REG - Likewise Group PLC - Interim Results for the six months to 30 June 2025
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RNS Number : 4932Y Likewise Group PLC 09 September 2025
9 September 2025
Likewise Group plc
("Likewise", or the "Company")
Interim Results for the six months to 30 June 2025
Further progress and positive development
Likewise, the fast growing UK Flooring Distributor is pleased to announce its
unaudited interim results for the six months ended 30 June 2025 (the "Period"
or "H1 2025").
Summary highlights
· Total Sales revenue increased by 10.2% to £77.9 million
· Continued growth in Likewise Branded sales of 14.1%
· Gross margin improvement of 0.2% to 31.3% in H1 2025
· Underlying EBITDA(1) increased by 21.0% to £4.4 million
· Underlying profit from operations increased by 38.4% to £1.67
million
· Underlying profit before tax(2) increased by 120% to £0.74 million
· Positive cash generation from Operating Activities of £5.2
million
· Interim Dividend of 0.1375 pence per share to be paid on 14
November 2025 - a 10% increase on H1 2024
(1) Underlying EBITDA is defined as profit before finance costs, tax,
depreciation, amortisation, separately disclosed items and share based
payments.
(2) Underlying profit before tax is defined as profit before amortisation,
separately disclosed items and share based payments.
H1 2025 highlights
Likewise, the fast growing UK Flooring Distributor is very pleased to announce
continued growth during the first six months of 2025.
Despite challenging market conditions, compounded by a particularly hot late
Spring and Summer, Group Sales Revenue increased by 10.2% to £77.9 million.
Sales in Likewise Branded grew by 14.1% in the six months to 30 June 2025.
Underlying Profit Before Tax increased by 120% to £0.74 million due to the
higher sales revenue through the established infrastructure creating
operational gearing as previously stated. This indicates that the Group is
well on course to achieve current market forecasts, including absorbing the
increased National Insurance Contribution cost following the Autumn 2024
budget.
Operations
This strong performance is a result of the extensive Sales and Marketing
initiatives including the appointment of 21 new Sales Executives in the last
18 months supported by the established Logistics Network in both Likewise
Floors and Valley Wholesale Carpets.
Likewise and Valley have many opportunities ahead and undoubtedly has the
trajectory to continue to take exponential gains in market share.
The Group invested in a new Freehold Logistics Centre in Plymouth completed in
February this year whilst also creating additional cutting and processing
capacity in both its Glasgow and Derby sites.
Importantly Planning Permission has now been granted to extend the Newport
facility into a Distribution Hub. This will be operational in Q2 2026 and
allows the Group to deliver its growth objectives for next year.
These investments can ultimately increase Cutting capacity by over 40% which
will allow the Group to process and deliver Sales Revenue well in excess of
£200 million.
The Board is now considering additional investment to capitalise on market
opportunities to take Sales Revenue over £250 million. This includes
developing a clearly defined 5 year plan of investment in organic growth
whilst maintaining the flexibility to take advantage of opportunities that may
arise.
As Likewise has become more established the Group have attracted additional
strategic supplier partners and this has been particularly evident from Q4
2024 and made a really meaningful contribution to 2025.
Cash Flow and Banking Facilities
The Group generated positive cash from operations of £5.2 million in the
period (H1 2024: £2.88 million), reflecting continued improvement in
underlying performance and disciplined working capital management.
Furthermore, the Group continues to operate well within its banking
facilities, with further availability to draw upon to support ongoing and
future growth initiatives.
Dividend
The Board is pleased to increase the Interim Dividend by 10% to 0.1375 pence
which indicates a total Dividend of c.0.4 pence for 2025. This cumulative
effect means that the Dividend has doubled in the last 3 years. Consistent
with previous Statements that the Board will maintain a progressive Dividend
policy broadly in line with Earnings.
The Interim Dividend of 0.1375 pence per Ordinary Share will be paid on 14
November 2025 to shareholders on the register at the close of business on 10
October 2025, the ex-dividend date being 9 October 2025.
Shareholders can also take advantage of the Dividend Reinvestment Plan
("DRIP") by registering their intentions with the Company's registrar by 24
October 2025.
Outlook
The extensive Sales and Marketing initiatives continue to significantly
increase the Group's presence in Independent Retailers and Flooring
Contractors. This is supported by our enlarged Logistics Network.
