Lords Group Trading plc has published its annual results for the year ended 31 December 2021.
The report shows a “strong performance across the Group, with all businesses demonstrating financial and operational
progress” in addition to presenting record revenues, increasing 26.3% to £363.3 million (FY: £287.6 million), which are said to have been driven by the Group’s “enhanced customer proposition and continued deployment of strategic initiatives”.
Like-for-like revenue grew by 18.1% and was 20.8% ahead of 2019, “showing a swift rebound and acceleration post-pandemic”.
Last year’s successful IPO, with admission to AIM on 20 July 2021, raised gross proceeds of £52million (£30.0million for the Company and £22million for existing shareholders) whilst the report also showed that customer and colleague satisfaction scores “remain excellent”, at 4.7 out of 5.0 in both instances and “reflecting the Group focus on colleague engagement and customer service”.
Digital revenue was shown to have grown 31% in FY21 and now represent 6.3% of Group revenue. In addition, good progress was said to have been made with the company’s sustainability programme as Lords continues to “reduce its environmental
footprint, invest in its people, enhance the Group’s health and safety whilst supporting worthwhile projects in its communities.”
Four acquisitions have been made since year end, “enhancing the Group’s geographical presence and offering scope for further growth through extended product ranges” whilst a “robust pipeline of acquisition opportunities underpins the inorganic growth potential”.
With demand in its RMI-focused product offering remaining strong, the company says its Merchanting division has continued to deliver growth in line with management expectation. Customer demand has also remained strong across its Heating and Plumbing division, however the report notes that APP Wholesale has been affected by the industry-wide boiler supply constraints, impacting division’s revenues throughout Q1 2022.
However, Lords remains confident in its ability to fulfil its previously-stated objective to be a £500.0 million revenue business by 2024.
Shanker Patel, CEO of Lords, commented: “We are delighted to report such a strong set of maiden full year results where Lords has delivered record revenue and earnings growth, and demonstrated our ability to deliver against our strategic and financial objectives set out at IPO. First and foremost, I would like to thank our colleagues across the UK, who without their fantastic commitment and support for our vision, these results would not have been achieved.
“Due to the fragmented nature of the market in which we operate, Lords has a unique opportunity to deliver both organic and acquisitive growth and we are excited to successfully demonstrate this today. As we build our size, reach and product range, we will be able to further enhance our excellent service to our customers and this underpins our exciting growth strategy.
He continued: “Our industry has not been immune to the widespread challenges caused by price inflation and supply issues, the latter of which has recently affected the supply of boilers in our AAP business. We have taken all the necessary steps to ensure that we continue to achieve our growth and profit forecasts and with the current boiler issue, where demand remains strong, we will take every possible action to protect the strength of our business.
“Progress in the new financial year has continued to be strong, our four new value accretive acquisitions are performing in line with our expectations and we look forward with confidence as we aim to deliver sustainable and growing returns to our shareholders.”
