REG - Lords Group Trading - AGM Statement

Lords TradingAnnouncement

20/06/2023 07:00

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RNS Number : 2215D  Lords Group Trading PLC  20 June 2023

 For immediate release  20 June 2023

 

 

Lords Group Trading plc

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

 

AGM Statement

 

Lords, a leading distributor of building materials in the UK, announces that
at the Company's Annual General Meeting ('AGM') due to be held today at 1:00
pm (BST) at the offices of Cenkos Securities, 6-8 Tokenhouse Yard, London EC2R
7AS, Gary O'Brien, the Group's Independent Non-Executive Chairman, will make
the following statement:

 

"Since the release of our full year results on 3 May 2023, the resilient
trading performance of the Group has continued and we maintain expectations
for full year trading performance for the year ended 31 December 2023 ('FY23')
to be in line with market expectations((1)).

 

"Whilst a persistently negative macroeconomic backdrop and uncertain interest
rate environment has persisted throughout FY23 and has impacted consumer
sentiment, our diverse product offering and end-customer base combined with
our carefully executed M&A strategy has meant that softer demand in some
segments of the business year to date have been offset by robust performance
in others.

 

"In Merchanting, we continue to expand our geographical presence and broaden
our product range, as was illustrated by the acquisition of Chiltern Timber
Supplies in April 2023. In Plumbing & Heating, the Group has scope to
increase our Mr Central Heating offering to 50 branches nationwide over the
next five years, whilst also expanding our product range and margins through
the inclusion of additional products such as air source heat pumps and
underfloor heating.  The demand for which will be underpinned with the
obligation to de-carbonise the built environment in the medium term.

 

"All acquisitions executed in FY22, as well as Chiltern Timber Supplies, are
performing in line with our expectations at the time of acquisition and the
pipeline of M&A opportunities remains strong. Following the refinancing of
our facilities on 6 April 2023, we have financial headroom to expand on our
less than 1% market share by being one of the few acquirers of choice in the
market."

 

((1)) Lords Group calculated analyst consensus for FY23 of revenue of £473.9
million, adjusted EBITDA of £31.0 million and adjusted profit before tax of
£17.9 million.

 

- Ends -

 

FOR FURTHER ENQUIRIES:

 

 Lords Group Trading plc                                                                  Via Buchanan
 Shanker Patel, Chief Executive Officer                                                   Tel: +44 (0) 20 7466 5000
 Chris Day, Chief Financial Officer and Chief Operating Officer

 Cenkos Securities plc (Nominated Adviser and Joint Broker)                               Tel: +44 (0)20 7397 8900
 Ben Jeynes / Max Gould / Dan Hodkinson (Corporate Finance)
 Alex Pollen (Sales)

 Berenberg (Joint Broker)                                                                 Tel: +44 (0)20 3207 7800
 Matthew Armitt / Richard Bootle / Detlir Elezi

 Buchanan Communications                                                                  Tel: +44 (0) 20 7466 5000
 Henry Harrison-Topham / Jamie Hooper / Abby Gilchrist  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 26 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 16
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 42 sites.  Lords aims to become a £500
million turnover building materials distributor group by 2024 as it grows its
national presence.

 

Lords was admitted to trading on AIM in July 2021 with the ticker LORD.L.
For additional information please visit www.lordsgrouptradingplc.co.uk.

 

 

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