Luceco shares fall 10% as founder-CEO John Hornby announces retirement after 21 years

Luceco PLC (LSE:LUCE) shares fell 10% to 260p after the electrical products group announced that chief executive John Hornby, who has led the business for 21 years, will retire on 31 December.

Hornby will take a sabbatical until late August, during which the senior leadership team will assume his responsibilities, before returning to the role until the year-end, after which he will remain available to the group in an advisory capacity.

The board said it had commenced a search for a permanent successor and would make a further announcement in due course.

The departure of a long-serving founder-era chief executive frequently unsettles investors regardless of underlying trading, and Luceco's share price reaction reflects the uncertainty created by a leadership transition of this magnitude at a company where Hornby has been the dominant figure since its early development.

On trading, the company offered reassurance, saying the momentum described in its first-quarter update published on 19 May had been sustained through the second quarter to date.

It continues to expect adjusted operating profit to exceed £40 million for the full year ending December 2026, with the potential for further significant outperformance dependent on what it calls Demand Flexibility, a reference to revenue linked to grid balancing services from its smart electrical products.

A half-year trading update is scheduled for late July.

Chair Giles Brand said Hornby had been an important part of Luceco's development, expanding the group significantly into what he described as a successful business with a proven platform for growth.

Luceco makes wiring accessories, LED lighting and electric vehicle charging equipment, and has grown from a primarily own-brand import business into a multi-division group with manufacturing and distribution operations across several markets.

Peel Hunt, in a note repeating its 'buy' call, said: "We remain positive on the group given the strength of its core business, with the lowest cost of production, an excellent track record in new product development, and strong brand loyalty."