According to the latest research note from Zeus Capital, Likewise Group (LON:LIKE) continues to make meaningful progress towards its £200 million revenue target, following a solid set of full year results for 2024. Revenue rose by 7.2% to £149.8 million despite a challenging market backdrop, in which overall flooring demand is believed to have declined by up to 15% during the same period.
The analysts report that this strong performance indicates a clear gain in market share, with gross margins improving slightly to 30.7%. EBITDA climbed 11% year-on-year to £8.8 million. While adjusted profit before tax decreased to £2.0 million from £2.3 million in the previous year, this was attributed to continued investment in sales and marketing, including the expansion of personnel and promotional materials.
Zeus Capital analyst Andy Hanson commented: “Today’s in line FY24 results reflect another year of strong revenue growth, continuing to demonstrate the strength of Likewise’s operating model with further market share gains against a challenging market.”
The note also points to encouraging momentum in early 2025, with like-for-like revenue up 11.5% in the first four months of the year compared to the same period in 2024. Monthly revenues have consistently surpassed £13 million to £14 million, suggesting an annualised revenue run rate nearing £170 million.
Operationally, Likewise has invested in expanding its logistics capacity over the past year. Notable developments include enhancements at Glasgow and Newport, the launch of new business units at these sites, and the relocation of A&A in Manchester. A new freehold logistics facility has also opened in Plymouth, bringing the total number of distribution centres to 12.
Despite a flat EBIT margin for the full year (2.5%), Zeus notes an evident improvement in the second half, where the EBIT margin rose to 4.1% — ahead of the broker’s FY25 forecast of 3.5%. These gains reflect the benefits of operational gearing as the company scales.
FY24 Operational and Financial Highlights
- Revenue rose 7.2% to £149.8 million
- Gross margin improved to 30.7% (FY23: 30.3%)
- EBITDA increased to £8.8 million (up 11%)
- Adjusted PBT of £2.0 million
- EPS came in ahead of expectations at 1.1p
- Net debt increased to £7.1 million due to deferred acquisition costs
- Continued investment in logistics and national capacity
Zeus maintains its forecasts and considers Likewise’s valuation highly attractive. The shares currently trade on an EV/Sales multiple of just 0.5x compared to a peer average of 1.0x, which the broker views as a significant discount. “We view LIKE’s current ratings as unjustified given the strong growth prospects in the business against more highly rated peers,” added Hanson.
On a Final Note
With steady revenue growth, strategic investment in infrastructure, and signs of improving profitability, Likewise appears well-positioned to scale further in 2025. Zeus’s latest research reinforces confidence in the group’s trajectory and its ability to outperform in a subdued market environment.
