Lords Group Trading Plc · LSE:LORD
Lords Group Trading — FY2021 Earnings Presentation
18 slides from Lords Group Trading's earnings presentation, May 24, 2022
Slide 1: 2021 Full Year Results
2021 Full Year Results 24 May 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 Overview Shanker Patel, CEO Financial review Chris Day, CFO Strategy update & ESG Shanker Patel / Chris Day Summary & outlook Shanker Patel Q&A Lords Group Trading PLC 3
Slide 4: Overview
Overview
Slide 5: Highlights
Highlights A year of strong growth and strategic progress. Exceeded market Strong market Strategic Digital expectations momentum progress momentum • £363.3m revenue, LFL • Large opportunity – • £500m revenue target • Significant progress, growth of 18.1% vs Lords holds <1% of in 2024 within reach FY
Slide 6: Financial Review
Financial Review 6
Slide 7: 2021 Financial Highlights
2021 Financial Highlights FY21 FY20 Change • Significant revenue (Restated)* growth, +£75.7m v FY20 Revenue £363.3m £287.6m +£75.7m / +26.3% (18.1% LFL vs FY20 and 20.8% 2yr LFL vs FY19) Adjusted EBITDA £22.3m £15.9m +£6.4m / +40.1% Adjusted EBITDA Margin 6.1% 5.5% +0.6% • EBITDA margin enhanced to
Slide 8: 2021 Financial Highlights - Merchanting
2021 Financial Highlights - Merchanting Divisional financial performance was materially above FY20, demonstrating the success of both our organic and acquisition growth strategies. 12 months ended 31 Dec (£m) FY21 FY20* Change Total revenue £130.5m £84.0m +£46.5m / +55.4% LFL Growth vs FY20 +27.6% 2
Slide 9: 2021 Financial Highlights – Plumbing & Heating
2021 Financial Highlights – Plumbing & Heating Investment in Plumbing & Heating division since 2019 acquisition positions the division for EBITDA accretive growth in the medium term. 12 months ended 31 Dec (£m) FY21 FY20 Chage Total revenue £232.8m £203.6m +£29.2m / +14.3% LFL Growth vs FY20 +14.3%
Slide 10: 2021 Financial highlights – Free cash flow
2021 Financial highlights – Free cash flow £m FY21 FY20 EBITDA 20.1 15.4 Free cash flow of £19.5m, 87.4% cash conversion Exceptional Items 2.2 0.5 Adjusted EBITDA 22.3 15.9 Working capital continues to be tightly Working capital movement 1.0 0.2 controlled, generating net inflow of £1.0m Tax (1.8) (
Slide 11: Strategic Update
Strategic Update
Slide 12: 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 • Multiple
Slide 13: Execution of Acquisition Strategy in Q1 2022
Growth Strategy Execution of Acquisition Strategy in Q1 2022 ✓ Revenue £43.3m / EBITDA £3.9m / 4.2x EBITDA multiple ✓ Revenue £27.6m / EBITDA £2.0m / 4.7x EBITDA multiple (plus freehold and excess cash) ✓ National distributor of plumbing spares with 5x plumbers merchants ✓ Specialist drylining and i
Slide 14: 2024 Target
2024 Target 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, +38% u
Slide 15: Strategy enabled by cash generation
Strategy enabled by cash generation Disciplined capital allocation and balanced working capital will continue to enable growth trajectory Organic investment in existing brands e.g. Mr Central Heating expansion Disciplined approach to Progressive Acquisition investment Strong capital Dividend cashflo
Slide 16: Outlook
Outlook
Slide 17: Outlook
Outlook • Underlying fundamentals of our markets remain positive. • Customer demand remains robust in FY22 year to date. • FY21 / FY22 acquisitions performing in line with expectation. • We continue to manage boiler supply issues, inflation and supply chain pressures. • Board remain confident in abi
Slide 18: Q&A
Q&A LORDS GROUP. TRADING