On its first day of dealings on Tuesday morning, shares in the UK-focused building materials distributor, Lords Trading Group (LORD ), jumped by around 4% as it made its AIM debut.
The Group, which distributes building, plumbing, heating and DIY goods, said it has raised £52 million through a placing of 4,736,839 new and existing ordinary shares at a price of 95p a share. As a result, Lords’ market capitalisation is valued at around £150 million.
Since its establishment over 35 years ago as a family business with its first retail unit in Gerrards Cross, Buckinghamshire, Lords Trading Group has grown to a business operating from 33 sites with the business creating a combined turnover in excess of £288 million.
The Company told shareholders upon admission that it is aiming to become a £500 million turnover building materials distributor group by 2024 as it grows its national presence.
To date, Lords has successfully completed six acquisitions from 2016 to 2020 with the group fully integrating and performing at a return-on-investment rate of greater than 20%.
The proceeds of today’s placing, which Lords said had attracted strong support from institutional investors and was oversubscribed, will be used to repay bank debt and provide resources to accelerate growth through a variety of organic and inorganic strategies.
These strategies include the increase in geographic reach, product expansion, the active expansion of e-commerce platforms and the continued investment in its logistical capability.
Shanker Patel, Chief Executive of Lords Group Trading, said: "We are delighted to have received such a positive reception from investors and look forward to beginning our journey on the public markets with our wider shareholders on board. Lords Group has always been proud of our familial culture, and we welcome our new investors and shareholders.”
Patel said the Company’s “clearly defined growth strategy” which will enable the Group to expand whilst leveraging a strong position in the UK building materials distribution space
“We are positioned for the future and whilst others in our sector work to apply technology to their businesses, we are leading the field with systems and e-commerce strategies.”
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