Lords Group H1 earnings slip despite solid revenue growth
By Iain Gilbert
Date: Thursday 11 Sep 2025
(Sharecast News) - Building materials distributor Lords Group said on Thursday that revenues had grown in the six months ended 30 June as it continued to increase market share, despite "a highly competitive" RMI market in the South-East.
Lords said group revenue had grown 8.4% to £232.1m, with like-for-like revenues improving 7.0% year-on-year. Revenue from Lords' merchanting division was 12.6% higher at £117.7m, while plumbing and heating revenue was 2.4% higher at £112.2m.
Adjusted underlying earnings, on the other hand, were down 3.9% at £12.1m as adjusted EBITDA margins contracted 70 basis points to 5.2%, while operating profits dropped 17.4% to £3.7m.
Lords significantly reduced its debt position during the half, with net debt falling 42.3% to £20.9m, partly due to its sale and leaseback of four trading sites in April for gross proceeds of £13.1m.
The AIM-listed firm highlighted that it remained confident in its ability to meet FY company compiled consensus expectations of adjusted EBITDA between £24.7m and £25.1m, despite the fact that H2 trading was yet to show any sustained improvement in the RMI market.
Chief executive Shanker Patel said: "The group has demonstrated strong revenue growth in the first half of 2025 as we continue to increase market share, despite a highly competitive RMI market in the South-East and the recent UK interest rate reductions not yet boosting consumer confidence.
"Whilst trading in the second half of 2025 to date has not seen any sustained improvement in the RMI market, and with the seasonally significant trading period ahead, performance continues in line with market expectations5 for full year group adjusted EBITDA."
As of 0835 BST, Lords shares were up 1.41% at 36p.
Reporting by Iain Gilbert at Sharecast.com
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