Lords Group Trading (LORD) H1 2026 earnings summary

Executive summary

• Revenue held steady at £232.1m for H1 2026, broadly flat year-over-year, despite challenging market conditions and weaker demand across end markets.

• Management accelerated operational actions, including cost reductions, margin focus, and restructuring to address market headwinds and reduce leverage.

• No interim dividend proposed to preserve balance sheet strength.

• Market recovery was slower than expected, with construction PMI below 50 for over 20 months.

• Like-for-like revenue declined 6.8% year-over-year due to subdued construction, RMI, and plumbing/heating sectors.

Financial highlights

• Revenue at £232.1m, flat versus H1 2025; like-for-like revenue down 6.8% year-over-year.

• Adjusted EBITDA of £8.4m (margin 3.6%), down from prior year.

• Gross profit up 4.7% to £46.9m; gross margin improved to 20.2% from 19.3% in H1 2025.

• Net debt increased to £26.5m, reflecting seasonal working capital outflow.

• Adjusted operating profit before property gains dropped to £2.3m from £4.5m; adjusted EPS (0.70p) vs. 1.35p in H1 2025.

Outlook and guidance

• No improvement expected in market conditions for H2 2026; management assumes similar trading environment as H1.

• Focus remains on cash generation, reducing leverage, and growing market share in Plumbing & Heating.

• Industry federation forecast revised from +2.3% to -1.8% for 2026.

• Market recovery is expected to be gradual; full-year performance anticipated to be in line with market expectations.

• Potential support from the Help to Buy scheme, though details remain limited.