LBS improves sales in challenging market

Against a challenging backdrop, sales at Welsh independent builders and plumbers merchant group LBS increased to £89m for the year to December 31 2024. However, despite improving its sales performance, pressure on margins continued, although net assets increased to £37.6m, thanks to a focus on long-term growth, increasing market share and maintaining a robust balance sheet.

During the year the Group acquired DG Heath (Timber Products) Limited based in Pontarddulais, Swansea and Denman & Sons Builders Merchants Limited in Pengam, increasing the number of trading sites to 30.

It also relocated the Total Plumbing Swansea branch and showroom to an improved, larger site in Llansamlet, Swansea, and the LBS Maesteg branch to a larger site across town, doubling the size.  The Group purchased its LBS Neath site, which it had occupied since 2010, complete with additional land, before fully redeveloping and upgrading the branch offer.

Further investment was made into the Group’s IT security and the relaunch of the eCommerce platforms.

Ben Davies and Rachel Davies, LBS Group managing directors said:

“We are pleased with LBS Group performance in 2024 against the backdrop of a challenging marketplace. High interest rates, poor weather and lack of consumer confidence contributed to a challenging market. However, we saw some positive momentum in H2, with every month in the latter half of the year exceeding previous year performance. We have made strong progress in winning market share and have delivered growth in key areas.”

“Our focus for 2024 continued to be on delivering great value to our customer base via best-in-class customer service and competitive pricing. We are proud to be the largest independent builders’ merchant in South Wales and our offer of strong teams in local branches in key locations, combined with a strong stockholding and high product availability ensures that we can give customers a reason to choose us.

2025 has been a positive year for us so far, with all parts of our business ahead of last year. We are confident of further growth and investment to come and will stick to our core values of focussing on our people and ensuring that we continue to take decisions for the long term.  Our strategy remains unchanged.”

As at end-2024, the multi-merchant Group employed 476 staff and comprised of:

• 20 LBS Builders’ Merchant branches
• 16 Total Plumbing merchants
• 9 LBS Kitchen & Bathroom Showrooms
• Talbot Timber
• D G Heath
• LBS Civils & Drainage
• LBS Roofing
• LBS Renewables
• UK Build Supplies
• LBS Home & Garden