Likewise Group plc (LON:LIKE), the fast growing UK flooring distributor, is pleased to announce its audited Final Results for the year ended 31 December 2024.
Financial Highlights
· Group Sales increased 7.4% to £149.8 million (FY23: £139.5 million). Sales in Likewise Floors increased 15.5%
· Gross margin increase of 0.4% to 30.7% in 2024 (2023: 30.3%)
· Underlying EBITDA of £8.8 million (FY23: £7.9 million)
· Adjusted Profit Before Tax was £2.0 million (FY23: £2.3 million) reflecting additional investment, particularly in H1 2024
· Positive cash generation from Operating Activities of £7.2m (2023: £6.1m)
· Proposed final dividend of 0.25 pence per Ordinary Share, bringing the total dividend in FY24 to 0.375 pence per Ordinary Share
· Group Sales Revenue in the first four months of FY25 has progressively increased each month from January to April by 10.2% against the corresponding period last year and by 11.5% on a like for like basis given one less working day in FY25 verses FY24
· Monthly revenues now consistently annualise to £170 million, with months exceeding £13 million to £14 million revenue driving improved operational gearing and profitability
Operational Highlights
· 12 Distribution and Logistics Centres expanded with total capacity at c.15 million cubic feet
· 87 Suppliers across key flooring products
· 96 Customer focused Management and Sales Executives
· The Group owns the freehold of five of its twelve Operating Centres valued at £23.5 million with only £2.3 million of fixed debt against the one property
Chairman and Chief Executive Statement
Group Sales Revenue for FY24 was £149.8 million an increase of 7.4% over the previous year. Sales in Likewise Floors increased by 15.5%.
Adjusted Profit Before Tax was £2.0 million reflecting additional investment, particularly in H1 2024.
More importantly is the progress the Group has made in H2 2024 which has continued strongly into H1 2025.
Group Sales Revenue in the first four months of FY25 has progressively increased each month from January to April culminating in a total increase of 10.2% against the corresponding period last year. However with one less working day in FY25 verses FY24 the like for like growth is higher at 11.5%.
Whilst Group Sales Revenue for 2024 was £149.8 million, the Group is now consistently producing individual months that annualised would approach £170 million. Months with sales in excess of £13 million to £14 million create operational gearing and subsequently a much higher level of profitability than previously achieved.
This provides the Board with confidence to achieve the current market forecasts for FY25 with Sales Revenue progressing quickly towards £200 million over the next few years.
The Group owns the freehold of five of its twelve Operating Centres valued at £23.5 million with only £2.3 million of fixed debt against the one property.
Investment
This performance has been achieved through the strategic decisions to increase operating capacity by investing since 2021 in new Distribution Hubs in Birmingham, Leeds and Glasgow, plus new Logistics Centres in London, Newbury, Manchester and Newcastle. This, combined with the acquisition of Valley Wholesale Carpets Limited (“Valley”) in January 2022 with Distribution Centres in London, Derby and Newport has transformed the Groups operating capability in the last four years. More recently the Plymouth Logistics Centre purchased earlier in 2025 completes the Groups geographical coverage of the UK.
Combined with the Logistics investment, the Group, through its two principal sales and marketing activities, Likewise Floors and Valley, is continually developing new products with the leading UK, European, Turkish and Far East flooring producers to ensure our customers, Independent Flooring Retailers and Contractors have a daily offering of the latest flooring products. This is further enhanced by a three way investment between the manufacturer, retailer and ourselves to position extensive new Point of Sale Displays.
The Group also increases its market presence through A&A, Delta, H&V, Floors by Lewis Abbott Premium Carpet, plus the activities of Likewise Rugs and Matting including the Dura and Dandy brands.
Our Sales Team of now 96 Executives are absolutely focussed on providing the best customer service having developed excellent relationships with our customers over many years.
The Group prides itself on having an outstanding Management Team who have developed their skills through learning the business encompassing, IT and Logistics, Product knowledge and most importantly Supplier and Customer relationships. This includes management in their 20’s, 30’s and 40’s who have exciting careers ahead notwithstanding the vast experience of some our more senior management. It is vitally important that all management have a thorough understanding of each aspect of the business.
Operations
The Glasgow Distribution Hub, established in the Spring of 2023 is becoming increasingly important to the Likewise Logistics Network. During April 2025 we have doubled the cutting and processing capability which will accelerate the business growth in Scotland in addition to providing extra capacity for England and Wales.
Likewise North East in Newcastle is very much established as the leading distributor of residential and commercial flooring in its geographical area. Similarly, Likewise North based in Leeds has taken advantage of the many opportunities to become a prominent flooring distributor in the North of England.
A&A moved into a new Logistics Centre in Manchester in July 2024. It now has every opportunity to maximise residential business in North West England, in addition to the new opportunity presented by investing in a Sales Team to capitalise on the commercial flooring opportunities in the North West. Furthermore the A&A trade brand has extended its presence into the Midlands.
