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Luceco PLC (GB:LUCE)
LSE:LUCE

Luceco plc (LUCE) AI Stock Analysis

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GB

Luceco plc

(LSE:LUCE)

Rating:71Outperform
Price Target:
159.00p
▲(9.81%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 (LUCE) vs. iShares MSCI United Kingdom ETF (EWC)

Luceco plc Business Overview & Revenue Model

Company DescriptionLuceco plc is a prominent British manufacturer and distributor in the electrical and lighting sectors. The company specializes in providing a wide range of innovative lighting products, wiring accessories, and portable power solutions. Its core offerings include LED lighting, circuit protection, and electrical accessories, serving both residential and commercial markets.
How the Company Makes MoneyLuceco plc generates revenue primarily through the manufacturing and sale of its electrical and lighting products. The company's key revenue streams include sales of LED lighting solutions, which are known for their energy efficiency and long lifespan, as well as wiring accessories and portable power products. Luceco benefits from its strong distribution network, which includes partnerships with major retailers, wholesalers, and professional installers. Additionally, the company's focus on innovation and sustainability contributes to its earnings by attracting environmentally conscious consumers and businesses looking to reduce energy costs.

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
75
Positive
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
68
Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue242.50M209.00M206.30M228.20M176.20M
Gross Profit97.50M82.80M71.40M82.30M68.00M
EBITDA33.40M31.50M27.90M42.60M36.10M
Net Income14.60M16.70M11.00M27.10M27.90M
Balance Sheet
Total Assets244.80M176.80M178.10M202.70M163.70M
Cash, Cash Equivalents and Short-Term Investments4.50M4.90M5.30M7.30M10.80M
Total Debt79.20M27.40M34.70M45.00M25.00M
Total Liabilities149.00M83.00M91.40M115.00M93.30M
Stockholders Equity95.80M93.80M86.70M87.70M70.40M
Cash Flow
Free Cash Flow6.80M20.80M30.10M17.80M17.70M
Operating Cash Flow14.70M29.00M35.90M24.40M22.10M
Investing Cash Flow-45.60M-9.90M-13.40M-24.80M-4.40M
Financing Cash Flow30.50M-19.80M-24.40M600.00K-12.50M

Luceco plc Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price144.80
Price Trends
50DMA
146.24
Negative
100DMA
139.51
Positive
200DMA
136.94
Positive
Market Momentum
MACD
0.79
Positive
RSI
44.93
Neutral
STOCH
20.63
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 144.8 is below the 20-day moving average (MA) of 147.78, below the 50-day MA of 146.24, and above the 200-day MA of 136.94, indicating a neutral trend. The MACD of 0.79 indicates Positive momentum. The RSI at 44.93 is Neutral, neither overbought nor oversold. The STOCH value of 20.63 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBSUP
81
Outperform
£205.89M8.7335.01%410.26%16.90%32.92%
GBTFW
78
Outperform
£384.83M15.7014.53%53.17%-0.29%11.71%
71
Outperform
£225.33M15.3415.40%451.44%16.03%-11.84%
GBXPP
61
Neutral
£250.93M-6.40%-21.84%10.56%
58
Neutral
HK$13.95B4.43-3.01%7.31%3.67%-54.16%
50
Neutral
£15.68M-53.36%-24.43%-1294.12%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:LUCE
Luceco plc
144.80
-18.08
-11.10%
GB:XPP
XP Power
899.00
-621.00
-40.86%
GB:EAAS
eEnergy Group
3.95
-1.65
-29.46%
GB:TFW
FW Thorpe Plc
335.00
14.92
4.66%
GB:SUP
Supreme PLC
177.00
7.77
4.59%

Luceco plc Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Luceco’s Pim Veraat to Lead SIG plc as CEO
Neutral
Jul 8, 2025

Luceco plc announced that Pim Veraat, currently the Senior Independent Non-Executive Director at Luceco, will join the Board of SIG plc as Chief Executive Officer and Chair designate starting October 1, 2025. This move signifies a significant leadership transition for Luceco, potentially impacting its strategic direction and stakeholder relations as it adapts to this executive change.

DividendsBusiness Operations and Strategy
Luceco PLC Announces Director’s Share Acquisition Under Incentive Plan
Positive
May 28, 2025

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.

Shareholder MeetingsStock BuybackDividendsBusiness Operations and Strategy
Luceco plc AGM: Resolutions Passed and Strategic Moves Approved
Positive
May 20, 2025

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.

DividendsBusiness Operations and StrategyFinancial Disclosures
Luceco plc Reports Strong Q1 2025 Performance with Revenue and Profit Growth
Positive
May 20, 2025

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.

Business Operations and StrategyRegulatory Filings and Compliance
BlackRock Increases Stake in Luceco plc to 13.01%
Neutral
May 16, 2025

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.

Business Operations and Strategy
BlackRock Increases Stake in Luceco PLC
Neutral
May 14, 2025

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.

Business Operations and Strategy
Luceco plc Executives Acquire Shares Under Incentive Plan
Positive
May 8, 2025

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.

Shareholder Meetings
Luceco plc Announces 2025 AGM Details
Neutral
Apr 15, 2025

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.

Other
Luceco PLC Announces Share Acquisitions by Key Stakeholders
Positive
Apr 11, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 29, 2025