2024 Full Year Results

26 March 2025

LUCECO PLC - 2024 FULL YEAR RESULTS

Luceco plc, the supplier of wiring accessories, EV chargers, LED lighting, and portable power products, today announces its audited results for the year ended 31 December 2024 ("2024" or "the year").

1. The definitions of the adjustments made and reconciliations to the reported figures can be found in note 1 of the consolidated financial statements

2. Includes pro-forma adjustment for EBITDA of acquired businesses, as shown in note 1 of the consolidated financial statements

Performance highlights

· 2024 results at the upper end of market expectations:

o Revenue: up 16.0% to £242.5m and like-for-like revenue up 5.8% versus the prior year

o Adjusted operating profit: up 20.8% to £29.0m reflecting strong revenue growth and operating leverage

o Adjusted operating margin: up 50 basis points to 12.0% which is within our desired range

o Adjusted EPS: up 12.6% to 12.5p from 11.1p

o Bank Net Debt : EBITDA ratio at 1.6x remains within our target range of 1.0-2.0x following two acquisitions during the year

o Full year dividend increased by 4.2% to 5.0p, with a final proposed dividend of 3.3p

· Another strong year of growth powered by our superior channel access and innovative product portfolio:

o Continuing to take market share with strong organic growth of 5.8% against a wider market decline of 2.4%

o Acceleration in our EV product offering with sales up 25.6% during the year

o Strong growth in our DIY Retail sector which is showing early signs of recovery, whilst infrastructure markets remain more challenging

· Impressive sales growth at the end of the year led to increased working capital that will reverse in 2025:

o Free cash flow adversely affected by strong sales growth at the end of the year from the Group's RMI divisions. December 2024 like-for-like sales were £8.5m higher than December 2023

o Free cash generation of £93.7m since 2019 has provided optionality for capital allocation drivers

· Integration of in-year acquisitions progressing well, with synergies already coming through from D-Line and supply chain cost improvement projects underway for CMD:

o February 2024 acquisition of D-Line for £7.8m - cable solutions provider with a presence in the US/Europe which provides synergies for our UK and international territories

o September 2024 acquisition of CMD for £29.7m - designer and manufacturer of a comprehensive range of wiring accessories for commercial premises where it holds a leading UK market position

· 2025 has started well, with the strong momentum at the end of 2024 continuing in the first quarter of the year

· With UK interest rates beginning to ease we are hopeful that overall consumer and economic confidence will begin to return, providing a further tailwind for our markets in 2025 and beyond

· Strong new product pipeline in high growth markets: EV Chargers for Commercial Premises, as well as a Home Energy Management system ("HEMs") for integrating Residential Batteries, EV Chargers, PV Solar Systems and Heating Controls

· Luceco is well positioned to benefit from continued operational leverage through its integrated, resilient and agile business model

Commenting on the results, Chief Executive Officer, John Hornby said:

"These results represent a strong year of growth in 2024, despite a lacklustre UK macroeconomic environment, with a particularly encouraging final quarter of the year. This trading momentum has continued in the opening quarter of 2025 and we look forward to further growth this year - particularly with improving end-market dynamics. We have a strong and evolving product portfolio to meet the expected demand in our high growth target markets of Electric Vehicle charging and Home Energy Management system spaces. I am encouraged by our improving lead market indicators, and our underlying trading since the year end which leaves us well positioned for further growth as we progress through 2025."

A meeting for analysts will be held at 9:30am GMT today, Wednesday 26 March 2025 at the offices of Deutsche Numis, 45 Gresham Street, London EC2V 7BF. To register to attend please email [email protected]. To register to watch a live webcast of the meeting, please follow this link:

https://brrmedia.news/LUCE_FY_24

For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055 as it forms part of the domestic law of the UK by virtue of the European Union (Withdrawal) Act 2018, this announcement is being made on behalf of Luceco plc by Will Hoy, Chief Financial Officer.

Note to Editors

Luceco plc - Bringing Power To Life

Luceco plc (LSE:LUCE) is a supplier of wiring accessories, EV chargers, LED lighting, and portable power products.

Luceco plc ("Luceco", "the Group" or "the Company").

For more information, please visit www.lucecoplc.com.

Forward-looking statements

This announcement contains forward‑looking statements that are subject to risk factors associated with, among other things, the economic and business circumstances occurring from time to time in the countries, sectors and markets in which the Group operates. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a wide range of variables which could cause actual results to differ materially from those currently anticipated. No assurances can be given that the forward‑looking statements in this announcement will be realised.

The forward‑looking statements reflect the knowledge and information available at the date of preparation of this announcement and the Company undertakes no obligation to update these forward‑looking statements. Nothing in this announcement should be construed as a profit forecast.

Use of alternative performance measures

The commentary in both the Chief Executive Officer's and Chief Financial Officer's Reviews uses alternative performance measures, which are described as "Adjusted". Definitions of these measures can be found in note 1 of the consolidated financial statements. The measures provide additional information for users on the underlying performance of the business, enabling consistent year-on-year comparisons.

