Lords Group Trading Plc · LSE:LORD
Lords Group Trading — H1 2022 Earnings Presentation
19 slides from Lords Group Trading's earnings presentation, Sep 6, 2022
Slide 1: H1 22 Results Presentation
H1 22 Results Presentation 6th September 2022
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements with respect to the financial condition, performance and position, strategy, results of operations and businesses of Lords Group Trading plc (the “Company”). Such statements and forecasts involve risk and uncertainty because they ar
Slide 3: Agenda
Agenda Highlights Shanker Patel, CEO Financial review Chris Day, CFO Shanker Patel, CEO Strategy update & ESG Shanker Patel / Chris Day Summary & outlook Shanker Patel Q&A Chris Day, CFO Lords Group Trading PLC 3
Slide 4: Highlights
Highlights Continued product, geographic and margin expansion; targets set at IPO well on track. On track to deliver market Significant market share Strategic progress expectations for FY221 opportunity • Strong growth with record results • Lords holds <1% of £55bn • £500m revenue target in 2024 in
Slide 5: H1 22 Financial Review
H1 22 Financial Review 5 Will Robbins, Warehouse Supervisor Hevey
Slide 6: H1 22 Financial Highlights
H1 22 Financial Highlights • Strong momentum across 6 months ended 30 Jun H1 22 H1 21 Change (Restated)1 all key financial metrics Revenue £214.2m £179.0m +£35.2m / +19.7% • Record revenue of £214.2m, +£35.2m v H1 21 Adjusted EBITDA £14.2m £11.2m +£3.0m / +27.1% reflecting continued delivery of stra
Slide 7: H1 22 Highlights - Merchanting
H1 22 Highlights - Merchanting Merchanting continues to deliver revenue and EBITDA growth through its organic and acquisition led strategy. 6 months ended 30 Jun (£m) H1 22 H1 211 Change Total revenue £105.9m £61.1m +£44.8m / +73.4% LFL Growth vs H1 2021 +14.5% Adjusted EBITDA £7.7m £5.3m +£2.4m / +
Slide 8: H1 22 Highlights – Plumbing & Heating
H1 22 Highlights – Plumbing & Heating P&H strategy of accretive EBITDA margin growth has continued, led by product mix and pricing strategies and enabled by Lords 3 P’s investment in the division. 6 months ended 30 Jun (£m) H1 22 H1 211 Change Total revenue £108.3m £117.9m -£9.6m / -8.2% LFL Growth
Slide 9: H1 22 Free Cash Flow
H1 22 Free Cash Flow £m H1 22 H1 21 • Free cash flow of £8.6m, 60.3% cash conversion EBITDA 13.7 10.1 • Working capital movement of £(1.1)m relates Exceptional Items 0.5 1.1 to volume growth Adjusted EBITDA 14.2 11.2 • Inventory movement of £(0.3)m covers Working capital movement (1.1) (0.8) £3.6m i
Slide 10: Strategic Update
Strategic Update Raid, Lorry Driver, Lords Builders Merchant
Slide 11: Investment Proposition
Investment Proposition Organic Acquisitions Digital ESG • Significant opportunity • Pipeline remains active • In-house expertise • Embedded in decision to broaden product • Target 3-4 per annum accelerating growth making range • Target 4-6x • Exceptional customer • ESG initiatives adding • Energy ef
Slide 12: Organic Growth – Energy Efficiency Tech
Organic Growth – Energy Efficiency Tech Key product category for future growth with accelerating customer demand • Demand for energy efficient technology being driven by increasing energy prices and government 'green initiatives’ • Lords is uniquely positioned to supply – distribution, merchanting a
Slide 13: Organic Growth – Brand Expansion
Organic Growth – Brand Expansion Strong regional brands delivering national expansion plans • Today – 9 locations, £55m • Today – 3 locations, £25m revenue with 25% digital revenue, product specialism • Medium Term Target – 50 • Medium Term Target – 6-8 locations nationwide locations nationwide • Te
Slide 14: Digital - Embedded in Lords customer journey
Digital - Embedded in Lords customer journey Online Instore service model drives deeper customer engagement and long-term trading relationships. • Customers want to move freely and flexibly across online and instore channels – both are frequently required • The digital uses of customers differs by t
Slide 15: Medium Term Targets
Medium Term Targets Revenue growth target: £500m by 2024 Medium term EBITDA margin of 7.5% £500m £363m £288m Operational leverage 2020 2021 2024 Illustrative and not to scale Revenue growth driven by: Our targets: • Organic – product range extension, new geographies 1. Grow revenues to £500m by 2024
Slide 16: Outlook
Outlook
Slide 17: Outlook & Summary
Outlook & Summary • Lords holds <1% of £55bn building materials market • Customer demand remains robust in our well positioned RMI segments • Management continue to manage boiler supply issues, inflation and supply chain pressures. • H1 22 acquisitions performing in line with expectations • Signific
Slide 18: Q&A
Q&A LORDS GROUP. TRADING
Slide 19: LGT PLC Shareholder Register
LGT PLC Shareholder Register Register as at 30th June 2022: Top 10 shareholders (by parent company) Shareholder 30-Jun-22 % IC Shanker Patel & Other Related Parties 47,186,402 29.77 Mr Rajen Patel 21,500,790 13.56 Mr Allan Pierce 19,420,841 12.25 Premier Miton Group 15,730,000 9.92 Mr Nilesh Patel 1