Lords Group Trading PLC (AIM:LORD) shares dropped sharply, losing 26% to 22.99p in early deals, after the company reported mixed trading for the four months to 31 October.
The building materials group said revenue increased by 9.6% year on year, but weaker demand in its core markets continued into the autumn.
Like-for-like revenue in the Merchanting division fell 1.8%, while the Plumbing and Heating division reported an 8.3% decline.
Chief executive Shanker Patel told investors that after delivering strong revenue growth and resilient results in the first half of 2025, the UK construction market has been more challenging since the late summer.
"Whilst we're pleased to see an overall increase in Group revenue on an absolute basis, this was mainly due to CMO which was profitable in September and October for the first time since acquisition," Patel said.
He added: "Whilst recovery in our core markets is taking longer than had previously been expected in our peer group, we are confident that Lords is very well positioned to deliver operational leverage and continue to execute its strategic combination of organic and acquisitive growth."
Lords expects to report full-year revenue of £480 million to £485 million and adjusted EBITDA of £20 million to £21 million, unchanged from earlier guidance.