Updates and Ideas

Lords Group Trading - New issue makes strong debut

October 2021

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.

Established over 35 years ago as a family business (CEO Shanker Patel and his family still own 51%), Lords is a specialist distributor of building, plumbing, heating and DIY goods. The company made six acquisitions between 2016-2020 (and 13 in the last decade), recording a more than 20% return on investment and powering an increase in revenues from £246m to £330m between year-end March ’18-21. EBITDA jumped from £10.1m to £15m.But excitement over Lords’ target to deliver 3-4 further acquisitions per year on a 3-6x EBITDA multiple as part of the plan to take turnover to over £500m by 2024 has seen the shares ‘pop’ from their placing price of 95p on 20 July to 143p. The group will ...

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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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