Luceco plc (LUCE) AI Stock Analysis

• Market Cap: £221.32M
• Dividend Yield: 4.6%
• Average Volume (3M): 107.89K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 1.49
• Revenue Growth: 16.03%
• EPS Growth: -11.84%
• Country: UK
• Employees: 1,707
• Sector: Industrials
• Sector Strength: 87
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.10
• Shares Outstanding: 160,800,000
• 10 Day Avg. Volume: 60,433
• 30 Day Avg. Volume: 107,889
• PEG Ratio: -0.23
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: 159.00p ▲(10.72%Upside)

Luceco plc's overall score is driven by strong corporate events and positive technical indicators, despite challenges in financial performance and valuation. The company's strategic moves and executive confidence bolster its market position, while reasonable valuation and dividend yield offer a balanced investment proposition.

Luceco plc Business Overview & Revenue Model

Company Description

Luceco plc manufactures and distributes various light emitting diode (LED) lighting products and wiring accessories in the United Kingdom, Europe, the Middle East, the Americas, the Asia Pacific, and Africa. It operates through Wiring Accessories, Portable Power, and LED Lighting segments. The company offers interior lighting products, including panel, downlight, battens, and high bay; and exterior lighting products, such as floodlights, bulkheads, road lanterns, and bollards, as well as retrofit lamps and tubes, industrial lighting, exterior commercial and domestic site inspection, and lighting control products. It also provides wiring accessories that include switches and sockets, such as USB charging sockets, as well as Wi-Fi, smart, exterior, and IP weatherproof accessories; portable power products, such as cable reels, extension leads, surge protection devices, timers, and travel adaptors; and home entertainment products, including TV mounts, indoor aerials, SCART and HDMI leads, and TV interconnect accessories. In addition, the company offers circuit protection comprises consumer units and industrial switches; and cable management and accessories. Further, it imports and distributes electrical accessories; and provides administrative and development services. Additionally, the company offers automation products; electric vehicle chargers; and LED luminaires, as well as lighting design services. It primarily provides its products under the Luceco, Kingfisher Lighting, British General, Masterplug, and Ross brands. Luceco plc was incorporated in 2004 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Luceco plc generates revenue through the sale of its electrical and lighting products to a diverse customer base, including wholesalers, retailers, and direct consumers. The company's key revenue streams include the sales of LED lighting products, which are in high demand due to their energy efficiency and long lifespan. Additionally, Luceco offers wiring accessories and portable power solutions, contributing to its income. The company benefits from strategic partnerships with distributors and retailers that help expand its market reach. Luceco's focus on innovation and product development, as well as its commitment to sustainability, also play a crucial role in maintaining a competitive edge and driving sales growth.

Luceco plc Financial Statement Overview

Summary

Luceco plc demonstrates strong revenue growth and stable operational efficiency, but faces concerns with increased leverage and a significant decline in free cash flow. The company's resilience is evident in its strong gross profit margins and stable equity ratio, yet there are challenges in profitability and cash flow.

Income Statement

Luceco plc has shown a steady revenue growth of 16.04% from 2023 to 2024, with a robust gross profit margin of 40.20% in 2024. However, the net profit margin decreased slightly from 7.99% in 2023 to 6.02% in 2024, indicating some pressure on net income. The EBIT margin remained stable, reflecting consistent operational efficiency.

Balance Sheet

The debt-to-equity ratio increased significantly to 0.83 in 2024 from 0.29 in 2023, showing increased leverage that may pose a risk. However, the equity ratio is still strong at 39.15%, indicating a solid capital structure. The return on equity decreased to 15.24% in 2024, suggesting reduced profitability for shareholders.

Cash Flow

Luceco plc experienced a significant decline in free cash flow by 67.31% from 2023 to 2024, which affects liquidity and investment capability. The operating cash flow to net income ratio of 1.01 in 2024 indicates cash generation is closely aligned with net income, though free cash flow to net income ratio dropped significantly to 0.47.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
242.50M	209.00M	206.30M	228.20M	176.20M
	Gross Profit
97.50M	82.80M	71.40M	82.30M	68.00M
	EBIT
23.20M	22.20M	19.00M	35.30M	29.60M
	EBITDA
33.40M	31.50M	27.90M	42.60M	36.10M
	Net Income Common Stockholders
14.60M	16.70M	11.00M	27.10M	27.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.50M	4.90M	5.30M	7.30M	10.80M
	Total Assets
244.80M	176.80M	178.10M	202.70M	163.70M
	Total Debt
79.20M	27.40M	34.70M	45.00M	25.00M
	Net Debt
75.10M	22.80M	29.40M	38.10M	18.30M
	Total Liabilities
149.00M	83.00M	91.40M	115.00M	93.30M
	Stockholders Equity
95.80M	93.80M	86.70M	87.70M	70.40M
Cash Flow		Free Cash Flow
6.80M	20.80M	30.10M	17.80M	17.70M
	Operating Cash Flow
14.70M	29.00M	35.90M	24.40M	22.10M
	Investing Cash Flow
-45.60M	-9.90M	-13.40M	-24.80M	-4.40M
	Financing Cash Flow
30.50M	-19.80M	-24.40M	600.00K	-12.50M

Luceco plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 143.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LUCE, the sentiment is Neutral. The current price of 143.6 is below the 20-day moving average (MA) of 146.84, above the 50-day MA of 137.19, and above the 200-day MA of 136.84, indicating a neutral trend. The MACD of 1.29 indicates Positive momentum. The RSI at 49.17 is Neutral, neither overbought nor oversold. The STOCH value of 57.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:LUCE.

