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Lords TradingAnnouncement

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RNS Number : 4413Q  Lords Group Trading PLC  27 January 2026

 

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.

 

27 January 2026

 

Lords Group Trading plc

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

 

Trading Update

 

Adjusted EBITDA expected to be in line with market expectations

and Net Debt reduced by 55% in FY25

 

Lords (LORD.L), a leading distributor of building materials in the UK, today
issues a trading update for the year ended 31 December 2025 ('FY25' or the
'Period').

 

Highlights

 

·      FY25 Group revenue increased by 8.3% to £473 million (FY24:
£437 million), an increase of 0.7% on a like-for-like ('LFL') basis;

 

·      Merchanting revenue up 6.0% to £227 million, reflecting
contributions from three new branch openings and LFL sales increasing by 3.1%;

 

·      Plumbing and Heating ('P&H') revenue resilient at £220
million (FY24: £222 million), with a significant 57% increase in renewables
revenues;

 

·      Successful acquisition of CMO, the UK's leading online only
builders' merchant;

 

o  CMO continued to build revenues week by week, delivering £26 million
since acquisition in June 2025;

 

·      Adjusted EBITDA expected to be in line with current market
consensus;

 

·      Year-end net debt was £14.5 million, a reduction of 55% compared
to the position as at 31 December 2024; facility headroom at 31 December 2025
was £60.5 million.

 

 

Merchanting

 

As previously reported, the Repairs, Maintenance and Improvement ('RMI')
market in Construction remained subdued throughout FY25. Despite the market
backdrop, combined with prolonged pre-Budget uncertainty in H2 2025 that
ultimately led to the deferral of end-customer decisions, LFL revenue growth
for FY25 was 3.1%.

 

Subject to audit, FY25 Merchanting is expected to be 6.0% ahead of FY24 at
£227 million, in particular supported by three new branches at Bicester,
Aylesford and Mansfield which performed in line with management's business
plan.

 

Plumbing and Heating

 

UK boiler volumes, as reported by the Heating and Hotwater Industry Council
('HHIC'), increased by 1% in FY25 to 1.35 million units, but declined in H2
FY25 by 5% compared to H2 FY24. Despite the flat market year-on-year, the
Group maintained market share and improved gross margin. Renewables continued
to grow strongly and was 57% ahead of FY24 from the division's broadened range
of products and continued progress at its specialist provider, Ultimate
Renewables.

 

Divisional LFL revenue was down 1.6% on FY24 and, subject to audit, is
expected to be £220 million. A strategic review of the division was concluded
at the end of the year and with initiatives coming out of that review expected
to be implemented in the first quarter of 2026. The Group will provide more
detail on these initiatives in the FY25 results.

 

Digital

 

CMO, whilst not immune to the subdued Construction market, has increased
revenue week by week since its acquisition. Revenue for the Period is expected
to be £26 million and the division was profitable in the second half of FY25.

 

Outlook

 

During FY25 Lords continued to make significant strategic and operational
progress in what remained challenging market conditions by:

 

·      selectively opening three new Merchanting branches;

·      completing the acquisition of online only building materials
provider, CMO; and,

·      strategically improving gross margins in the Plumbing and Heating
division.

 

The Company moves into FY26 with a significantly reduced net debt position
and, whilst benefitting from increasing momentum in renewables and the Digital
division, the Board continues to focus on what is within its control in
managing costs, driving efficiencies and pragmatically supporting strategic
initiatives to drive growth in positioning the Group for a recovery in the
construction market.

 

Despite challenging end markets and the impact of prolonged pre-Budget
uncertainty during the second half, the Group has established a more
diversified platform underpinned by infrastructure capable of supporting a
high growth merchanting business. With multiple growth opportunities, the
Board maintains its confidence in the strong positioning of the Group for the
medium-term.

 

Shanker Patel, Chief Executive Officer of Lords, said:

 

"We continue to focus on customer service excellence, highly engaged
colleagues and specialist brands and are excited by the opportunity CMO
provides to leverage off our branch network and supply chain relationships.
It is a unique offering in the Construction market, and with support, it has
the potential to deliver significant growth."

"We remain focused on controlling our costs and improving working capital.
We reduced net debt significantly by £17.9 million in the year as we
optimised our capital allocation and reduced working capital.  Whilst the
market remains subdued entering 2026, we believe the Group is well positioned
to benefit from operational leverage as volumes improve, complimented by
selective organic and acquisitive initiatives."

 

(1) Adjusted EBITDA is EBITDA, inclusive of property gains and losses,
(defined as earnings before interest, tax, depreciation, amortisation and
impairment) excluding exceptional items and share-based payments.

(2) Current consensus analyst forecasts are for FY25 revenues of £480 million
and Adjusted EBITDA of between £20.1 million to £20.4 million.

(3) Net debt is defined as borrowings less cash and cash equivalents, before
lease liabilities.

 

- Ends -

 

FOR FURTHER ENQUIRIES:

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

 Cavendish Capital Markets Limited                          Tel: +44 (0)20 7220 0500

 (Nominated Adviser and Joint Broker)
 Ben Jeynes / Seamus Fricker (Corporate Finance)
 Julian Morse / Henry Nicol / Matt Lewis (Sales and ECM)

 Berenberg (Joint Broker)                                   Tel: +44 (0)20 3207 7800

 Matthew Armitt / Harry Nicholas / Detlir Elezi

 Burson Buchanan                                            Tel: +44 (0) 20 7466 5000
 Henry Harrison-Topham / Steph Whitmore / Abby Gilchrist    LGT@buchanan.uk.com (mailto:LGT@buchanan.uk.com)

 

Berenberg (Joint Broker)

Matthew Armitt / Harry Nicholas / Detlir Elezi

 

 

Tel: +44 (0)20 3207 7800

 

Burson Buchanan

 

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 three 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 32 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.

 

Digital: CMO Superstores provides an online route to market from nine
specialist websites for

construction and plumbing & heating customers.

 

Lords was established 40 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 50 sites.

 

For additional information please visit www.lordsgrouptradingplc.co.uk
(http://www.lordsgrouptradingplc.co.uk/)

 

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