Lords Group Trading (LSE:LORD.L), the building materials, plumbing, heating and DIY distributor, said first-half revenue held broadly steady at £232 million against £232.8 million a year earlier, even as it lowered full-year guidance to reflect a slower market recovery.
On a like-for-like basis adjusted for trading days, revenue fell 7.1% in the six months to 30 June, with the board now expecting full-year revenue of £475 million-£495 million and adjusted EBITDA of £17 million-£18 million.
Merchanting revenue slipped to £112.3 million from £117.7 million, though the like-for-like decline narrowed from a weak start to 2.3% in the second quarter versus a year earlier.
Plumbing & Heating revenue fell to £96.3 million from £112.9 million, a 13.9% like-for-like drop, after the comparative period benefited from exceptional March 2025 volumes; the division has cut its distribution centres from seven to four, targeting annualised savings of about £1.4 million.
CMO, acquired in June 2025, grew revenue 17.5% and turned EBITDA-positive during the period, moving on from an initial loss-making position.
Net debt stood at £29 million at period end, with about £30 million of available liquidity.
"Although the recovery in our end markets is taking longer than expected, we remain focused on cash generation, operational execution and delivering sustainable shareholder value as our markets recover," said chief executive Shanker Patel.
Interim results are due in September.
News Intelligence what this means for the company
Lords Group Trading cut full-year revenue guidance to £475m–£495m and adjusted EBITDA to £17m–£18m, citing slower-than-expected market recovery. First-half revenue was flat year-on-year at £232m, but like-for-like sales fell 7.1%; Plumbing & Heating revenue dropped 13.9% on a comparable basis, though the decline narrowed in Q2. The company is executing cost cuts—reducing Plumbing & Heating distribution centres from seven to four for £1.4m annualised savings—and CMO (acquired June 2025) turned EBITDA-positive, but the guidance cut signals demand weakness persists across core divisions.
The guidance reduction and persistent like-for-like declines in both Merchanting and Plumbing & Heating undermine near-term earnings visibility, though net debt of £29m against £30m liquidity and cost restructuring provide some downside cushion. Recovery timing remains uncertain and dependent on end-market stabilisation.
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