Luceco plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUCE	71 Outperform	£221.32M	15.07	15.40%	4.60%	16.03%	-11.84%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%
EAAS		£18.78M	―	-24.09%	―	―	―
DIA		£50.61M	―	-45.38%	―	―	―
SUP	81 Outperform	£234.63M	9.81	42.16%	3.60%	16.90%	32.92%
TFW	78 Outperform	£352.45M	14.35	14.53%	0.58%	-0.29%	11.71%
XPP	61 Neutral	£239.20M	―	-6.40%	―	-21.84%	10.56%

Luceco plc Corporate Events

Luceco PLC Announces Director’s Share Acquisition Under Incentive Plan

Luceco PLC announced a transaction involving Wayne Hill, a Managing Director and Person Discharging Managerial Responsibilities (PDMR), who acquired dividend shares under the company’s Share Incentive Plan. This transaction, conducted on the London Stock Exchange, reflects the company’s ongoing commitment to aligning management interests with shareholder value, potentially impacting stakeholder confidence positively.

Luceco plc AGM: Resolutions Passed and Strategic Moves Approved

Luceco plc, a company involved in the electrical industry, held its Annual General Meeting on May 20, 2025, where all proposed resolutions were passed. This includes the approval of the Annual Report, the declaration of a final dividend, and the re-election of several directors. The meeting also authorized the company to allot shares, disapply pre-emption rights, and purchase its own shares, indicating a strategic move to enhance shareholder value and operational flexibility.

Luceco plc Reports Strong Q1 2025 Performance with Revenue and Profit Growth

Luceco plc reported a strong start to 2025 with a 19% increase in revenue and an 8% rise in adjusted operating profit for Q1, driven by continued demand and previous acquisitions. The company maintains a stable financial position with a healthy debt ratio and plans for refinancing to support future growth. Despite mixed industry metrics, Luceco remains optimistic about its market position and growth potential, with a proposed dividend increase reflecting confidence in sustained profitability.

BlackRock Increases Stake in Luceco plc to 13.01%

Luceco plc has announced a change in its major holdings, with BlackRock, Inc. increasing its voting rights in the company to 13.01%. This adjustment in holdings, resulting from acquisitions and disposals of voting rights and financial instruments, reflects BlackRock’s strategic positioning and influence within Luceco, potentially impacting the company’s governance and decision-making processes.

BlackRock Increases Stake in Luceco PLC

Luceco PLC, a UK-based company, has announced a change in its major holdings, with BlackRock, Inc. acquiring a significant portion of voting rights. This acquisition increases BlackRock’s total voting rights in Luceco to 13%, reflecting a strategic move that could impact Luceco’s governance and decision-making processes.

Luceco plc Executives Acquire Shares Under Incentive Plan

Luceco plc has announced a series of share acquisitions under its Share Incentive Plan 2017, involving key executives including CEO Jonathan Hornby and CFO Will Hoy. These transactions, conducted on the London Stock Exchange, reflect the company’s ongoing commitment to aligning management interests with shareholder value, potentially impacting its market positioning and stakeholder confidence.

Luceco plc Announces 2025 AGM Details

Luceco plc has announced the publication of its Notice of Annual General Meeting, scheduled for May 20, 2025, in London. The meeting will discuss the company’s Annual Report and Accounts for 2024, with printed copies available for shareholders who requested them. This announcement is part of Luceco’s compliance with UK Listing Rules and reflects its ongoing commitment to transparency and shareholder engagement.

Luceco PLC Announces Share Acquisitions by Key Stakeholders

Luceco PLC announced the acquisition of shares by James Hall and Deanmor Investments, a company owned by CEO Jonathan Hornby and his family. These transactions, conducted on the London Stock Exchange, signify confidence in the company’s future prospects and may influence stakeholder perceptions positively.

Luceco plc Grants Performance Awards to Key Executives

Luceco plc has announced the granting of awards under its 2017 Performance Share Plan to key managerial personnel, including its CEO and CFO. These awards, in the form of nil-cost options over ordinary shares, are contingent upon meeting specific performance conditions related to earnings per share and total shareholder return over a defined period. This move is part of Luceco’s strategy to align managerial incentives with company performance, potentially impacting its operational focus and stakeholder interests.

Luceco plc Reports Strong 2024 Financial Results and Positive Outlook for 2025

Luceco plc reported strong financial results for 2024, with revenue increasing by 16% to £242.5 million and adjusted operating profit rising by 20.8% to £29 million. The company experienced significant growth in its EV product offerings and DIY retail sector, despite challenging infrastructure markets. Strategic acquisitions of D-Line and CMD have bolstered Luceco’s market position, and the company remains optimistic about continued growth in 2025, supported by easing UK interest rates and a robust product pipeline.