Slides
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30 September 2026 Resilient first-half revenue, with operational actions underway to improve performance and reduce leverage H1 2026 Update 1
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Agenda 2 Highlights Shanker Patel, CEO Financial review Stuart Kilpatrick, CFO Business review Shanker Patel, CEO Outlook Shanker Patel, CEO Q&A Shanker Patel, CEO Stuart Kilpatrick, CFO
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Resilient revenue, decisive operational response H1 2026 was operationally challenging, but management has identified the issues and increased the pace of action What improved ˃ Merchanting LFL decline narrowed to 2.3% in Q2 ˃ CMO delivered positive EBITDA ˃ P&H gross margin +130 bps; Spares revenue increased c.8% ˃ Refinancing completed April 2026 What challenged performance ˃ P&H market conditions difficult ˃ APP grew margin on lower market share ˃ Market recovery slower than expected – Construction PMI below 50 for 20 consecutive months What management is doing ˃ Focused plan for each operating business ˃ Over £3m of opex savings implemented to date ˃ Margin, cost and working capital discipline ˃ Reduced capex and debt reduction prioritised 1. Excluding property gains / losses and before adjusting items £232.1m Group revenue Broadly in line with H1 2025 (£232.1m) (6.8)% Group LFL revenue Underlying demand weaker across end markets £8.4m Adjusted EBITDA1 Margin 3.6% nil Interim dividend Balance sheet discipline prioritised 3 £26.5m Net debt Seasonal working capital outflow
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4 30 September 2026 Financial review
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Change H1 2026 H1 2025 Change Revenue £231.1m £232.1m - Gross profit £46.9m £44.8m 4.7% Adjusted EBITDA1 £8.4m £10.4m (19.2%) Adjusted operating profit1 £2.3m £4.5m (48.9%) Adjusted earnings per share2 (0.70p) 1.35p (n/a) Net debt3 £26.5m £20.9m 26.6% Dividend per share - 0.32p (n/a) 1.Excluding property gains / losses and before adjusting items. Property gains in the period were £nil (H1 2025: £1.7m) 2. Excluding property gains / losses and before adjusting items. 3. Net debt excluding leases H1 2026 financial snapshot 5 ˃ Reported revenue resilience masked weaker underlying demand ˃ Gross margin increased to 20.2% (H1 2025: 19.3%) reflecting pricing discipline and improved gross margin in P&H ˃ Profitability declined year-on-year, increasing the importance of cash generation ˃ Near-term priorities are working capital, reduced capex and delivery of improvement plans
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232.1 (16.6) (5.4) 22.0 232.1 2025 H1 Revenue P&H LFL Merchanting LFL CMO and new branches 2026 H1 Revenue £m 200.0 205.0 210.0 215.0 220.0 225.0 230.0 235.0 Revenue Bridge H1 2025 - H1 2026 Revenue and Operating expense bridges H1 2025 – H1 2026 6 ˃ CMO and new branches added £22.0m ˃ Offset LFL reduction in Merchanting (£5.4m) and P&H (£16.6m) 34.4 5.2 (1.0) 38.6 2025 H1 Operating Expenses Acquisitions / new branches LFL decrease 2026 H1 Operating Expenses £m 33.0 34.0 35.0 36.0 37.0 38.0 39.0 40.0 41.0 Operating expenses H1 2025 - H1 2026 ˃ £5.2m added from CMO acquisition (June 2025) and net new branches ˃ £1m (2.9%) of LFL cost reduction delivered despite higher Minimum Wage and Employer’s NIC in Q1 and inflationary impact of Middle East conflict on transport and pass through costs,
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£m H1 2026 H1 2025 Change Revenue 112.3 117.7 (4.6%) Gross profit 29.0 30.4 (4.6%) Operating expenses (24.4) (23.9) (2.1%) Adjusted EBITDA1 4.6 6.5 (29.2%) Revenue down 4.6%; LFL down 4.9% ˃ Lords Builders Merchants and George Lines both delivered positive like-for-like growth during the period ˃ Businesses with greater exposure to new- build housing remained challenging ˃ Gross margin remained stable at 25.8% (H1 2025: 25.8%) in a highly competitive market ˃ Overheads increase limited to £0.5m ˃ Adjusted EBITDA1 of £4.6m reflects lower Construction volumes Looking ahead ˃ Focused on increasing market share, improving gross margin, tightly controlling operating costs 1. Before adjusting items and property gains of £nil (H1 2025: £1.7m) 6.5 (1.7) 0.3 (0.5) 4.6 2025 H1 EBITDA Revenue Margin Overheads 2026 H1 EBITDA £m 4.0 4.5 5.0 5.5 6.0 6.5 7.0 Merchanting EBITDA Bridge 7 Merchanting: Volume challenged; gross margin stable