Performance highlights

I am pleased to report that in 2024, we generated strong momentum, achieving meaningful growth despite a lacklustre macroeconomic environment in the UK. Revenue increased to £242.5m (2023: £209.0m) and strong profit conversion resulted in Adjusted Operating Profit reaching £29.0m (2023: £24.0m). We outperformed a market which remains soft, taking market share and growing revenue by 5.8% on a like-for-like basis. Our performance was driven by our broad product portfolio offered to the DIY Retail sector, which is showing early signs of recovery, and the impressive growth of our emerging range of excellent EV chargers.

I have also been pleased by the sustained improvement we are seeing in our Adjusted Operating Margin, made even

more impressive when we consider the year-on-year increases in copper and sea freight, linked to the events in the Red Sea. Our margin improvement has been delivered through internal initiatives such as continually improving factory efficiency, lean practices and competitive supplier sourcing.

Our Bank Net Debt position moved to £68.6m, having increased following the successful acquisitions of D-Line and CMD, nevertheless our balance sheet remains robust with Bank Net Debt leverage of 1.6x being comfortably within our target range of 1.0-2.0x. Our free cash generation was lower than we have seen in previous years, as at times we have needed to carry additional inventory to counter potential supply issues linked to the events in the Red Sea. This strategy proved successful in the fourth quarter, when our excellent product availability meant we were able to capitalise on improving market conditions and grow organic revenue 20.8% over this period.

Macroeconomic factors

In 2024, like many businesses, we navigated an environment shaped by more dynamic macroeconomic and geopolitical

influences than we have seen historically. For different reasons, these sometimes rapid changes have been a recurring

theme of recent years, so I am pleased with the way we have embraced these shifts to consistently outperform a volatile backdrop. Shipping costs, which stabilised at relatively low levels in 2023, began to rise in early 2024 following the events in the Red Sea. Although shipping costs have been a headwind in 2024, they appear to have peaked in July and have returned to lower levels since this time. Importantly, despite fluctuation, shipping costs in 2024 remained significantly below the unprecedented heights seen during the pandemic, both in scale and duration. The peak in July 2024 was approximately 80% lower than October 2021 and lasted one month compared to the elevated levels we experienced between May 2021 and August 2022.

We continue to mitigate the full effect of changes in shipping costs through our Free On Board ("FOB") arrangements with our major Retail and Hybrid customers, who take delivery in China and manage their own shipping processes. This arrangement provides us with a degree of insulation from broader market volatility. Material costs have also been a moderate headwind as we have moved through 2024, where rising demand and supply constraints have increased commodity prices. Although this has been particularly prevalent to the price of copper, we have hedging arrangements in place that offered short-term protection against this exposure, helping to manage cost pressures effectively. We are comfortable with the rates at which our 2025 hedges have renewed.

In spite of these macroeconomic factors, we are pleased to deliver a 50 basis points increase in our Adjusted Operating Margin. With our own selling prices being kept relatively stable to support consumer demand, this improvement has been driven by excellent work both in the UK and China to drive down cost with both suppliers and in our own well-invested factory, which is built to deliver further benefits as we scale as a business. Overall, I am delighted to see our Adjusted Operating Margin return to through-the-cycle levels.

Underlying demand

A key driver for our 5.8% like-for-like revenue growth was 27% like-for-like growth within our international businesses. When we first entered these markets less than a decade ago, we anticipated it would take time to establish a strong foothold. It is therefore particularly rewarding to see the hard work of our international sales teams paying off this year. All our international businesses delivered year-on-year top-line revenue growth, with standout performances in Dubai and Ireland. Dubai grew 28.0% and has cemented its position as a leading provider of LED Lighting and Wiring Accessories for large-scale projects in the region.

Meanwhile, Ireland achieved 55.0% growth, driven by robust demand in both the Retail and Professional Wholesale sectors. As our international businesses continue to scale, we anticipate further improvements in margins, which is an encouraging prospect for the Group overall. Our like-for-like revenue growth of 2.1% in the UK is put into context when we compare ourselves to the wider UK construction market, with data from the Construction Products Association ("CPA") indicating that output of our addressable markets reduced 2.4% in the same timeframe.

Approximately 60% of our UK business is focused on delivering residential repair, maintenance and improvement ("RMI") solutions to professional installers and general consumers performing DIY. Using CPA data, we estimate that this market's output reduced 2.8% in 2024. Housing transactions, which drive improvement work both in the lead-up

to a housing sale as well as following it, continue to remain subdued. Retail DIY markets also face challenges with the Barclays Consumer Spending Index reporting a 6.7% average reduction in DIY spending over the course of 2024. Despite these challenges, our own UK residential RMI businesses grew 7.1%, bolstered by a strong close to the year. Our retail DIY portfolio experienced a robust recovery in 2024, we continue to hold key strategic positions within the Hybrid sales

channel and with demand for sustainable solutions growing, our EV charger business is beginning to flourish.

