Likewise Group plc (LON:LIKE) Chief Executive Officer Tony Brewer caught up with DirectorsTalk to discuss the company’s revenue growth, market conditions, investment in infrastructure, and ambitions to exceed £200 million in revenue.
Q1: Tony, can you just talk us through what the key factors were that have enabled Likewise Group to grow and expand so quickly?
A1: I think over the years since we were founded in 2018, we’ve obviously had support initially of our shareholders and they’ve continued to invest in the business periodically to help us grow and increase the infrastructure. Furthermore, I think it’s fair to say our suppliers have been extremely supportive in helping us to develop the business.
As we’ve said numerous times, we have excellent management and staff and a really good team of people which we believe can grow the business for the future. And of course, fantastic support from the customer base, that’s both independent retailers and flooring contractors.
Q2: So, how would you describe the condition of the flooring market in the UK now?
A2: Well, it’s been a challenging few years, I guess. If we go back to navigating through COVID in the early part of our development and then certainly in 2021 into the early part of 2022, the market was pretty good. Most people were spending money on household refurbishment.
Sadly, with the war in Ukraine and the effect that had on energy prices, followed by interest rate increases, I think the market since the middle of 2022 has been quite difficult. I think if we take ourselves forward to 2024, I think most data would suggest that the market, certainly in residential, was probably down by something like 10% percent. 2025, I think, was fairly stable.
So, we’ve grown the business in pretty challenging times.
Q3: How do you increase your market presence and subsequent share?
A3: Certainly in the residential sector, that’s by the product development we have by working very closely with our suppliers and Adrian Laffey that leads the residential business. It’s a key to making decisions, getting those products developed and, in the marketplace while merchandising our point of sale, competitively priced and ourselves seems getting that point of sale into independent retailers.
The commercial market dynamics are slightly different where the leading manufacturers are tending to create the demand, getting their product specified and we’re supplying that demand. Probably less new product development in commercial but in residential, it’s about being very fleet footed through our product development, point of sale and our sales teams.
Q4: Do you have capacity to process and deliver that demand?
A4: It’s just getting the right time and the level of investment to be able to develop the business. We have 12 sites across the UK, Sudbury being the first in 2018 but those other 11 sites, including the acquisition of Valley, have been established since 2021.
In the last month, literally, we’ve increased our cutting capacity in Glasgow. We put a new five metre wide cutting machine into Leeds just over the Christmas/New Year holiday. We’re now cutting for Valley in Derby, again, a new five metre wide cutting machine there. The construction of the extension of the Newport facility to create another distribution hub is underway and that will be completed by the middle of the year, ready for the second half.
Q5: How large can Likewise Group ultimately be?
A5: We set out and put the infrastructure to say we can take 10% market share of a circa £2 billion market. We’re well on course to achieve that and I think we’re now setting our site somewhat higher. Where that ceiling is, is very difficult to say, albeit I think the market for floor covering in the UK and the infrastructure does lean more and more to distribution. There’s a lot of manufacturing in Western Europe and further afield and they look for distributors to be able to get product into the retail and commercial sector.
So, where is the ceiling? I’m not sure. But I think we can extend well over 200 to 250 and beyond.
