Regulatory News

Continued strategic progress with increased diversification and operational leverage through greater national and digital presence

Lords (AIM:LORD), a leading distributor of building materials in the UK, today announces its audited final results for the year ended 31 December 2025 (‘FY25’ or the ‘year’).

 

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

 

FY25 Financial Performance

ADJUSTED RESULTS	FY25	FY24	Change
Revenue	£472.8m	£436.7m	+8.3%
Adjusted EBITDA2	£21.0m	£22.4m	(6.2)%
Adjusted EBITDA margin	4.4%	5.1%	(70) bps
Adjusted operating profit3	£9.2m	£10.4m	(11.5)%
Adjusted profit before tax3	£2.8m	£3.8m	(26.3)%
Adjusted diluted basic earnings per share3	1.14p	1.84p	(38.0)%
Total dividend per share	0.52p	0.84p	(38.0)%
STATUTORY RESULTS	FY25	FY24	Change
Revenue	£472.8m	£436.7m	+8.3%
Operating profit	£1.1m	£4.3m	(74.4)%
Loss before tax	£(5.2)m	£(2.6)m	£2.6m increase
Basic loss per share	(2.68)p	(1.19)p	1.49p increase
Net debt4	£13.4m	£32.4m	£19.0m reduction

FY25 Highlights

Resilience in a tough market with financial progress

• Record revenue of £472.8 million, up 8.3%, with positive LFL¹ growth (+0.7%) despite subdued end markets
• Merchanting LFL revenue growth of +3.1% driven by customer service led model, reflecting market share gains alongside disciplined pricing
• Plumbing and Heating (‘P&H’) margins improved by 60bps, driven by product mix and margin management
• Renewables revenue up 57%, increasing margin quality
• Adjusted EBITDA² of £21.0 million
• Net debt³ reduced by 59% to £13.4 million, significantly strengthening the balance sheet

Strategic progress and platform strengthened – strongly positioned for market recovery

• Market leading e-commerce platform, CMO, acquired in June 2025, materially accelerating digital capability and national reach
• Three new branch openings during the year, further expanding Lords national network
• Structural cost actions taken, in particular following the P&H strategic review, to streamline the business
• Increased operating leverage as volumes recover

Post Period End

• Opened a further dual site in Bury St Edmunds in March, housing Lords Builders Merchants and Advance Roofing
• Agreed a new three-year, £65 million banking facility to provide the financial flexibility to support our strategy to invest in organic growth and pursue selective acquisitions, in a market where consolidation opportunities are increasing

¹ Like-for-like (LFL) 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.

² Adjusted earnings before interest, tax, depreciation and amortisation and impairment charges, inclusive of property gains and losses, excluding adjusting items (note 6).

³ Adjusted operating profit, adjusted profit before tax and adjusted diluted earnings per share is operating profit, profit before tax and diluted earnings per share excluding adjusting items.

⁴ Net debt defined as cash less borrowings before lease liabilities

Shanker Patel, Chief Executive Officer of Lords, commented:

“Despite a challenging backdrop, Lords made further progress in positioning the Group for growth. We grew revenue by 8.3%, reduced net debt by 59%, opened three new Merchanting branches and completed the acquisition of CMO, which broadened our customer reach and significantly strengthened our digital capability.

“Whilst market conditions are likely to remain subdued in the near term, with ongoing uncertainty around inflation and interest rates, we have built a more diversified, more scalable business and the Group is now better positioned operationally and strategically than at any point in its recent history. Supported by our new banking facilities, we have the financial flexibility to continue investing selectively as opportunities arise.

“As the market recovers, we expect a disproportionate improvement in profitability driven by operating leverage across both our branch network and digital platform. We are confident that the strategic progress made in FY25 will translate into enhanced returns and sustainable shareholder value creation over the medium term.”

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 (Nominated Adviser and Joint Broker)	Tel: +44 (0)20 7220 0500
Ben Jeynes / Seamus Fricker (Corporate Finance)
Julian Morse / Matt Lewis / Henry Nicol (Sales and ECM)
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 / Stephanie Whitmore / Abby Gilchrist	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 33 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 in 1982 as a family business with its first retail unit in Gerrards Cross, Buckinghamshire.  Since then, the Group has grown to a business operating from 51 sites.

For additional information please visit www.lordsgrouptradingplc.co.uk