The UK non-residential arm of our business, which accounts for approximately 20% of UK revenue, remained broadly flat year-on-year. This resilient performance followed an exceptionally strong 2023 and outperformed a market where output contracted by 0.5%. Although organisations continue to be mindful of the cost pressures they are facing, we consistently outperform the market in this field as a result of the efficiency savings delivered by our products and the strong end-to-end service we deliver. After a series of strong performances in recent years, our Exterior LED Lighting businesses had a more challenging year with an 11.3% reduction in revenue. Although the CPA estimates that UK infrastructure market output reduced 0.9% in the year, this does not fully reflect the challenges faced by large-scale LED lighting projects in 2024, where uncertainty driven by the UK election and the Autumn budget led organisations to defer significant capital investments.

As we look ahead to 2025, the order books for both DW Windsor and Kingfisher Lighting are encouraging, positioning us well for a recovery as market conditions stabilise. Within the new housing market, elevated interest rates continue to make market conditions tough for housebuilders, with the CPA estimating a contraction in output of 9.1% in 2024. However, we estimate this market makes up less than 5.0% of our sales and despite market conditions, we were still able to grow this smaller part of our business by 7.9%, aided by increasing sales of EV chargers.

Whilst it is clear that our markets in more recent years have been challenging as cost of living increases have reduced discretionary spending, there are signs that consumer confidence is returning. Housing transactions in quarter four were

18.2% higher than the prior year and the CPA forecasts a return to growth for the construction industry, supported by falling interest rates and sustained real wage growth. The fundamental growth drivers supporting our industry and business remain. The drive towards net zero, continuous regulatory change, new technology and an underlying need to

invest in UK housing stock mean we can be confident that our markets will deliver healthy and stable growth over the long term.

Strategic highlights

Throughout 2024, we remained committed to our purpose of helping people harness power sustainably in everyday life. Alongside delivering strong financial results, I am pleased with the progress we have made in advancing our strategic priorities to Innovate, Grow and Sustain.

Innovate

Innovation is the foundation of our purpose - to help people harness power sustainably in everyday life. Our ability to

see and do things differently creates value for stakeholders, fuels business growth, sustains our competitive advantage, and contributes to the transition to net zero. We remain focused on developing new products and enhancing our existing range with increased functionality tailored to customer needs. Our global team of over 100 product development specialists drives a customer-centric, rapid and low-risk development process, which has been instrumental in the Group's success. In 2024, we made significant strides in expanding our product portfolio. To reflect the evolution of BG Sync EV's offering beyond EV charging, we rebranded to Sync Energy - a name that better encompasses our broader range of sustainable energy solutions.

A major milestone has been the development of our own Home Energy Management system ("HEMs"), set to launch in early 2025. This system enables energy storage in modular batteries from both the grid and renewable sources, such as solar panels, allowing consumers to use lower cost energy at optimal times. With growing demand for EV charging, increasing renewable energy adoption and persistently high energy costs, home energy management is expected to become a key growth area both in the UK and internationally. This next step for Sync Energy aligns perfectly with our mission to support a more sustainable future. We have also continued advancing our EV charging solutions with the release of our first commercially focused "Pro Charge" range in 2024. This is complemented by our new EV Balancer, which connects up to 16 chargers, dynamically managing power distribution to ensure safe and efficient charging expansion without exceeding a building's power limits. Another key milestone has been the launch of our proprietary Sync Energy App, designed specifically for our EV chargers. This app enhances user control through features like "Tariff Sense" which optimises charging times based on energy tariffs, and "Solar Mode" allowing users with solar panels to maximise self-generated energy. Looking ahead, access to charging data will enable us to collaborate with energy suppliers to recommend tailored tariffs, further improving the customer experience.

Beyond EV solutions, one of our most exciting innovations in 2024 has been the launch of the award-winning Titan All-in-One LED Highbay Light, sold under the Luceco Lighting brand. Designed for ultimate flexibility, it features adjustable

wattage, colour temperature and beam angle, ensuring optimal lighting within industrial applications such as warehouses, factories and workshops.

We continue to enhance our Wiring Accessories and Masterplug product lines. Our vertically integrated manufacturing model allows us to make rapid, low‑cost adjustments to align with evolving market trends. In 2024, we capitalised on this agility by launching Superfast USB-C sockets under the BG brand and new USB-C wall chargers under the Masterplug brand - both of which cater to the increasing demand for fast-charging solutions. Our commitment to innovation with

purpose is a core driver of our strategy, enabling us to gain market share and create value through differentiated, high‑margin products.

Grow

Despite challenging market conditions, we continue to grow the business both organically as well as through targeted M&A in line with our capital allocation policy. Our range of Wiring Accessories had another very strong year. In an industry where project deadlines are tight and time is an incredibly valuable commodity, electricians place a high value on our products which are easy to install, reliable and have excellent availability. As a result, many electricians have been using our Wiring Accessories products throughout their entire careers. We are incredibly proud of their loyalty, but we never take it for granted.

