Flooring group weathers challenging year to post sales rise
Likewise Group, the fast growing floor coverings distributor, has weathered a challenging year to report continuing sales growth in the six months to 30 June 2023.
The board has announced the AIM-listed company will pay its maiden interim dividend of 0.1p on 17 November 2023.
Total sales revenue increased by 17.3% from £56.8m to £66.6m, including Likewise-branded sales growth of 23.3%.
Adjusted underlying profit before tax of £0.7m (H1 2022 – £1.9m) has principally been affected by the board’s decision to accelerate investment in the business.
Likewise balance sheet continues to be strong with net assets of £38.9m including four freehold properties valued at £22.3m and net debt of £2.1m.
Tony Brewer, chief executive of Birmingham-based Likewise Group, said: “”We have so many opportunities before us as we continue to enlarge the group’s infrastructure which will create additional sales and increased profitability.
“With the original targets before us, Likewise can now focus on creating a much larger business than previously anticipated.”
Positive cash generation from operating activities of £1.68m has allowed for further investment in property, plant and equipment.
The company has increased the capacity of its distribution network to 15 million cubic feet and has continued to invest in point of sale materials.
Brewer said that strong increases in group revenue over the past four years demonstrated an exponential gain in market share, and the ongoing continuation of logistics and sales infrastructure will facilitate the further winning of increased market share.
Further testimony of the group’s progress is that August was a record month for total revenue which provides confidence entering the traditionally busy Autumn period.
Along with normal business development, Likewise Group has accelerated its logistics capabilities.
The new high bay distribution centre in Glasgow is now operational and the group is in the process of significantly increasing the cutting capacity in Birmingham and Derby, with additional opportunities to now fully utilise the previously dormant distribution centre in Newport.
Likewise has now established a sophisticated logistics network from its distribution centres in Glasgow, Newcastle, Leeds, Manchester, Birmingham, Newbury, Sudbury and London.
Valley Wholesale Carpets Ltd distributes significant volume from three centres in Erith London, Derby and Newport.
Brewer pointed out that the group is currently using less than 60% of its total processing capacity through its established logistics operations and this headroom could be further increased with relatively small investment and capital expenditure.
Likewise has also announced that, following five successful years implementing the financial infrastructure, reporting procedures and supporting the group’s successful listing on AIM, Roy Povey has chosen to step down from his role as chief financial officer for personal reasons.
He will continue to support the business until his proposed exit in Spring 2024, and he will be replaced in the immediate term by a combination of internal promotions for Ben Ashforth to head of financial accounting and reporting with Ian Roberts and David Fullard who will be responsible for the operational finance team.
Brewer said: “The board wishes Roy well for his future and thanks him for his significant contribution to the group’s development.
“Undoubtedly the most pleasing aspect is that we have recently been able to make announcements whereby individuals who are ‘learning their trade’ have been promoted into senior and middle management positions across our various activities of logistics, IT, sales and finance.
“As Likewise Group continues to expand, it allows hardworking, diligent people the opportunity to fulfil their career aspirations with the group.
“Likewise continues to make significant progress and it is brilliant to see our people progressing their careers and make an increasingly important contribution to the group’s future.”
