The latest research note from Zeus highlights a steady and encouraging performance from Likewise Group (LON:LIKE), as the flooring distributor continues to build momentum despite a challenging macroeconomic backdrop. The FY25 results demonstrate not only resilience, but also a clear trajectory of growth supported by strategic investment and expanding operational capacity.
Strong Financial Performance in FY25
Likewise delivered full year revenue of £163.1m, representing an 8.9% year on year increase, slightly ahead of Zeus forecasts. This growth reflects continued market share gains, particularly notable given that many competitors in the flooring distribution market have reported flat or declining revenues over the same period.
Profitability also improved, with adjusted profit before tax rising to £3.1m, up from £2.0m in FY24. EBITDA increased to £10.4m, with margins expanding to 6.4%, supported by operational gearing and ongoing efficiency improvements.
Key Highlights from FY25 Results
- Revenue increased 8.9% year on year to £163.1m
- Gross margin improved to 31.1% from 30.7%
- EBITDA rose to £10.4m, with margin expansion to 6.4%
- Adjusted PBT increased to £3.1m from £2.0m
- Dividend per share exceeded expectations at 0.4125p
- Net debt increased slightly to £7.8m, reflecting continued investment
These figures, outlined in the tables on page 2 of the report, underline a consistent trend of growth alongside disciplined investment in the business.
Investment Driving Future Capacity
A key theme in the latest research note from Zeus is Likewise’s continued investment in infrastructure. The company has acquired a new freehold property in Leeds to serve as a second distribution hub, complementing ongoing expansion projects in Newport and Derby.
These developments are expected to significantly increase operational capacity, positioning the group to achieve its medium term ambition of reaching £250m in revenue. This forward looking investment strategy highlights management’s confidence in the long term opportunity within the UK flooring distribution market.
Encouraging Start to FY26
Trading in the early part of FY26 has been particularly strong, with revenue growth of 15.2% in Q1 and momentum continuing into April. While this exceeds initial expectations, Zeus has taken a cautious stance by maintaining its forecasts, citing uncertainty around global cost pressures, particularly fuel and inventory.
Importantly, the company is expected to implement price increases from May, which should help offset these external pressures and support margins.
Analyst Perspective
Research Analyst Andy Hanson captures the tone of the update clearly, stating:
“With LIKE continuing to deliver significant market share gains, we view today’s statement as highly encouraging as the group seeks to exploit the market opportunity it sees in the UK flooring distribution market.”
This view reflects confidence in the company’s ability to navigate near term challenges while continuing to expand its market position.
Valuation and Outlook
Despite its growth profile, Zeus notes that Likewise trades on an EV to Sales multiple of around 0.5x, which appears modest given its consistent revenue expansion and increasing market share. While margins are currently moderated by investment, there is an expectation that profitability will improve as the business scales.
The forecast tables on page 3 indicate continued growth into FY26, with revenue expected to reach £174.1m and adjusted PBT rising to £4.0m.
Final Thoughts
Likewise Group’s FY25 results reinforce a narrative of steady, investment led growth. The company is successfully balancing expansion with operational improvements, while gaining share in a competitive market. Although macroeconomic uncertainty remains a factor, the strong start to FY26 and ongoing infrastructure development suggest a business that is positioning itself carefully for longer term progress.
