Updates

Lords - Largest deal to date

June 2022

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Since my main note, Lords has announced its largest deal to date, the £23.1m purchase of AW Lumb. Lumb reported EBITDA of £3.9m and pretax profit of £3.8m and EBITDA margins of 9%, which is superior to Lords. With Lumb’s EV/ EBITDA just 5.9x versus Lords’ c.8.6 EV / EBITDA according to Cenkos, it’s clearly eps enhancing. Lumb was established in 1964 and is a two branch business (Dewsbury, Yorkshire and Tamworth, Staffs) employing 77 staff. It offers general merchanting across building materials, garden landscaping, timber & joinery and roofing. Lumb will not only improve Lords’ geographic reach and provide a platform to launch into the Midlands but also extends product specialisms into dry-lining / plasterboard and insulation m ...

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Lords (March 2024)

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Lords Group - PE just 8.6 in spite of second upgrade (June 2023)

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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