As the construction industry continues to confront one of the most challenging periods in recent years, builders merchants LBS have reported what they have described as ‘a robust balance sheet’ and record results in 2022.

Their net assets stand at £38.9m following an exceptional growth of 30 per cent in 2021.

“Our group has performed strongly in 2022 in a challenging marketplace and we’ve seen market challenges continue into 2023,” said LBS Group company chairman Mark Davies.

“But we’re making good progress in winning market share and delivering growth in key areas.”

Group sales for LBS, which is the largest independent builders’ merchants in south Wales, between January and December 2022 remained flat at £88m. Operating profit dropped year on year as the family business focused on providing its customers with competitive pricing.

The business opened two new branches during the course of the year, and upgraded five, increasing its focus on customer experience.

As at end of 2022, the multi-merchant Group employed a total of 474 staff in its 18 builders’ merchants branches which includes stores in Pembroke Dock, Milford Haven, Haverfordwest and Cardigan.

 “We’re focused on delivering great value to our customer base via best-in-class customer service and competitive pricing and while we’re proud to be the largest independent builders’ merchant in South Wales we’re confident of further growth for the remainder of 2023 and our strategy is unchanged," added Rachel Davies, LBS group managing director.

LBS Group state that their robust balance sheet gives the company plenty of leverage 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. Record returns are being realized to date across a number of divisions, including its 17-branch strong plumbers’ merchant (Total Plumbing) and its nine LBS Kitchen & Bathroom Showrooms.

The team is focused on optimising operational performance against a backdrop of inflationary pressures. Digital initiatives and the development of innovative solutions to its customers are a key priority for 2023/24 while the company’s stockholding remains healthy across the estate.