UK building materials distributor Lords Group Trading H1 core profit falls amid weak end-market demand

Overview

• UK building materials distributor's H1 revenue flat yr/yr at £232.1 mln

• Adjusted EBITDA down 19% yr/yr as like-for-like revenue fell 6.8%

• Company suspended interim dividend, citing focus on reducing leverage

Outlook

• Lords expects full-year performance to be in line with market expectations

• Company sees market recovery as more gradual than previously assumed

• Lords prioritises market share gains, cash generation and net debt reduction for remainder of 2026

Result Drivers

• WEAK END-MARKET DEMAND - Co said underlying demand in construction, RMI and plumbing & heating markets remained subdued, leading to a 6.8% like-for-like revenue decline

• NEW BRANCHES AND DIGITAL OFFSET - Contributions from new Merchanting branches and CMO digital business offset weaker underlying demand

• RESTRUCTURING AND COST REDUCTION - Co implemented depot rationalisation and reduced operating expenses by £1.5 mln annualised in Plumbing & Heating

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

• Wall Street's median 12-month price target for Lords Group Trading PLC is GBp34.00, about 147.3% above its September 29 closing price of GBp13.75

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)