Lords Group Trading Plc · LSE:LORD

Lords Group Trading — H1 2025 Earnings Presentation

25 slides from Lords Group Trading's earnings presentation, Sep 11, 2025

  1. Slide 1: H1 2025 Results

    H1 2025 Results Strong growth in Merchanting and continued strategic progress 1 11 September 2025

  2. Slide 2: Disclaimer

    Disclaimer This presentation has been prepared by Lords Group Trading plc (the "Company") solely for information and does not purport to contain all the information that may be necessary or desirable to fully and accurately evaluate the Company or its business prospects. For the purposes of this not

  3. Slide 3: Agenda

    Agenda Highlights Shanker Patel, CEO Financial review Stuart Kilpatrick, CFO Strategy update Shanker Patel Outlook Shanker Patel Q&A 3

  4. Slide 4: Highlights

    Highlights ▪ Group Revenue up 8.4% in challenging market ▪ LFL up 7.0% ▪ Merchanting revenue up 12.6%; Adjusted EBITDA1 up 8.6% ▪ Acquired UK’s largest online-only construction retailer, CMO, for £1.8m in June 2025 ▪ Opened three new Merchanting branches to date ▪ Completed sale & leaseback of four

  5. Slide 5: Financial Review

    H1 2025 Results Financial Review 5

  6. Slide 6: Financial Performance

    Financial Performance H1 2025 H1 2024 Change EBITDA Bridge 16.0 3.6 Revenue £232.1m £214.2m +8.4% 15.0 Gross profit £44.8m £43.2m +3.6% 14.0 New Branches & Acquisitions (1.3) (1.2) Adjusted EBITDA1 £12.1m £12.6m (3.9)% £m 13.0 12.6 (0.8) LFL (0.8) 12.1 Adjusted operating profit1 £6.2m £7.1m (12.7)%

  7. Slide 7: Merchanting H1 2025

    Merchanting H1 2025 H1 2025 H1 2024 EBITDA Bridge Change 12.0 £m £m 3.6 11.0 Revenue 117.7 104.6 +12.6% 10.0 New Branches (0.6) 9.0 Gross profit 30.4 28.7 +5.7% (1.9) 8.2 £m 8.0 7.6 (0.5) LFL Operating expenses (23.9) (22.8) +4.3% 7.0 6.0 Property gains 1.7 1.7 - 5.0 H1 2024 Revenue Margin Overheads

  8. Slide 8: Plumbing & Heating H1 2025

    Plumbing & Heating H1 2025 H1 2025 H1 2024 EBITDA Bridge change 6.0 £m £m 5.5 Revenue 112.2 109.6 +2.4% 5.0 5.0 0.3 £m 4.5 Gross profit 13.9 14.5 (3.8)% (0.8) 4.2 (0.1) 4.0 3.9 (0.5) Operating expenses (10.0) (9.5) +5.2% 3.5 3.0 Adjusted EBITDA1 3.9 5.0 (21.0)% H1 2024 EBITDA CHMM H1 2024 EBITDA Rev

  9. Slide 9: Cash Flow – Last Twelve Months

    Cash Flow – Last Twelve Months £m 25.0 2.5 Adjusted EBITDA 21.9 14.2 Working capital movement 2.5 21.9 (2.8) Capex (2.8) 20.0 Lease rentals paid (12.5) (4.1) Operating cash flow 9.1 (2.9) 15.4 Adjusted operating profit 9.4 15.0 (0.5) (0.4) Operating cash conversion 96.8% 10.0 9.1 (12.5) 5.0 - • Net

  10. Slide 10: Balance Sheet

    Balance Sheet 30 June 30 June • Tangible assets lower following 2025 2024 sale/leaseback £m £m • Working capital reduced by £2.2m to £39.5m Tangible assets 9.0 20.5 (2024: £41.7m) Working capital 39.5 41.7 • Working capital: sales 8.7% (2024: 9.0%) Operating capital employed 48.5 62.2 • Net debt red

  11. Slide 11: Strategy Update

    H1 2025 Results Strategy Update 11

  12. Slide 12: Strategic Progress - Last Twelve Months

    Strategic Progress - Last Twelve Months Our strategy is a combination of margin accretive organic growth and selective M&A • Organic growth • Three new branches adding £2.4m revenue in H1 • New product ranges • Selective M&A • Acquired Ultimate Renewables in Oct 2024 • Acquired CMO in Jun 2025 • Str

