Lords Group reports sharp fall in profit
By Josh White
Date: Thursday 08 May 2025
(Sharecast News) - Lords Group reported a sharp fall in profit for 2024 on Thursday, as challenging market conditions weighed on demand, particularly in plumbing and heating, but said trading in the first quarter of 2025 showed a strong recovery, leaving full-year expectations unchanged.
The AIM-traded firm said revenue for the year ended 31 December was down 5.6% at £436.7m, with adjusted EBITDA down 16.5% at £22.4m.
Excluding property gains, EBITDA fell 22.5%.
Adjusted profit before tax dropped 63.8% to £3.8m, while the statutory results swung to a £2.6m pre-tax loss, compared to a £3m profit in 2023.
Net debt increased to £32.4m from £28.5m.
The group said its merchanting division reported a 3.6% decline in like-for-like revenue for the year, although performance improved in the second half with 2.3% growth.
Plumbing and heating revenue fell 10.2%, in line with a wider market decline in boiler volumes.
However, renewable product sales nearly doubled to £5.5m, supported by the October acquisition of Ultimate Renewables Supplies.
Lords said it continued to expand its product range and digital capabilities, signing exclusivity agreements with manufacturers Navien and Clivet, and upgrading its e-commerce offering.
Three new branches had opened in 2025 to date, with £3.7m in overhead savings delivered during the year.
The board proposed a final dividend of 0.52p per share, down from 1.33p, in line with reduced earnings.
Adjusted earnings per share fell 57.5% to 1.85p.
Trading in the first quarter of 2025 was described as robust, with plumbing and heating revenue up 22% on the prior year, boosted by pre-price increase purchasing activity.
Merchanting revenue rose 11%.
A sale-and-leaseback of four properties raised £13.1m in the first half, strengthening liquidity.
The board maintained its outlook for the full year, citing a well-positioned platform for growth as the UK building materials market recovered.
"Against a challenging market backdrop in 2024, Lords delivered a resilient performance," said chief executive officer Shanker Patel.
"We continue to focus on what is within our control: managing costs, driving efficiencies, reducing debt and pragmatically supporting strategic initiatives to deliver organic and acquisitive growth."
Patel said that, while the strength and timing of the anticipated recovery in the UK construction market remained uncertain, the medium-term market drivers were positive.
"The recent property transaction has strengthened our balance sheet and Lords is well positioned to invest in organic growth and selective acquisitions.
"A strong start to 2025 gives the board confidence of delivering an improved financial performance for the full year."
At 1400 BST, shares in Lords Group Trading were up 5.45% at 29p.
Reporting by Josh White for Sharecast.com.
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