With like for like sales maintained at a 10.2% increase to the end of August,
the consistent trajectory provides the Group with confidence to achieve our
objectives during the traditionally busy Autumn selling period and remain on
track to meet market expectations for the financial year ending 31 December
2025.
Tony Brewer, Chief Executive of Likewise Group plc, said:
"Notwithstanding the particularly hot weather taking the edge off our sales
growth, the Group has achieved a very strong performance in the first eight
months, including July and August, with like for like Sales improving by
10.2%.
We have created the foundations to benefit from the typically busier Autumn
period. The Management and Sales Teams are poised to take advantage of these
extensive opportunities supported by Staff throughout our Businesses. We thank
everyone for their hard work and contribution to the Group.
We very much appreciate and thank our suppliers, customers, shareholders and
all stakeholders for their continued support.
The Group is in a particularly strong position to capitalise on the many
opportunities, which provide a very exciting future for all involved."
For further information, please contact:
Likewise Group plc Tel: +44 (0) 121 817 2900
Tony Brewer, Chief Executive
Zeus (Nominated Adviser and Joint Broker) Tel: +44 (0) 20 3829 5000
Jordan Warburton / David Foreman / James Edis (Investment Banking)
Dominic King / Fraser Marshall (Corporate Broking)
Ravenscroft (Joint Broker) Tel: +44 (0) 1481 735 340
Semelia Hamon (Corporate Finance)
CAUTIONARY STATEMENT
Certain statements included or incorporated by reference within this
announcement may constitute "forward-looking statements" in respect of the
Group's operations, performance, prospects and/or financial condition.
Forward-looking statements are sometimes, but not always, identified by their
use of a date in the future or such words and words of similar meaning as
"anticipates", "aims", "due", "could", "may", "will", "should", "expects",
"believes", "intends", "plans", "potential", "targets", "goal" or "estimates".
By their nature, forward-looking statements involve a number of risks,
uncertainties and assumptions and actual results or events may differ
materially from those expressed or implied by those statements. Accordingly,
no assurance can be given that any particular expectation will be met and
reliance should not be placed on any forward-looking statement. Additionally,
forward-looking statements regarding past trends or activities should not be
taken as a representation that such trends or activities will continue in the
future. No responsibility or obligation is accepted to update or revise any
forward-looking statement resulting from new information, future events or
otherwise. Nothing in this announcement should be construed as a profit
forecast. This announcement does not constitute or form part of any offer or
invitation to sell, or any solicitation of any offer to purchase any shares or
other securities in the Group, nor shall it or any part of it or the fact of
its distribution form the basis of, or be relied on in connection with, any
contract or commitment or investment decisions relating thereto, nor does it
constitute a recommendation regarding the shares or other securities of the
Group. Past performance cannot be relied upon as a guide to future performance
and persons needing advice should consult an independent financial adviser.
Statements in this announcement reflect the knowledge and information
available at the time of its preparation.
FINANCIAL OVERVIEW
Likewise is pleased to report its interim financial results for the Period
ended 30 June 2025. In addition to the Statement of Profit or Loss the below
provides an overview of the Underlying performance of the Group.
H1 2025
Underlying Non-Underlying Reported
Revenue 77,947,835 - 77,947,835
Cost of Sales (53,556,714) - (53,556,714)
Gross Profit 24,391,121 - 24,391,121
Administrative expenses (12,430,723) (507,370) (12,938,093)
Distribution costs (10,232,759) - (10,232,759)
Impairment losses on trade receivables (55,129) - (55,129)
Profit/(loss) from operations 1,672,510 (507,370) 1,165,140
Finance Income 22,159 - 22,159
Finance costs (957,603) - (957,603)
Profit / (loss) before tax 737,066 (507,370) 229,696
H1 2024
Underlying Non-Underlying Reported
Revenue 70,745,379 - 70,745,379
Cost of Sales (48,771,849) - (48,771,849)
Gross Profit 21,973,530 - 21,973,530
Administrative expenses (11,381,028) (587,190) (11,968,218)
Distribution costs (9,306,676) (46,248) (9,352,924)
Impairment losses on trade receivables (77,164) - (77,164)
Profit/(loss) from operations 1,208,662 (633,438) 575,224
Finance Income 31,651 - 31,651
Finance costs (905,256) - (905,256)
Loss on revaluation of consideration on acquisition - (18,985) (18,985)
Profit / (loss) before tax 335,057 (652,423) (317,366)
Non-underlying items represent exceptional items, which include share based
payment transactions, amortisation of acquisition intangibles and strategic
project costs. These represent non-GAAP metrics used by management to appraise
the underlying performance of the business.