Once again, this year we have invested in our industry, providing over 8,500 online electrical courses via Luceco Academy, focusing in particular on trainee electricians who we hope will become the next generation of BG Electrical users. The long-standing deep relationships we have with our customers means we can work together to ensure the right products are being made available to the end consumer. Our sales teams continue to work closely with our R&D teams to extend existing product ranges to generate new business wins. In 2024, we released our first EV chargers sold under the Masterplug brand. This product extends our reach by utilising our existing strong customer relationships and leveraging our strong Masterplug brand.

We are delighted by the progress our range of EV chargers have made during the year and we are now seeing consistent

top-line sales growth. We started the year with revenue from EV charging products typically generating £0.6m per month and ended with the range generating in excess of £1.0m per month. Ultimately, our customers choose our products as they know they can sell them to the end consumer with confidence in their quality and reliability; this leaves us well placed for future organic growth.

We have complemented the Group's long history of organic growth with acquisitions funded by our consistently strong cash flow and in February 2024, we were delighted to complete the acquisition of D-Line (Europe) Limited ("D-Line"). Headquartered in Tyne & Wear in the UK, D-Line designs and supplies a range of innovative cable management solutions, including decorative cable trunking and accessories, fire-rated cable supports, floor cable protectors and cable organisers. Employing approximately 60 people, D-Line serves Retail, Wholesale and eCommerce customers across the UK, Europe and North America, with a dedicated sales and distribution facility in Kentucky, USA. D-Line's product range is a natural fit alongside our existing categories. The business has developed a strong brand both in the UK and internationally, and we see significant potential in leveraging D-Line's North American operations to support our expanding presence in the region.

Following this, in September 2024, we were pleased to announce the acquisition of CMD Limited ("CMD"). Founded in 1984, CMD designs and manufactures a comprehensive range of wiring accessories for commercial premises, where it holds a leading position in the UK. Products include under-floor and under-desk power distribution solutions, on-desk and in-desk sockets, and a range of ergonomic products including the award-winning Miro monitor support arm. CMD has an experienced senior management team which will remain with the business, continuing to operate from its headquarters in Rotherham.

With Luceco already well-established as a leading supplier of Wiring Accessories to the UK Residential market, CMD's strong presence in the commercial sector makes it a highly complementary addition. Our expertise in product development, manufacturing and sourcing will enable us to accelerate range innovation and improve margins for CMD. Additionally, CMD's well-established relationships with specifiers and contractors present a valuable opportunity to introduce Luceco's professional LED Lighting range to a broader customer base. Both D-Line and CMD are strong businesses with significant potential. We look forward to unlocking the opportunities these acquisitions present while continuing to drive organic growth that outperforms our markets.

Sustain

Our Sustain strategy is focused on taking action to contribute to society's sustainability goals as well as investing in our people and our industry. Taking these actions now will ensure we sustain our competitive advantage into the future. Our operations continue to offer one of the lowest operational carbon footprints in our industry and this was reaffirmed with a "B" rating from the Carbon Disclosure Project in the first quarter of 2024. This is our third year of reporting to the platform, so we are delighted our progress integrating climate‑related factors into our business operations has been reflected with a strong grade.

We remain committed to our validated targets from the Science Based Targets initiative ("SBTi") of reducing operational emissions by 46.2% and reducing value chain emissions by 27.5% by 2031. To help us achieve our targets we will continue to source 100% renewable electricity and extend this commitment to our newly acquired companies. In September 2024, we completed the installation of our second solar PV array at our manufacturing facility in Jiaxing, China. When fully operational we anticipate that 13% of the site's electricity consumption will be self-generated. Ensuring we use energy efficiently across heating, manufacturing processes and transportation will play an important role in reducing our use of fossil fuels.

Together with our SBTi targets, in 2021 we also set ourselves a challenging objective of reaching £100m of revenue from low carbon products by 2025. Whilst we are pleased with the progress we have made, having generated £82.6m of low

carbon sales in 2024, we are mindful that consumer uptake of electric vehicles has been slower when compared to market forecasts at the time we set our targets. We hope to make further progress during 2025.

Sustainability remains at the heart of our product innovation. Our new Titan All‑in‑One LED Highbay Light replaces 72 SKUs with just four, reducing manufacturing, packaging and logistics waste while offering greater flexibility to distributors and contractors. Our Sync Energy portfolio, including EV chargers and the upcoming Home Energy Management system, supports the transition to cleaner energy. Home Energy Management systems enable homeowners to store and manage energy from both the grid and renewables, reducing emissions and optimising energy use. By enhancing efficiency and promoting low carbon solutions, our products play a key role in driving sustainable progress. Beyond environmental sustainability, we continue to invest in the next generation of skilled professionals. We are proud to sponsor the highly acclaimed SPARKS Learner of the Year awards, which celebrate the most talented young electricians in the UK - vital contributors to the future of our industry.

To sustain and accelerate future growth, we have also made further investments in optimising our production and procurement processes in China. In 2024, we took key steps to generate cost savings while enhancing our manufacturing

capabilities. I am particularly pleased with the progress we have made in expanding and automating the production of EV chargers and DW Windsor products, laying a strong foundation for future scaling and efficiency.

