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We should see an upward trajectory as contracts wins and good news emerges. The very low SP is super attractive for a short term 100% rise….this has much potential and with the opening of the new UK office being announced soon, there will be excellent opportunities for further global business expansion. DYOR
BRV Capricorn
For all to speculate. The time is near…..
https://find-and-update.company-information.service.gov.uk/company/05676866/filing-history
BRV Capricorn
See prior posts. We can expect consistency in terms of the boards prudent approach to acquisitions and IPO pledges in terms of revenue growth both organically and through selective acquisitions.
A strong sales mindset supported by a cultured workforce whom provides top class customer service which preserves and further strengthens the excellent brand value and proposition of this well oiled machine.
Effective costs control too and debt reduction will further grow profitability and enhance dividends leading to increased shareholder capital value will ultimately drive the SP to new highs in 2024 and consistently beyond as demand strengthens.
BRV Capricorn
See prior posts. This company is going from strength to strength and will outperform in difficult market conditions when they exist. An £11mn net profit is exceptional considering the general market conditions and macroeconomic headwinds.
The final dividend should be lucrative too and with analysts suggesting value by the year end of 90p, hoping this will head upwards again to 60p+ in the short term, and then onwards to 70-80p…..by June …2024
BRV Capricorn
See below… charts show strong prospects and growth. Technicals very strong too….90p target SP…
BRV Capricorn
https://uk.investing.com/equities/lords-group-trading-consensus-estimates
The group continues to show throughout what have been challenging market conditions across the sector, notwithstanding inter alia increased interest rates and the macro-economic backdrop.
The board was able to confirm at the time of announcement of Chris Day’s resignation that a process had commenced to identify and appoint a new CFO.
A key tenet of the Lords Group culture remains the development and support of its colleagues and, with Chris having previously taken on additional operational responsibilities as COO alongside his CFO role as part of his ongoing development, the Board had taken the view that (in the event that the transition became even further operationally focussed) a process should be commenced for a CFO to work alongside the rest of the existing executive management team. This commencement of this process has therefore enabled the Board to be well advanced at the time of Chris deciding to take up another opportunity. They wish him well for the future and he leaves as a member of the Lords family. The Board’s effective approach to planning in this instance will provide for smoother succession planning than otherwise may have been the case.
The board remain aligned that the long-term prospects of the Group are not currently reflected in the share price.
The shares will continue to rebound upwards, the recent correction is just the start. DYOR …
BRV Capricorn
This SP was battered for no reason. The company is healthy with excellent leadership and strong costs discipline.
The products cater for all customer types and are quality and affordable.
1% market share which will grow organically plus through acquisitions.
Balance sheet is strong with at least £15mn of prime Real Estate assets which can be developed so say possibly £25mn in the future.
Eco products expanding rapidly and the new outlets delivered in 2023.
This company is growing at pace and is totally undervalued.
Target SP by two analysts is 90p.
A strong buy should be a MUST buy. DYOR
BRV Capricorn
This company MADE £11+ million in a tough climate and as the consumer recovery really beats the drum, it will be double this. The market cap of £77mn is pitiful. 1% market share …this will only get better…
A gem in the making; quality dedicated personnel; diverse products; geographic spread growing…..
£1 share value in no time imho
DYOR
BRV Capricorn
You were wrong slating me.
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It’s happening very soon. Enjoy it…..
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The SP should be up soon. Target SP 90p.
Dividend to be announce will be up on last year…EPS 4.8p
2024 will be rewarding and targets will be surpassed…
BRV Capricorn
Should see these fly…..
Totally agree with your structured and fair comments. I see the target SP is now 90p from £1… this company will seriously outperform peers.
The SP is shockingly downed by the MMs.
Time for the rebellion.
BRV Capricorn
On the shareholder presentation it was confirmed that the dividend would be maintained and also they have plenty of balance sheet strength (cash/ finance lines) to make any complimentary acquisitions but not at any price.
The dividend alone is 1.33p minimum and EPS are around 4.1p which is sound. They made a decent profit in tough market.
Also eco energy is a major growth area….
All looks healthy….SP NEEDS TO REFLECT THESE FACTS
BRV Capricorn
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!
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I hoped today, but pls be patient.
Strow - I’ve read your posts. You’re right on most aspects.
Lawrence- I think you are spot on.
Thursday I believe will be pivotal.
BRV Capricorn
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