Revenue & Margin
Despite ongoing sector challenges, Likewise continues to demonstrate
resilience, delivering 10.2% revenue growth in the six months to 30 June 2025,
with sales reaching £77.9 million (H1 2024: £70.7 million). This follows the
6.2% increase reported in H1 2024, highlighting consistent momentum.
The Board is particularly encouraged by the performance of Likewise Floors,
which has firmly established itself as a key player in the industry over the
past five years, achieving a 14.1% sales increase year-on-year with one less
working day
Product initiatives introduced in H2 2024 were successfully progressed and
launched in the period, supported by new strategic supplier partnerships.
These launches are expected to deliver further meaningful benefits as they
gain traction through the second half of the year and beyond.
Gross margin improved modestly by 0.2% against the prior period, underlining
the Group's ability to sustain pricing and purchasing discipline alongside
strong top-line growth.
As the Group continues to leverage the UK-wide infrastructure developed in
recent years, the Board is pleased to report improvements in operating profit
and profit before tax. These reflect the profitability gains and operational
gearing benefits that are expected to accelerate as Likewise enters its next
phase of development.
Balance Sheet and Cash Flow
The Group continues to maintain a strong balance sheet, which remains the
foundation of the business's resilience and growth over recent years. A key
strength lies in the Group's substantial freehold property portfolio, which
was further enhanced in Q1 2025 with the acquisition of the 8,000 sq. ft.
Plymouth facility (£1.15m). This strategic purchase completes the Group's UK
geographic footprint, enabling Likewise South West and Valley Wholesale
Carpets to enter the Devon and Cornwall markets for the first time following a
refurbishment project undertaken. While performance contribution is naturally
loss making during the initial period, these new divisions are well positioned
to build momentum and deliver further growth.
With the Group responsible for its own transport fleet, a thorough review of
vehicle financing has been untaken. Rising interest rates and inflationary
pressure on commercial vehicle prices have made the purchase of vehicles,
supported by an asset finance facility, a more cost-effective and flexible
solution compared with leasing. The first replacement vehicles were delivered
in March, with further additions to follow in H2 as leases reach expiry. This
will result in higher tangible fixed asset additions as opposed to
right-of-use assets over time. Valley continues to fund its own fleet
replenishments directly from cash flow.
Inventories increased by £2.7m since year-end, reflecting both growing sales
demand and planned stock build ahead of the busy Autumn trading period. Net
working capital stood £1.0m positive at 30 June, supported by higher trade
payables linked to increased stock movements and initial deliveries of the
product launches from Spring 2025.
Cash outflows from financing activities in H1 2025 appear greater
year-on-year, largely due to the comparative period in 2024 benefitting from
significant inflows when the invoice financing facility was extended to the
wider Likewise Floors debtor book, providing substantial drawdown capacity at
that time. In the current period, financing outflows mainly reflect increased
lease liability repayments, as all properties have now exited initial
incentive periods and are subject to full cash rents, together with the
utilisation of funds for the Group's share buyback programme.
Overall cash levels are slightly lower than H1 2024, however the Group
continues to generate strong operating cash flows, maintains a healthy level
of liquidity with which to fund further growth initiatives. The Board remains
confident in the Group's cash generation capability as operational gearing
improves and the financial strength of the business going forward.
