Lords Group Trading Plc (LON:LORD) was discussed by Gervais Williams, Co-Fund Manager of The Diverse Income Trust plc (LON:DIVI) in a wide-ranging exclusive interview about the Trust and a selection of LSE-listed companies in the DIVI portfolio.
DirectorsTalk asked:
Lords Group have just announced the strategic acquisition this week of CMO Group, what more can you tell us there?
Gervais Williams noted:
CMO used to be a PLC of its own right. It was valued between £50 and £100 million, so it is quite a big company, a software company and a slightly immature business. Unfortunately, it didn’t really hit its targets, it ran out of cash, as you probably know, and it delisted earlier this year in 2025. Most particularly, it has been bought by Lords Group Trading – it still has decent turnover – but for a very, very modest sum indeed.
This is what we expect. As market conditions become more unsettled, as companies run out of cash, the opportunity for listed companies, not just to buy assets, but buy assets at distressed valuations and perhaps re-inject some working capital. I suspect they will need some working capital being re-injected, so it won’t be just the purchase price, they will have to put a few more millions in. Most particularly, to generate a disproportionate return is something which we find very exciting.
So, we think it is a terrific acquisition, and we are tremendously upbeat about this kind of acquisition in these kind of companies.
