Lords Group Trading PLC (LORD) AI Stock Analysis

• Market Cap: £69.81M
• Dividend Yield: 1.98%
• Average Volume (3M): 104.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: -5.60%
• EPS Growth: -238.37%
• Country: UK
• Employees: 958
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Distribution
• EPS (TTM): -0.02
• Shares Outstanding: 166,207,890
• 10 Day Avg. Volume: 43,666
• 30 Day Avg. Volume: 104,539
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £63.00
• Price Target Upside: 50.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: 46.00p ▲(9.52% Upside)

The overall stock score is 63, driven by solid corporate events and a resilient financial performance amidst challenges. The technical analysis indicates bearish momentum, and the valuation is unattractive due to negative earnings, which weigh down the overall score.

Positive Factors

Liquidity and Growth Strategy

Lords Group Trading PLC has announced the sale and leaseback of four freehold properties for £13.1 million, providing liquidity to support growth strategies.

Renewables Market Position

Renewables revenues grew significantly by 170%, positioning the group well for continued demand growth in the renewables market.

Revenue Growth

The merchanting division performed ahead of expectations, with a strong final quarter showing 11% year-over-year revenue growth.

Negative Factors

Sales Decline

The P&H division experienced a challenging fourth quarter with a 17% sales decline, affected by softer demand.

Lords Group Trading PLC Business Overview & Revenue Model

Company Description

Lords Group Trading PLC (LORD) is a prominent distributor of building and plumbing materials in the United Kingdom. The company operates through several divisions, serving both professional contractors and DIY enthusiasts with a comprehensive range of products. Its core offerings include building materials, plumbing supplies, heating solutions, and ironmongery. Lords Group Trading PLC is known for its extensive product catalog and strong customer service, catering to a wide array of construction and renovation needs.

How the Company Makes Money

Lords Group Trading PLC primarily makes money through the sale of building and plumbing materials. The company's revenue model is centered around direct product sales to both trade customers and retail consumers. Key revenue streams include the wholesale distribution of construction materials to contractors and builders, as well as retail sales to individuals undertaking home improvement projects. The company benefits from a network of physical distribution centers and retail outlets, enabling it to serve a diverse customer base efficiently. Additionally, strategic partnerships with manufacturers and suppliers enhance its product offerings and competitive pricing, contributing significantly to its earnings.

Lords Group Trading PLC Financial Statement Overview

Summary

Lords Group Trading PLC faces financial challenges with declining revenues and a negative net profit margin, but maintains a stable gross margin and positive cash flow. The balance sheet is leveraged but manageable, and cash flow generation remains a positive aspect.

Income Statement

The income statement reflects a challenging year for the company, with a decline in total revenue from £462.6 million to £436.7 million, representing a revenue growth rate of -5.6%. Despite this, the gross profit margin remains robust at 19.5%, indicating effective cost management. However, the net profit margin turned negative at -0.5% due to a net loss of £1.97 million, highlighting profitability challenges. The EBIT margin has decreased to 1.0%, suggesting pressure on operating profitability. Overall, while the company has maintained a stable gross margin, declining revenues and net losses are concerning.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 2.23, indicating a leveraged position, but not excessively so for the industry. The equity ratio is 18.5%, reflecting a modest proportion of equity financing. Return on equity has turned negative at -4.3% due to the net loss, which is a significant concern. However, the company maintains a reasonable level of total assets at £247.2 million, providing a stable asset base.

Cash Flow

Cash flow analysis reveals a positive operating cash flow of £16.8 million, though it has decreased from the previous year's £19.7 million. Free cash flow remains positive at £12.9 million, albeit lower than last year's £14.0 million, resulting in a free cash flow growth rate of -7.8%. The operating cash flow to net income ratio is not meaningful given the net loss, but the cash flow generation capability remains a positive aspect of the company's financial health.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	436.68M	462.60M	450.02M	363.29M	287.56M
Gross Profit	85.23M	92.36M	88.78M	62.72M	47.18M
EBITDA	21.41M	22.86M	28.45M	22.21M	15.40M
Net Income	-1.97M	1.38M	9.12M	4.76M	2.44M
Balance Sheet
Total Assets	247.16M	264.46M	239.88M	172.31M	147.15M
Cash, Cash Equivalents and Short-Term Investments	10.31M	19.81M	16.04M	11.40M	4.75M
Total Debt	102.11M	99.51M	77.95M	41.54M	27.62M
Total Liabilities	199.55M	213.29M	187.69M	121.56M	101.21M
Stockholders Equity	45.80M	49.54M	50.86M	46.41M	45.94M
Cash Flow
Free Cash Flow	12.86M	14.02M	19.41M	17.57M	13.54M
Operating Cash Flow	16.81M	19.66M	23.16M	19.52M	13.98M
Investing Cash Flow	-1.05M	-9.36M	-35.53M	-9.12M	-440.00K
Financing Cash Flow	-25.27M	-7.15M	17.63M	-15.34M	-561.00K

Lords Group Trading PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 42.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LORD, the sentiment is Negative. The current price of 42 is below the 20-day moving average (MA) of 45.27, below the 50-day MA of 45.65, and above the 200-day MA of 35.00, indicating a neutral trend. The MACD of -1.26 indicates Positive momentum. The RSI at 31.87 is Neutral, neither overbought nor oversold. The STOCH value of 25.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:LORD.