  13. Slide 13: Merchanting Strategic Update

    Merchanting Strategic Update • Strong H1 revenue growth of 12.6% in challenging market • Brand development o George Lines branch opened 5th branch in Aylesford, near Maidstone, Kent (1.5 acre site) o AW Lumb opened 3rd branch in Mansfield, Notts (2.5 acre site) o Lords Builders Merchants/Advance Roo

  14. Slide 14: Specialist brand

    Specialist brand – Acquired 2016 ▪ Strong regional brand trading for 70 years ▪ Specialist civils merchant selling Aylesbury aggregates, concrete, drainage & ducting opened 2019 ▪ Grown from £13m revenue to 5 branch £44m revenue business Horsham opened 2022 ▪ Organic growth plan to extend branch net

  15. Slide 15: Specialist brand

    Specialist brand – ▪ Specialist roofing brand Acquired 2022 ▪ Suppliers of new and reclaimed roofing Beaconsfield materials implant 2022 ▪ Grown from 2 branch £7m revenue to 4 branch £10m revenue business Moved to shared ▪ Advance Roofing expansion via Aylesbury site implants in selected Merchanting

  16. Slide 16: Plumbing & Heating Strategic Update

    Plumbing & Heating Strategic Update • Revenue up 2.4% and boiler market share maintained • Management strengthened in MrCH brand • Renewables revenue up 57% as Ultimate Renewables performed in line with expectations • Matt Webber appointed COO on 2 September 2025 • Over 20 years P&H experience • Ex

  17. Slide 17: Specialist brand

    Specialist brand – ▪ Acquired for £9.3m in 2022 DHP Revenue (£m) 32.0 CAGR - ▪ HRP Trade 30.0 8% ▪ National distributor of plumbing & heating spares 28.0 ▪ Complimentary to P&H wholesale business 26.0 ▪ Direct Heating 24.0 ▪ 4 branch trade counter plumbing merchant 22.0 ▪ Southend, Colchester, Benfl

  18. Slide 18: Digital

    Digital • UK’s leading online-only retailer, CMO, acquired on 6 June 2025 for • 9 specialist e-commerce sites £1.8m (inclusive of £1.2m for a freehold property) • 150k sku’s • LTM revenue to 30 June 2025 of c. £47m • 350+ suppliers • > 70% dropship • Supply chain challenges restricted trading prior

  19. Slide 19: Summary

    Summary • Revenue expected to exceed £500m in 2025 • 5-year CAGR of 12% CAGR - • Listed peer group1 5-year CAGR of 2.2% 12% • Continue to drive margin accretive organic growth • Year 5 revenue from three new branches projected to exceed £25m at c. 7% EBITDA margin potentially adds £1.8m • Selective

  20. Slide 20: Outlook

    H1 2025 Results Outlook 20

  21. Slide 21: Outlook

    Outlook • Strong revenue growth of 8.4% in challenging market • Continued strategic progress • Integration of recently acquired CMO • 3 new Merchanting branches • Continue to seek opportunities for margin accretive organic growth and selective, value-added, acquisitions • Management focused on Mansf

  22. Slide 22: Q&As

    H1 2025 Results Q&As ry LORDS AS GROUP TRADING

  23. Slide 23: Appendices

    Appendices H1 2025 Results 23

  24. Slide 24: Appendix 1 – Alternative Performance Measures

    Appendix 1 – Alternative Performance Measures H1 2025 H1 2024 H1 2025 H1 2024 £m £m £m £m Operating profit 3.7 4.5 Profit before taxation 0.6 1.1 Amortisation of acquired Exceptional items 0.4 0.5 1.7 1.8 intangibles Share based payments 0.4 0.3 Exceptional items 0.4 0.5 Amortisation of acquired int

  25. Slide 25: Appendix 2 – Income Statement

    Appendix 2 – Income Statement H1 2025 H1 2024 Adjusting Adjusting Adjusted Items Total Adjusted Items Total Revenue 232.1 - 232.1 214.2 - 214.2 Cost of sales (187.3) - (187.3) (171.0) - (171.0) Gross profit 44.8 - 44.8 43.2 - 43.2 Operating expenses (34.4) (0.8) (35.2) (32.3) (0.8) (33.1) Property g

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