Lords Group reaffirms full-year expectations

The AIM-traded firm, which was holding its annual general meeting, described a persistently negative macroeconomic backdrop and an uncertain interest rate environment impacting consumer sentiment.

It reported, however, that its diverse product offering and broad end-customer base, combined with a well-executed merger and acquisition strategy, had mitigated the softer demand experienced in certain segments of the business.

In the merchanting segment, Lords said it was continuing to expand its geographical presence and enhance its product range, as demonstrated by the acquisition of Chiltern Timber Supplies in April.

Lords added that in the plumbing and heating sector, it was meanwhile planning to capitalise on opportunities to expand its Mr Central Heating offering, aiming to establish 50 branches nationwide over the next five years.

Additionally, the company said it intended to widen its product range and improve margins by incorporating new products such as air source heat pumps and underfloor heating.

“All acquisitions executed in the 2022 financial year, as well as Chiltern Timber Supplies, are performing in line with our expectations at the time of acquisition and the pipeline of merger and acquisition opportunities remains strong,” said non-executive chairman Gary O’Brien.

“Following the refinancing of our facilities on 6 April, we have financial headroom to expand on our less-than-1% market share by being one of the few acquirers of choice in the market.”

At 0853 BST, shares in Lords Group Trading were up 0.01% at 61.26p.

Reporting by Josh White for Sharecast.com.