REG - Lords Group Trading - Sale of Lords at Home subsidiary

Lords TradingAnnouncement

02/02/2023 07:00

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RNS Number : 6597O  Lords Group Trading PLC  02 February 2023

     2 February 2023

 

 

Lords Group Trading plc

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

 

Sale of Lords at Home subsidiary

 

Lords, a leading distributor of building materials in the UK, announces the
sale of its wholly owned subsidiary entity, Lords at Home Ltd ('Lords at
Home') including the Lords at Home brand. Lords at Home sells high quality
homewares through five branches across West London and was the original Lords
division which first opened in 1985.  The subsidiary, which has 31 employees,
is considered non-core to the Group's principal focus of building, plumbing,
heating and DIY goods, and its sale will allow the Group to further focus on
core areas of the Lords' business.

 

The cash consideration for sale of the Lords at Home business is £805,000
payable in full on completion, with the sale proceeds to be retained within
the Group and applied towards investments that meet the Group's return on
investment hurdle.  During the year ended 31 December 2022, Lords at Home
generated £3.0 million in revenue and contributed £80,000 of EBITDA.  The
purchaser of Lords at Home is the current Managing Director of the Lords at
Home subsidiary.

 

Shanker Patel, Chief Executive Officer of Lords, commented: "I am confident
that the sale of Lords at Home Ltd is a good outcome for all stakeholders
across both Lords Group Trading Plc and Lords at Home Ltd. We are confident
that under its new ownership, Lords at Home will uphold its customer and
colleague first approach. As a Group we are focused on disciplined capital
allocation to deliver strategic growth and the divestment of Lords at Home
reflects this approach."

 

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.

 

- 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 / Jamie Hooper / 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 25 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 41 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/) .

 

 

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