Lords Group Trading PLC (LSE:LORD) reported record revenue of £472.8 million for 2025, representing growth of 8.3% alongside positive like-for-like sales performance despite weaker conditions across the construction sector. Adjusted EBITDA declined during the year, while statutory profit came under pressure from cost inflation and softer market conditions.
The group reduced net debt by 59% to £13.4 million, expanded its branch network and completed the acquisition of e-commerce business CMO to strengthen its digital capabilities. Lords also secured a new three-year £65 million banking facility, which management said leaves the company better diversified and positioned to benefit from a future recovery in construction activity and improved profitability.
Digital growth and restructuring initiatives
Management pointed to stronger margins within the plumbing and heating division, continued growth in renewables-related sales and a series of cost-saving initiatives as important factors supporting performance during a challenging trading period.
The company also undertook operational streamlining measures following a strategic review, aimed at improving efficiency and strengthening long-term resilience.
The board maintained its policy of linking dividends to adjusted earnings, resulting in a lower shareholder payout for the year. However, management said the strengthened balance sheet and combined physical-and-digital operating model should help the business capture additional market share in the fragmented and relatively under-digitised building materials sector as industry consolidation and cyclical recovery opportunities develop.
Outlook and market positioning
Lords Group Trading’s outlook reflects a balance between ongoing profitability pressures and positive strategic developments. While weaker earnings and bearish technical indicators remain headwinds, recent expansion initiatives and continued revenue growth provide support for the longer-term investment case. The company’s dividend yield offers additional shareholder appeal, although the negative price-to-earnings ratio continues to raise valuation concerns.
More about Lords Group Trading
Lords Group Trading PLC is a UK specialist distributor of building materials, plumbing, heating and DIY products, supplying tradespeople, independent merchants, construction businesses and retail consumers. The company operates across merchanting, plumbing and heating, and digital divisions, with a network of 51 locations alongside its growing online platform through CMO Superstores.
Leave a Reply