Trading Update
Lords Group Trading plc reported a 9.6% increase in group revenue for the four months ended 31 October 2025, reaching an expected full-year revenue of £480m - £485m and Adjusted EBITDA of £20m - £21m. While the Merchanting division saw a 1.8% like-for-like revenue decrease, it achieved a 50 basis point gross margin improvement, and the Plumbing and Heating division, despite an 8.3% like-for-like revenue drop, also improved its gross margin by 150 basis points. The newly acquired Digital division, CMO, achieved its first profitable months in September and October 2025, contributing significantly to the overall revenue growth.
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Lords (AIM: LORD), a leading distributor of building materials in the UK, today issues a trading update for the four months ended 31 October 2025 (the "Period") in which Group revenue increased by 9.6% compared to the equivalent four-month period in 2024.
As has been widely reported, the UK housing market has continued to be impacted by uncertainty as to, inter alia, potential property tax reforms in the upcoming Autumn Budget and RMI demand has remained subdued.
Like-for-Like ("LFL") revenue in the Group's Merchanting division, which was 11.5% ahead in H1 2025, was 1.8% down on the prior year comparator, in the four months ended 31 October 2025. Notwithstanding competitors aggressively targeting market share in the Period, the division has delivered a gross margin improvement of 50 basis points compared to the equivalent four-month period in 2024.
The Group's Plumbing and Heating division ('P&H'), which grew by 2.4% in H1 2025, saw LFL revenue 8.3% lower than the comparator in 2024 and the Group has not yet experienced a significant increase in P&H demand as it has entered the historically seasonally strong autumn and winter months. The division has benefited from the September 2025 appointment of Matthew Webber, its new Chief Operating Officer, and management actions taken earlier in the year to improve gross margin resulted in an increase of 150 basis points during the Period compared to the 2024 comparator. Under its new leadership, further strategic initiatives within P&H are currently under review for implementation by the end of 2025.
Pleasingly, the Group's Digital division formed on the recent acquisition of CMO, saw its revenues increase month-on-month throughout the Period and the division delivered its maiden profitable months as part of the Group in both September and October 2025.
As a result, the Group expects to report full year 2025 revenue of £480m - £485m and Adjusted EBITDA of between £20m - £21m.
Shanker Patel, Chief Executive Officer of Lords, said:
"After delivering strong revenue growth and resilient results in H1 2025, the UK construction market, as widely reported, has been more challenging since the late summer, and there has been reduced activity during the seasonally strong Autumn months in our core markets, as consumers and businesses await the outcome of the next fiscal budget.
"Whilst we're pleased to see an overall increase in Group revenue on an absolute basis, this was mainly due to CMO which was profitable in September and October for the first time since acquisition. We continue to defend gross margin with the strengths of the Group's proposition, tightly control costs, and to optimise working capital. Whilst recovery in our core markets is taking longer than had previously been expected in our peer group, we are confident that Lords is very well positioned to deliver operational leverage and continue to execute its strategic combination of organic and acquisitive growth."
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