Clean Energy Infrastructure
An Electrifying Future
Luceco has a leading position in the UK as a manufacturer and distributor of electrical accessories and LED lighting products. We see the company as being positioned to benefit from structural tailwinds from the transition to net zero through its low carbon offering and see this as a growth engine for the company moving forwards. The company has a strong cash generation profile and a history of accretive acquisitions, both of which we expect to continue in the medium term. We initiate with a central case valuation of GBp 222 per share.
Major Role in Net Zero:Positioned for Structural Growth
Proven Acquisition Strategy:
A successful history of accretive acquisitions demonstrates management’s ability to enhance growth, with further opportunities expected to add value.
Valuation Upside:
A central case valuation of GBp 222 per share highlights attractive upside potential from current levels, supported by steady revenue and margin growth assumptions.
Investment Overview:
Luceco combines the attributes of a cyclical industrial with long-term thematic exposure to decarbonisation and electrification. The end of post-pandemic destocking provides a pathway for resumed organic growth, while in-house production capacity and disciplined capital allocation strengthen the investment case. Over time, the company is expected to become less tied to UK economic cycles, with electrification tailwinds offering greater earnings stability.
The full Longspur Capital research note provides detailed financial forecasts, scenario analysis, and valuation models. To access the complete report, registration on the Longspur Capital research portal is required.
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Key Takeaways
Major Role in Net Zero:Positioned for Structural Growth
The shift towards electrification and energy efficiency across residential and commercial sectors underpins Luceco’s long-term demand outlook.
Resilient Business Model:Established brands and integrated manufacturing operations provide a solid platform for incremental margin expansion and steady capital returns.
Resilient Business Model:Established brands and integrated manufacturing operations provide a solid platform for incremental margin expansion and steady capital returns.
Proven Acquisition Strategy:
A successful history of accretive acquisitions demonstrates management’s ability to enhance growth, with further opportunities expected to add value.
Valuation Upside:
A central case valuation of GBp 222 per share highlights attractive upside potential from current levels, supported by steady revenue and margin growth assumptions.
Investment Overview:
Luceco combines the attributes of a cyclical industrial with long-term thematic exposure to decarbonisation and electrification. The end of post-pandemic destocking provides a pathway for resumed organic growth, while in-house production capacity and disciplined capital allocation strengthen the investment case. Over time, the company is expected to become less tied to UK economic cycles, with electrification tailwinds offering greater earnings stability.
The full Longspur Capital research note provides detailed financial forecasts, scenario analysis, and valuation models. To access the complete report, registration on the Longspur Capital research portal is required.
Register on our portal to access our research papers.
Luceco: a manufacturer and distributor of electrical accessories and LED lighting products.