23 May 2024
Lords Group Trading plc
('Lords', the 'Group' or
the 'Company')
Issue of
Equity
Lords, a leading distributor of building materials in
the UK, was pleased to announce the acquisition by Lords of A.W.
Lumb on 1 March 2022 (the 'Acquisition') and A.W. Lumb has since
become an integral part of the Group operating in the North of
England.
The Company now announces that, at the request of the
Managing Director of A.W. Lumb (the 'Vendor'), the Company has
agreed that remaining deferred consideration due to the Vendor of
an aggregate of £480,000 payable in equal annual tranches until
February 2027 will now be settled via the issue of new ordinary
shares in the Company on an unchanged deferral schedule ('Deferred
Consideration').
As a result, the Company has now issued 255,319 new
ordinary shares of 0.5 pence each in the Company ('New Ordinary
Shares') at an effective issue price of 47.0 pence per New Ordinary
Share in respect of the 2024 Deferred Consideration payment to the
Vendor.
Accordingly, an application has been
made for the New Ordinary Shares to be admitted to trading on the
AIM Market of the London Stock Exchange ('Admission'), and it is
expected that Admission will occur at 8.00 a.m. on
30 May 2024. The New
Ordinary Shares will rank pari
passu with the existing ordinary shares in issue. Following
Admission of the New Ordinary Shares, the Company's issued ordinary
share capital will comprise 165,855,714 ordinary shares, none of
which are held in treasury.
Therefore, following Admission of
the New Ordinary Shares, the total number of ordinary shares with
voting rights in the Company will be 165,855,714, which may be used
by Shareholders as the denominator for the calculations by which
they will determine if they are required to notify their interest
in, or a change to their interest in, the Company under the
Financial Conduct Authority's Disclosure Guidance and Transparency
Rules.
Deferred Consideration share issuances to the Vendor,
each of 255,319 new ordinary shares in the Company, will occur in
February 2025, February 2026 and February 2027. Remaining
Acquisition deferred consideration payable to other Acquisition
vendors of an aggregate of £1.44 million will remain payable in
equal cash annual amounts through to February 2027.
Shanker Patel, Chief
Executive Officer of Lords, commented:
"As confirmed at the time of
publication of the Group's final results, Lords continues to
successfully execute on its stated strategy and delivered top line
growth and gained market share in FY23. The quality and
commitment of the Group's employees are central to the continued
growth of the Group. The Group was therefore pleased to
respond to the request from a senior manager to receive previously
cash acquisition consideration in equity, in doing so further
aligning his interests with those of Lords
shareholders."
- Ends -
FOR FURTHER
ENQUIRIES:
|
Lords Group Trading plc
|
Via
Buchanan
|
|
Shanker Patel, Chief Executive
Officer
|
Tel: +44
(0) 20 7466 5000
|
|
Cavendish Capital Markets Limited
Nominated Adviser and Joint Broker
|
Tel: +44
(0) 20 7220 0500
|
|
Ben Jeynes / Dan Hodkinson
(Corporate Finance)
Julian Morse / Henry Nicol / Charlie
Combe (Sales and ECM)
|
|
|
Berenberg
Joint Broker
Matthew Armitt / Richard Bootle /
Detlir Elezi
|
Tel: +44
(0) 20 3207 7800
|
|
Buchanan Communications
|
Tel: +44
(0) 20 7466 5000
|
|
Henry Harrison-Topham / Steph
Whitmore / Abby Gilchrist
|
LGT@buchanan.uk.com
|
Notes to editors:
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 31 locations in the UK.
· Plumbing and Heating: a specialist
distributor in the UK of plumbing and heating 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 17 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 Group has grown to a
business operating from 48 sites.
Lords was admitted to trading on AIM in July 2021
with the ticker LORD.L. For additional information please
visit www.lordsgrouptradingplc.co.uk.