Lords is a specialist distributor of building, plumbing, heating and DIY goods. The Group principally sells to local tradesmen, small to medium sized plumbing and heating merchants, construction companies and retails directly to the general public.
The Group operates through the following two divisions:
Merchanting: supplies building materials and DIY goods through its network of merchant businesses and online platform capabilities. It operates both in the ‘light side’ (building materials and timber) and ‘heavy side’ (civils and landscaping), through 24 locations in the UK.
Heating and Plumbing: a specialist distributor in the UK of heating and plumbing products to a UK network of independent merchants, installers and the general public. The division offers its customers an attractive proposition through a multi-channel offering. The division operates over nine locations enabling nationwide next day delivery service.
Lords was established over 35 years ago as a family business with its first retail unit in Gerrards Cross, Buckinghamshire. Since then, the Company has grown to a business operating from 33 sites with a combined turnover in excess of £288 million. The Group aims to become a £500 million turnover building materials distributor group by 2024 as it grows its national presence.
Admission to Trading on AIM
On 20th July 2021, admission and dealings commenced by way of a Placing of 31,578,947 New Ordinary Shares and 23,157,892 Sale Shares at 95 pence per share, giving a valuation of around £150 million.
Reasons for Admission and use of proceeds
The Company has raised approximately £30.0 million before expenses pursuant to the Placing (approximately £27.7 million net of expenses).
In addition, the Selling Shareholders are seeking to raise approximately £22.0 million before expenses in the Placing. Of the Placing proceeds raised for the Company, approximately £24 million will be deployed to pay down senior debt. This de-leveraging will significantly reduce the Group’s annual interest charge and will create a more stable balance sheet from which to pursue growth.
The Perivan shareholder communications team were delighted to work with Cenkos Securities who were appointed as Nominated Adviser and Broker on the successful publication of the 170-page admission document.
Perivan specialise in the production and publication of financial documents relating to shareholder and investor communications for quoted companies, private companies and open and closed-ended funds.