Lords’ profit falls as weak demand offsets new-branch growth

Lords Group Trading ($LORD) reported unchanged first-half revenue of £232.1 million, but underlying demand weakened: like-for-like sales fell 6.8%. Adjusted EBITDA before property gains declined to £8.4 million from £10.4 million, and the group recorded an adjusted pretax loss of £1.2 million, versus a £3.1 million profit. Net debt increased to £26.5 million from £20.9 million a year earlier.

New merchanting branches and the CMO business supported reported sales, while gross margin improved to 20.2%. Lords has implemented plumbing-and-heating restructuring, including depot rationalization, intended to reduce annual operating expenses by £1.5 million. The actions may improve future profitability, but the savings should not be read as already earned first-half profit. The interim dividend was omitted, compared with 0.32 pence previously, as management focuses on working capital and lower leverage.

Sources:

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