Likewise reports a strong start to 2026
Likewise Group plc (LON:LIKE) has started 2026 on an encouraging note, with the latest research note from Zeus pointing to a business that is continuing to take market share despite a subdued wider backdrop in UK flooring. According to the note, revenue rose by 15.2% year on year in Q1 2026, with April showing a similar positive trend. That is a notably stronger performance than Zeus’s full year 2026 revenue growth forecast of 7.6%.
For investors and market watchers, that matters because Q1 is typically a quieter period for the sector. Even so, Likewise appears to be outperforming the broader market, with Zeus noting that some UK competitors have recently reported weaker demand conditions. In that context, Likewise’s growth looks particularly resilient.
In the latest research note from Zeus, co-author Andy Hanson wrote, “We also note that Q1 2025 was far from a weak comparator: LIKE reported 10.7% growth in Q1 2025 against Q1 2024.” That point is important because it underlines that this year’s progress has not come against an easy base.
Why the latest update matters
The update was not just about sales growth. Likewise also announced the purchase of a freehold property in Leeds for £3.0 million, which will operate as a second distribution hub. Zeus said this should help streamline the management of palletised goods received by the group. At the same time, the extension of the Newport site remains on schedule for completion in July 2026.
Together, those projects support Likewise’s growing operational footprint. Zeus noted that the group’s total sales capacity is now moving towards £250 million, giving the business meaningful headroom as it continues to expand. That is a useful signal that management is planning for future demand rather than simply reacting to current trading.
Financial outlook and forecasts
Despite the strong start to the year, Zeus has taken a measured approach and left its profit and loss forecasts unchanged. The broker said this reflects ongoing macroeconomic uncertainty and the fact that more important trading periods still lie ahead in 2026. Forecast changes were limited to net debt, which increased to reflect the Leeds property purchase. Net debt excluding leases is now forecast at £10.7 million for 2026, compared with a previous estimate of £7.7 million.
Zeus forecasts revenue of £161.8 million in 2025 and £174.1 million in 2026. Adjusted EBITDA is forecast at £10.0 million in 2025 and £11.1 million in 2026, while adjusted EBIT is expected to rise from £4.6 million to £5.5 million over the same period. The note also shows adjusted profit before tax of £3.0 million for 2025 and £4.0 million for 2026. These figures suggest a business that is still investing, but also steadily building earnings power. The income statement table on page 3 of the note also shows gross margin forecast at 31.0% in both 2025 and 2026.
Valuation remains a talking point
Zeus argues that EV sales is a sensible way to view the business at this stage, given that Likewise is still investing in its platform, sales and marketing. On that basis, the broker highlights an EV sales multiple of 0.5x for both 2025 and 2026, which it describes as appearing cheap relative to the company’s growth and market share gains.
That does not remove execution risk, and the broker is clear that margins are still being held back by ongoing investment. Even so, the overall tone of the note suggests confidence that scale benefits should improve profitability over time as the business matures.
Key highlights from the latest update
- Q1 2026 revenue increased 15.2% year on year.
- April trading continued at a similar positive rate.
- Likewise bought a Leeds freehold property for £3.0 million to create a second distribution hub.
- Newport’s extension is due for completion in July 2026.
- Group sales capacity is now pushing towards £250 million.
- Zeus left revenue and earnings forecasts unchanged, but adjusted net debt forecasts for the Leeds investment.
Final Thoughts
The latest research note from Zeus paints a constructive picture for Likewise Group. Strong early year sales growth, continued evidence of market share gains and fresh investment in logistics infrastructure all point to a business that is still moving forward. Zeus has stayed cautious on forecasts because of the wider economic backdrop, but the company’s trading performance and operational expansion suggest that Likewise is building a larger and more capable platform for future growth. For a business still developing its scale in the flooring distribution market, that is a promising place to be.
