Lords Group Trading PLC (7S6) Q2 2026 Earnings Report

The call presented a mixed but cautious picture. Management highlighted resilient reported revenue, improved gross margins, cost reductions, a positive EBITDA contribution from CMO, refinancing completion, and several operational improvement initiatives. However, these positives were offset by a 6.8% group like-for-like revenue decline, lower EBITDA, higher net debt and leverage above target, significant Plumbing & Heating and Merchanting volume declines, reduced market forecasts, and expectations that difficult market conditions will continue. Management was focused on actions within its control, but the near-term outlook remained challenging.

Management’s outlook assumption is that “the second half conditions will be similar to the first half,” with “not expecting an improvement in market conditions”; priorities are to “convert profit into cash, reduce our leverage by the year end, grow our market share in our Plumbing & Heating division, and improve our EBITDA through implemented cost savings, operational efficiencies, and gross profit improvement.” The group will continue to focus on margin, cost, and working capital discipline, keep CapEx “to an essential maintenance level or for those projects that are offering a particularly high return,” deliver GBP 1.6 million in annualized Merchanting OpEx reduction, GBP 1.5 million annualized P&H savings in full year 2027 and GBP 0.9 million expected in 2026, and expects debt to reduce in the second half through “the natural seasonal flow”; the industry federation reduced its forecast from “a +2.3% in 2026 to a -1.8%,” while PMI was “44.3 in August and well below 50.”