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£m H1 2026 H1 2025 Change Revenue 96.4 112.2 (14.1%) Gross profit 13.2 13.9 (5.0%) Operating expenses (9.7) (10.0) 3.0% Adjusted EBITDA1 3.5 3.9 (10.3%) ˃ Revenue decline of 14.1% reflected no repeat of exceptional boiler volumes in March 2025 ▪ UK boiler market estimated decline of 3 – 4% offset ▪ Deferral of replacement boilers supported by 8% increase in spares revenue ˃ Gross margin increased by 130 bps reflecting deliberate shift to value over volume ˃ Adjusted EBITDA1 down £0.4m reflecting the lower volumes Strategic progress ˃ Depot rationalisation program largely completed in Q2; annualised cost reduction of £1.5m 3.9 (2.0) 1.3 0.3 3.5 2025 H1 EBITDA Revenue Margin Overheads 2026 H1 EBITDA £m 1.5 2.0 2.5 3.0 3.5 4.0 4.5 P&H EBITDA Bridge P&H: Re-sized infrastructure; market share drive 81. Before adjusting items
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Digital: building a scalable Group platform 9 ˃ CMO was acquired in June 2025 ˃ Revenue increased 17.5% year-on-year ˃ Positive Adjusted EBITDA1 following completion of initial integration programme reducing cost base and restoring volumes ˃ Condell online moved onto the CMO platform in May 2026 Medium term opportunity ˃ Improve profitability, develop the product proposition and increase operational efficiency £m H1 2026 H1 2025 Revenue 23.4 2.2 Gross profit 4.7 0.5 Operating expenses (4.4) (0.6) Adjusted EBITDA1 0.3 (0.1) 1. Before adjusting items
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Cash Flow 10 Net debt1 at £26.5m at 30 June 2026 ˃ Seasonal working capital outflow of £6.7m ˃ £5.6m higher than June 2025 and leverage above Board’s medium-term target Refinancing completed on 2 April 2026 ˃ £65.0m total facilities ˃ 3-year term + 2 one-year extensions ˃ Headroom of £32.4m at 30 June 2026 Levers ˃ Drive EBITDA through market share in P&H, gross margin in Merchanting, continued progress in CMO ˃ Optimise working capital and reduce capex to essential maintenance / high return projects 1. Net debt excluding leases (13.4) (6.7) (6.7) (7.6) (0.5) (26.5) 8.4 £m (5.0) (10.0) (15.0) (20.0) (25.0) (30.0)
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11 30 September 2026 Business review
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Commercial priorities ˃ Increase sales intensity ˃ Improve gross margin discipline ˃ Ensure branch returns on capital employed Structural actions ˃ Restructured in August 2026: £1.6m annualised opex reduction ˃ Gross margin challenge for H2 and beyond Business model ˃ Branch autonomy supports differentiated range and customer service ˃ Dual-brand sites offer specialist products alongside merchant range Merchanting: momentum improving, with margin and cost actions 12 (4.9)% H1 LFL revenue Decline moderated to (2.3)% in Q2 4 New branches Opened in last 18 months £15.0m New branch revenue Additional revenue delivered last 18 months We combine localism with specialism, offering our customers exceptional customer service, superior product knowledge and highly engaged teams, which together make us local leaders across our branches
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Plumbing & Heating: recovery plan centered on market share, efficiency and mix 13 Performance context ˃ No repeat of March 2025 exceptional boiler volumes ˃ UK boiler market estimated down c.3–4% ˃ Value for volume Improved APP gross margin – market share reduction being addressed Actions underway ˃ Depot rationalisation and cost reduction ˃ Strengthened commercial accountability ˃ Customer recovery programme and outbound sales ˃ Strategic categories ˃ Spares revenue +8% in H1 ˃ Renewables progress with low-carbon heating adoption (13.3)% H1 LFL revenue Weaker market demand 7 → 4 Distribution centres Rationalisation completed Q2 £1.5m FY27 cost saving £0.9m expected in FY26 P&H offers its customers specialist product knowledge, outstanding service and an attractive in-store and online proposition.
