Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Lords Group describes 'record-breaking' full-year performance

Published 03/05/2023, 11:28
Lords Group describes 'record-breaking' full-year performance

Sharecast - The AIM-traded company said it was on track to achieve its goal of £500m in revenue by 2024.

Its adjusted EBITDA rose 34.4% in 2022 to £30m, representing a margin of 6.7%, compared to 6.1% in 2021.

Adjusted basic earnings per share increased 31.5% to 8.02p, up from a restated 6.1p in the prior year.

The firm generated cash flow of £26.8m from operations, contributing to free cash flow generation of £19.1m.

Lords (LON:LORD) said its net debt at year-end on 31 December totalled £19.4m, reflecting the cash cost of acquisitions in the year and leaving headroom for further value-added acquisitions.

The board hiked the total dividend for the year by 5.8%, to 2p per share.

Lords said its end-market exposure, improved product range, market share gains, and management actions to improve margins contributed to its full-year performance expectations, which were in line with market expectations.

Its directors said that although macroeconomic uncertainty was persisting, the board remained confident in Lords’ ability to achieve its initial public offering target of becoming a £500m revenue business by 2024, with an EBITDA margin of 7.5% in the medium term.

Additionally, Lords noted its recent purchase of the freehold of George Lines' Heathrow site for £6.3m, while it disposed of the non-core Lords at Home homewares subsidiary for £0.8m.

On 31 March, the group acquired Chiltern Timber Supplies for a total consideration of up to £1.65m on a net cash-free, debt-free basis.

Finally, on 5 April, the group refinanced its existing lending facilities, securing enhanced facilities provided by HSBC (LON:HSBA), NatWest (LON:NWG), and BNP Paribas (EPA:BNPP) on an initial three-year term.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

“This was an excellent year for the group, as we continued to deliver on our initial public offering commitments and successfully grew the business in a tough trading environment,” said chief executive officer Shanker Patel.

“We entered 2023 in a strong financial position, which has enabled us to continue to invest in our 3Ps, as we pursue organic and acquisition-led growth opportunities.

“We are focussed on the potential challenges to our business, notably the impact on household balance sheets from inflation, increased energy costs and interest rates.”

Patel said Lords was responding through its ongoing expansion into new geographical markets and product lines, and by implementing its environmental, social and governance (ESG) strategy, a “key part” of which was to enhance its energy efficiency.

“With a 1% share of a large market and facility headroom available, we also have considerable scope to take share through further acquisitions that expand our geographical presence and product range.

“With around 40% of UK builders merchants still independently run, we have considerable scope for further consolidation and therefore see good opportunities to continue our track record of growth.”

At 1028 BST, shares in Lords Group Trading were up 6.91% at 73.5p.

Reporting by Josh White for Sharecast.com.

Read more on Sharecast.com

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.