Lords Group Trading PLC on Tuesday reported weaker first half financial performance as market conditions remain challenging with no substantial improvements expected in the short term.

The London-based distributor of building materials said pretax profit fell to £1.1 million in the first half that ended June 30 from £5.6 million the previous year.

Revenue decreased 3.8% to £214.2 million from £222.6 million, as cost of sales reduced 3.5% to £170.9 million from £177.2 million.

Lords declared a 0.32 pence per share interim dividend, down 52% from 0.67p.

Chief Executive Officer Shanker Patel said: ‘In this challenging market, management has remained focused on optimising capital allocation and operating efficiency, with actions taken on costs expected to deliver annualised overhead savings of £2.6 million in FY2025.

‘In the medium term, the group is well placed in a highly fragmented and essential repair, maintenance and improvement (’RMI’) market, to grow the group’s market share organically and through selective, valued-added acquisitions which will become more attractive as the market returns. We are encouraged by the growth in Renewable product sales and believe this could be an additional near-term growth lever.’

Despite an anticipated improvement in the Construction sector, Lords does not expect to see any substantial changes to the market in the second half of 2024.

Lords shares were down 5.5% at 36.85 pence each in London on late Tuesday morning.

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