Lords Group Trading PLC (LSE:LORD) reported first-half 2026 revenue of £232.0 million, broadly unchanged from the same period last year despite continued weakness across the UK housing market and wholesale plumbing sector. While Merchanting revenue declined overall, trading improved during the second quarter, and the group’s digital business continued to perform strongly, with online revenue increasing 17.5%. The CMO platform, acquired in 2025, also delivered positive EBITDA during the period.
Plumbing Division Restructured to Improve Efficiency
The Plumbing and Heating division experienced a significant like-for-like decline in revenue following exceptionally strong trading in the prior year. In response, Lords streamlined its distribution network, reducing the number of distribution centres from seven to four.
The restructuring is expected to generate annual cost savings of approximately £1.4 million while creating a more efficient platform to support future market share growth once demand improves.
Guidance Reduced as Market Conditions Remain Challenging
With little evidence of a near-term recovery in construction and housing activity, Lords lowered its expectations for the full year. The company now forecasts revenue of between £475 million and £495 million, alongside adjusted EBITDA of £17 million to £18 million.
Management said the business has spent the past 18 months simplifying its operating structure, reducing costs and strengthening cash generation. Chief Executive Shanker Patel pointed to improving trends within the Merchanting business, the successful turnaround of CMO and decisive action within Plumbing and Heating as important milestones that position the company for stronger performance when market conditions recover.
Investment Outlook
Lords continues to operate in a difficult trading environment, with pressure on profitability and a relatively leveraged balance sheet weighing on the investment case. Technical indicators also remain weak, with the share price trading below key moving averages and momentum remaining negative. However, improving cash generation, ongoing cost reductions and a dividend yield of around 5% provide some support as the company prepares for an eventual recovery in UK construction activity.
About Lords Group Trading PLC
Lords Group Trading PLC (LSE:LORDS) is a UK distributor of building materials, plumbing, heating and DIY products, serving both trade professionals and retail customers through a nationwide branch network and an expanding digital platform.
The company has broadened its Merchanting operations through new branch openings while strengthening its online presence following the acquisition and turnaround of CMO. Lords is reshaping its business by increasing exposure to higher-growth markets, improving operational efficiency and streamlining its Plumbing and Heating network to adapt to changing demand within the UK boiler market.
At the end of the first half of 2026, net debt stood at £29 million, with approximately £30 million of available liquidity. Management remains focused on cash generation, disciplined cost control and operational improvements to position the business for long-term growth as construction and housing markets recover.
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