Interim Consolidated Statement of Profit or Loss and Other Comprehensive 6 month period ended 6 month period ended
income (Unaudited) for the period
30 June 30 June
2025 2024
Notes £ £
Revenue 3 77,947,835 70,745,379
Cost of sales (53,556,714) (48,771,849)
Gross profit 24,391,121 21,973,530
Administrative expenses (12,938,093) (11,968,218)
Distribution costs (10,232,759) (9,352,924)
Impairment losses on trade receivables (55,129) (77,164)
Profit from operations 4 1,165,140 575,224
Finance income 22,159 31,651
Finance costs (957,603) (905,256)
Loss on revaluation of consideration on acquisition - (18,985)
Profit/(Loss) before tax 229,696 (317,366)
Taxation 5 - (11,749)
Profit/(Loss) for the financial period 229,696 (329,115)
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Revaluation of land and buildings 161,893 154,870
Items that will or may be reclassified to profit or loss:
Exchange losses arising on translation of foreign operations (23,668) (5,488)
Total comprehensive profit/(loss) for the financial period 367,921 (179,733)
Earnings per share Pence per share Pence per share
Basic profit/(loss) per share 0.09 (0.14)
6
Diluted profit/(loss) per share 6 0.09 (0.13)
Interim Consolidated Statement of Financial Position (Unaudited) 30 June 31 December
2025 2024
Notes £ £
Assets
Non-current assets
Goodwill 8 5,624,284 5,624,284
Other intangible assets 9 3,593,846 3,776,896
Property, plant and equipment 10 32,404,596 29,348,321
Right-of-use assets 10 17,594,540 19,253,536
Retirement benefit obligations 450,000 450,000
59,667,266 58,453,037
Current assets
Inventories 22,760,103 20,042,078
Trade and other receivables 21,552,620 19,235,903
Cash and cash equivalents 2,985,307 2,199,078
47,298,030 41,477,059
Total assets 106,965,296 99,930,096
Liabilities
Non-current liabilities
Loans and borrowings 11 (2,177,392) (2,235,997)
Lease liabilities 11 (17,816,751) (18,140,677)
Deferred tax liability (1,337,048) (1,337,048)
(21,331,191) (21,713,722)
Current liabilities
Trade and other liabilities (32,838,297) (26,773,525)
Current tax liabilities (15,107) (15,107)
Loans and borrowings 11 (8,589,939) (7,108,326)
Lease liabilities 11 (4,367,874) (4,642,269)
(45,811,217) (38,539,227)
Total liabilities (67,142,408) (60,252,949)
Net assets 39,822,888 39,677,147
Equity
Share capital 14 2,474,835 2,474,835
Share premium 14 17,707,900 17,677,390
Treasury shares (461,038) (58,584)
EBT Reserve 14 (346,170) (375,060)
Warrant reserve 128,170 128,170
Share option reserve 15 715,552 610,698
Revaluation reserve 2,914,046 2,777,172
Foreign exchange reserve (83,106) (59,438)
Retained earnings 16,772,699 16,501,964
Total equity 39,822,888 39,677,147
Interim Consolidated Statement of Changes in Equity (Unaudited) for the period
ended 30 June 2025
Share Capital £ Share Premium Account £ EBT shares £ Revaluation reserve £ Retained earnings £
Balance at 1 January 2025 2,474,835 17,677,390 (375,060) 2,777,172 16,501,964
Profit for the period - 229,696
- -
-
Other comprehensive income - -
- -
161,893
Share based payment - - - - -
Transfer between reserves - (25,019) 41,039
- -
Settlement of employee share awards - - -
- 59,400
EBT Share revaluation - 30,510 - -
(30,510)
Purchase of own shares - - -
- -
Balance at 30 June 2025 2,474,835 17,707,900 (346,170) 2,914,046 16,772,699
Interim Consolidated Statement of Changes in Equity (Unaudited) for the period
ended 30 June 2024
Share Capital £ Share Premium Account £ EBT shares £ Revaluation reserve £ Retained earnings £
Balance at 1 January 2024 2,439,645 17,396,190 - 2,626,976 16,075,807
Loss for the period - - - - (329,115)
Other comprehensive income - - - 154,870 -
Share based payment 13,190 118,710 - - -
Transfer between reserves - - - (25,020) 25,020
Share option valuation - - - - -
Purchase of own shares into EBT - - (223,636) - -
Balance at 30 June 2024 2,452,835 17,514,900 (223,636) 2,756,826 15,771,712
Treasury Shares £ Share option reserve £ Warrant reserve £ Foreign exchange reserve £ Total £
Balance at 1 January 2025 (58,584) 610,698 128,170 (59,438) 39,677,147
Profit for the period - - - - 229,696
Other comprehensive income - - - (23,668) 138,225
Share based payment - 120,874 - - 120,874
Transfer between reserves - (16,020) - - -
Settlement of employee share awards - - - - 59,400
EBT Share revaluation - - - - -
Purchase of own shares (402,454) - - - (402,454)
Balance at 30 June 2025 (461,038) 715,552 128,170 (83,106) 39,822,888
Treasury Shares £ Share option reserve £ Warrant reserve £ Foreign exchange reserve £ Total £
Balance at 1 January 2024 - 903,295 128,170 (47,502) 39,522,581
Loss for the period - - - - (329,115)
