Lords Group Trading PLC (LORD) AI Stock Analysis

• Market Cap: £36.07M
• Dividend Yield: 3.61%
• Average Volume (3M): 88.66K
• Price to Earnings (P/E): 83.0
• Beta (1Y): 0.18
• Revenue Growth: 0.10%
• EPS Growth: -32.11%
• Country: UK
• Employees: 958
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 0.01
• Shares Outstanding: 166,238,270
• 10 Day Avg. Volume: 124,831
• 30 Day Avg. Volume: 88,656
• PEG Ratio: 0.12
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 4.32
• 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: £65.00
• Price Target Upside: 199.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.02
• Revenue Forecast (FY): £521.70M

• Rating: 62 Neutral
• Price Target: 28.00p ▲(29.03% Upside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

The overall stock score of 62 reflects a mix of financial challenges and positive corporate events. While the company faces profitability pressures and a bearish technical outlook, recent strategic expansions and revenue growth provide optimism. The dividend yield adds some value, but the negative P/E ratio remains a concern.

Positive Factors

Robust gross profit margin

A sustained gross margin near 19.5% indicates structural buying and pricing effectiveness in distribution. That level of gross profitability provides a durable buffer against supplier cost swings and supports margin recovery at the operating level as volumes normalize.

Positive free cash flow generation

Consistent positive operating and free cash flow demonstrates the business converts sales into cash, enabling reinvestment, dividend payments and debt servicing. This cash generation underpins financial flexibility despite earnings volatility.

Established UK distribution network

A branch-based distribution model serving both trade and retail creates durable customer touchpoints and logistical reach. This structure supports recurring demand, cross-selling of complementary products, and local market knowledge that sustains competitive position over time.

Negative Factors

Declining revenue and net loss

Falling top-line and a small net loss highlight persistent demand and profitability pressures. Lower scale reduces leverage over fixed costs and can erode investment capacity, making it harder to sustain growth initiatives or absorb further market headwinds.

High leverage on balance sheet

A debt-to-equity ratio above 2 with limited equity cushion raises refinancing and interest-rate sensitivity. Elevated leverage constrains strategic flexibility, increases downside risk in cyclical slowdowns, and may limit capacity for shareholder returns or expansion without deleveraging.

Weakening cash flow trend

A declining trend in operating and free cash flow signals erosion in cash conversion which can become structural if volumes or margins remain pressured. Continued downward cash trajectory would limit debt reduction, capex funding and dividend sustainability over the medium term.

Lords Group Trading PLC Business Overview & Revenue Model

Company Description

Lords Group Trading Limited distributes building, plumbing, heating, and DIY goods to local tradesmen, developers, small and medium construction companies, and retail customers. The company operates in two divisions, Merchanting; and Plumbing and Heating. It also distributes heating and plumbing products to a network of independent merchants, installers, and general public. The company also sells its products through online channels. Lords Group Trading Limited was founded in 1985 and is based in London, the United Kingdom.

How the Company Makes Money

Lords Group Trading generates revenue primarily through the wholesale distribution of building materials and supplies to contractors, builders, and retail customers. The company's revenue model is driven by selling a broad range of products across its divisions, which include plumbing, heating, and building materials. Key revenue streams come from both direct sales and online transactions, complemented by strategic partnerships with manufacturers and suppliers that enhance product offerings and pricing competitiveness. Additionally, the company benefits from a growing demand for home improvement and construction services, which further supports its earnings growth.

Lords Group Trading PLC Financial Statement Overview

Summary

Lords Group Trading PLC faces financial challenges with declining revenues and profitability pressures. Despite this, the company demonstrates resilience in maintaining a positive cash flow and managing gross margins effectively. The balance sheet shows a leveraged but manageable financial structure.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	454.64M	436.68M	462.60M	450.02M	363.29M	287.56M
Gross Profit	86.80M	85.23M	92.36M	88.78M	62.72M	47.18M
EBITDA	8.68M	21.41M	22.86M	28.45M	22.21M	15.40M
Net Income	-2.38M	-1.97M	1.38M	9.12M	4.76M	2.44M
Balance Sheet
Total Assets	243.91M	247.16M	264.46M	239.88M	172.31M	163.76M
Cash, Cash Equivalents and Short-Term Investments	16.63M	10.31M	19.81M	16.04M	11.40M	16.34M
Total Debt	104.22M	102.11M	99.51M	77.95M	41.54M	73.81M
Total Liabilities	195.03M	199.55M	213.29M	187.69M	121.56M	146.63M
Stockholders Equity	46.89M	45.80M	49.54M	50.86M	39.72M	45.94M
Cash Flow
Free Cash Flow	19.03M	12.86M	14.02M	19.41M	17.57M	13.54M
Operating Cash Flow	20.88M	16.81M	19.66M	23.16M	19.52M	13.98M
Investing Cash Flow	11.55M	-1.05M	-9.36M	-35.53M	-9.12M	-440.00K
Financing Cash Flow	-26.24M	-25.27M	-7.15M	15.15M	-15.34M	-561.00K

