UK building materials distributor Lords Group Trading H1 core profit falls amid weak end-market demand

Lords Trading

30/09/2026 07:10

Overview
UK building materials distributor's H1 revenue flat yr/yr at £232.1 mln
Adjusted EBITDA down 19% yr/yr as like-for-like revenue fell 6.8%
Company suspended interim dividend, citing focus on reducing leverage

Outlook
Lords expects full-year performance to be in line with market expectations
Company sees market recovery as more gradual than previously assumed
Lords prioritises market share gains, cash generation and net debt reduction for remainder of 2026

Result Drivers
WEAK END-MARKET DEMAND - Co said underlying demand in construction, RMI and plumbing & heating markets remained subdued, leading to a 6.8% like-for-like revenue decline
NEW BRANCHES AND DIGITAL OFFSET - Contributions from new Merchanting branches and CMO digital business offset weaker underlying demand
RESTRUCTURING AND COST REDUCTION - Co implemented depot rationalisation and reduced operating expenses by £1.5 mln annualised in Plumbing & Heating

Company press release: ID:nRSd8548Wa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
GBP 232.1 mln
 
H1 Adjusted EBITDA
 
GBP 8.4 mln
 
H1 Adjusted EBITDA Margin
 
3.60%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy"
Wall Street's median 12-month price target for Lords Group Trading PLC is GBp34.00, about 147.3% above its September 29 closing price of GBp13.75
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)