Other comprehensive income - - - (5,488) 149,382
Share based payment - - - - 131,900
Transfer between reserves - - - - -
Share option valuation - (28,350) - - (28,350)
Purchase of own shares into EBT - - - - (223,636)
Balance at 30 June 2024 - 874,945 128,170 (52,990) 39,222,762
Interim Consolidated Statement of Cash Flows (Unaudited) for the period 6 month period ended 6 month period ended
30 June 30 June
2025 2024
£
£
Cash flows from operating activities
Profit/(loss) for the period 229,696 (329,115)
Adjustments for:
Depreciation and amortisation 2,922,413 2,651,539
Revaluation of consideration 18,985
-
Profit on disposal of tangible fixed assets (35,144) (8,750)
Finance income (22,159) (31,651)
Finance costs 957,603 905,256
Taxation - 11,749
Share based payment charge 120,874 (28,350)
Net foreign exchange (profit)/loss 1,070 (5,488)
4,174,353 3,184,175
Movements in working capital:
Increase in inventories (2,718,025) (719,326)
Increase in trade and other receivables (2,316,717) (2,696,419)
Increase in trade and other payables 6,064,772 2,870,239
Cash flows from operations 5,204,383 2,638,669
Income tax received 241,809
-
Net cash from operating activities 5,204,383 2,880,478
Cash flow from investing activities
Purchase of property, plant and equipment* (2,275,658) (477,779)
Purchase of intangibles (62,320) (99,830)
Proceeds from disposal of property, plant and equipment 44,938 12,623
Deferred consideration paid - (4,269,500)
Interest received 22,159 31,651
Net cash used in investing activities (2,270,881) (4,802,835)
Cash flows from financing activities
Interest paid (371,347) (310,432)
Consideration for new shares - 131,900
Consideration received on shares settled via EBT 59,400
Purchase of own shares (402,454) (223,636)
Increase in invoice discounting 927,703 2,281,995
Repayment of lease liabilities (2,830,855) (2,387,708)
Net drawdown on trade loan facility 524,153 -
Repayment of loans (28,849) (46,391)
Net cash used in financing activities (2,122,249) (554,272)
Net increase/(decrease) in cash and cash equivalents 811,253 (2,476,629)
Cash and cash equivalents at the beginning of financial period 2,199,078 5,709,229
Effect of foreign exchange rates (25,024)
Cash and cash equivalents at end of financial period 2,985,307 3,232,600
Comprising
Cash at bank 2,985,307 3,232,600
2,985,307 3,232,600
*Purchase of property, plant and equipment excludes the £1,539,333 of assets
purchased during the period through asset financing.
Notes to the consolidated (unaudited) financial statements for the period
ended 30 June 2025
1. General information
The Company is a public company limited by shares, registered in England and
Wales and listed on the Alternative Investment Market (AIM). The registered
company number is 08010067 and the address of the registered office is Unit 4
Radial Park, Radial Way, Birmingham Business Park, Solihull, England, B37 7WN.
The principal activity of the Group is the wholesale distribution of
floorcoverings and associated products.
2. Accounting policies
Basis of preparation
The condensed and consolidated interim financial statements for the period
from 1 January 2025 to 30 June 2025 have been prepared in accordance with
International Accounting Standards ('IAS') 34 Interim Financial Reporting as
adopted by the UK and on the going concern basis. They are in accordance with
the accounting policies set out in the statutory accounts for the year ended
31 December 2024 and those expected to be applied for the year ended 31
December 2025 unless otherwise stated below.
Employee Benefit Trusts ("EBTs") are consolidated on the basis that the Group
has control, thus the assets and liabilities of the EBT are included in the
consolidated statement of financial position and shares held by the EBT in the
Company are presented as a deduction from equity.
These interim financial statements do not include all of the information
required in annual financial statements in accordance with UK adopted
International Accounting Standards and should be read in conjunction with the
consolidated financial statements for the year ended 31 December 2024.
The comparatives shown are for the period 1 January 2024 to 30 June 2024, and
at 31 December 2024 and do not constitute statutory accounts, as defined in
section 435 of the Companies Act 2006, but are based on the statutory
financial statements for the year ended 31 December 2024.
A copy of the Group's statutory accounts for the year ended 31 December 2024
has been delivered to the Registrar of Companies and the accounts are
available to download from the Company website at www.likewiseplc.com.
