Acquisition of Advance Roofing Supplies
06 January 2022
Lords, a leading distributor of building materials in the UK, announces that it has acquired Advance Roofing Supplies Limited (“Advance Roofing Supplies”), a supplier of roofing materials, for a consideration of £3.74 million of which
£3.49 million has been paid on completion and the balance of £0.25 million is payable twelve months after completion. As at completion, Advance Roofing Supplies had excess cash of £0.74 million.
Established in 1994, Advance Roofing Supplies, is an independent supplier of roofing materials, specialising in pitched and flat roofing sales to customers locally and nationally. Advance Roofing Supplies currently operates from two locations, Aylesbury
in Buckinghamshire and Long Marston in Hertfordshire. The acquisition of Advance Roofing Supplies will offer attractive synergies with the Group’s Merchanting division, increasing product range, and expanding the Group’s customer
base particularly in the South East of England.
In due course, Lords expect to expand the Advance Roofing Supplies brand via implant branches into relevant Merchanting locations, starting with the Beaconsfield site which itself is currently undergoing an extensive redevelopment to enable extended product
range and capacity.
For the year ended 31 March 2021, Advance Roofing Supplies generated EBITDA of £0.6 million on revenues of £6.8 million. The acquisition has been funded from Lords’ existing resources and is expected to be immediately earnings
accretive post completion.
Shanker Patel, Chief Executive Officer of Lords, said:
“The acquisition of Advance Roofing Supplies further strengthens our service capabilities to existing customers and will offer significant synergies with our Merchanting division. We are delighted to bring Advance Roofing Supplies into the Group, and welcome their 15 employees to our team, as we continue to focus on serving our customers with a wider range of products and services.”
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.
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||Tel: +44 (0)20 7397 8900|
|Ben Jeynes / Max Gould / Dan Hodkinson (Corporate Finance)|
|Alex Pollen (Sales)|
|Buchanan Communications||Tel: +44 (0) 20 7466 5000|
|Henry Harrison-Topham / Stephanie Whitmore / Kim Looringh-van Beeck / Kiki Norman||[email protected]|
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 27 locations in the UK.
- Heating and Plumbing: a specialist distributor in the UK of heating and plumbing 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 nine 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 36 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.