Likewise Group Plc (LON:LIKE) Chief Executive Officer Tony Brewer caught up with DirectorsTalk to discuss the company’s interim results for H1 2025, highlighting 10.2% like-for-like sales growth, expansion plans, and ongoing investment in infrastructure and personnel.
Q1: Tony, how has the year developed so far?
A1: We are very pleased with the development in the first 6-8 months. We have over the last five years established 12 distribution and logistics centres around the UK. We have 152 delivery vehicles offering a next day delivery service to our customers, which are independent retailers and flooring contractors. We have a team of 99 sales executives now who are calling on those customers, visiting their premises, placing new points of sale, and servicing those customers’ needs on a daily basis.
In terms of the sales revenue, early part of the year, very good in January and February, but particularly into the spring where we saw like for like sales in April at just over 14% up. It has come back a little bit in the summer months, not surprisingly given the particularly hot weather, but we are still seeing like for likes of 8.5% through the summer months in terms of the increase. Cumulatively in the first eight months, sales of 10.2% on a like for like basis.
Q2: Does Likewise Group have capacity to continue to grow?
A2: We have engaged an additional what we class as a cutting shift, which is a team of six people cutting carpet, vinyl, and artificial grass, and increased that in Glasgow with an additional cutting team there. Similarly, we are just starting to cut in the Derby distribution centre for Valley Wholesale Carpets.
We announced yesterday that we’ve got planned permission to extend the Newport facility to become an additional distribution hub and we’d look to be again cutting carpet residential vinyl in Newport by the end of the second quarter next year.
So, those three additional investments really allow us to grow well through ‘26 and into ‘27.
Q3: What sets the group apart from your competitors?
A3: I’d like to say it’s the management team, not myself, of course, but the operational management we have around the businesses.
We have an excellent group of people with a blend of experience and a number of young people that are coming through developing their careers into management positions.
I think a key for us is they understand the business, and they have a good grasp of the IT and the logistics and how the business works, also, a feel of the product, a good relationship with manufacturers and equally with customers.
I think in addition to that, we’ve got further young people coming through with aspirations to be joining that management team.
So, I think it’s very much about the people throughout the business.
Q4: So, will the group continue to invest in sales and marketing?
A4: Absolutely. We’ve increased by 21 additional sales executives since the beginning of 24 and we’ll continue to look for opportunities. A good example is our Floors by Lewis Abbott premium collection, where we’ve just recruited three experienced sales execs for that particular area of the business.
We will continue to do so where opportunities arise and to grasp those opportunities.
Q5: What can you tell me about Likewise Group’s dividend policy?
A5: We started paying a dividend for the year ending 2021 with 0.2 pence. We’ve increased that over the last few years with bringing an interim dividend and increase in the final. We’ve increased the interim for 2025 by 10%.
That really signals that by the full year of ‘25, we’ll be paying a dividend of circa 0.4 pence, which obviously reflects doubling the dividend from where we started, which is pretty much in line with earnings.
I think that underlines the board’s commitment to have a progressive dividend policy broadly in line with earnings.
Q6: Finally, is the group confident in the future opportunities?
A6: Yes, absolutely. That comes back to us investing in those additional salespeople, investing in the logistics infrastructure. We can take advantage. We believe the business has a run rate of something like £160 million sales revenue currently, we’re poised to go through £200 over the coming years and we have capacity to go well over £200 million with the investments we’ve referred to.