Outlook

Trading in early 2025 has started well, although consumer confidence remains relatively subdued, we are beginning to see green shoots of recovery within our markets. Whilst the macroeconomic outlook for 2025 remains difficult to judge, I am encouraged by our continued underlying trading momentum which leaves us well positioned to make further progress in the year ahead.

JOHN HORNBY

Chief Executive Officer

25 March 2025

Summary of reported results

Operating profit of £23.2m was £1.0m higher than 2023 as a result of strong revenue and gross profit growth from both organic and acquisition activity.

Alternative Performance Measures and adjusting items

Certain alternative performance measures ("APMs") have been included within this report. These APMs are used by the Board to monitor and manage the performance of the Group, in order to ensure that decisions taken align with the Group's long-term interests. A table summarising the reconciliation of adjusted measures to statutory measures is included in note 1 of the consolidated financial statements. The following adjusting items were applied in the year:

· Amortisation of acquired intangibles: £2.3m and acquisition-related costs of £3.8m

· Fair value movements of hedging portfolio which have not completed in the period a £0.3m credit and interest rate swaps of £0.2m costs

Adjusted Operating Profit for the year, excluding the items above, was therefore £29.0m (2023: £24.0m).

Income statement

Revenue

1. Like-for-like revenue increase excludes the impact of currency movements and acquisitions, see note 10 of the consolidated financial statements

2. 2024 revenue translated at 2023 exchange rates

Revenue of £242.5m was £33.5m (16.0%) higher than 2023 as business growth returned. Like-for-like revenue, excluding the impact of currency, increased by £12.2m in the period, up 5.8%. The Group continues to take market share, with Luceco's overall addressable market experiencing a 2.4% decline, the Group's performance in 2024 compares highly favourably. Within the UK, our infrastructure-related businesses had a more difficult period falling by over 11%, however excluding these businesses UK growth was over 5.7%. Our international businesses had a strong year with like-for-like growth of 27%, with growth across all key international regions.

The Group performed strongly in the Residential RMI DIY market, with results up 15.6% on a like-for-like basis. The Group also grew by 9.3% in the new residential sector and had growth of 6.7% in residential RMI professional sector. Within the non-residential sector, the Group's result improved by 4.7% on a like‑for‑like basis, however the infrastructure sector struggled with a decline of 11.0% on a like-for-like basis.

We group our customers into the following sales channels:

· Retail: Distributors serving consumers only, including DIY sheds, pure-play online retailers and grocers

· Hybrid: Distributors serving both consumers and professionals, typically with multi-channel service options

· Professional Wholesale: Distributors serving professionals only, largely via a branch network

· Professional Projects: Sale agreed by Luceco direct with professionals, but largely fulfilled via Professional Wholesale

Performance by sales channel was as follows:

Our Hybrid and Retail channels represent just under half of the Group's like-for-like revenue in the year and combined grew by 10.5%, with strong volume growth in Portable Power, LED and EV products. The Professional channel, including Wholesale and Projects, grew by 1.8% overall in the period, reflecting a more difficult channel to market, largely as a result of declines in LED impacted by the infrastructure market.

The Group is particularly encouraged by the EV charger performance, which has grown by over 26% in the year. We are beginning to see traction in the commercial markets which will provide a strong growth opportunity for 2025 and beyond, together with our retail proposition.

Revenue by geography and location of the customer highlights the strong international progress we have seen across the Middle East, Europe and Americas. European sales in Spain were encouraging in 2024 as the business began to get traction in the Spanish market. Sales improved in the Americas, largely as a result of stronger sales from Portable Power in North America and our growing South American LED offering. Sales in the Middle East and Africa surpassed expectations with a strong second half in 2024.

Profitability

Adjusted Operating Profit of £29.0m for 2024 was £5.0m ahead of 2023. The key drivers were as follows:

1. Like-for-like profit movements exclude the impact of currency movements and acquisitions/closures

The net impact of acquisitions and closures was £1.9m, which reflects the acquisitions of D-Line and CMD during the year. Overall Adjusted Operating Profit, excluding acquisitions/closures and at Constant Currency improved by £3.0m, driven largely by the stronger performance across the UK channels.

The currency tailwind in the year was £0.1m on Adjusted Operating Profit, which was a combination of favourable RMB on Chinese products and adverse USD on the sales of products. Adjusted Operating Costs increased by £10.2m at Constant Currency. The majority of the increase came from wage increases and associated costs. Excluding the impact of acquisitions, costs increased by £4.3m, which was a 7.4% increase on a Constant Currency basis. Overall Adjusted Operating Margin of 12.0% is a strong result, up 50 basis points on the prior year. We continue to believe the Group's strong operating leverage can improve operating margins further within the range of 12%-15%.

The table below provides a more detailed view of the currency impact in the year:

1. Year ended 31 December 2024 translated at 2024 average exchange rates

2. Year ended 31 December 2024 translated at 2023 average exchange rates

Net finance expense

Adjusted Net Finance Expense increased by £1.3m, reflecting an increase in our facility, which is in place to support the Group's acquisitions and working capital requirements as the Group grows.

