Lords Group Trading PLC (LORD) AI Stock Analysis

• Market Cap: £38.73M
• Dividend Yield: 3.61%
• Average Volume (3M): 88.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• 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: 166,231,690
• 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: 178.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: 25.00p ▲(7.30% Upside)

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

Cash Flow Generation

The ability to generate positive operating cash flow indicates strong cash management and provides financial flexibility for future investments.

Gross Margin Management

Effective cost management and stable gross margins suggest the company can maintain profitability despite revenue challenges.

Asset Base Stability

A stable asset base provides a foundation for future growth and supports the company's operational resilience.

Negative Factors

Revenue Decline

A decline in revenue indicates potential challenges in market demand or competitive pressures, affecting long-term growth prospects.

Profitability Challenges

Negative net profit margins highlight ongoing profitability issues, which could impact future earnings and shareholder returns.

Leverage Concerns

High leverage can limit financial flexibility and increase risk, particularly if revenue and profitability pressures persist.

Lords Group Trading PLC Business Overview & Revenue Model

Company Description

Lords Group Trading PLC (LORD) is a leading UK-based distributor of building materials, plumbing supplies, and heating products. The company operates through multiple divisions, including building materials, plumbing & heating, and the sale of home improvement products. With a diverse portfolio, Lords Group Trading caters to both trade and retail customers, offering a wide range of core products such as timber, insulation, and bathroom fixtures, along with value-added services.

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 a net loss, impacting profitability. However, the company maintains a positive cash flow and effective cost management, as evidenced by a stable gross profit margin. The balance sheet is leveraged but manageable, with a reasonable asset base.

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: 23.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 23.3 is below the 20-day moving average (MA) of 23.44, below the 50-day MA of 27.78, and below the 200-day MA of 33.81, indicating a bearish trend. The MACD of -1.16 indicates Negative momentum. The RSI at 31.79 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 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	68 Neutral	£14.88M	7.79	11.39%	1.14%	5.03%	36.66%
BRCK	67 Neutral	£169.45M	15.84	5.63%	6.67%	8.83%	27.20%
LTHP	64 Neutral	£194.93M	―	―	6.53%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
LORD	62 Neutral	£38.73M	-16.18	-5.01%	3.61%	0.10%	-32.11%
SHI	56 Neutral	£115.91M	-1.69	-37.89%	―	-2.08%	-9.83%
FLO	51 Neutral	£31.22M	-1.17	-48.14%	―	-0.25%	-84.33%

Lords Group Trading PLC Corporate Events

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.

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.

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.

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.

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.

Lords Group Trading PLC Announces Interim Dividend for H1 2025

Lords Group Trading PLC announced an interim dividend of 0.32 pence per ordinary share for the six months ended 30 June 2025. The dividend will be paid on 10 October 2025 to shareholders registered by 19 September 2025, with shares marked ex-dividend on 18 September 2025. This announcement reflects the company’s commitment to returning value to its shareholders and may impact its financial positioning and stakeholder relations.

Lords Group Trading PLC Reports Revenue Growth and Strategic Expansion in H1 2025

Lords Group Trading PLC reported an 8.4% increase in group revenue for the first half of 2025, driven by strong growth in its merchanting division. The company acquired Construction Materials Online and opened three new branches, enhancing its market position. Despite challenges in the RMI market, Lords remains optimistic about future growth opportunities, supported by a strengthened balance sheet and strategic initiatives.