Lords Group Trading scraps divi as H1 earnings slump, debt rises

30th Sep 2026 12:25

(Sharecast News) - Lords Group Trading was trading lower on Wednesday after swinging to a first-half loss as weak construction and plumbing markets weighed on profitability, while the company scrapped its interim dividend as debt levels rose.

Revenue was broadly flat at £232.1m in the six months to 30 June, but like-for-like sales fell 6.8% as demand remained subdued across construction, repair and maintenance, and plumbing and heating markets.

Adjusted EBITDA before property gains dropped 19.2% to £8.4m, while the group posted an adjusted pre-tax loss of £1.2m, compared with a £3.1m profit a year earlier. On a statutory basis, the pre-tax loss was £6.9m, versus a £0.6m profit in the prior period.

The Plumbing & Heating division was particularly weak, with revenue falling to £96.4m from £112.2m and like-for-like sales down 13.3%. Lords has rationalised its depot network and said the changes would cut annual operating costs by £1.5m.

Merchanting improved during the second quarter, while digital business CMO delivered revenue growth of around 17.5% and returned to positive EBITDA.

The board scrapped the interim dividend, having paid 0.32p per share last year, as net debt rose to £26.5m from £20.9m, meaning leverage was above the board's medium-term target.

"Reducing net debt is a key priority", the company said. "This is being supported by inventory optimisation, enhanced receivables collection, supplier-term initiatives, restricted capital expenditure, delivery of operating improvement plans and the Group's expected second-half seasonal cash profile."

Chief executive Shanker Patel said the market recovery was taking longer than expected, but the group had accelerated operational improvements and continued to expect full-year performance to be in line with market expectations.

Shares were down 4.4% at 13.14p by 1315 BST.

See the latest RNS on Sharecast.