Despite a challenging market, the Group is making strong progress in winning market share and delivering growth in key areas.
South Wales’ largest independent builders’ merchant's focus on long-term growth and maintaining a robust Balance Sheet delivered strong results in 2023, with Net Assets at £36 million.
Following exceptional growth of 30% in 2021, LBS’ Group sales for January – December 2023 stood at £87 maintaining, maintaining the levels set in 2022. Operating profit dropped year on year as the family business focused on providing its customers with competitive pricing.
The business opened three branches during the course of 2023, including its first building supplies outlet in the capital city, LBS Cardiff. This was followed by Total Plumbing branches in both Llantrisant and Llandeilo. As at end-2023, the multi-merchant Group employed 474 staff and comprised of: 19 LBS Builders’ Merchant branches; 16 Total Plumbing merchants; nine LBS Kitchen & Bathroom Showrooms; Talbot Timber; LBS Civils & Drainage; LBS Roofing; UK Build Supplies and LBS Home & Garden.
Mark Davies, LBS Group Company Chairman, said: “We are pleased with LBS Group performance in 2023 against the backdrop of a challenging marketplace. We have seen these conditions continue into 2024, but we are making strong progress in winning market share and delivering growth in key areas.”
Ben Davies and Rachel Davies, LBS Group Managing Directors, added: “Our focus on 2023 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.
"These values have stood us in good stead over the years, and continue into 2024. We are confident of further growth and investment to come. Our strategy remains unchanged.”
Despite the continued challenging market backdrop and economic uncertainty, the Group is committed to continuing its emphasis on long-term growth and investment through the course of 2024.
Two acquisitions have been completed to date in 2024 of established family businesses in key, strategic locations: DG Heath in Pontarddulais and Denman & Sons in Pengam.
LBS Group’s robust Balance Sheet ensures that the company is able to respond quickly to opportunities and effectively implement its strategic initiatives. Activity levels with customers are normalising, and 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 2024, with the relaunch of the company’s website complete with Click & Collect and Click & Deliver.
The company’s stockholding remains healthy across the estate. 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 2024/25 are unchanged and the team is confident of continuing to deliver performance ahead of its market for the long term.
