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Lords shares plunge 20.61% as construction faces confidence and cost pressures

Builders' merchant Lords has reported its largest-ever single-day stock fall, with shares dropping 20.61% to an all-time low, amid warnings of reduced market confidence, high interest rates, and rising national insurance costs impacting construction firms.

  • Lords' shares plunged 20.61% to 13p on Thursday, marking its biggest single-day stock fall.
  • The firm attributes the slump to a lack of market and individual confidence, high interest rates, and increased national insurance costs.
  • The construction industry, which accounts for around seven per cent of UK GDP, is experiencing some of the sharpest cost rises in 30 years.

London-based builders' merchant Lords experienced its biggest-ever single-day stock fall on Thursday, with shares plunging 20.61 per cent to an all-time low of 13p. The company's stock is now down over 40 per cent since the beginning of the year.

Chief financial officer Stuart Kilpatrick stated that the primary cause of the decline is a lack of confidence from markets and individuals. He also highlighted high interest rates and rising national insurance costs as ongoing concerns for the sector.

The construction industry, a significant contributor to the UK economy, is currently facing some of the sharpest cost increases in three decades. Homebuilder Berkeley previously warned that London could miss its housing targets without government intervention, while Crest Nicholson reported a £35m loss due to higher interest rates, rising costs, and deteriorating consumer confidence.

Lords Group posted revenue of £232m in the first half of the year, a slight decrease from £232.8m last year. Despite some improvements in its digital and merchanting divisions, the firm does not anticipate a significant market recovery in the second half of 2026. The board expects full-year revenue to be between £475m and £495m.

Why this matters: The performance of the construction industry, which employs over two million people and makes up around seven per cent of UK GDP, indicates broader economic challenges related to confidence, interest rates, and operational costs.

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