Luceco: Convincing
Results 2024
Short description
Luceco is a British company founded in 1941, originally under the name British General, and operates in the field of electrical materials—ranging from sockets, switches, clamps, and cable trays to sockets, timers, fuses, electrical cabinets, and insulating tape.
In 2000, British General merged with Masterplug, companies active in what they call “Portable Power.” This includes extension cords, travel adapters, and similar products. Alongside this merger, a management buyout took place, and a production facility was opened in China.
Since 2013, Luceco has also been active in LED lighting, including under the brand name Luceco. The product range has continued to expand through strategic acquisitions, such as Kingfisher Lighting. In 2021, they acquired DW Windsor, and in 2022 followed with the acquisition of Sync EV, a manufacturer of electric vehicle charging stations. Last year, they also added D-Line (cable management) and CMD to their portfolio. CMD specializes in power solutions for the workplace, such as power outlets, distribution boxes, and ergonomic monitor arms.
Luceco has a clear focus on strategic acquisitions that align well with their market, even if those products weren’t previously part of their offering. Sync EV is a good example of this. Thanks to their existing distribution network for professional electricians, Luceco is able to sell EV chargers more easily than many competitors in this segment. Electricians are already familiar with Luceco’s products, like wall boxes and switches, which builds trust with customers.
Why we selected Luceco
Luceco is riding the tailwind of the green transition but isn’t reliant on government regulation to make its products appealing. With strong brands, a diverse product range, and a leading position in multiple niches, it’s a dominant player in its home market, which accounts for over 80% of its revenue.
Luceco also operates in an attractive and easy-to-understand market that’s growing rapidly and is less cyclical than other construction-related sectors. While the earlier-mentioned production in China does pose a risk, it’s also a major asset. During the pandemic, Luceco was able to avoid shortages and even build up inventory thanks to its own manufacturing, while competitors were left empty-handed.
In recent years, the company has also managed to generate higher margins than its competitors. Whether this reflects true pricing power is debatable. Many of their products seem too easily interchangeable with those of rivals, making quality and brand name only a limited advantage. Still, Luceco has shown that it can effectively pass on rising costs and inflation, which points to solid operational efficiency.