Strategic priorities

We have a long history of leading change within our industry, consistently producing products with enhanced functionality and cutting-edge designs.

Our drive for innovation remains a key part of our strategy, not only differentiating our products from the competition, but also enabling us to up-sell what we manufacture to maintain consistently high margins. Through focus groups, social media interactions and feedback gathered via our sales teams, we are launching new products that meet the contractor’s desire for quality, value and ease of installation. In 2024, we made further strides forward in the development of our product range across each of our segments.

We continue to enhance our portfolio of Wiring Accessories and Masterplug products. Thanks to our vertically integrated manufacturing model, we can swiftly make low investment adjustments within our existing ranges to suit changing market trends. We have been able to continue to do this in 2024 through the release of our Superfast USB-C sockets sold under the BG Electrical brand and our new USB-C wall chargers sold under the Masterplug brand. Both ranges utilise new, variable charging technology, which provide a fast‑charging solution whilst also prolonging and protecting battery life.

Our design philosophy is particularly evident through the release of our award‑winning Titan All-in-One LED Highbay Light sold under the Luceco Lighting brand. This product has been packed with features to provide ultimate flexibility including wattage change, colour change and beam angle change. This ensures optimal lighting for any industrial environment including warehouses, factories and workshops. Perhaps its greatest innovation though is that, when combined with three accessory SKUs, the Titan All-in-One replaces up to 72 different SKUs, dramatically reducing stock holding for stockists and offering contractors unmatched convenience and flexibility for on-site adjustments.

It is this innovation with purpose that our customers truly appreciate, and we have been delighted to receive multiple product awards in 2024, including the Titan All-in-One winning at the Energy Savings Awards and the Professional Electrician Awards.

The future looks set to offer further opportunities. BG Sync EV has been rebranded to Sync Energy and we are now poised to expand beyond EV chargers and into the clean energy market. This strategic rebranding reflects our commitment to innovation and sustainability.

We expect to release our first Home Energy Management system in 2025, marking our entry into this new market poised for significant growth.

Across our Wiring Accessories and Masterplug ranges we are set to release further new additions to our already strong product ranges, including consumer unit updates and products focused on enabling consumers to transition to 3-phase power.

Within LED, we expect wireless controls to be a future area of growth as consumers seek further energy savings in the drive towards net zero. We are excited by planned enhancements to “Platform”, our wireless controls offering.

This continual drive for innovation allows us to consistently differentiate ourselves within our markets and underpins our future growth plans.

We have a proven track record of growth. We have complemented the Group’s long history of organic growth with acquisitions funded by our own cash generation.

In addition to delivering a further year of above-market organic growth, we were delighted to complete the key acquisitions of CMD for £29.7m and D-Line for £7.8m in 2024.

Both CMD and D-Line are strong businesses with significant potential for improvement as part of the Luceco Group. 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. Also based in the UK, operating from Rotherham, CMD designs and manufactures a comprehensive range of wiring accessories for commercial premises.

A key part of our “buy and improve” strategy is to identify targets that illustrate synergy with our existing product categories and sales channels.

D-Line’s product range is a natural extension of our existing portfolio into a new category within our channels. Their innovative approach to design, including their signature half-round trunking, resonates with our own design approach to innovate with purpose.

Through our strong trading relationships in the UK Retail and Wholesale channels we have the opportunity to unlock the potential of D-Line’s innovative products and support future sales growth.

For CMD, their range of high-quality Wiring Accessories products are closely adjacent to our existing products sold under the BG Electrical brand. By joining the Group, CMD will benefit from access and investment from our experienced in-house design teams to further improve their product offering within a market with high barriers to entry. The CMD brand provides access to this market, which would be challenging to grow into organically.

For both businesses there is the potential to improve margins through utilising our vertically integrated operating model. Procurement savings can be achieved by working with our existing global supply base, presenting the opportunity to lower costs without impacting quality. Product development processes can be streamlined to allow these businesses to move from concept to launch more efficiently. Production of certain product lines can also be performed directly from our facilities in China where it makes commercial sense to do so.

In our assessment of potential acquisition targets we also look for the potential to sell across product categories in new channels and geographies. We are excited by the opportunity to leverage D-Line’s operations in the US to support Luceco’s sales in the territory. In the case of CMD, there is the opportunity to cross-sell with our existing LED Lighting Projects team into office refurbishment projects.

As a result of these key synergies, we foresee that for both businesses we will be able to accelerate sales volume growth, enhance margins and ultimately deliver a strong return on our investment.

Our investment in Sync Energy illustrates how we look to the future to ensure we sustain our competitive advantage and contribute to society’s sustainability goals.

We are delighted by the progress we have made in developing our Sync Energy range, with new products launched and in the pipeline that will provide consumers with greater power to make sustainable choices.

We have made further advances in the development of our EV chargers through the release of our first commercially focused “Pro Charge” range. These products are supplemented by our new EV Balancer, which connects up to 16 EV chargers, dynamically monitoring and communicating with connected chargers to ensure each receives equal power, allowing for easy expansion without exceeding a building’s safe power limits.

We have also successfully developed and launched our own Sync Energy App tailored for our EV chargers. This allows us to provide enhanced functionality direct to our customers, giving consumers greater control of when to charge through “Tariff Sense” and specialised “Solar Mode” for those with access to solar panels. Looking forward, access to charging data will allow us to enhance our customer offering by working with energy suppliers to recommend specific tariffs based upon individual customer usage.

Furthermore, as renewable energy penetration increases, balancing the UK grid system will become more challenging and require more flexible solutions. Ownership of our own app will enable us to work with energy providers and customers to stabilise the grid through demand side response (“DSR”), where energy companies are able to use the data made available through our app to incentivise customers to use energy during off-peak periods.

Perhaps our most exciting development though has been the design of our own Home Energy Management system, which is set to launch to installers and wholesalers in early 2025. This system enables the storing of energy in modular batteries, from both the grid and from renewable energy sources such as solar panels. This low-cost energy can then be used at a time which works best for the consumer.

For example, the battery can be charged using cheap energy from the grid overnight, storing energy which can then be utilised during breakfast, a peak time of energy use. Furthermore, the battery can then be used throughout the day to store energy generated from solar panels, which can then in turn be put to use by consumers during peak times during the evening.

Our expectation is that our Home Energy Management system will reduce solar panel payback periods for consumers by up to 50%, with just potentially 25% of the up-front cost.

The transition to net zero relies on the electrification of energy and our Sync Energy brand will enable us to help meet this challenge. We are hugely excited by the increasing range of energy efficient options we will be offering consumers, which not only help them make sustainable choices, but also sustain our own competitive advantage.