Welsh family independent merchant continues to outperform a challenging market.
LBS Group, South Wales' largest independent builders' merchant, has reported increased sales and profits for 2025, continuing to outperform a challenging market while investing in its people, branches and customer service.
The fourth-generation family-owned business, headquartered in Ammanford, recorded turnover of £91.8 million for the year ended 31 December 2025, up from £88.9 million in 2024. Profit before tax increased by 30% to £3.2 million, with its pre-tax profit margin improving 0.7 percentage points.
The results, reported by parent company LBS Holdings (UK) Limited, were achieved despite subdued conditions across the construction sector and continued pressure on margins.
Following expansion and investment in 2024, the Group focused on strengthening its existing operations during 2025. DG Heath in Pontarddulais and Denman & Sons in Pengam, both acquired in 2024, became firmly established within the Group and delivered financial performances in line with expectations.
LBS continued to operate from 30 trading sites during the year, with an average workforce of 472 employees. Investment continued across its branch estate, employee development, IT security and eCommerce platforms, supporting both day-to-day service and the long-term development of the business.
The Group also strengthened its balance sheet, with net assets increasing to £38.8 million from £37.6 million.
Rachel Davies, Joint Managing Director of LBS Group, said: "We are pleased to report growth in both sales and profitability in a market that remains challenging. After a period of investment, our focus in 2025 was on strengthening the business and making those investments deliver.
"As a fourth-generation family business, we take a long-term view. These results give us confidence to continue investing in our people and branches, and to build on the relationships that have supported LBS for generations."
Ben Davies, Joint Managing Director, added: "Our teams deserve enormous credit for these results, and we are grateful to our customers for their continued support. The knowledge and commitment of our people, backed by strong stock availability and competitive pricing, give customers a reason to choose LBS.
"We know trading conditions remain tough for many of our customers. Our priority is to help them keep their projects moving and their businesses growing, with reliable service and support from people they know and trust."
The Group has continued to trade profitably through the first eight months of 2026. A major focus this year has been the launch of a new five-year strategy, alongside further investment in its existing branch network.
A full refurbishment of its Llanelli site has been completed, with a similar programme close to completion at Ammanford. Both projects include reconfigured branch layouts and the addition of bathroom showrooms, expanding the offer available to local tradespeople and homeowners.
Ben said: "Launching our five-year strategy has been a major focus for us in 2026. It gives our teams a clear direction for developing the business and delivering sustainable, profitable growth.
Rachel added "Our investment in Llanelli and Ammanford demonstrates our commitment to the communities we serve. We want to keep improving what customers can access locally, while building a strong business for the next generation."