Lords Group Trading PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BMTO	71 Outperform	£16.32M	9.47	10.33%	1.02%	1.64%	0.26%
Sector *	66 Neutral	£2.67B	12.99	3.30%	3.25%	2.40%	-22.21%
LTHP	64 Neutral	£223.77M	―		6.53%	―	―
LORD	63 Neutral	£69.81M	―	-4.13%	1.98%	-5.60%	-238.37%
BRCK	56 Neutral	£195.86M	29.80	3.43%	5.59%	7.23%	-59.68%
FLO	52 Neutral	£35.84M	―	-48.45%	3.36%	-4.29%	-97.73%
SHI	50 Neutral	£138.24M	―	-37.89%	―	-2.08%	-9.83%

Lords Group Trading PLC Corporate Events

Schroders PLC Reduces Stake in Lords Group Trading

Lords Group Trading PLC, a company involved in the trading sector, has announced a change in the voting rights held by Schroders PLC. Schroders PLC has reduced its voting rights in Lords Group Trading from 5.333199% to 4.968175%, which may impact the company’s decision-making dynamics and influence within the market.

The most recent analyst rating on (GB:LORD) stock is a Buy with a £50.00 price target. To see the full list of analyst forecasts on Lords Group Trading PLC stock, see the GB:LORD Stock Forecast page.

Lords Group Trading PLC AGM Resolutions Passed

Lords Group Trading PLC announced the results of its Annual General Meeting, where all 12 proposed resolutions were passed. Key resolutions included the approval of the annual report, the declaration of a final dividend, and the re-election and election of directors. The meeting also authorized the directors to allot equity securities, with some resolutions requiring special approval. This outcome reflects strong shareholder support and positions the company to continue its strategic initiatives.

The most recent analyst rating on (GB:LORD) stock is a Buy with a £0.80 price target. To see the full list of analyst forecasts on Lords Group Trading PLC stock, see the GB:LORD Stock Forecast page.

Lords Group Trading PLC Confident in FY25 Outlook Amid Strategic Expansions

Lords Group Trading PLC announced at its AGM that trading has aligned with management expectations, despite challenging market conditions. The company has seen positive trends in merchanting volumes and has made strategic acquisitions, including CMO Group Limited, to enhance its digital offerings. With new branch openings and a strengthened balance sheet, Lords is well-positioned for growth in the RMI market, and the Board remains confident in meeting FY25 expectations.

The most recent analyst rating on (GB:LORD) stock is a Buy with a £0.80 price target. To see the full list of analyst forecasts on Lords Group Trading PLC stock, see the GB:LORD Stock Forecast page.

Lords Group Trading PLC Acquires CMO Group Limited

Lords Group Trading PLC has acquired the trade and assets of CMO Group Limited, the UK’s largest online-only retailer of construction products, following a pre-pack administration process. This acquisition combines Lords’ infrastructure and merchanting expertise with CMO’s digital-first model, enhancing Lords’ market position and digital capabilities. The move aims to ensure business continuity and preserve employment, while integrating CMO’s established digital platform and customer reach into Lords’ operations.

The most recent analyst rating on (GB:LORD) stock is a Buy with a £0.80 price target. To see the full list of analyst forecasts on Lords Group Trading PLC stock, see the GB:LORD Stock Forecast page.

Lords Group Trading PLC Announces Total Voting Rights Update

Lords Group Trading PLC announced that the total number of ordinary shares in issue is 166,207,885, each carrying one vote, with no shares held in treasury. This figure is crucial for shareholders to determine their interest in the company under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules. This announcement underscores the company’s transparency and regulatory compliance, potentially impacting shareholder engagement and market perception.

The most recent analyst rating on (GB:LORD) stock is a Buy with a £0.80 price target. To see the full list of analyst forecasts on Lords Group Trading PLC stock, see the GB:LORD Stock Forecast page.

Lords Group Trading PLC Releases 2024 Annual Report and Announces AGM Details

Lords Group Trading PLC has released its Annual Report and Financial Statements for the year ending December 31, 2024, and announced the details of its upcoming Annual General Meeting (AGM) scheduled for June 20, 2025. The AGM will be accessible online to facilitate shareholder engagement, allowing for electronic voting and question submissions, which underscores the company’s commitment to transparency and stakeholder involvement.

The most recent analyst rating on (GB:LORD) stock is a Buy with a £0.80 price target. To see the full list of analyst forecasts on Lords Group Trading PLC stock, see the GB:LORD Stock Forecast page.

Lords Group Trading Director Increases Stake in Company

Lords Group Trading PLC announced that Sheena Mackay, a Non-Executive Director, has purchased 64,695 ordinary shares at a price of 30.9 pence each, representing 0.04% of the company’s issued share capital. This transaction aligns with the company’s obligations under the Market Abuse Regulation and may indicate confidence in the company’s future prospects, potentially impacting investor sentiment positively.

Lords Group Trading PLC Navigates Challenging Market with Strategic Initiatives

Lords Group Trading PLC reported a challenging financial year in 2024 with a 5.6% decline in revenue and a significant drop in adjusted EBITDA and operating profit. Despite the tough market conditions, the company focused on cost management, efficiency improvements, and strategic investments, including new branch openings and digital enhancements. The acquisition of Ultimate Renewables Supplies bolstered renewable product sales, and new exclusivity agreements expanded their product range. Looking ahead, Lords is optimistic about market recovery and aims to leverage its strengthened balance sheet and strategic initiatives for growth.