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Next phase priorities ˃ Sustainable revenue growth and margin improvement ˃ Improved operational efficiency and cost discipline ˃ Data-led marketing, credit accounts and supplier availability Digital: Turnaround milestone reached, now focused on scalable growth +17.5% CMO Revenue H1 year-on-year growth Positive EBITDA Turnaround milestone CMO is the UK’s largest online-only retailer of construction products, operating through nine specialist websites. £2m Initiatives Next phase priorities ➢ Condell online via CMO ➢ Trade Credit software 14
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Every operating business has a focused improvement plan with clearer ownership and regular Executive review. Group operational improvement programme 15 Sales Execution Grow APP share; revitalise inactive CMO accounts; drive AW Lumb direct sales Gross margin Merchanting gross margin challenge; supplier support; better procurement Cost reduction Completed Merchanting & Condell restructure and P&H DC rationalisation; Working capital Inventory optimisation, receivables collection and supplier-term initiatives Capital discipline Reduced capex and clear financial returns threshold
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16 30 September 2026 Outlook
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Assumption that second-half market conditions are similar to H1 Market conditions ˃ S&P Construction PMI was 44.3 in August; 20 months below 50 ˃ Bank rate held at 3.75% but expectations of 25bps rise in November ˃ BMF 2026 forecast reduced from +2.3% to (1.8)% Priorities to year end ˃ Convert profit into cash and reduce leverage ˃ Grow market share in P&H (APP) ˃ Improve EBITDA through ˃ implemented cost savings ˃ Operating efficiencies ˃ Gross profit improvement Outlook: not expecting improvement in market conditions; control the controllables 17
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18 30 September 2026 Q&A
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20 30 September 2026 Appendices
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£m H1 2026 H1 2025 Operating profit (3.1) 3.7 Amortisation of acquired intangibles 1.7 1.7 Exceptional items 3.7 0.4 Share based payments - 0.4 Adjusted operating profit 2.3 6.2 Depreciation & amortisation 6.1 5.9 Adjusted EBITDA 8.4 12.1 Property gains - (1.7) Adjusted EBITDA excluding property gains and losses 8.4 10.4 £m H1 2026 H1 2025 Loss before taxation (6.9) 0.6 Amortisation of acquired intangibles 1.7 1.7 Unamortised loan arrangement fees on refinancing 0.3 - Exceptional items 3.7 0.4 Share based payments - 0.4 Adjusted (loss) / profit before taxation (1.2) 3.1 Taxation on adjusted profit - (0.7) Minority interest - (0.1) Adjusted Earnings (1.2) 2.3 Weighted average no. of shares (m) 166.2 166.1 Adjusted EPS (p) (0.70) 1.35p Appendix 1 – Alternative Performance Measures 21
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£m H1 2026 H1 2025 Business combination charges and amortisation of acquired intangibles 2.0 2.1 Depot rationalisation in P&H 2.1 - Restructuring and redundancy 1.3 - Share-based payments - 0.4 Arrangement fees following refinancing 0.3 - Total 5.7 2.5 Appendix 2 – Adjusting Items 22