Luceco
Website:
Luceco
Index:
FTSE Small Cap
EPIC: LUCE
Supersector:
Industrial Goods and Services
Sector:
Electronic and Electrical Equipment
Subsector:
Electrical Components and Equipment
Market Cap:
£348.94M
Payout Frequency: Semi-Annual
Luceco Dividend Analysis and Summary
Key dividend details
- Final dividend: 4.2p per share (subject to AGM approval)
- Total FY25 dividend: 6.0p per share (up 20% YoY from 5.0p)
- Ex-dividend date: 09/04/2026
- Record date: 10/04/2026
- Payment date: 22/05/2026
- DRIP election deadline: 30/04/2026
- Dividend policy/payout: c.40% of earnings; FY25 earnings cover 2.5x
- Earnings context: Adjusted EPS 15.0p (statutory 13.5p)
- Cash cost of final dividend: ~£6.8m; total dividends paid in FY25: £7.7m
Dividend sustainability and growth
- Coverage: FY25 DPS 6.0p is covered ~2.5x by adjusted EPS (and ~2.25x by statutory EPS), consistent with policy.
- Cash flow support: Adjusted free cash flow of £30.4m (vs £3.5m in FY24) comfortably covers total annual dividends (~£9.5m for FY25 including interim already paid).
- Balance sheet: Bank net debt £52.3m, leverage 1.2x (target 1.0–2.0x) with £68.7m facility headroom; strong covenant headroom.
- Outlook: Board expects FY26 adjusted operating profit >£37m (upgrade vs consensus), implying scope for DPS growth in line with earnings under the 40% payout policy.
- Trajectory: DPS up 20% YoY (5.0p ? 6.0p); ongoing margin progress (adjusted op margin 12.5%) and strong cash conversion (147%) underpin sustainability.
Capital allocation and structural factors affecting dividends
- Policy unchanged: Dividend remains aligned to ~40% payout with target cover ~2.5x.
- M&A integration: 2024 acquisitions (CMD, D-Line) integrating well; synergies and facility consolidation (D-Line UK) support margins and cash generation.
- Funding capacity: New £120m RCF (to May 2028, extendable to 2030) provides flexibility for organic capex (3.2% of revenue) and bolt-on M&A without stressing leverage—constructive for dividend resilience.
- Buybacks: Ongoing share repurchases in 2025 (£5.3m) modestly support per-share dividend capacity alongside EPS.
- Growth drivers: Energy Transition (EV charging +84.7% to £18.1m) and emerging Demand Flexibility revenues could enhance medium-term earnings and dividend headroom, albeit with near-term regulatory uncertainty.
Risks and flags for dividend stability
- Customer and geographic concentration: ~40% of revenue from key customers; ~80% UK exposure—downturns or range changes could pressure cash flows.
- Supply chain concentration: Heavy reliance on China (single large site in Jiaxing); disruption/shipping route issues could impact costs/availability.
- Commodity/FX sensitivity: Copper and USD/RMB exposures (hedged under policy) can affect margins and cash generation.
- Regulatory/market risk in new revenue streams: Short-term tightening in Demand Flexibility economics and uncertain end-user response rates could temper upside to profits.
- Macro/political: Trade/tariff risks (notably Americas), Middle East uncertainty, and broader UK macro headwinds.
- M&A execution: While disciplined and small, acquisitions carry integration/execution risk; aggressive dealmaking could compete with cash returns if conditions worsen.
- Approval: Final dividend remains subject to AGM approval (19/05/2026).
Read more
Luceco Annual Dividend Yield - 2.34%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 10/04/2025 |
22/05/2025 |
Final |
3.30p |
GBX |
| 18/09/2025 |
24/10/2025 |
Final |
1.80p |
GBX |
Total (Annual Dividends Per Share):
5.10p
Dividend Yield =
Annual Dividends Per Share (5.10p)
÷ Share Price (218p)
= 2.34%
Luceco Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 09/04/2026 |
22/05/2026 |
Final |
4.2000p |
GBX |
| 18/09/2025 |
24/10/2025 |
Final |
1.80p |
GBX |
| 10/04/2025 |
22/05/2025 |
Final |
3.30p |
GBX |
| 19/09/2024 |
25/10/2024 |
Interim |
1.70p |
GBX |
| 11/04/2024 |
17/05/2024 |
Final |
3.20p |
GBX |
| 14/09/2023 |
20/10/2023 |
Interim |
1.60p |
GBX |
| 06/04/2023 |
19/05/2023 |
Final |
3.00p |
GBX |
| 15/09/2022 |
21/10/2022 |
Interim |
1.60p |
GBX |
| 07/04/2022 |
20/05/2022 |
Final |
5.50p |
GBX |
| 16/09/2021 |
22/10/2021 |
Interim |
2.60p |
GBX |
| 22/04/2021 |
28/05/2021 |
Final |
4.70p |
GBX |
| 17/09/2020 |
23/10/2020 |
1st Interim |
1.50p |
GBX |
| 17/09/2020 |
23/10/2020 |
2nd Interim |
1.70p |
GBX |
| 19/09/2019 |
25/10/2019 |
Interim |
0.60p |
GBX |
| 02/05/2019 |
31/05/2019 |
Final |
0.60p |
GBX |
| 21/09/2017 |
27/10/2017 |
Interim |
0.80p |
GBX |
| 04/05/2017 |
02/06/2017 |
Final |
0.30p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
1.700 |
3.200 |
GBX |
4.900 |
6.520 |
| 2023 |
1.600 |
3.000 |
GBX |
4.600 |
-35.210 |
| 2022 |
1.600 |
5.500 |
GBX |
7.100 |
-2.730 |
| 2021 |
2.600 |
4.700 |
GBX |
7.300 |
128.120 |
| 2020 |
|
|
GBX |
3.200 |
166.660 |
| 2019 |
0.600 |
0.600 |
GBX |
1.200 |
9.090 |
| 2017 |
0.800 |
0.300 |
GBX |
1.100 |
|
Luceco Dividend Calculator
Luceco Dividend Growth
| Dividend Growth (1Y) |
20%
|
| Dividend CAGR (5Y) |
-5.35%
|
| Years of Growth |
2
|
| Payout Ratio |
44.78%
|
| Buyback Yield |
1.75%
|
| Shareholder Yield |
4.53%
|
| P/E Ratio (TTM) | 16.04 |
|---|
| Forward P/E | 13.28 |
|---|
| P/FCF | 8.14 |
|---|
| Earnings Yield | 6.33% |
|---|
| FCF Yield | 12.29% |
|---|
| ROE | 20.33% |
|---|
| ROCE | 18.4% |
|---|
| Profit Margin | 7.48% |
|---|
| Operating Margin | 11.64% |
|---|
| Gross Margin | 42.45% |
|---|