(Sharecast News) - Building materials distributor Lords Group reported stable revenue in line with management expectations in an update on Thursday.
The AIM-traded firm, which was holding its annual general meeting, said since its last trading update on 15 May, demand for its repair, maintenance, and improvement (RMI) products had remained consistent with the first quarter of the financial year.
It added that gross margins had been maintained despite broader economic challenges.
The firm said the impact of the Clean Heat Market Mechanism (CHMM), which posed difficulties in the first quarter, had diminished in April and May.
Lords said it had successfully integrated Alloway Timber, acquired last September, rebranding it as Lords Builders Merchants (LBM).
Four out of five sites in the south-east of England had been fully refurbished, receiving positive customer feedback.
Similarly, Chiltern Timber, acquired in April, had been incorporated into LBM, operating from a modern specialist timber site in Hemel Hempstead.
"Whilst challenging macroeconomic conditions have impacted trading at the start of 2024, the group is well positioned in a highly fragmented and essential RMI sector," said independent non-executive chairman Gary O'Brien.
"Our strong customer service culture combined with a proven track record in selective acquisitions, gives the board confidence that this will lead to a sustainable increase in shareholder value over the medium term."
At 1003 BST, shares in Lords Group Trading were up 0.94% at 43p.
Reporting by Josh White for Sharecast.com.
Lords Grp Tr (LORD)