Builders merchant group Lords saw sales rise 26% for the year ended December 31 2021 to £363.3m, generating gross profits that, at £62.7m were 32.8% ahead of the previous year.
Like-for-like revenue grew by 18.1% and was 20.8% ahead of 2019, following a swift rebound post pandemic. EBITDA was up 40.1% to £22.3 million (FY20: £15.9 million restated). Pre-tax profit was £8m, up 122% from £3.6m in 2020.
The group declared its first dividend of 1.89 pence per share, reflecting its confidence in delivering consistent and growing shareholder returns. Digital revenue grew 31% in FY21 and now represents 6.3% of Group revenue, while the four acquisitions since year end, enhance the Group’s geographical presence and offer scope for further growth through extended product ranges.
The group expects supply chain issues to ease moving into the second half of 2022, with revenues continuing to trade largely in line with market expectations. Adjusted profit before tax is in line with expectations of approximately £16.0 million
Shanker Patel, CEO of Lords, said: “We are delighted to report such a strong set of maiden full year results where Lords has delivered record revenue and earnings growth, and demonstrated our ability to deliver against our strategic and financial objectives set out at IPO. First and foremost, I would like to thank our colleagues across the UK, who without their fantastic commitment and support for our vision, these results would not have been achieved.
“Due to the fragmented nature of the market in which we operate, Lords has a unique opportunity to deliver both organic and acquisitive growth and we are excited to successfully demonstrate this today. As we build our size, reach and product range, we will be able to further enhance our excellent service to our customers and this underpins our exciting growth strategy. Our industry has not been immune to the widespread challenges caused by price inflation and supply issues, the latter of which has recently affected the supply of boilers in our AAP business. We have taken all the necessary steps to ensure that we continue to achieve our growth and profit forecasts and with the current boiler issue, where demand remains strong, we will take every possible action to protect the strength of our business.”
“Progress in the new financial year has continued to be strong, our four new value accretive acquisitions are performing in line with our expectations and we look forward with confidence as we aim to deliver sustainable and growing returns to our shareholders.”