Lords Group Trading PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 21.7 is below the 20-day moving average (MA) of 23.86, below the 50-day MA of 23.70, and below the 200-day MA of 33.02, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 33.00 is Neutral, neither overbought nor oversold. The STOCH value of 37.35 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
GFTU	80 Outperform	£1.80B	7.29	8.33%	3.99%	5.75%	5.86%
RS1	74 Outperform	£3.13B	8.02	11.65%	3.58%	-2.44%	-6.43%
BRCK	67 Neutral	£150.12M	5.60	5.63%	6.70%	8.83%	27.20%
LTHP	64 Neutral	£212.83M	0.64	―	6.53%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
LORD	62 Neutral	£36.07M	83.04	-5.01%	3.61%	0.10%	-32.11%
SHI	47 Neutral	£114.93M	-1.82	-37.89%	―	-2.08%	-9.83%

Lords Group Trading PLC Corporate Events

Lords Group Trading Lifts Revenue, Slashes Debt and Expands Digital Arm Amid Tough Construction Market

Lords Group Trading reported an 8.3% rise in full-year 2025 revenue to £473 million, with adjusted EBITDA expected to match market expectations and net debt reduced by 55% to £14.5 million, signalling strengthened balance sheet discipline despite subdued construction markets. Merchanting revenues grew 6% to £227 million, aided by three new branches, while plumbing and heating revenues held broadly flat at £220 million amid margin improvement and a 57% surge in renewables sales. The acquisition of CMO, which generated £26 million of revenue since June and turned profitable in the second half, expands Lords’ digital reach and diversifies its platform. With significantly lower leverage, growing renewables and digital operations, and a strategic review of the plumbing and heating division underway, the Group is positioning itself for operational leverage and growth when construction volumes recover, underpinning the Board’s confidence in its medium‑term prospects.

The most recent analyst rating on (GB:LORD) stock is a Hold with a £25.00 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 Leadership Increases Stake in Company

Lords Group Trading PLC announced significant share transactions involving its CEO, Shanker Patel, and other key figures, increasing their collective stake to over 52% of the company’s issued share capital. This move consolidates control within the company’s leadership, potentially impacting its strategic direction and stakeholder dynamics.

The most recent analyst rating on (GB:LORD) stock is a Hold with a £23.00 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 Director’s Associate Increases Shareholding

Lords Group Trading PLC announced that Katharine Kilpatrick, associated with Executive Director Stuart Kilpatrick, purchased 30,000 ordinary shares at 22.6 pence each, increasing her stake to 75,000 shares. This transaction reflects compliance with regulatory obligations and may indicate confidence in the company’s future prospects, potentially influencing stakeholder perceptions.

The most recent analyst rating on (GB:LORD) stock is a Hold with a £34.00 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 Reports Revenue Growth Amid Market Challenges

Lords Group Trading PLC reported a 9.6% increase in group revenue for the four months ending October 2025, despite challenges in the UK housing market and subdued demand in its core sectors. The Merchanting division saw a slight decline in like-for-like revenue, but improved gross margins, while the Plumbing and Heating division also faced revenue drops but benefited from strategic management changes. The newly formed Digital division, bolstered by the acquisition of CMO, achieved its first profitable months, contributing significantly to the revenue growth. The company expects full-year revenue between £480m and £485m, with adjusted EBITDA of £20m to £21m, and remains confident in its strategic growth plans despite market uncertainties.

The most recent analyst rating on (GB:LORD) stock is a Hold with a £34.00 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 Expands Share Block Admission on AIM

Lords Group Trading PLC has applied for a block admission of 92,231 ordinary shares to be traded on AIM, linked to the company’s 2022 Deferred Bonus Plan. This move, effective from November 7, 2025, will bring the total shares under block admission to 315,459, representing 0.19% of the company’s issued share capital. The company’s total voting rights stand at 166,231,688, providing a basis for shareholder interest calculations under FCA rules.

The most recent analyst rating on (GB:LORD) stock is a Hold with a £34.00 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 Announces Total Voting Rights

Lords Group Trading PLC announced the total number of ordinary shares in issue, which stands at 166,231,688, each carrying one vote. This figure is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:LORD) stock is a Hold with a £34.00 price target. To see the full list of analyst forecasts on Lords Group Trading PLC stock, see the GB:LORD Stock Forecast page.