Oxford, 22nd April 2026: Oxford-based Lucy Group Ltd, a multinational company that makes infrastructure for a sustainable future, today announces results for the year ending 31st December 2025.
Turnover was a creditable £422m (2024: £409m), but profit before tax reduced to £56m (2024: £85m), reflecting more challenging market conditions in 2025. The Group faced adverse trading conditions, including increased competition – especially from China – that eroded selling prices, as well as increased tariffs on imports in key markets. The extra National Insurance liability in the UK has been a factor in increasing overhead costs
The Group ended the year in a strong financial position – with net assets of £431m (2024: £394m) and continued positive free cash flow – and has maintained its policy of investing for the long term; in our people, our manufacturing and our processes.
“Although it has been a challenging year, our focus on innovation and new product development means that we are well positioned to take advantage of an uplift in the markets we serve.” Richard Dick, Executive Chairman.
Lucy Electric
Against this backdrop, Lucy Electric achieved a respectable performance, with sales marginally ahead of last year. In 2024 our exceptional levels of profit were driven by a favourable product mix and several high margin contracts, which came to an end in early 2025. Electrification, and particularly the connection of renewables, is still a rising trend but the pace of change varies greatly across the world. The UK has fallen behind expectations, with government policy not being realised in infrastructure spending, leading to disappointing levels of investment.
Lucy Controls
At Lucy Controls, Flashnet made further gains in the North American market, while business in wider markets, particularly Europe, was less buoyant than hoped. Offering first-class smart city solutions, the business has increased its capacity to grow, including establishing an entity in the US to improve market access and enhancing its manufacturing operation in Romania. Lucy Zodion continued to face subdued demand, as UK local authorities struggled with budget constraints, though we are confident its award-winning Hawk3 streetlighting photocell will prove to be successful. Lawson Fuses delivered lower sales than planned, but progress on restructuring is reducing the cost base and expected to strengthen profitability
Lucy Real Estate
In Lucy Real Estate, Lucy Properties had another excellent year, with high occupancy levels and rental growth of 9%, while work commenced at Girdlestone Close in Headington to add two additional floors, which will expand the tenant property portfolio. We continue to invest in bringing our properties up to energy performance level C. Lucy Developments operates in a UK property market that remains under severe pressure, with an imbalance between the cost of building new properties and what people can afford to pay. That said, although the business sustained a loss for the year, sales increased over 2024, and we made good progress on construction at our two largest sites to date, Bodicote and Old Marston Paddock, the latter being sold completely to Oxford City Council for affordable housing.
Outlook
The outlook for 2026 is currently clouded by the latest events in the Middle East, with hostilities across the region already impacting several key markets. At the time of this report, shipping movements are restricted in the Gulf and, if these continue, they are likely to affect our production facilities in the region. Appropriate actions are being taken to look after all our employees in line with local government advice.
The UK may also suffer from a prolonged conflict, and we are already experiencing subdued business levels as a result of weak economic growth and a disproportionate level of actual spend on the much-heralded national infrastructure investment.
Our long-term vision remains unchanged: to be a trusted partner for customers worldwide and to deliver infrastructure solutions for a sustainable future. While there is ebb and flow in global market trends and demand patterns, we remain confident in our strategy. Despite intensifying market competition, we believe that we are well positioned to capture market opportunities and drive further long-term growth.
Annual report
Lucy Group’s full 2025 Annual Report & Accounts can be accessed from the Investors section of the Group website: https://www.lucygroup.com/investors/
