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Construction supplier Lords hands out 1 million shares to staff

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Construction supplier Lords hands staff nearly £3,000 each in shares after stock surges 30% since July float

  • 485 employees who were employed six months before the IPO will each receive 2,105 shares
  • Share price has risen 30% since listing to 137.5 p
  • The company announced this week that it had made £4.5m in profits in the first half










Building materials distributor Lords Group plans to distribute 2105 shares each to 485 employees just months after its successful IPO.

Lords, which traded on the London AIM market in July for 95 pence per share with a valuation of £150 million, will offer the shares to all employees who were with the company at least six months prior to its IPO.

Gentlemen shares are currently trading at 137.5 pence, an increase of more than 30 percent since the IPO.

The share incentive plan was announced at the IPO as ‘recognition’ of the efforts of the employees and ‘the importance of ensuring that all employees are well motivated and closely identify with the success of the group’.

The distributor of specialist construction, plumbing, heating and DIY items raised £52 million in its IPO.

The 1,020,925 shares will be placed in a trust on behalf of the staff who must remain with the company and hold the shares for at least three years.

An application has been made for the shares to be admitted to trading on AIM, which is expected to take place on October 6 at 8 a.m.

Lords CEO Shanker Patel said: ‘We are a people business and the future success of the Group depends on their continued hard work and dedication.’

The distributor of specialist construction, plumbing, heating and DIY items raised £52 million in its IPO.

The company announced this week that it had made a profit of £4.5m in the first half, down from a loss of £300,000 in the first half of 2020, while turnover rose from £124m to £179m.

Lords aims to nearly double its turnover to £500m by 2024, from £288m currently.

At the same time, Patel and his team aim to increase the net return on sales from “to 5 percent” to the 6 to 7 percent enjoyed by larger operators such as Travis Perkins.

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