Interim Results

06 September 2022

Continued product, geographic and margin expansion; targets set at IPO well on track

Lords (AIM:LORD), a leading distributor of building materials in the UK, today announces its unaudited Interim Results for the six months ended 30 June 2022 (“H1 2022” or the “period”).


To view a full version of the results in 
PDF format  click here


Financial Highlights

  • Record H1 Group revenues of £214.2 million (H1 2021: £179.0 million), a 19.7% increase
  • H1 2022 Adjusted EBITDA1 of £14.2 million (H1 2021: £11.2 million restated), a 27.1% increase
  • H1 2022 Adjusted EBITDA margin of 6.6% (H1 2021: 6.2%), on track to reach 7.5% medium term target
  • H1 2022 cashflow generated by operations of £12.8 million (H1 2021: £9.6 million)
  • H1 2022 free cashflow2 generation of £8.7 million (H1 2021: £8.4 million)
  • Proposed interim dividend of 0.67 pence per share (H1 2021: 0.63 pence per share)
  • Adjusted H1 2022 basic earnings per share3 of 3.87 pence (H1 2021: 3.71 pence restated), an increase of 4.3%
  • Net debt4 at 30 June 2022 of £21.1 million (June 2021: £25.6 million)
  • Trading continues in line with market expectations for FY22, being revenue of £435.0 million, adjusted EBITDA of £26.0 million and adjusted profit before tax5 of £16.0 million

Operational Highlights 

  • Merchanting division has continued to perform strongly, with record revenues of £105.9 million (H1 2021: £61.1 million), representing growth of 73.4% and 14.5% on a like-for-like6 basis
    • Driven by the division’s continued focus on ‘local leader’ reputation via empowered, highly engaged management teams across its 30 locations
  • Plumbing and Heating division (“P&H”) has demonstrated resilient performance with increased profitability and margin, and customer demand remaining strong during the period, delivering Adjusted EBITDA increase of 10.6% in H1 2022 to £6.5 million (H1 2021: £5.9 million) notwithstanding industry wide boiler component shortage impacting revenues
    • Boiler component shortages resulted in like-for-like revenue of (12.5)% and (8.2)% including the H1 2022 acquisition of DH&P Plumbing and Heating
    • H1 2022 management actions, including shifting sales mix towards higher margin energy efficiency product ranges, has mitigated the impact of shortages
    • Management continues to expect the boiler component shortage to ease during H2 2022
  • Group digital revenues grew by 4.8% on a like-for-like6 basis with customers benefiting from the ability to shift across channels (online / instore) in their purchasing journey with Lords
    • Merchanting digital revenues growing by 133.1% on a like-for-like basis, equivalent to 3.4% of divisional revenue (H1 2021: 2.2%)
  • Four completed acquisitions in the Period
    • Acquisitions were acquired on a blended 4.6x multiple of Adjusted EBITDA
    • Acquisitions are EBITDA margin accretive
    • Each transaction is complementary to Lords’ strategy of product range and geographic expansion
    • All continue to perform in line with the Board’s expectations following successful integration
  • Product range extension continuing to expand customer base and share of existing customer wallet
    • New ranges to support the decarbonisation of the UK housing stock and energy price impact, including heating controls, air source heat pumps and underfloor heating within the P&H division
  • Customer base growth via expansion of existing brands continues to progress with three new locations secured in H1 2022

Current Trading and Outlook

  • Lords continues to see positive customer demand across the Group’s product offering and the Board considers that the Group’s organic growth strategy of product range extension and new locations will continue to secure new customers alongside a greater share of existing customer wallet
  • The Board remains vigilant of the potential for broader macro-economic volatility, however is confident that the Group’s business plan, adaptability and high levels of customer service leave the Group well positioned for continued outperformance
  • Lords well on track to deliver IPO target of £500 million revenue in 2024, as well as 7.5% EBITDA margin in the medium term

1 Adjusted EBITDA is EBITDA (defined as earnings before interest, tax, depreciation and amortisation and, in accordance with IFRS) but also excluding exceptional items and share-based payments.

2 Defined as cash generated by operating activities less capital expenditure, exceptional items, share based payments and interest paid.

3 Earnings attributable to equity holders of the profit adjusted for exceptional items, share based payments and amortisation of intangible assets divided by closing shares in issue.

4 Net debt is defined as borrowings less cash and cash equivalents.

5 Adjusted Profit before tax (basic) is defined as profits before tax before exceptional items, share based payments and amortisation of intangible assets.

6 Like-for-like sales is a measure of growth in sales, adjusted for new, divested and acquired locations such that the periods over which the sales are being compared are consistent.


Commenting on the Interim Results, Shanker Patel, Chief Executive Officer of Lords, commented:

“We can only deliver these results due to our colleagues’ outstanding dedication and commitment to our customers, their superior product knowledge and focus on exceptional service, all of which are visible throughout our H1 2022 results which have delivered record H1 revenue.

“The Group has continued to accelerate the delivery of its strategic plan, reflected in our financial performance in the half year which reaffirm delivery of our strategic targets of £500m revenue by 2024 and 7.5% EBITDA margin in the medium term. We have a substantial opportunity to grow the Group’s current < 1% market share through attracting new customers, a greater share of existing customer wallet, product range extension, new geographies, digital capability and valued added acquisitions.

“In the Group’s first twelve months as a listed company, we have delivered all our IPO commitments and believe our strategy will continue to deliver outperformance. The strength of these results and confidence in the outlook supports our declaration of an interim dividend to shareholders of 0.67 pence per share.  Our agility and entrepreneurialism allow the Group to manage challenges and seize opportunities and our H1 2022 results are testament to this mentality.”


This announcement contains inside information.


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 CommunicationsTel: +44 (0) 20 7466 5000
Henry Harrison-Topham / Stephanie Whitmore / Kim Looringh-van Beeck / Abby Gilchrist [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 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