Final Results

03 May 2023

Another year of positive strategic progress underpinned by strong financial performance

 Lords, a leading distributor of building materials in the UK, is pleased to announce its annual results for the year ended 31 December 2022 (‘FY22’ or the ‘year’).



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


  FY21 Change*
 FY22 (restated) (%)
Revenue £450.0m £363.3m +23.9%
Adjusted EBITDA1 £30.0m £22.3m +34.4%
Adjusted EBITDA margin 6.7% 6.1% +0.6%
EBITDA £28.6m £19.7m +45.4%
Profit before tax £12.8m £7.5m +69.6%
Adjusted Profit before tax5 £17.4m £12.2m +42.4%
Basic earnings per share 5.68p 3.39p +67.6%
Adjusted basic earnings per share2 8.02p 6.1p +31.5%
Dividend per share 2.0p 1.89p +5.8%
Net (debt)/cash4 £(19.4)m £6.5m  

* Based on underlying, not rounded, figures.


Financial Highlights

  • Record performance, with Group revenues up 23.9% to £450.0 million (FY21: £363.3 million) and on track to reach £500.0 million revenue target by 2024
  • Adjusted EBITDA1 up 34.4% to £30.0 million (FY21: £22.3 million), representing a margin of 6.7% (FY21: 6.1%) and on track to reach 7.5% medium-term target
  • Adjusted basic earnings per share2 up 31.5% to 8.02 pence (FY21: 6.1 pence restated)
  • Cashflow generated by operations of £26.8 million (FY21: £21.1 million restated), contributing to free cashflow3 generation of £19.1 million (FY21: £19.9 million restated)
  • Net debt4 at 31 December 2022 of £19.4 million (31 December 2021: £6.5 million net cash), reflecting cash cost of acquisitions in the year and leaving headroom for value-added acquisitions
  • Total dividend for the year up 5.8% to 2.0 pence per share (FY21: 1.89 pence per share)

Operational Highlights

  • Merchanting division delivered record revenues up 69.2% to £220.8 million (FY21: £130.5 million), with strong like-for-like revenue growth of 17.4%
  • Merchanting performance reflects the Group’s ambition to be the ‘local leader’ in its markets, delivered by empowered and highly engaged management teams, alongside successful implementation of the Group’s growth strategy
  • Plumbing & Heating (‘P&H’) division revenues down 1.5% to £229.3 million (FY21: £232.8 million), 9.1% lower on a like-for-like6 basis
  • P&H performance was resilient given industry-wide boiler component shortages, which eased throughout H2-22, and benefitted from management actions, including higher margin energy efficient product range, which improved divisional EBITDA margins to 6.0% (FY21: 4.4%)
  • Continued to expand existing brands and grow the customer base, opening two new branches during 2022, as well as an Advance Roofing Supplies implant in the Group’s Beaconsfield branch
  • Four completed acquisitions in the year, on a blended multiple of 4.8x Adjusted EBITDA, supporting the Group’s strategy of product range and geographic expansion
  • Acquisitions are EBITDA margin and earnings accretive and all are performing in line with or ahead of expectations, following successful integration
  • ESG progress delivered in FY22 including the development of Lords’ ESG strategy, recruitment of the Group’s first ESG manager and launch of the Lords Group Foundation.

Current Trading and Outlook

Whilst macroeconomic uncertainty remains, we believe that our end market exposure, improved product range, continuing market share gains and management actions to improve margins mean that we continue to expect a full year performance in line with market expectations.

Since the year end, the Group agreed to purchase the freehold of George Lines’ Heathrow site for £6.3 million and disposed of the non-core Lords at Home homewares subsidiary for £0.8 million. On 31 March 2023, the Group acquired Chiltern Timber Supplies Limited for a total consideration of up to £1.65 million on a net cash free/debt free basis. Furthermore, on 5 April 2023, the Group refinanced its existing lending facilities securing enhanced facilities provided by HSBC, NatWest and BNP Paribas on an initial three-year term.

The Board remains confident in Lords’ ability to fulfil its IPO target to become a £500.0 million revenue business by 2024 with an EBITDA margin of 7.5% in the medium term.

The Company also announces that Dawn Moore, Non-Executive Director, intends to step down as a director of the Group immediately following the Company’s 2023 Annual General Meeting to focus on expanding executive responsibilities. The Board would like to thank Dawn for her considerable contribution to the Group prior to and since IPO.

Shanker Patel, CEO of Lords, commented: “This was an excellent year for the Group, as we continued to deliver on our IPO commitments and successfully grew the business in a tough trading environment. I am proud of our progress and want to thank our teams for their magnificent job in ensuring customers receive the standard of service they value so highly.

“We entered 2023 in a strong financial position, which has enabled us to continue to invest in our 3Ps, as we pursue organic and acquisition-led growth opportunities. We are focused on the potential challenges to our business, notably the impact on household balance sheets from inflation, increased energy costs and interest rates. We are responding through our ongoing expansion into new geographical markets and product lines, and by implementing our ESG strategy, a key part of which is to enhance our energy efficiency.

“With a 1% share of a large market and facility headroom available, we also have considerable scope to take share through further acquisitions that expand our geographical presence and product range. With around 40% of UK builders merchants still independently run, we have considerable scope for further consolidation and therefore see good opportunities to continue our track record of growth.”



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

2 Earnings attributable to shareholders of Lords Group Trading plc adjusted for exceptional items, share based payments and amortisation of intangible assets divided by the weighted average number of shares in issue in the year

3 Defined as cash generated by operating activities plus exceptional items less capital expenditure, taxation and interest paid.

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.


Analyst Briefing

There will be an ‘in person’ meeting for analysts at 0900hrs today at Buchanan’s offices, which will be hosted by Shanker Patel (CEO) and Chris Day (CFO and COO). Please contact Buchanan at [email protected] if you would like to attend.



Lords Group Trading plc Via Buchanan
Shanker Patel, Chief Executive Officer Tel: +44 (0) 20 7466 5000
Chris Day, Chief Financial Officer and Chief Operating 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 / Detlir Elezi  
Buchanan CommunicationsTel: +44 (0) 20 7466 5000
Henry Harrison-Topham / Jamie Hooper / 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 26 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 42 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