Lords Group Trading Plc · LSE:LORD
Lords Group Trading — Investor Presentation (February 2022)
17 slides from Lords Group Trading's investor presentation, Feb 4, 2022
Slide 1: Investor Introduction
Investor Introduction 4th February 2022
Slide 2: Exec Team
Exec Team Shanker Patel (Group CEO) • Shareholder since 1993, MD from 1999 before becoming Group CEO in 2009 • Leading the Group to Revenue growth from £1.8m in 1999 to £360m in 2021 • BSc from London School of Economics, Dip LLB/LPC and Exec Ed (OPM) from Harvard Business School • Strong industry p
Slide 3: Company Overview
Company Overview Lords Group Trading is a leading distributor of building materials est. 1985 Revenue EBITDA 20%+ ave. acquisition ROI (last 6 acquisitions 2016 – 2020) FY21E £365m* FY20A £288m FY21E £16.2m* FY20A £11.4m 750 employees 11 Core Brands 36 Locations • Oversubscribed £52m IPO in July 202
Slide 4: Group Divisions
Group Divisions Well diversified Group operating across multiple channels, sectors and product ranges Merchanting Plumbing & Heating £132m Revenue / £8.2m EBITDA (Market Consensus FY21E pre IFRS) £233m Revenue / £8.0m EBITDA (Market Consensus FY21E pre IFRS) £84m Revenue / £4.0m Adj. EBITDA (Audited
Slide 5: Group History
Group History A strong history of organic and acquisitive led growth. The Group has completed 15 transactions in the last 10 years, acquisitions since 2016 average ROI in excess of 20% Lords Group Trading PLC 5
Slide 6: Merchanting
Merchanting Lords Group Trading PLC 6
Slide 7: Merchanting
Merchanting A consolidator of specialist merchants across the South East and Midlands adding value to the supply of building materials through product expertise and next day delivery across 15,000 products £132m Revenue / Merchanting Profile £8.2m EBITDA* • Strong customer relationships: - Customer
Slide 8: Plumbing & Heating
Plumbing & Heating Lords Group Trading PLC 8
Slide 9: Plumbing & Heating
Plumbing & Heating A specialist distributor of Plumbing and Heating products to the UK network of merchants. Expert product knowledge, strong availability and next day delivery £233m Revenue / Plumbing & Heating Profile £8.0m EBITDA* • Provides the Group with accelerated ecommerce capability, scale
Slide 10: Market Size
Market Size c.£55bn addressable market with strong market drivers Building Materials Distribution Market Drivers Market by Turnover1 General Merchants Specialist Merchants £3.8bn Changing demographics are fuelling £17bn the need for new buildings Direct to site via Merchant £16.7bn Pure Play Online
Slide 11: Market - RMI
Market - RMI The Group is favourably focused on the Repairs, Maintenance and Improvement sector of the wider construction market GB Construction Output Volume – RMI2 (2018 = 100) 105.0 New House Build 100.0 Turnover: £15m / 5% 95.0 Commercial 90.0 Turnover: £23m / 8% 85.0 80.0 Infrastructure 75.0 Tu
Slide 12: Market – Competition
Market – Competition Market - Competition The builders merchant market is highly fragmented - 2,300 merchants with Nationals making up 51% of revenues Industry Market Share by Turnover1 Market is highly fragmented 1% • Nationals make up 51% of industry revenues (Travis Perkins, Jewson/Saint-Gobain,
Slide 13: Growth Strategy
Growth Strategy Growth Strategy Organic Growth • Substantial investment has been made providing a strong platform for further growth • Acceleration of digital platforms and logistics • Housebuilding and RMI market expected to continue growing • Market expectations for 5% year-on-year organic growth
Slide 14: Revenue and EBITDA
Revenue and EBITDA Revenue and EBITDA • Proforma EBITDA CAGR of over 30.4% in the last 5 years • Strong cashflow generation enables investment in growth strategy • 20% return on historic acquisitions and future organic investments • Investments are EBITDA margin accretive Group Proforma Turnover (£m
Slide 15: Summary
Revenue and EBITDA Summary • All brands have strong growth potential • Continued organic growth initiatives and acquisition opportunities in both divisions • Highly experienced management with sector and buy and build expertise • Customer obsessed through highly engaged, well incentivised teams • Hi
Slide 16: Disclaimer (1/2)
Disclaimer (1/2) THE DISTRIBUTION OF THIS PRESENTATION IN JURISDICTIONS OTHER THAN THE UK MAY BE RESTRICTED BY LAW AND PERSONS INTO WHOSE POSSESSION THIS DOCUMENT COMES SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY RELEVANT RESTRICTIONS. IN PARTICULAR, THIS DOCUMENT AND ITS CONTENTS MAY NOT BE RELE
Slide 17: Disclaimer (2/2)
Disclaimer (2/2) This Presentation may include statements that are, or may be deemed to be, “forward-looking statements”. Any forward-looking statements in this Presentation reflect the Company’s current expectations and projections about future events. By their nature, forward-looking statements in
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