Materials technology business Lucideon has reported higher revenues but increased losses in its latest financial results as it continues to invest in people, research and facilities.
The Stoke-on-Trent-based company, which provides scientific testing and consultancy for the ceramics and allied industries, saw turnover increase by £391,000 to almost £13 million in 2024. However, losses after tax rose to £1.17 million, compared to £1.03 million the previous year.
The company said profitability was ‘restrained by continuing costs relating to the continuing high energy costs and increased staff costs’. A key factor was a £600,000 charge from a new employee share scheme set up in 2024 ‘to ensure employees are rewarded for the company’s future growth’.
Net assets remain solid at £10.6 million, although cash balances moved from £1 million in hand in 2023 to a £600,000 overdraft after the repayment of a £1.3 million loan.
Directors said Lucideon ended the year with ‘momentum’. Their report, which was published with the company’s accounts last week, said: “The business closed out its final quarter with revenue growth and a momentum which is expected to continue into the new trading year, which will open with record order books.”
The company completed the move to a larger, more modern site in Stone, which directors said was ‘already creating more operational efficiencies which will restrain the need for headcount increases in the future’.
Lucideon is targeting expansion in high temperature ceramics, composite materials and hydrogen applications, and has become ‘a key supplier to aerospace nuclear industries around the world’.
The report stated: “The current economic position and the threat of a recession and tariffs may be having a direct impact on business decisions to invest in testing and R&D and therefore is a risk to the business but may also be a positive as businesses look to outsource these services with pressure managing their own labour costs.”
The company is also heavily investing in research and development, including the use of hydrogen in ceramics manufacturing.
The board acknowledged this would temporarily raise its own energy use but said: “These increases will overall lead to a significant reduction in the energy use of those high energy customers and industries, creating energy and emission savings that will dwarf the short-term increases from our research.”
