REG - Lords Group Trading - Issue of Equity

Lords TradingAnnouncement

23/05/2024 07:00

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RNS Number : 5365P  Lords Group Trading PLC  23 May 2024

23 May 2024

 

Lords Group Trading plc

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

 

Issue of Equity

 

Lords, a leading distributor of building materials in the UK, was pleased to
announce the acquisition by Lords of A.W. Lumb on 1 March 2022 (the
'Acquisition') and A.W. Lumb has since become an integral part of the Group
operating in the North of England.

 

The Company now announces that, at the request of the Managing Director of
A.W. Lumb (the 'Vendor'), the Company has agreed that remaining deferred
consideration due to the Vendor of an aggregate of £480,000 payable in equal
annual tranches until February 2027 will now be settled via the issue of new
ordinary shares in the Company on an unchanged deferral schedule ('Deferred
Consideration').

 

As a result, the Company has now issued 255,319 new ordinary shares of 0.5
pence each in the Company ('New Ordinary Shares') at an effective issue price
of 47.0 pence per New Ordinary Share in respect of the 2024 Deferred
Consideration payment to the Vendor.

 

Accordingly, an application has been made for the New Ordinary Shares to be
admitted to trading on the AIM Market of the London Stock Exchange
('Admission'), and it is expected that Admission will occur at 8.00 a.m. on 30
May 2024.  The New Ordinary Shares will rank pari passu with the existing
ordinary shares in issue. Following Admission of the New Ordinary Shares, the
Company's issued ordinary share capital will comprise 165,855,714 ordinary
shares, none of which are held in treasury.

 

Therefore, following Admission of the New Ordinary Shares, the total number of
ordinary shares with voting rights in the Company will be 165,855,714, which
may be used by Shareholders as the denominator for the calculations by which
they will determine if they are required to notify their interest in, or a
change to their interest in, the Company under the Financial Conduct
Authority's Disclosure Guidance and Transparency Rules.

 

Deferred Consideration share issuances to the Vendor, each of 255,319 new
ordinary shares in the Company, will occur in February 2025, February 2026 and
February 2027. Remaining Acquisition deferred consideration payable to other
Acquisition vendors of an aggregate of £1.44 million will remain payable in
equal cash annual amounts through to February 2027.

 

Shanker Patel, Chief Executive Officer of Lords, commented:

 

"As confirmed at the time of publication of the Group's final results, Lords
continues to successfully execute on its stated strategy and delivered top
line growth and gained market share in FY23.  The quality and commitment of
the Group's employees are central to the continued growth of the Group.  The
Group was therefore pleased to respond to the request from a senior manager to
receive previously cash acquisition consideration in equity, in doing so
further aligning his interests with those of Lords shareholders."

 

- Ends -

 

FOR FURTHER ENQUIRIES:

 

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

 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                                                Tel: +44 (0) 20 3207 7800

 Joint Broker

 Matthew Armitt / Richard Bootle / Detlir Elezi

 Buchanan Communications                                  Tel: +44 (0) 20 7466 5000
 Henry Harrison-Topham / Steph 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.

 

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

 

 

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