Likewise Midlands in Birmingham was only created in 2022, but is now a very important part of the Group. Both the scale of the sales revenue produced in just a few years and its location in the centre of the UK makes Likewise Midlands a key contributor as the epicentre of the Likewise Logistics Network.
Likewise Wales in Newport, established in January 2024 and has quickly become an important source of residential and commercial flooring. We are currently in the later stages of our planning application to extend the current Freehold Distribution Centre by 60%, which will provide the Likewise Wales business with significant opportunities for growth and enlarge the capabilities for both Valley and Likewise.
In Plymouth, the recently acquired Freehold Logistics Centre is now operational, providing scope for both Likewise South West and Valley to take advantage of many opportunities in Devon and Cornwall.
Likewise South, located in Newbury has become an established provider of particularly residential flooring to retailers across the South of England and Likewise London an important source of residential and commercial flooring within the M25 and Southern Counties.
From its Sudbury base Likewise South East has made excellent progress over the last two years.
Delta Carpets has consistently achieved its objectives since the late Autumn last year. In H&V Carpets the product range has been restructured and with four further products to be launched in the late Spring it is poised for a successful year and a much improved base for the future. Floors by Lewis Abbott launched seven new products and one important revamp late last year. Further new products are being developed to enable Floors by Lewis Abbott to take increased share of the Premium Carpet market.
The acquisition of Valley in 2022 was a particularly important strategic step for the Group. The market position of Valley compliments the Group as a whole. Valley has extended its core Carpet and Residential Vinyl product range to include Laminate and in the future other resilient flooring. Furthermore, Valley has been significantly increasing market presence in retailers through numerous Display Stand initiatives and exciting plans for innovative new products in H2 2025.
Valley has also meaningfully enlarged its geographical reach to include South Wales, Bristol and South West England. It has been a very important contributor to profitability during the Group’s formative years and the free cash flow generated assists in the various capital projects, particularly in Derby, Newport and Plymouth.
Likewise Rugs & Matting continues to develop its product range in DIY, Garden Centres, Hardware Stores and Independent Retailers. The unique Dura woven in Sudbury for the Marquee industry plus the established Dandy brand provides the business with distinct differentiation.
Infrastructure
The investment made to establish the comprehensive infrastructure combined with the commitments over the next 12 months can certainly take the Group through £200 million sales revenue and it will benefit from further operational gearing. Therefore the Board is considering the next 3 to 5 year investments to provide the capacity to take advantage of the extensive opportunities before us.
As previously stated the capital projects during 2025 in Plymouth and Newport will be funded from internal cash flow. The Group has support from its principal bankers and continues to operate well within the facilities provided. The confidence is reflected in the Board’s commitment to purchase capital equipment and trucks whenever possible which is more cost effective and continues to strengthen the Group Balance Sheet.
Dividend
The Group continues to follow its progressive policy and the Board is therefore proposing a Final Dividend payment of 0.25 pence per ordinary share (FY23: 0.25 pence per ordinary share).
This makes the total dividend paid in respect of the year 0.375 pence per ordinary share (2023: 0.35 pence per ordinary share). This is a 7.1% increase on the Total Dividend in respect of FY23, an encouraging reflection of the financial performance in 2024. The final dividend, if approved by shareholders at the AGM, will be paid on 11 July 2025 to shareholders on the register at the close of business on 6 June 2025, the ex-dividend date being 5 June 2025.
Shareholders can also take advantage of the Dividend Reinvestment Plan (“DRIP”) by registering their intentions with the Company’s registrar by 20 June 2025.
Share Buy Back
Following the successful implementation earlier in the year, the Group will launch a further Share Buyback Programme today of up to £250,000. Comprehensive details will be provided in a separate announcement to be released shortly. Following the completion of this Programme the Board will keep future Share Buybacks under review.
Outlook
The Group has made a strong start to 2025. The trajectory gives the Board confidence in achieving the objectives before us, including the current market forecasts. There are many opportunities to continue to gain market share and it is very encouraging that increased profitability and subsequent improved return on investment is beginning to be achieved.
Tony Brewer, Chief Executive of Likewise Group plc, said:
“The Group really has made significant progress over the last four years. The logistics infrastructure has been transformed from that which originally initiated the business in 2020.
The quality of the Management, Sales Teams and Staff throughout the business is extremely important to the future aspirations of the Group.
We have a clear focus on creating the best flooring distribution business and whilst only part way along that journey we have certainly created the structure to achieve our current goals.
The next one, three, five years are really exciting as we are absolutely committed to investing in our people, infrastructure and market presence to deliver that ambition.
On behalf of the Board I extend our thanks to all employees for their contributions in addition to the support from suppliers, customers and shareholders. We appreciate the contribution from all stakeholders to the ongoing development of the Group.”