Taxation

The effective tax rate on Adjusted Profit Before Tax increased by 4.5ppts to 22.9% in 2024 following some advantageous tax rates in 2023 and a higher proportion of the Group on a UK tax rate of 25%.

Adjusted Free Cash Flow

1. A reconciliation of the reported to Adjusted results is shown within note 1 of the consolidated financial statements

2. Adjusted Operating Cash Conversion is defined as Adjusted Operating Cash Flow divided by Adjusted Operating Profit

The Group 's Adjusted Free Cash Flow of £3.5m in the period was impacted by a strong final quarter which resulted in a year-end timing difference on trade and other receivables. Trade and other receivables were a cash outflow of £17.1m in 2024 compared to a £3.1m outflow in 2023. Our expectation is that this will reverse in 2025.

Capital expenditure

The Group's net capital expenditure consists of capitalised product development costs and the purchase of physical assets. Capex was £7.8m (2023: £8.2m) and represented 3.2% of revenue (2023: 3.9%) which is in our target range of 3‑4%. We continue to see opportunities to invest in low risk, high return automation projects in our Chinese production facility and continue to invest in R&D projects, particularly in relation to acquired businesses.

Capital structure and returns

Return on capital

Return on Capital Invested was lower than the prior year at 20.2% (2023: 20.6%) which remains above our target range of 20% or higher. As previously flagged, our returns will naturally moderate as Luceco transitions from a Group created organically to one growing via M&A as well (with its required investment in goodwill).

Capital structure

The business continues to consistently generate ample cash flow to support its dividend policy and fund M&A activity.

During the year, the Group acquired two businesses for a total of £37.5m including cash received on acquisition which has impacted the reported net debt in the period together with a timing issue on trade and other receivables at the end of the year of £17.1m. The Group's non‑utilised facilities totalled £54.3m. The Group's existing revolving credit facility was expanded by £40m in the period, via the accordion facility available under the terms of its syndicated bank facilities. The Group is currently in discussions regarding a new banking facility in order to replace the existing facility; these discussions are progressing in line with expectations.

The Company's covenant position and headroom at 31 December 2024 was as follows:

The key measures which management use to evaluate the Group's use of its financial resources and capital management are set out below:

1. Note 1 in the notes to the consolidated financial statements provides an explanation of the Group's alternative performance measures.

The Group complied with its covenant requirements throughout the year with significant headroom on all metrics. The Group has conducted a full going concern review and this is outlined on page 130 of the Annual Report and Financial Statements. The Group has a strong balance sheet and significant facility headroom under even a severe but plausible downside scenario. No covenant breaches occur in any of our severe but plausible downside scenarios, all of which are before any mitigating actions, illustrating our financial resilience.

Dividends

The Board is proposing to pay a final dividend of 3.3p, taking the full‑year dividend to 5.0p, representing a payout of 40% of earnings. The final dividend will be paid on 22 May 2025 to shareholders on the registrar on 11 April 2025.

Operating segment review

The revenue and profit generated by the Group's operating segments are shown below. Operating profits are stated after the proportional allocation of fixed central overheads.

Wiring Accessories

1. A reconciliation of the reported to Adjusted results is shown within note 1 of the consolidated financial statements

Wiring Accessories is the Group's most profitable segment, generating 66% of the Group's operating profit and 45% of its revenue, under a brand established over 80 years ago.

Sales into the Wiring Accessories segment were £108.9m, which was a significant increase of 32% over 2023, largely driven by the Hybrid and Retail channels. The Adjusted Operating Margin was 17.5% (2023: 18.2%) which remains a key driver for the Group's overall profitability.

LED Lighting

1. A reconciliation of the reported to Adjusted results is shown within note 1 of the consolidated financial statements

The Group entered the lighting market in 2013 as the industry adopted LED technology and it now represents 32% of Group revenue.

Revenue was 0.8% behind the prior year as a result of the headwinds we have faced in the Infrastructure channel, however this was nearly all offset by gains in the international businesses and a recovery in the UK markets and channels. Operating profit was behind the prior year, reflecting wage inflation in the UK, with operating margin at 5.2%. Demand remains particularly strong in the Professional Projects space, as demand for energy-saving retrofits within the non-residential and infrastructure sectors continues to grow.

Portable Power

1. A reconciliation of the reported to Adjusted results is shown within note 1 of the consolidated financial statements

The Portable Power segment consists of two main elements:

· Cable reels, extension leads and associated accessories sold under the Masterplug brand

· EV chargers sold under the Sync Energy brand

The Group enjoys a leading position in the UK portable power market. The business generates 23% of Group revenue and 20% of Group Adjusted Operating Profit. Revenue increased by a significant 16% in the period with strong performance in the Americas and UK regions.

EV charger sales totalled £9.8m, a growth rate of 26% in the period, which was highly encouraging. We remain excited about the opportunities, in both retail and commercial spaces, that this new sector will provide as the vehicle market moves towards electrification.

Going concern

The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and as such have applied the going concern principle in preparing the Annual Report and Financial Statements. This is considered in more detail in note 1 of the consolidated financial statements. The Group's Viability Statement can be found on pages 69 to 70 and the Group's Going Concern Statement can be found on page 130 of the Annual Report and Financial Statements.

