Likewise reports strong growth in turnover and margins in first half of 2021
Likewise Group plc, the Midlands-based floor coverings distributor, has released its first interim results since floating on AIM, showing a 52.2% increase in turnover in the first half of 2021, compared to 2020.
Turnover to 30 June 2021 was up to £28 million, from £18.4 million in the first half of 2020, and gross profit margin up to 29.4%. Operating profit before tax increased to £0.7 million, from a loss of £1.7 million in the similar period in 2021.
As a result, the board has announced its intention to declare a maiden dividend in 2022.
Chief executive Tony Brewer said a significant increase in operational capacity was the main driver in Likewise’s latest results.
“Combined with support from our suppliers, this performance is a result of the relationship our excellent operational management and sales representatives have with flooring retailers and contractors.”
He pointed to the rapid growth of Likewise Scotland and Likewise North East, with Likewise North also performing particularly well from its distribution centre in Leeds which is also the hub for Likewise Residential Products nationally.
A&A in Manchester has continued to trade strongly and has extended its geographical reach from the North West of England and now includes parts of the Midlands.
Mr Brewer said: “Our plan is to continue this expansion and negotiations are underway to move A&A to a new distribution centre close to their current location.
“Likewise Midlands is establishing a presence, and with the Birmingham Distribution Centre operational by the end of 2021, we expect a meaningful business to develop in 2022.”
He also reported that Lewis Abbott has performed well, and the Floors by Lewis Abbott Premium Carpet Brand was launched throughout the Likewise businesses at the recent National Floorcovering Exhibition in Harrogate.
Likewise South East continues to enlarge its market position and also provides a logistics service for all Likewise businesses in the South East of England.
H&V Carpets operating through most of the UK has traded positively and has many opportunities in both flooring product development and geographical reach. Likewise is also advancing plans to provide product and logistics into western Europe from the distribution centre in Meulebeke in Belgium.
Likewise Matting and Rugs has strengthened its business in both the independent and multiple retailers. The continual improvement in product, design and marketing provides an extremely positive future.
Marquee Floors has also had a good year given the return of the hospitality industry. With the positive development of these businesses and Likewise South East, Likewise has applied for planning permission to extend the freehold distribution centre in Sudbury.
Mr Brewer added that Likewise will continue to increase market presence through product launches and placing an increasing number of point of sale displays into independent flooring retailers and also providing a comprehensive product offering for flooring contractors.
The group has continued to enhance the IT infrastructure and Logistics Network. Both the Business to Business Website and Paperless Delivery Device will be live during the Autumn of 2021.
Tony Brewer said: “The appointment of Mike Steventon as a new non-executive Director further strengthens the board and the guidance of the senior Team to fulfil the aspirations to build a significant flooring distribution business.
“They are supported by employees developing their skills and a reflection of their commitment to Likewise is that 175 of our 247 employees have joined the Share Save Schemes that have been launched over the last three years.
“A further indication of the relationship that Likewise has with the flooring marketplace is that after such a short time in its development, Likewise has been voted Distributor of the Year by Flooring Retailers in the Interiors Monthly trade journal. We would like to thank all our customers for their support over the last three years.”
He added: “Likewise has developed really well over the last fifteen months. We have now established a meaningful business in the UK flooring market and with our excellent operational management and staff have a very exciting future ahead.
“The board would like to thank all of our management and employees for their contribution to the development of Likewise and also thank all of our advisors for the successful IPO onto AIM recently.”
Ends (696 words)
For further information, please contact:
|Likewise Group plc
Tony Brewer, Chief Executive
Roy Povey, Chief Financial Officer
|Tel: 01527 314 000|
|Zeus Capital Limited (Nominated Adviser & Joint Broker)
Jordan Warburton / David Foreman / James Edis (Corporate Finance)
Dominic King (Corporate Broking)
|Tel: 0203 829 5000|
|Ravenscroft Consultancy & Listing Services Limited (Joint Broker)
Semelia Hamon (Corporate Finance)
|Tel: 01481 732746|
|Novella Communications (Financial PR)
Fergus Young / Tim Robertson
|Tel: 0203 151 7008|
ABOUT LIKEWISE GROUP PLC
Likewise is a UK distributor of both domestic, commercial floorcovering matting and rugs. It is challenging the established competitors in the industry by providing access to a wide choice of flooring from multiple manufacturers across the globe at competitive prices for its customers.
Currently, the Group has a presence in the majority of the UK through seven distribution facilities as well as one in Belgium. It supplies over 2,600 customers and the Group currently has c.25employees.
Likewise is listed on the Alternative Investment Market of the London Stock Exchange (AIM: LIKE).
For further information please visit: www.likewiseplc.com