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Clueless greedy gutless pricing. Huge buys and they suppress the share price to then mark it down profiting on corrupt pricing.
I hope they get stung in the pocket as they’ve shafted shareholders …..
BRV Capricorn
A solid set of results in a tough market.
Expect a rally once the true performance is understood by the market.
Record revenue
FY23 revenue of £463 million (FY22: £450 million)
FY23 adjusted EBITDA2 of approximately £26.6 million (FY22: £30.0 million), in line with current market expectations and adjusted profit before tax of approximately £11.0 million (FY22: £17.4 million) which was mainly due to interest rate increases
Furthermore, seven additional sites across the UK have been added through acquisitive and organic growth, generating an expected £25 million of annualised revenues at maturity
The Group continues to maintain a prudent and considered approach to inorganic growth and, whilst a pipeline of acquisition opportunities remains live, in the current environment the Group is committed to balance sheet discipline which will remain in FY24
Lords has strategically focused on product range extension in the renewables space in recent years, with strong growth drivers and market dynamics complementing Lords position in the supply chain.
In Q4 2023, the Government confirmed that the widely consulted Clean Heat Market Mechanism (‘CHMM’) will commence in Q2 2024. The CHMM will incentivise boiler manufacturers and homeowners to accelerate the transition towards renewable energy sources across the UK housing stock, increasing demand for renewable products including air source heat pumps.
Lords is well placed to benefit from a shift in demand towards air source heat pumps, enjoying successful and growing trading relationships with six air source heat pump manufacturers and achieving 60% revenue growth across its wider renewables range in FY23
As at 31 December 2023, the Group had net debt of £28.5 million (30 June 2023: £38 million), backed by a freehold property portfolio with an estimated market value of not less than £15 million. The significant reduction in net debt, ahead of current market expectations, reflects the Board’s focus during the period to reduce net debt through a number of successful management controls and initiatives and through the normalisation of working capital
Shanker Patel, Chief Executive Officer of Lords, commented:
“Like many of our peers it has been a challenging year but the fundamentals of our business have underpinned a resilient performance that I’m incredibly proud of.
“Our scale and profitability in both Merchanting and Plumbing & Heating have benefitted from our organic growth levers as we build our geographic footprint, extend our product range and build our digital sales expertise. We maintain an ongoing ability to execute earnings enhancing M&A, but balance sheet discipline remains a core consideration. In that regard it is pleasing to report net debt reduction ahead of market expectations. As market conditions improve we are confident that we are exceptionally well positioned for growth.”
ALL CONSIDERED THIS IS A DECENT SET OF NUMBERS!
Why’s that?
Solid results in fact.
Debt reduced significantly; revenue up; freehold property worth £15mn; profits slightly down as they’ve invested in new refurbishments of purchased properties.
Costs cutting measures in place and yes trading has had headwinds but a niche player with 1% of market share will progress and this will move considerably higher.
Be very cautious with your remarks!
BRV Capricorn
For a group that’s meant to be growing I’m afraid they’re going nowhere -which is a shame as i have a decent shareholding here - I’m afraid our resident cheerleader Mr Valentine has called it wrong (not for the first time)
Seriously questionable how this hasn’t shot up….
Should be a decent performance in difficult trading environment. Headlines:
Gross revenue - £460mn
Net profit - £13.75 - £15.5mn
Final Dividend 1.35p
SP - 70p 80p target by year end
DYOR- BRV Capricorn
How many bought in the past week? They drop it 20% on low volume sells but don’t raise it on consistent strong demand!!
That’s factually correct but I can’t see sales plummeting as at the eo September sales had increased as I attended an event hosted by the CEO and things were buoyant.
Chris seems to have been given a new role as recruiting a new CFO was well advanced before he resigned. He’s hosting the update with the CEO on 24/1, I’ve submitted numerous questions. We shall see but deals will only be done if the price and fit is right.
