Revenues rise at Solihull's Likewise

Despite a prolonged period of challenging market conditions, floor coverings and mattings distributor Likewise Group plc continued its growth towards its medium term objectives.

Half year figures reveal that the Solihull based distributor has continued to increase total sales revenue by 6.2 per cent in the year to 30 June 2024.

The overall figures include continued growth in Likewise Floors’ sales of 16.8 per cent.

Tony Brewer, chief executive of Likewise Group plc, said: “Despite challenging market conditions and widely publicised unprecedented events throughout all sectors of the UK flooring industry, Likewise continues to invest in the logistics infrastructure plus extensive sales and marketing initiatives.

“This includes the recruitment of 14 additional sales executives in the last 12 months, taking the total number to 94.

“Notwithstanding the increased investment, particularly in the various sales teams, our underlying operating profit of £1.21 million is ahead of the previous year.”

Tony added: “Likewise Group has developed with support from its key manufacturing partners and has now further strengthened following the additional strategic development with other important European manufacturers. 

“The product launches in Q3 and Q4 2024 are at a significantly higher level than at any time during our short history and gives us every confidence that we will be able to continue to grow the business strongly into 2025.”

He said that Kent-based Valley Wholesale Carpets, which the company acquired in 2022, makes an important contribution to group profitability and positive cashflow. 

“Valley is currently undertaking a number of initiatives to increase geographical market presence, enlarge product portfolio into various types of resilient flooring, extensive Point of Sale & Display Stands and expanding the core carpet range - all of which provides Valley with every opportunity to increase sales and profitability through the excess capacity in the established logistics network of Erith, Derby and Newport,” he said.

In Likewise Floors, the Glasgow Distribution Hub established in 2023 is now making a contribution to the Likewise logistics network and capacity will be increased further in Spring 2025 to help facilitate the growth of Likewise Floors in Scotland in addition to England and Wales. 

Likewise North and North East are very well established in both residential and commercial flooring.

In Newport in South Wales, Likewise Wales, formed in January 2024, has now established itself and will further invest in additional sales executives to expand its presence. 

Likewise Group is now exploring planning consent to enlarge the distribution centre to become a fourth hub in Likewise Floors in addition to creating extra capacity for Valley. 

This will provide the group with additional processing capability from 2026. The project will be funded through existing facilities and free cash flow. 

Floors by Lewis Abbott has just launched its new Collection of Premium Carpet Products at the recent Harrogate National Flooring Exhibition. Innovative Displays will be placed into retailers during the fourth quarter of 2024.

Recent management changes at Delta Carpets will allow this semi-national business to fulfil its potential in residential flooring.

Mr Brewer reported that the businesses of Likewise South, Likewise London and Likewise South East are all making good progress in the South of England but still have huge untapped potential in this very important geographical area. 

Likewise Rugs and Matting continues to develop its business in DIY, Garden Centres, Hardware Stores and General Independent Retailers. 

Throughout the businesses of Valley, A&A, Delta, H&V, Floors by Lewis Abbott and Likewise Floors, the Group has 94 external sales executives visiting flooring retailers and contractors each day to position new Point of Sale continually increasing the group’s market presence. 

Likewise Group is intending to increase its geographical reach into the South West of England with an additional logistics centre for both the Valley and Likewise businesses. 

Tony said: “The current logistics network has capacity to comfortably exceed £200 million sales revenue and, with limited investment, particularly in the Newport Distribution Hub, can progress much further in 2027 and 2028. 

“Likewise Group has banking relationships with NatWest, Barclays and HSBC and is operating well within the facilities provided. In addition, the group has £22 million of freehold property with very limited fixed debt.

He added: “The group remains committed in its ongoing investment to maximise ultimately future opportunities, however the immediate return is diluted by difficult market conditions. Therefore, while the short term profit aspirations remain challenging, the board is absolutely confident that the foundations are being prepared for a much larger business to achieve the medium term objectives. 

“With the longstanding relationship with flooring manufacturers and customers, combined with the flooring product knowledge of the people throughout our business and the logistics infrastructure established over the last three years, Likewise Group is in an unrivalled position to take huge advantage of the opportunities before us, particularly as consumer demand and markets return to more normal levels.”