REG - Lords Group Trading - Acquisition of Ultimate Renewables

Lords TradingAnnouncement

28/10/2024 07:00

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RNS Number : 7703J  Lords Group Trading PLC  28 October 2024

     28 October 2024

 

Lords Group Trading plc

('Lords', the 'Group' or the 'Company')

 

Acquisition of Ultimate Renewables

 

Lords, a leading distributor of building, plumbing and heating materials in
the UK, is pleased to announce the acquisition of 90% of the issued share
capital of Ultimate Renewables Supplies Limited ('Ultimate Renewables') for a
total net cash consideration of up to £646,000.

 

Established in December 2022, Ultimate Renewables, which is based in Bicester,
Oxfordshire, provides a full design and commissioning service to installers
and independent merchants of heat pumps and renewable energy products.
Services include training, system design, supply of heat pump and renewables
solutions and MCS ('Microgeneration Certification Scheme') accredited
commissioning to facilitate customer boiler upgrade scheme ('BUS') grant
applications.

 

Lords' Plumbing and Heating division provides nationwide distribution for a
wide range of heat pump manufacturers and was recently awarded exclusivity for
Italian manufacturer, Clivet SpA. Supplementing this service, Ultimate
Renewables provides an end-to-end design and commissioning service, which is
critical for system efficiency and extends the Group's market offering in
supporting the energy transition to Clean Heat renewable products.

 

For the year ended 31 December 2023, Ultimate Renewables reported revenue of
£1.1 million and a loss after tax of £66k.  Revenue in the last twelve
months to 31 August 2024 exceeded £2.2 million.  The total consideration is
to be funded from the Group's existing facilities with £450,000 on signing
and up to a further £196,000 deferred for two years subject to certain
conditions being met. In addition, the Company will pay £256,000 of Ultimate
Renewables' existing debt, immediately post completion of the acquisition.

 

Shanker Patel, Chief Executive Officer of Lords, said: "We are delighted to
announce the acquisition of Ultimate Renewables and are also really excited to
welcome their ten colleagues to our Plumbing and Heating division, as well as
to the wider Lords Group family.  The acquisition is a key strategic step in
our ambition to support the energy transition to cleaner, renewable heating
solutions. It is also complementary to our existing Plumbing and Heating
division, increases our customer base and broadens our product and service
offering."

 

- Ends -

 

FOR FURTHER ENQUIRIES:

 Lords Group Trading plc                                     Via Burson Buchanan
 Shanker Patel, Chief Executive Officer                      Tel: +44 (0) 20 7466 5000
 Stuart Kilpatrick, Chief Financial Officer

 Cavendish Capital Markets Limited                           Tel: +44 (0)20 7220 0500

 (Nominated Adviser and Joint Broker)
 Ben Jeynes / Dan Hodkinson (Corporate Finance)
 Julian Morse / Henry Nicol / Charlie Combe (Sales and ECM)

 

 

 Berenberg (Joint Broker)                                     Tel: +44 (0) 20 3207 7800

 Matthew Armitt / Richard Bootle / Detlir Elezi

 Burson Buchanan                                              Tel: +44 (0) 20 7466 5000
 Henry Harrison-Topham / Stephanie Whitmore / Abby Gilchrist  LGT@buchanan.uk.com (mailto:LGT@buchanan.uk.com)

 

Notes to editors:

 

Lords is a specialist distributor of building, plumbing, heating and DIY
goods. The Group principally sells to local tradesmen, small to medium sized
plumbing and heating merchants, construction companies and retails directly to
the general public.

 

The Group operates through the following two divisions:

 

Merchanting: supplies building materials and DIY goods through its network of
merchant businesses and online platform capabilities. It operates both in the
'light side' (building materials and timber) and 'heavy side' (civils and
landscaping), through 31 locations in the UK.

 

Plumbing and Heating: a specialist distributor in the UK of plumbing and
heating products to a UK network of independent merchants, installers and the
general public. The division offers its customers an attractive proposition
through a multi-channel offering.  The division operates over 17 locations
enabling nationwide next day delivery service.

 

Lords was established over 35 years ago as a family business with its first
retail unit in Gerrards Cross, Buckinghamshire.  Since then, the Group has
grown to a business operating from 48 sites.

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