks for 260p.
Company-compiled analyst consensus, as at Wednesday, 18th May, suggested that estimates for the full year 2026 was for Adjusted Operating Profit of £38.3m, with a range of £37.7m - £39.2m.
Longspur Research analysts Adam Forsyth and Max Campbell estimate that sales for the year to end-December 2026 will be £313.6m (£271.4m), while pre-tax profits could rise to £35.0m (£27.8m), lifting earnings to 17.2p (15.0p) and paying a dividend of 6.4p (6.0p) per share.
For the 2027 year, they go for £326.0m sales, £38.2m profits, 18.9p earnings per share and a 6.7p dividend.
Their valuation is 255p per share.
My View
Lighting the way forward, next week’s Update could see this group’s shares powering a lot higher than the current 260p – with 300p being an easy Price Objective.
(Profile 15.06.20 @ 96.1p set a Target Price of 125p*)
(Profile 11.08.25 @ 126.80p set a Target Price of 150p*)
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