CEO Retires, Shares React
Luceco CEO John Hornby announces retirement as shares dip; company maintains profit outlook
Anonymous
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Luceco reiterated that its adjusted operating profit guidance is “up from £33.8 million in 2025,” providing a specific prior-year comparison for the current target of more than £40 million.
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Chair Giles Brand praised Hornby’s role in expanding the group, saying he “has been an important part of Luceco's development, expanding the group significantly into the successful business it is today, with a proven platform for growth.”
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Hornby said he is “enormously proud” of the company’s development and pointed to its outlook, adding that Luceco’s prospects are supported by “a strong platform for growth, underpinned by Luceco's competitive advantages and structural opportunities.”
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The company specified timing for its next update, saying it will issue a half-year trading update “towards the end of July 2026.”
Luceco shares dropped 11% on Monday morning, falling to around 259.50p, after the UK electrical products firm announced that CEO John Hornby will retire on December 31, 2026, according to Sharecast. Hornby has led the company for 21 years — a tenure that transformed Luceco from a small electrical importer into a vertically integrated manufacturer.
The sell-off came despite Luceco reiterating its profit guidance. The company still expects adjusted operating profit of more than £40 million for 2026, up sharply from £33.8 million in 2025, per Investegate.
Hornby Steps Back Before He Steps Away
Hornby will not stay in the CEO chair until his last day. He will take a sabbatical until late August 2026. During that time, Luceco's senior leadership team will run day-to-day operations with board support, according to Proactive. Hornby then returns as CEO for the final months of the year before formally retiring.
After December 31, Hornby will stay available in an advisory role. The board has already started searching for a permanent successor. Chair Giles Brand said Hornby "has been an important part of Luceco's development, expanding the Group significantly into the successful business it is today."
Twenty-One Years Built a Very Different Company
Hornby joined Luceco in 1997. He led a management buyout in 2000, then a second buyout with EPIC Investment Partners in 2005. Under his watch, revenue grew to £271.4 million in 2025 — an 11.9% jump in a single year — according to MarketScreener. The company also cut its net debt by 23.8% to £52.3 million.
One of the clearest signs of growth: EV charging sales surged 84.7% to £18.1 million in 2025. Luceco also raised its dividend by 20% to 6.0p per share. Hornby said he is "enormously proud" of what the company has built and pointed to its "competitive advantages and structural opportunities."
Analysts Call the Share Drop an Overreaction
Peel Hunt kept its "Buy" rating on Luceco after the announcement. Analyst Andrew Douglas also held a "Buy" with a price target of £3.20 — well above the post-drop price of 259.50p — citing "leadership depth" and "continuity through the transition," according to TipRanks.
The view from analysts is straightforward: the 11% drop reflects emotional reaction, not bad fundamentals. Luceco's growth in LED lighting and EV charging is structural — it does not depend on one person. The question is whether a new CEO can keep that momentum going without Hornby's institutional knowledge.
Profit Target Intact, Half-Year Update Due in July
Luceco said trading momentum from its Q1 update has continued into Q2. The company's outlook is unchanged. It still targets adjusted operating profit above £40 million for the full year, with room for further outperformance if demand flexibility revenue — income from smart products that help balance the electricity grid — beats expectations.
Investors will not have to wait long for clarity. Luceco said it will issue a half-year trading update "towards the end of July 2026," according to MarketScreener UK. That update will likely include the first signal on whether the successor search is narrowing — and whether the £40 million profit target is still within reach.
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