Lords Group Trading (LORD) H1 2025 earnings summary

Executive summary

• Revenue grew 8.4% year-over-year to £232.1m in H1 2025, with like-for-like sales up 7% in a challenging market.

• Merchanting division revenue rose 12.6%, with three new branches opened; Plumbing & Heating up 2.4%.

• Acquired CMO, the UK's largest online-only construction retailer, for £1.8m in June 2025.

• Sale and leaseback of four sites generated £13.1m, strengthening liquidity.

• Net debt reduced by £15.4m to £20.9m; interim dividend maintained at 0.32p per share.

Financial highlights

• Adjusted EBITDA for H1 2025 was £12.1m, in line with pre-CHMM H1 2024 (£12.6m); margin declined to 5.2%.

• Gross profit increased 3.6% to £44.8m; gross margin decreased to 19.3% from 20.2% due to product mix.

• Adjusted operating profit was £6.2m, down 12.7% year-over-year.

• Adjusted EPS was 1.35p, down 14% year-over-year.

• Operating cash flow for the last 12 months was £9.1m, with 97% cash conversion.

Outlook and guidance

• Management expects continued growth, focusing on operational efficiency and margin-accretive organic growth.

• Integration of CMO and further branch openings are key priorities.

• Trading expected to be in line with market expectations for the remainder of the year; FY 2025 Adjusted EBITDA consensus is £24.8m.

• Revenue expected to exceed £500m in 2025, with a 5-year CAGR of 12%.

• Market remains challenging, but business is positioned to benefit from recovery.