Earnings release
Page 1
27 January 2026 Lords Group Trading plc ('Lords', the 'Company' or the 'Group') Trading Update Adjusted EBITDA expected to be in line with market expectations and Net Debt reduced by 55% in FY25 Lords (LORD.L), a leading distributor of building materials in the UK, today issues a trading update for the year ended 31 December 2025 ('FY25' or the 'Period'). Highlights · FY25 Group revenue increased by 8.3% to £473 million (FY24: £437 million), an increase of 0.7% on a like- for-like ('LFL') basis; · Merchanting revenue up 6.0% to £227 million, reflecting contributions from three new branch openings and LFL sales increasing by 3.1%; · Plumbing and Heating ('P&H') revenue resilient at £220 million (FY24: £222 million), with a significant 57% increase in renewables revenues; · Successful acquisition of CMO, the UK's leading online only builders' merchant; o CMO continued to build revenues week by week, delivering £26 million since acquisition in June 2025; · Adjusted EBITDA expected to be in line with current market consensus; · Year-end net debt was £14.5 million, a reduction of 55% compared to the position as at 31 December 2024; facility headroom at 31 December 2025 was £60.5 million. Merchanting As previously reported, the Repairs, Maintenance and Improvement ('RMI') market in Construction remained subdued throughout FY25. Despite the market backdrop, combined with prolonged pre-Budget uncertainty in H2 2025 that ultimately led to the deferral of end-customer decisions, LFL revenue growth for FY25 was 3.1%. Subject to audit, FY25 Merchanting is expected to be 6.0% ahead of FY24 at £227 million, in particular supported by three new branches at Bicester, Aylesford and Mansfield which performed in line with management's business plan. Plumbing and Heating UK boiler volumes, as reported by the Heating and Hotwater Industry Council ('HHIC'), increased by 1% in FY25 to 1.35 million units, but declined in H2 FY25 by 5% compared to H2 FY24. Despite the flat market year-on-year, the Group maintained market share and improved gross margin. Renewables continued to grow strongly and was 57% ahead of FY24 from the division's broadened range of products and continued progress at its specialist provider, Ultimate Renewables. Divisional LFL revenue was down 1.6% on FY24 and, subject to audit, is expected to be £220 million. A strategic review of the division was concluded at the end of the year and with initiatives coming out of that review expected to be implemented in the first quarter of 2026. The Group will provide more detail on these initiatives in the FY25 results. Digital CMO, whilst not immune to the subdued Construction market, has increased revenue week by week since its acquisition. Revenue for the Period is expected to be £26 million and the division was profitable in the second half of FY25.
Page 2
Outlook During FY25 Lords continued to make significant strategic and operational progress in what remained challenging market conditions by: · selectively opening three new Merchanting branches; · completing the acquisition of online only building materials provider, CMO; and, · strategically improving gross margins in the Plumbing and Heating division. The Company moves into FY26 with a significantly reduced net debt position and, whilst benefitting from increasing momentum in renewables and the Digital division, the Board continues to focus on what is within its control in managing costs, driving efficiencies and pragmatically supporting strategic initiatives to drive growth in positioning the Group for a recovery in the construction market. Despite challenging end markets and the impact of prolonged pre-Budget uncertainty during the second half, the Group has established a more diversified platform underpinned by infrastructure capable of supporting a high growth merchanting business. With multiple growth opportunities, the Board maintains its confidence in the strong positioning of the Group for the medium-term. Shanker Patel, Chief Executive Officer of Lords, said: "We continue to focus on customer service excellence, highly engaged colleagues and specialist brands and are excited by the opportunity CMO provides to leverage off our branch network and supply chain relationships. It is a unique offering in the Construction market, and with support, it has the potential to deliver significant growth." "We remain focused on controlling our costs and improving working capital. We reduced net debt significantly by £17.9 million in the year as we optimised our capital allocation and reduced working capital. Whilst the market remains subdued entering 2026, we believe the Group is well positioned to benefit from operational leverage as volumes improve, complimented by selective organic and acquisitive initiatives." 1 Adjusted EBITDA is EBITDA, inclusive of property gains and losses, (defined as earnings before interest, tax, depreciation, amortisation and impairment) excluding exceptional items and share-based payments. 2 Current consensus analyst forecasts are for FY25 revenues of £480 million and Adjusted EBITDA of between £20.1 million to £20.4 million. 3 Net debt is defined as borrowings less cash and cash equivalents, before lease liabilities. - Ends - 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 / Henry Nicol / Matt Lewis (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 / Steph Whitmore / Abby Gilchrist LGT@buchanan.uk.com
Page 3
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 32 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 40 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 50 sites. For additional information please visit www.lordsgrouptradingplc.co.uk