Shares in Lords Group Trading took a hit on Thursday as the U.K. building-materials distributor announced a challenging market environment and a decrease in pretax profit for the first half of the year.
During the first six months, Lords Group Trading recorded a pretax profit of £5.6 million ($7 million), compared to a restated figure of £5.8 million in the same period last year. The rise in revenue was overshadowed by higher administrative and finance costs.
Overall revenue grew from £214.2 million to £222.6 million. However, on a like-for-like basis, first-half revenue saw a 4.4% decline.
Adjusted earnings before interest, taxes, depreciation, and amortization rose to £15.1 million from £14.2 million.
Lords Group Trading attributes its difficulties to high inflation, increasing interest rates, and weaker consumer confidence. The company anticipates demand to remain at current levels for the rest of the second half. It expects full-year revenue to reach approximately £450 million, with adjusted Ebitda around £27 million.
The board has declared an interim dividend of 0.67 pence per share, maintaining the same level as last year.
At 0749 GMT, shares were down 14% at 59.0 pence.
