Building materials distributor Lords Group Trading Plc said on Tuesday that full-year revenues had grown, boosted by its acquisition of builders' merchant CMO, while net debt was more than halved.
Lords posted an 8.3% rise in FY revenue to £473m for the 12 months ended 31 December, up from £437m a year earlier, with merchanting revenue up 6% at £227m, supported by three new branch openings and a 3.1% increase in like‑for‑like sales, while plumbing and heating revenues held broadly steady at £220m, compared with £222m in FY24. Like‑for‑like sales edged 0.7% higher.
The London-listed company also pointed to its successful acquisition of CMO, the UK's largest online‑only builders' merchant, which generated £26m of revenue since joining the group in June 2025.
Year‑end net debt fell sharply to £14.5m, down 55% on the prior year, with facility headroom standing at £60.5m at 31 December.
Lords added that adjusted underlying earnings were seen in line with current market expectations.
"The company 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," said Lords.
"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."
As of 0830 GMT, Lords shares had shot up 11.91% to 25.74p.
Reporting by Iain Gilbert at Sharecast.com