(http://www.likewiseplc.com/)
The financial information is presented in pounds sterling, which is the
functional currency of the Group and rounded to the nearest £. The financial
statements are prepared on the historical cost basis unless otherwise
specified within these accounting policies.
Going concern
The Directors have considered the Group's ability to continue as a going
concern and are satisfied that the adoption of the going concern basis in
preparing the interim financial statements is appropriate. The Group has
continued to perform strongly in challenging market conditions, with
demonstrable strong sales growth. This has contributed to improvements in
profitability, operational gearing and the resultant cash generation.
The Group continues to utilise invoice financing arrangements as its primary
source of working capital funding, operating within facility limits throughout
the reporting period. In addition, the Group has access to a further trade
loan facility of up to £1.75 million, available for drawdown upon request,
providing further flexibility and headroom.
The Board has undertaken a detailed review of the Group's forecast cash flow
models through to December 2026, which demonstrate that the Group has adequate
resources to meet its liabilities as they fall due for the foreseeable future.
In forming this view, the Board has considered the Group's strong balance
sheet, available cash reserves, access to additional financing facilities, and
expected future trading performance. Accordingly, the Directors consider it
appropriate to prepare the interim financial statements on a going concern
basis.
Impact of new international reporting standards
There are no accounting pronouncements which have become effective from 1
January 2025 that have a significant impact on the Group's interim condensed
consolidated financial statements.
Judgements and key sources of estimated uncertainty
The preparation of the interim financial information requires management to
make judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates.
In preparing this condensed interim financial information, the significant
judgements made by management in applying the Group's accounting policies and
the key sources of estimation uncertainty were the same as those applied to
consolidated financial statements for the year ended 31 December 2024.
3. Segmental reporting
For the purposes of segmental reporting, the company's Chief Operating
Decision Maker (CODM) is considered to be the Executive Board of Directors.
The Board has not identified any separate operating segments within the
business. The Board reviews revenue and expenses for the business as a whole
and makes decisions about resources and assesses performance based on this
information.
Revenue is derived from continuing operations and arises entirely through the
wholesale of goods. Segmental analysis is therefore not presented.
The Group is not reliant on any one customer and no customer exceeds 10% of
total annual turnover.
The Group generates revenue from both the UK and overseas as detailed below:
6 month 6 month
period ended period ended
30 June 30 June
2025 2024
£ £
UK 77,909,037 70,602,934
Other EU 38,798 142,445
Rest of the World - -
77,947,835 70,745,379
Seasonal fluctuations
The overall demand for the wholesale of floorcoverings has previously been
higher in the third and fourth quarters of the year. In the previous six month
period to 30 June 2024, revenue equated to 47.2% of the annual revenue
generated.
4. Operating profit
Operating profit is stated after charging: 6 month 6 month
period ended
period
ended
30 June 30 June
2025 2024
£ £
Depreciation of property, plant and equipment including right-of-use assets 2,677,043 2,425,192
Amortisation of intangible assets 245,370 226,347
Share based payments 120,874 (28,350)
Impairment of inventories 540,729 442,574
Short term lease expense 73,257 247,292
Strategic restructuring and relocation costs - 376,165
Loss from new operations 190,062 89,289
5. Taxation on ordinary activities
Tax is calculated at 25% for the six months ended 30 June 2025 representing
the average annual effective tax rate expected to apply for the full year. No
income tax is expected in the period given the availability of losses
previously incurred by the Group.
The Group has tax losses available to be carried forward. Due to uncertainty
around timing of the Group's projects, management have not considered it
appropriate to recognise all losses as an asset in the financial statements.
Tax losses of £13,893,692 were available for offset against future taxable
profits at 31 December 2024. A deferred tax asset of £583,451 was not
recognised at 31 December 2024 in relation to these losses. In addition, a
deferred tax asset of £177,525 was not recognised in relation to the future
tax benefit on the future exercise of employee share options.
6. Earnings per share
Basic loss per share is based on the loss after tax for the period and the
weighted average number of shares in issue during each period.
6 month 6 month
period ended period ended
30 June 30 June
2025 2024
£ £
Profit/(loss) attributable to equity holders of the company 229,696 (329,115)
No. No.
