LBS group has published its accounts for 2024 that show a significant fall in profit despite sales growth.
The group’s focus on long-term growth, increasing market share and maintaining a robust balance sheet delivered strong results in 2024, with net assets increasing to £37.6 million.
Against a challenging backdrop, LBS Group sales for period from January to December 2024 increased to £89 million (from £87 million in 2023). However, despite improving its sales performance, pressure on margins continued. The sales volume growth, which was ahead of industry figures, did not match the increase in overheads due to individual, exceptional events plus economic and industry factors. This means profit after tax was down by nearly 66% (from £1,423,710 in 2023 to £487,743).
2024 was a busy year for projects. The group acquired two new businesses; DG Heath (Timber Products), based in Pontarddulais, Swansea, and Denman & Sons Builders Merchants in Pengam, increasing the number of trading sites to 30.
Alongside these new branches, the group relocated its Total Plumbing Swansea Branch and Showroom to a larger site in Llansamlet, Swansea. It also relocated its LBS Maesteg branch, doubling the size of the branch. The group purchased its Neath site, which it had occupied since 2010, complete with additional land, before fully redeveloping and upgrading the branch offer. All new and relocated sites are trading positively.
The company also invested further into its IT security and relaunched its eCommerce platforms, to ensure an effective and robust operating system tied with innovation.
As at end-2024, the multi-merchant group employed 476 staff and comprised of:
Ben Davies and Rachel Davies, LBS Group Managing Directors, said: “We are pleased with LBS Group performance in 2024 against the backdrop of a challenging marketplace. High interest rates, poor weather and lack of consumer confidence contributed to a challenging market. However, we saw some positive momentum in H2, with every month in the latter half of the year exceeding previous year performance. We have made strong progress in winning market share and have delivered growth in key areas.”
“Our focus for 2024 continued to be on delivering great value to our customer base via best-in-class customer service and competitive pricing. We are proud to be the largest independent builders’ merchant in South Wales and our offer of strong teams in local branches in key locations, combined with a strong stockholding and high product availability ensures that we can give customers a reason to choose us.
2025 has been a positive year for us so far, with all parts of our business ahead of last year. We are confident of further growth and investment to come and will stick to our core values of focussing on our people and ensuring that we continue to take decisions for the long term. Our strategy remains unchanged.”
Outlook
The business has a strong outlook for growth and improved financial performance for the coming year. For 2025 to date, the group is outperforming 2024, with strong results projected for the remainder of the year. Continued investment in both employees and across the infrastructure of the group is expected to deliver continued long-term success.
The group is committed to continuing its emphasis on long-term growth and investment. LBS Group estimates that its robust balance sheet ensures it is able to respond quickly to opportunities and effectively implement its strategic initiatives.
The company’s focus continues to be on winning market share and providing competitive pricing support to its customers. Digital initiatives and the development of innovative solutions to its customers have been a key priority for 2025.
The business’ focus remains on its core principles of investment in the best people while generating strong cash flow and maintaining a robust balance sheet. Its plans for 2025/26 are unchanged and the team is confident of continuing to deliver performance ahead of its market for the long term.