The market cap and SP is way small/cheap and the volume of buys Friday should have pushed this up 7/8p which is seriously questionable…
BRV Capricorn
There’s probably a lot of people who want to sell as there have been no deals announced the CFO is leaving and they pushed back the payment for the property in Langley -all slight red flags in my opinion so it will be interesting to see what they will say in a few weeks
305000 purchase and no sales; SP up 1p
Sale as of far less over the week and SP is destroyed -11p.
The above just proves corrupt the market is. Utterly disgusting. Share price suppresses intentionally for all these termites buying on the cheap, in cahoots with The MMs.
I’m so fooked off with this corruption and greed
Totally undervalued but poor messaging by the company hasn’t helped the SP. The board need to be more vocal with stronger and greater clarity on updates. Good rebound is due in the SP.
BRV Capricorn
Hoping Chris Day stays as he’s been a big part of the companies growth.
Th SP is providing a good yield so I suspect to see a major flow of buys coming……
£1 is a truer valuation imho…
BRV Capricorn
Net profits of £15mn per year provide a 5 year window to cover market cap and a P/E ratio of 8 makes the current SP crazy low. Should be at £1 imho as by per analysis projections. The market valuation is ridiculous low, insane and will reverse. Liquidity in this share is the problem!!!
BRV Capricorn
Lords, a leading distributor of building materials in the UK, announces that it will issue a scheduled FY23 Trading Update for the year ended 31 December 2023 on Wednesday, 24 January 2024.
Hopefully another solid year albeit slightly below plan but nevertheless it should still be decent with expectations for IPO targets to be achieved in 2024 as envisaged…and improved performance in 2024 and profits of £35mn projected this year.
BRV Capricorn
A large sell at 40p way below bid which dragged the SP down.
Urgently need an RNS clarifying 2023 performance plus the role change of CD who clearly was being transitioned out of the CFO role if they’d commenced recruiting before his decision to leave.
Shanker, can you provide a statement to stabilise the SP and actually give shareholders the value deserved for their loyalty? Feeling shafted right now!!!
Salver2 - I think Chris Day was asked to perform a dual functional role as CFO /COO which had not been announced publicly and another opportunity has come his way. That’s how I read the RNS as it notes they were already looking for a new CFO (doesn’t say COO dual role?) as perhaps CD couldn’t cope?
RNS is very clear
Lords, a leading distributor of building materials in the UK, announces that Chris Day, Chief Financial Officer and Chief Operating Officer, has informed the Board of his decision to leave the Company to take up another professional opportunity.
Following Chris Day’s recent transition to a partially operational role within the Group, a formal process to identify and appoint a new Chief Financial Officer had already begun and is now at an advanced stage.
ALSO - they have good bank lending facilities so cash isn’t an issue.
They already previously said that sales and net profit would be slightly lower due to market pressures….. the investor chronicle noted this and they were a hold.
I think the numbers will be solid… RNS will confirm such and this will be back up 70p.
DYOR - BRV Capricorn
Why do you think the CFOs leaving-no deals announced cash is tight and they’re obviously not doing well -I hope I’m wrong as I’ve got a reasonable sized investment here
a few sales and knock the price down 5p allowing for someone to get them cheap with existing shareholders losing huge amounts as the price remains way down although demand was double supply! **** take and absolutely market manipulation
Expecting a solid performance when the market conditions have been difficult with high inflation and interest rates.
Dividend should be held at prior level.
Improved margins.
Further acquisitions in pipeline I suspect.
T/O - £460mn
Net profit £15-16mn
Earnings 5.5p per share (net)
If the above is in line then that’s an excellent performance and the SP should adjust up to 70-80p as projections for 2024 and 2025 will see considerable growth in sales and profitability.
Also there’s every possibility of an offer for this well run group which would be in excess of £1
DYOR - BRV Capricorn
BRV Capricorn
Https://uk.investing.com/equities/lords-group-trading-consensus-estimates
New year to see these expand and rapidly grow. Major opportunities for enhanced revenue and bottom line p&l. Will be an attractive M&A Co in the next two years - dividend solid
Let’s have it pls and then the surge to 80p
I’m serious when I say this company is going to rocket and you get sellers jumping! Madness… come on LORDS let’s get the news out….sooner 😉
Last chance saloon to bank these….. 80p will happen