REG - Lords Group Trading - Purchase of Remaining Interest in Hevey

Lords TradingAnnouncement

27/10/2022 10:45

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RNS Number : 3486E  Lords Group Trading PLC  27 October 2022

 For immediate release  27 October 2022

 

 

Lords Group Trading plc

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

 

Purchase of Remaining Interest in Hevey Building Supplies

 

Lords, a leading distributor of building materials in the UK, is pleased to
announce that it is to purchase the remaining 25% minority shareholding in its
existing subsidiary business Hevey Building Supplies Limited ('Hevey').  The
Company originally purchased a 75% interest in Hevey in October 2017 (the
'Hevey Acquisition').

 

As disclosed in the Company's AIM Admission Document dated 14 July 2021, the
Hevey Acquisition included a put and call option over the remaining 25%
shareholding interest in Hevey (the 'Minority Interest') for a predefined
market value (the 'Hevey Option').

 

The Hevey Option has now been exercised and the Company will now acquire the
Minority Interest, details of which are provided in the Company's 2021 Annual
Report, for £6.2 million in cash, with 40% payable on completion of the
acquisition of the Minority Interest and the remaining 60% paid as fixed
deferred consideration in seven equal quarterly instalments over the next two
years.  The consideration payable for the Minority Interest is in line with
management expectations since IPO and will be funded from the Company's
existing resources.

 

The purchase of the Minority Interest is expected to deliver further strong
returns on investment.

 

- 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

 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 / Ciaran Walsh

 Buchanan Communications                                      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 30 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 15
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 45 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
(http://www.lordsgrouptradingplc.co.uk/) .

 

The information contained within this announcement is deemed by the Company to
constitute inside information pursuant to Article 7 of EU Regulation 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended.  Upon the publication of this announcement
via a Regulatory Information Service, this inside information is now
considered to be in the public domain.

 

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