**Summary**
Lords Group Trading PLC, a leading UK distributor of building materials, released a trading update for the fiscal year 2025 (FY25) on January 27, 2026. Key highlights include
1. **Financial Performance**
Group revenue increased by 8.3% to £473 million, with a 0.7% like-for-like (LFL) growth.
Merchanting revenue rose 6.0% to £227 million, supported by three new branch openings and 3.1% LFL growth.
Plumbing and Heating (P&H) revenue remained resilient at £220 million, with a 57% increase in renewables revenues.
Adjusted EBITDA is expected to meet market expectations, and net debt was reduced by 55% to £14.5 million.
2. **Strategic Initiatives**
Successful acquisition of CMO, a leading online-only builders merchant, contributing £26 million in revenue since June 2025.
Strategic review of the P&H division completed, with initiatives to be implemented in Q1 2026.
3. **Market Conditions**
The Repairs, Maintenance, and Improvement (RMI) market remained subdued, with prolonged pre-Budget uncertainty impacting customer decisions in H2 2025.
4. **Outlook**
The company enters FY26 with reduced net debt and a diversified platform, positioning itself for growth in a recovering construction market.
Focus on cost control, efficiency, and strategic initiatives to drive growth, particularly in renewables and digital divisions.
CEO Shanker Patel emphasized the company’s focus on customer service, cost control, and leveraging the CMO acquisition for growth, despite challenging market conditions. The Board remains confident in the Group’s medium-term prospects.