The shares fell 9.8% after the update, as investors focused on a 6.8% like-for-like revenue decline, weaker-than-expected market conditions, and adjusted EBITDA falling to £8.4 million. Management said market recovery has been slower than anticipated, with difficult Plumbing & Heating conditions and ongoing pressure to prioritize cash and debt reduction.
- H1 revenue was £232.1 million, broadly in line with H1 2025, but like-for-like revenue fell 6.8%; acquisitions and new branches offset declines in existing businesses.
- Adjusted EBITDA was £8.4 million at a 3.6% margin, a couple of million pounds below the prior-year period. Net debt rose to £26.5 million from £20.9 million.
- Plumbing & Heating like-for-like sales fell about 13%–14%, reducing revenue by £16.6 million. Merchanting like-for-like revenue fell 4.9%, with lower volumes driving the division’s profit decline.
- Gross profit increased 4.7% to £46.9 million, and gross margin rose to 20.2% from 19.3%. Plumbing & Heating gross margin improved by 130 basis points.
- Management has implemented over £3 million of operating-cost savings, is cutting CapEx to essential or high-return projects, and will not pay an interim dividend as it prioritizes cash generation and reducing leverage.
Community Discussion