Trading Update

Likewise Group PLC

06 December 2023

 

6 December 2023

Likewise Group plc

("Likewise", the "Group" or the "Company")

Trading Update and Positive Outlook for 2024

Likewise Group plc (AIM:LIKE), the fast growing and progressive UK floor coverings distributor is pleased to announce that November 2023 has proved to be its record performance month with Total Sales Revenue of £14.0 million.

This is despite challenging market conditions which are undoubtedly, adversely impacted by macro-economic head winds.

Group Revenue to the end of November 2023 increased 13.3% against the corresponding period last year, whilst Revenue in the emerging Likewise Floors business increased 29%, reflecting excellent organic growth. The growth experienced has been predominantly driven by increased volume rather than price inflation.

The Group remains on track to achieve current market expectations for the financial year ending 31 December 2023.

Positive Outlook and Investment for 2024

The Group continues to invest in Logistics, Sales Teams and Point of Sale to expand its geographical coverage and presence with existing customers.

Following successful development in South Wales, Valley Wholesale Carpets Limited ("Valley") is now expanding into Bristol and South West England. Further capacity has been created in Derby which will allow Valley to meaningfully increase processing volumes in 2024.

A&A, acquired in 2020, has developed its Residential business and is now also investing in additional Sales Management to expand into Commercial Flooring. The Group is near to agreement to relocate A&A into new premises and is progressively benefiting from the Likewise Logistics Network.

Likewise has established a presence in South Wales by recruiting a Team in both Residential and Commercial Flooring to operate from the previously under-utilised Distribution Centre in Newport, with further support of the extensive Likewise product portfolio.

The new Glasgow Distribution Hub is now established and Likewise operational procedures are being implemented to allow Likewise Scotland to be a key component to the Likewise Logistics Network, whilst also providing considerably more capacity to increase business in their home Scottish market.

Further investment has been made to develop the Management and Sales Teams in Likewise South East and Likewise London to significantly increase market penetration in these important geographical areas.

Likewise South will continue to increase its reach by investing in additional Sales Resource for Bristol and South West England.

Likewise has also invested in the Delta, H&V and Floors by Lewis Abbott Trade Brands during 2023 which have currently provided limited return but are poised to improve their market presence and return on investment during 2024.

The development of the Group reflects the excellent relationship with Suppliers and very importantly the presence in Independent Retailers and Flooring Contractors through our experienced Sales Teams.

Likewise has undoubtedly increased market share during 2023 and with capacity in the Logistics Network developed over the last three years, can look forward to further growth in 2024, towards the Group's medium term ambition of exceeding £200 million Annual Sales Revenue.

Tony Brewer, Chief Executive of Likewise, said:

"The growth of the Group has been achieved through the huge contribution from our Management and Staff plus the support from our Suppliers, Customers and Shareholders. We thank all our Stakeholders and wish them a Happy Christmas and a prosperous New Year."

For further information, please contact:

Likewise Group plc Tony Brewer, Chief Executive	Tel: [phone]
Zeus (Nominated Adviser and Joint Broker) Jordan Warburton / David Foreman / James Edis (Investment Banking) Dominic King (Corporate Broking)	Tel: [phone]
WH Ireland (Joint Broker) Hugh Morgan / Antonio Bossi (Corporate Finance) Fraser Marshall / Harry Ansell (Corporate Broking)	Tel: [phone]
Ravenscroft (Joint Broker) Semelia Hamon (Corporate Finance)	Tel: [phone]
Novella Communications (Financial PR) Claire de Groot / Tim Robertson	Tel: [phone]

ENDS

 

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