Regulatory News
Interim Results
30 September 2026
‘Resilient H1 revenue, with operational actions underway to improve performance and reduce leverage’
Lords (ALords (AIM:LORD), a leading distributor of building materials in the UK, today announces its unaudited Interim Results for the six months ended 30 June 2026 (‘H1 2026’ or the ‘Period’).
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H1 2026 Summary
Financial performance
- Group revenue for the Period remained stable at £232.1 million (H1 2025: £232.1 million), with contributions from new Merchanting branches and CMO offsetting weaker underlying demand in end markets.
- Group like-for-like revenue declined by 6.8%, reflecting continued weakness in construction, RMI and plumbing and heating markets.
- Gross margin increased to 20.2% (H1 2025: 19.3%)
- Adjusted EBITDA1 before property gains of £8.4 million (H1 2025: £10.4 million), with a margin of 3.6% (H1 2025: 4.5%).
- Net debt3 of £26.5 million at 30 June 2026 (30 June 2025: £20.9 million)
Operational progress
- Merchanting improved sequentially, with the like-for-like decline moderating from 4.9% for H1 2026 to 2.3% in Q2 2026.
- CMO revenue increased by approximately 17.5% and the business delivered positive EBITDA.
- Plumbing & Heating spares revenue increased by approximately 8%.
- Decisive restructuring actions implemented within Plumbing & Heating, including depot rationalisation, reducing operating expenses by £1.5 million annualised.
Priorities and outlook
- Focused improvement plans are in place across every operating business, with emphasis on market-share increase, margin discipline, working capital improvement, carefully controlled capital expenditure and net debt reduction.
H1 2026 Financial Performance
| ADJUSTED RESULTS | H1 2026 | H1 2025 | Change |
| Revenue | £232.1m | £232.1m | - |
| Adjusted EBITDA[1] before property gains | £8.4m | £10.4m | (19.2%) |
| Adjusted EBITDA margin before property gains | 3.6% | 4.5% | (90 bps) |
| Adjusted operating profit before property gains[2] | £2.3m | £4.5m | (48.9%) |
| Adjusted (loss)/profit before tax2 | (£1.2m) | £3.1m | n/a |
| Adjusted diluted (loss)/earnings per share2 | (0.70p) | 1.35p | n/a |
| Interim dividend per share | - | 0.32p | n/a |
| STATUTORY RESULTS | H1 2026 | H1 2025 | Change |
| Revenue | £232.1m | £232.1m | - |
| Operating (loss)/profit | (£3.1m) | £3.7m | n/a |
| (Loss)/profit before tax | (£6.9m) | £0.6m | n/a |
| Basic (loss)/earnings per share | (3.30p) | 0.14p | n/a |
| Net debt3 | £26.5m | £20.9m | 26.6% |
1 Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation and impairment charges, excluding adjusting items (note 7).
2 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.
3 Net debt defined as cash less borrowings before lease liabilities.
Shanker Patel, Chief Executive Officer of Lords, commented:
“The Group delivered resilient revenue in the first half despite continued weakness across a number of our end markets and a particularly challenging period for Plumbing & Heating. Encouragingly, Merchanting performance improved through the second quarter, CMO delivered positive EBITDA and our Spares business continued to grow.
“We have responded decisively to the slower market recovery. In Plumbing & Heating, we have rationalised the depot network, reducing costs and implementing a focused customer recovery programme aimed at improving service levels, re-engaging inactive accounts and recovering market share. Across the Group, our immediate priorities are improving operational execution, converting profit into cash and reducing leverage.
“Market conditions are challenging and the timing of a market recovery remains uncertain, the actions now underway are intended to strengthen the Group and position Lords to deliver sustainable shareholder value as demand recovers. Whilst full details of the recently announced UK government help to buy home scheme, and its potentially positive impacts on the Group's end markets, remain to be confirmed, the Board continues to expect the Group performance for the full year to be in line with market expectations."
FOR FURTHER ENQUIRIES:
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, operating in 15 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 50 sites.
For additional information, please visit www.lordsgrouptradingplc.co.uk