WILL HOY

Chief Financial Officer

25 March 2025

We continue to make progress on our ESG workstreams:

· We committed to the Science Based Targets Initiative (SBTi) and this was validated by the SBTi during the first half of the year. This means we have committed to reductions in carbon emissions over the near-term consistent with the Paris Agreement

· Achievement of an improved management-level score ("B") attained in March 2024 from the Carbon Disclosure Project

· We have delivered significant progress against our low carbon product revenue target and continue to work towards £100m of such revenue

· We continue to improve our packaging specifications, particularly around plastic packaging.

Key achievements by area

Products and services

· Acquisition of Sync EV and launch of single-phase Mode 3 EV chargers under the joint BG Sync EV brand

· £83m of revenue from low carbon product categories in full year 2024, delivering significant progress against our £100m low carbon product revenue target for 2025

· 3.5-fold increase in revenue from the sale of lighting control devices into lighting projects in full year 2023

Supply Chain

· Insourcing of EV charger production within our China manufacturing facility with 100% renewable electricity supply

· Evaluation of key suppliers' physical climate risk exposure to understand vulnerabilities within our supply chain

Research and Development

· Specialist R&D function in China and the UK

· Development of higher power, three-phase EV chargers for larger homes and commercial premises

· Investigating on-street EV charging solutions within DW Windsor

· Dedicated optical engineer focusing on improvements to lens design to improve lighting efficiency

· Working towards the development of environmental product declarations (EPD) and industry best practise on circular design in lighting

Operations

· Sourced renewable electricity for all group operations for 2024 and 2023, bringing our scope 2 emissions to zero.

· Offsetting residual Scope 1 emissions for 2024 and 2023

· Investment into energy efficiency and automation projects within the China manufacturing facility including investment in our second solar PV array

· Evaluation of our key locations (manufacturing and distribution centres) to better understand physical climate risk exposure to understand vulnerabilities across direct operations

· All plastic packaging is recyclable with a minimum 30% recycled content

· Installation of EV chargers in our Telford operation

Our ESG objectives for 2025 are as follows:

· Develop our Home Energy Management system

· Grow EV further in the domestic space and expand into the commercial space

· Grow LED in our UK Trade and Projects channels and our product proposition

· Deeper engagement with suppliers and customers

· Fully incorporate the recent acquisitions of CMD and D-Line into our GHG reporting and our science-based targets

The Board is responsible for identifying, reviewing and managing business and operational risk. It is also responsible for determining the level of risk appetite it is prepared to take in the ordinary course of business to achieve the Group's strategic objectives and to ensure that appropriate and sufficient resource is allocated to the management and mitigation of risk.

In addition to the risk management framework, the Board has delegated responsibility to the Audit Committee for reviewing the overall process of assessing business risks and managing the impact on the Group. The Group's risk management process is set out below.

The principal risks identified, and actions taken to minimise their potential impact are included below. This is not an exhaustive list but those the Board believes may have an adverse effect on the Group's cash flow and profitability.

See also pages 64 to 68 in the 2024 Annual Report and Financial Statements.

In determining whether it is appropriate to adopt the going concern basis in the preparation of the financial statements, the Directors have considered these principal risks and uncertainties. The Viability Statement on pages 69 to 70 of the 2024 Annual Report and Financial Statements considers the prospects of the Group should a number of these risks crystallise together.

Principal risks

The following statement will be contained in the 2024 Annual Report and Financial Statements.

We confirm that to the best of our knowledge:

· The financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and

· The Strategic Report includes a fair review of the development and performance of the business and the position of the issuer and the undertakings included in the consolidation, taken as a whole, together with a description of the principal risks and uncertainties that they face.

· We consider the Annual Report and Financial Statements, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Group's position and performance, business model and strategy.

JOHN HORNBY

Chief Executive Officer

WILL HOY

Chief Financial Officer

25 March 2025

For the year ended 31 December 2024

1. Re-presented in respect of 2022 is detailed in note 1

Adjusted1 Results

1. See note 1 for alternative performance measures

For the year ended 31 December 2024

All results are from continuing operations.

The accompanying notes form part of these financial statements.

At 31 December 2024

The accompanying notes form part of these financial statements.

For the year ended 31 December 2024

The accompanying notes form part of theses financial statements.

For the year ended 31 December 2024

The accompanying notes form part of theses financial statements.

For the year ended 31 December 2024

1. Basis of preparation

Luceco plc (the "Company") is a company incorporated and domiciled in the United Kingdom. These consolidated financial statements for the year ended 31 December 2024 comprise the Company and its subsidiaries (together referred to as the "Group"). The Group is primarily involved in the manufacturing and distributing of high quality and innovative wiring accessories, LED lighting and portable power products to global markets (see note 2).

The financial information is derived from the Group's consolidated financial statements for the year ended 31 December 2024, which have been prepared on the going concern basis in accordance with UK adopted international accounting standards (UK adopted IFRS) in conformity with the requirements of the Companies Act 2006. The financial statements have been prepared on the historical cost basis except for certain financial instruments which are carried at fair value.

