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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Revenue

GBP 232.1 mln

H1 Adjusted EBITDA

GBP 8.4 mln

H1 Adjusted EBITDA Margin

3.60%


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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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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