Lords Group said it had purchased 90% of Ultimate Renewables for a total net cash consideration of up to £646,000, funded from existing facilities, with £450,000 to be paid on signing and up to a further £196,000 deferred for two years subject to certain conditions being met.

In addition, Lords will pay £256,000 of Ultimate Renewables' existing debt, immediately post-completion of the acquisition.

Chief executive Shanker Patel said: "The acquisition is a key strategic step in our ambition to support the energy transition to cleaner, renewable heating solutions. It is also complementary to our existing plumbing and heating division, increases our customer base and broadens our product and service offering."

As of 1015 GMT, Lords shares were up 3.00% at 37.80p.

Reporting by Iain Gilbert at Sharecast.com