The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 December 2024 and 31 December 2023 but is derived from those accounts. Statutory accounts for 2023 have been delivered to the Registrar of Companies, and those for 2024 will be delivered in due course. The Auditors have reported on the 2024 statutory accounts; their report was (i) unqualified and (ii) did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006. The text of the Auditors' report can be found in the Company's full 2024 Annual Report and Financial Statements on pages 116 to 123.

The 2024 Annual Report and Financial Statements and the Notice of the 2024 Annual General Meeting will be published on the Company's website at http://www.lucecoplc.com as soon as practicable. They will also be submitted to the National Storage Mechanism where they will be available for inspection at:

https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

The Group's accounting policies can be referred to in note 1 of the consolidated financial statements in the 2023 Annual Report and Financial Statements.

Going concern

The Directors have concluded that it is reasonable to adopt a going concern basis in preparing the financial statements. This is based on an expectation that the Company and the Group have adequate resources to continue in operational existence for at least 12 months from the date of signing these accounts and our cash flow forecasts support this. The Group has reported a profit before tax of £18.9m for the year to 31 December 2024 (2023: £18.9m), has net current assets of £79.4m (2023: £52.5m) and net assets of £95.8m (2023: £93.8m), net debt of £75.1m (2022: £22.8m) and net cash from operating activities of £14.7m (2023: £29.0m). The bank facilities mature on 30 September 2026. The Group is currently in discussions regarding a new banking facility in order to replace the existing facility and discussions are progressing in line with expectations.

The capital resources at the Group's disposal at 31 December 2024 and 28 February 2025:

· A revolving credit facility of £120.0m, £65.7m drawn at 31 December 2024 and £65.3m drawn at 28 February 2025

The revolving credit facility requires the Group to comply with the following quarterly financial covenants:

· Closing Covenant Net Debt of no more than 3.0 times Covenant EBITDA for the preceding 12-month period

· Covenant EBITDA of no less than 4.0 times Covenant Net Finance Expense for the preceding 12‑month period

The Directors ran scenario tests on the severe but plausible downside case. The assumptions in this scenario were as follows: concentration risks with associated operations (25% reduction in revenue for three months followed by 50% reduction for three months and 20% increase in shipping costs during the period) and macroeconomic, political and

environmental risks (18-month recession with a 10% reduction in revenue and gross profit). These severe but plausible downside scenarios do not lead to any breach in covenants nor any breach in facility. All modelling has been conducted without any mitigation activity. There have been no changes to post balance sheet liquidity positions.

The Directors are confident that the Group and Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

Statutory and non-statutory measures of performance - adjusted measures

The financial statements contain all the information and disclosures required by the relevant accounting standards and regulatory obligations that apply to the Group.

The Group's performance is assessed using a number of financial measures which are not defined under IFRS (the financial reporting framework applied by the Group). Management uses the adjusted or alternative performance measures (APMs) as a part of their internal financial performance monitoring and when assessing the future impact of operating decisions. The APMs disclose the adjusted performance of the Group excluding specific items. The measures allow a more effective year-on-year comparison and identification of core business trends by removing the impact of items occurring either outside the normal course of operations or as a result of intermittent activities such as a corporate acquisition. The Group separately reports acquisition costs, other exceptional items and other specific items in the consolidated income statement which, in the Directors' judgement, need to be disclosed separately by virtue of their nature, size and incidence in order for users of the financial statements to obtain a balanced view of the financial information and the underlying performance of the business.

In following the guidelines on Alternative Performance Measures (APMs) issued by the European Securities and Markets Authorities, the Group has included a consolidated income statement and consolidated cash flow statement that have both Statutory and Adjusted performance measures. The definitions of the measures used in these results are below and the principles to identify adjusting items have been applied on a basis consistent with previous years.

The following table reconciles all adjustments from the reported to the adjusted figures in the income statement:

1. Relating to Kingfisher Lighting, DW Windsor, Sync EV, D-Line and CMD

2. Relating to currency hedges/interest swaps

1. Relating to Kingfisher Lighting, DW Windsor and Sync EV

2. Relating to currency hedges/interest swaps

The following tables indicate how alternative performance measures are calculated:

Standards and interpretations issued

The following UK-adopted IFRS have been issued and have been applied in these financial statements. Their adoption did not have a material effect on the financial statements, unless otherwise indicated, from 1 January 2024:

The following UK adopted IFRS have been issued but have not been applied and adoption is not expected to have a material effect on the financial statements, unless otherwise indicated, from 1 January 2025:

2. Operating segments

The Group's principal activities are in the manufacturing and supply of Wiring Accessories, LED Lighting and Portable Power equipment. For the purposes of management reporting to the Chief Operating Decision-Maker (the Board), the Group consists of three operating segments which are the product categories that the Group distributes. The Board does not review the Group's assets and liabilities on a segmental basis and, therefore, no segmental disclosure is included. Inter-segment sales are not material. Revenue and operating profit are reported under IFRS 8 Operating Segments.