Lords Group Trading plc has issued its trading update for the year ended 31 December 2025.
Full year Group revenue increased by 8.3% to £473 million (FY24: £437 million), an increase of 0.7% on a like-for-like basis. Merchanting revenue, meanwhile, was up 6.0% to £227 million “reflecting contributions from three new branch openings and LFL sales increasing by 3.1%,” whilst its Plumbing and Heating division revenue was described as “resilient” at £220 million (FY24: £222 million) “with a significant 57% increase in renewables revenues.”
The successful acquisition of “online only builders’ merchant” CMO was shown as continuing “to build revenues week by week, delivering £26 million since acquisition in June 2025.”
Adjusted EBITDA is expected to be in line with the current market consensus and year-end net debt was £14.5 million — a reduction of 55% compared to the position as at 31 December 2024.
Focusing in more detail on its Merchanting segment, the Group reported: “the Repairs, Maintenance and Improvement market in Construction remained subdued throughout FY25. Despite the market backdrop, combined with prolonged pre-Budget uncertainty in H2 2025 that ultimately led to the deferral of end-customer decisions, LFL revenue growth for FY25 was 3.1%.
“Subject to audit, FY25 Merchanting is expected to be 6.0% ahead of FY24 at £227 million, in particular supported by three new branches at Bicester, Aylesford and Mansfield which performed in line with management’s business plan.”
For the Plumbing and Heating part of the Group, it noted: “UK boiler volumes, as reported by the Heating and Hotwater Industry Council, increased by 1% in FY25 to 1.35 million units, but declined in H2 FY25 by 5% compared to H2 FY24. Despite the flat market year-on-year, the Group maintained market share and improved gross margin.
“Renewables continued to grow strongly and was 57% ahead of FY24 from the division’s broadened range of products and continued progress at its specialist provider, Ultimate Renewables. Divisional LFL revenue was down 1.6% on FY24 and, subject to audit, is expected to be £220 million. A strategic review of the division was concluded at the end of the year, with initiatives coming out of that review expected to be implemented in the first quarter of 2026.”
In Digital, the business said: “CMO, whilst not immune to the subdued Construction market, has increased revenue week by week since its acquisition. Revenue for the Period is expected to be £26 million and the division was profitable in the second half of FY25.”
The Company reports that it “moves into FY26 with a significantly reduced net debt position and, whilst benefitting from increasing momentum in renewables and the Digital division, the Board continues to focus on what is within its control in managing costs, driving efficiencies and pragmatically supporting strategic initiatives to drive growth in positioning the Group for a recovery in the construction market.
“Despite challenging end markets and the impact of prolonged pre-Budget uncertainty during the second half, the Group has established a more diversified platform underpinned by infrastructure capable of supporting a high growth merchanting business. With multiple growth opportunities, the Board maintains its confidence in the strong positioning of the Group for the medium-term.”
Chief Executive Officer Shanker Patel commented: “We continue to focus on customer service excellence, highly engaged colleagues and specialist brands and are excited by the opportunity CMO provides to leverage off our branch network and supply chain relationships. It is a unique offering in the Construction market, and with support, it has the potential to deliver significant growth.
“We remain focused on controlling our costs and improving working capital. We reduced net debt significantly by £17.9 million in the year as we optimised our capital allocation and reduced working capital. Whilst the market remains subdued entering 2026, we believe the Group is well positioned to benefit from operational leverage as volumes improve, complimented by selective organic and acquisitive initiatives.”
