Likewise Group plc (LON:LIKE) has taken a significant step towards becoming the UK’s leading floor coverings distributor following the acquisition of strategic assets from the administration of Headlam Group.
The transaction, highlighted in the latest research note from Zeus, dated 7 October 2026, substantially expands Likewise’s distribution capabilities, product portfolio and market reach.
Research Analyst Andy Hanson believes the acquisition represents an important opportunity for Likewise to strengthen its market position and potentially achieve its medium-term £300 million revenue target sooner than previously expected.
With additional distribution capacity, established flooring brands and new opportunities to capture market share, the transaction could prove an important milestone in the company’s growth strategy.
Likewise Acquires Key Assets from Headlam Administration
Likewise has agreed to acquire selected assets from Headlam Group’s administration for a cash consideration of £14.9 million plus VAT.
The acquisition includes several strategically important assets:
- Thatcham distribution centre: A 90,000 sq. ft freehold distribution facility, including operating assets and inventory, providing additional capacity in southern England.
- Established flooring brands: Key intellectual property and brands previously owned by Headlam.
- Crucial Trading: A specialist flooring business based in West Bromwich.
- Concept Floors: A specialist business operating from Stoke-on-Trent.
- Additional employees: Approximately 110 employees are expected to transfer to Likewise across the acquired operations.
Alongside the acquisition, Likewise has entered into an agency agreement with the administrators to sell Headlam’s remaining inventory outside Thatcham through its existing distribution network.
This arrangement includes a nine-month exclusive licence to occupy Headlam’s Coleshill facility.
Likewise has made a further £2.3 million payment on account, plus VAT, under the agency agreement and will share the proceeds from inventory sales with the administrators.
Importantly, the transaction has been funded from existing resources following the company’s recent £32.5 million fundraising, without requiring additional equity or debt.
A Major Opportunity to Capture UK Flooring Market Share
One of the most interesting aspects of the acquisition is the opportunity created by Headlam’s withdrawal from the market.
Headlam generated approximately £500 million in revenue during FY2025, reflecting the substantial scale of its former distribution operations.
Although Likewise has acquired selected assets rather than the entire business, Zeus believes it is well positioned to capture a meaningful proportion of the available market as customers look for continuity of supply.
Established Headlam brands could prove particularly valuable, bringing recognised products into Likewise’s existing distribution network.
The acquisition also broadens the group’s specialist flooring offering through Crucial Trading and Concept Floors.
For Likewise, this creates an opportunity to serve additional customers, increase volumes and improve the efficiency of its growing national distribution infrastructure.
Distribution Capacity Set to Increase by 37%
The Thatcham facility provides an important geographical addition to Likewise’s network, particularly across southern England.
According to Zeus, the 90,000 sq. ft site increases existing distribution capacity by approximately 17%, before taking account of the new Corby facility.
When combined with developments at Corby and Manchester, the group’s overall capacity is expected to reach approximately 728,000 sq. ft, representing an increase of around 37%.
This additional infrastructure should provide the foundations for higher sales volumes while potentially improving delivery efficiency and reducing distribution costs.
For a business operating in a competitive market where product availability and reliable delivery are essential, having the right infrastructure is an important advantage.
The expanded network also provides additional capacity to support Likewise’s longer-term growth plans without immediately requiring equivalent investment in further facilities.
Zeus Sees Faster Progress Towards £300m Revenue Target
The latest research note from Zeus makes clear that the acquisition has strengthened the company’s longer-term growth prospects.
Research Analyst Andy Hanson writes:
“What is assured is that the acquired assets position the business to achieve its £300m revenue target earlier than we had envisaged.”
This assessment reflects the additional sales opportunities, greater distribution capacity and established brands becoming available through the transaction.
Zeus expects the assets to make a meaningful contribution to profitability from FY2027 rather than during the current financial year.
However, the broker has deliberately left its existing forecasts unchanged until further information becomes available.
This means the potential benefits from the Headlam assets and additional customer volumes are not yet reflected in Zeus’s published financial estimates.
The group’s next scheduled update, expected in January 2027, should provide further information on integration progress and the financial impact of the acquisition.
Likewise Financial Performance and Growth Forecasts
Likewise has already demonstrated significant revenue growth over recent years as it continues developing its national flooring distribution business.
The latest Zeus research includes the following historical financial figures and forecasts.
FY2025 reported financial highlights
- Revenue increased 8.9% to £163.1 million, compared with £149.8 million in FY2024.
- Adjusted EBITDA increased to £10.4 million, up from £8.8 million.
- Adjusted operating profit rose to £4.9 million from £3.8 million.
- Adjusted pre-tax profit increased to £3.1 million from £2.0 million.
- Gross margin improved to 31.1%, compared with 30.7% in FY2024.
Zeus forecasts for FY2026 and FY2027
- FY2026 revenue: £197.0 million, representing forecast growth of 20.8%.
- FY2026 adjusted EBITDA: £12.6 million.
- FY2026 adjusted pre-tax profit: £5.0 million.
- FY2027 revenue: £210.3 million.
- FY2027 adjusted EBITDA: £14.7 million.
- FY2027 adjusted pre-tax profit: £6.4 million.
- FY2027 adjusted operating margin: 3.9%, compared with 3.0% reported in FY2025.
Crucially, these forecasts exclude any contribution from the newly acquired Headlam assets.
Zeus intends to revisit its estimates once it has more information about the acquisition’s financial contribution.
The broker also forecasts net cash of £4.8 million at the end of FY2027, excluding lease liabilities, although this projection likewise predates the inclusion of the acquisition’s financial impact.
What Does the Acquisition Mean for Likewise Shareholders?
At the 36p reference share price used in the report, Likewise had a market capitalisation of approximately £131.5 million.
The company’s stated ambition to achieve annual revenues of £300 million represents a substantial increase from the £163.1 million recorded in FY2025.
The latest acquisition potentially accelerates that journey by providing new customers, additional brands and greater distribution capabilities.
There could also be operational benefits as the expanded business makes better use of its infrastructure.
Nevertheless, the successful integration of the acquired assets will be important. Additional volumes must translate into profitable sales, while distribution efficiencies and costs will need careful management.
Investors should also recognise that the acquisition’s financial contribution remains unquantified in Zeus’s forecasts.
Final Thoughts
Likewise Group’s acquisition of strategic Headlam assets represents an important development in its ambition to become the UK’s largest floor coverings distributor.
The transaction adds established brands, specialist businesses and valuable distribution capacity, while opening the door to potential market share gains as former Headlam customers seek alternative suppliers.
The decision to finance the acquisition from existing resources, without issuing further shares or taking on new debt specifically for the transaction, is another noteworthy aspect.
Zeus believes the acquisition could help Likewise achieve its £300 million revenue ambition earlier than previously anticipated, although the precise earnings contribution remains to be established.
With the group’s enlarged distribution network expected to reach approximately 728,000 sq. ft, Likewise is developing the infrastructure needed to support a considerably larger business.
The January 2027 trading update should provide investors with a clearer picture of integration progress and the additional financial opportunities created by the acquisition.
For shareholders and investors following AIM-listed growth companies, Likewise is certainly a business worth watching as it enters this next stage of development.
