NuGen Properties

Boiler shortage softens builder merchant’s growth


Lords’ team in Watford

In the six months ended 30th June 2022 Lords generated revenue of £214.2m, up 19% on the same period in 2021. Profit before tax was £6.4m (2021 H1: £4.2m).

The merchanting division delivered sales growth of 73.4% (or 14.5% on a like-for-like basis, excluding acquisitions) to £105.9m  but the Plumbing & Heating (P&H) division suffered from the worldwide boiler supply shortage, with like-for-like revenue falling 12.5%.

Lords spent £26.9m on acquisitions during the period, taking over Advance Roofing Supplies, AW Lumb, DH&P Trade Counters and Buildbase Sudbury. Consequently the net cash position of £6.5m at the start of the year had become a net debt position of £21.1m by 30th June.

Lords is a London-based distributor of building, plumbing, heating and DIY goods.  It principally sells to local tradesmen, small to medium sized plumbing and heating merchants, construction companies and retails directly to the general public.

Chief executive Shanker Patel said: “The group’s strategic focus is to invest in organic growth levers that deliver accretive margins alongside a selective and disciplined M&A strategy and in acquiring businesses that produce a high return on investment and offer the group product range and geographic expansion.  Lords remains focused on the repair, maintenance & improvement (RMI) sector which benefits from robust demand (particularly the group’s P&H division which sells ‘essential’ replacement products through heating repairs) and strong fundamentals in the medium to long term.”

He said: “Lords has a strong platform for growth with less than 1% market share and multiple growth levers to pursue. We remain confident of delivering our strategic targets of £500m revenue by 2024 and improving EBITDA margins to 7.5% in the medium term.”

Got a story? Email [email protected]



Source link


Customer Reviews

Nugen Properties

Customer Reviews

Dan Morten 18/01/22

Google
Easy to work with, Jordan and the team were professional and were easy to communicate with.
Would highly recommend.

Di Hayes 20/08/22

Google
NuGen Properties built an extension to the rear of my property, replacing the old conservatory. I am so pleased I chose this company. From the initial quotation, through the build and after they were professional, polite & well mannered. They kept the site tidy throughout the build and kept me informed of each stage as it happened. The work was finished to a good standard and I have had nothing but compliments on their work. I am already planning for them to come back and do some more work for me in a few months. I would 100% recommend them.

Bradley Eyles 20/06/23

Google
Nugen were fantastic throughout the works they carried out on my property, Jordan provided constant updates and ensure any questions I had were always answered. All works were completed in a timely fashion, on budget and exceptional customer service. Highly recommend!

Sonny Carter-heyward 29/02/22

Google
Brilliant service, renovated my house to make a dream a reality. Thanks guys

sitemanager 22/01/23

Google
Great firm to communicate with fast and good quality work.