(as restated*)
Weighted average number of ordinary shares used as the denominator in
calculating basic earnings per share
244,429,300 243,680,466
Adjustments for calculation of diluted earnings per share:
Options 7,137,211 2,497,509
Warrants 2,900,000 2,900,000
Weighted average number of shares and potential ordinary shares used as the
denominator in calculating diluted earnings per share
254,466,511 249,077,975
Pence per share Pence per share
Basic profit/(loss) per share (pence) 0.09 (0.14)
Diluted profit/(loss) per share (pence) 0.09 (0.13)
*Restatement of H1 2024 weighted average number of shares
The weighted average number of shares for the prior period has been restated
as the originally disclosed figure deducted the total number of shares
acquired by the Employee Benefit Trust (EBT) during the period, without
considering the timing of each acquisition. The restatement reflects the
correct application of the weighted average method based on the respective
acquisition dates, in accordance with accounting standards.
7. Dividends
No dividends were declared for the period to 30th June 2025 totalling £Nil
(2024 - £Nil).
8. Goodwill
Goodwill
£
Cost and net book value
At 31 December 2024 5,624,284
At 30 June 2025 5,624,284
The Group tests goodwill annually for impairment, or more frequently if there
are indications that goodwill might be impaired.
The Directors have considered the impact of the current economic uncertainty
on the value of the goodwill but did not deem there to be any impairment
required as at 30 June 2025 (31 December 2024 - £Nil).
9. Other intangible assets
Net book value Delta Carpets Customer Base £ Likewise Floors Customer Base £ Delta Carpets Brand Name £ Likewise Floors Brand Name £ Software Modifi- cations £ Total £
At 31 December 2024 372,422 1,308,782 392,015 1,349,931 353,746 3,776,896
Additions - - - - 62,320 62,320
Amortisation (25,684) (70,745) (27,036) (72,970) (48,935) (245,370)
At 30 June 2025 346,738 1,238,037 364,979 1,276,961 367,131 3,593,846
The Directors have considered the impact of the current economic uncertainty
on the value of other intangibles but did not deem there to be any impairment
required as at 30 June 2025 (31 December 2024 - £Nil).
10. Property, plant and equipment
Land and buildings Other owned assets Right-of-use assets Total
£ £ £ £
Net book value
At 31 December 2024 22,074,183 7,274,137 19,253,536 48,601,856
Additions 1,434,461 2,380,530 209,427 4,024,418
Disposals - (353,154) (1,279,596) (1,632,750)
Depreciation (161,893) (740,845) (1,774,305) (2,677,043)
Depreciation on disposals - 335,284 1,185,478 1,520,762
Revaluation 161,893 - - 161,893
At 30 June 2025 23,508,644 8,895,952 17,594,540 49,999,136
11. Loans and borrowings
Consolidated
30 June 31 December
2025 2024
£ £
Current borrowings - Secured
Bank loans and invoice discounting facility 8,589,939 7,108,326
Lease liabilities 4,367,874 4,642,269
12,957,813 11,750,595
Non-current borrowings - Secured
Bank loans 2,177,392 2,235,997
Lease liabilities 17,816,751 18,140,677
19,994,143 20,376,674
The directors consider that the carrying amount of the invoice discounting
facility and bank loan approximates their fair value.
The invoice discounting facility is secured against the related trade debtor
balances and by a floating charge over the assets of the Group. The invoice
discounting facility is denominated in Sterling. The invoice discounting
facility is held for Likewise Floors Limited and has a fixed service charge of
£18,000 per annum.
Lease liabilities are secured against the assets to which they relate.
Carrying Amount
30 June 31 December
2025 2024
£ £
Amounts repayable under bank loans
Within one year 659,726 105,817
In the second to fifth year inclusive 516,371 658,876
Beyond five years 1,661,021 1,577,121
2,837,118 2,341,814
During 2023 the Company restructured their bank loans resulting in a principal
loan value of £2,495,000 drawn down in July 2023. Repayments commenced in
September 2023 and will continue until July 2038. The loan is secured by a
fixed and floating charge over the Group's assets. The loan carries interest
on a floating rate basis with interest at Bank of England rate plus a margin
of 2.35%.
The loan is at a floating interest rate and exposes the Group to fair value
interest rate risk.
In 2024, the subsidiary company, Valley Wholesale Carpets Limited, extended
the trade loan facility agreement with Barclays Bank Plc. This agreement
provides the company with the facility to drawdown up to a maximum limit of
£1,750,000 available at their request. As at 30 June 2025 the amount drawn
down on the trade facility was £524,153
12. Financial Instruments
The fair value hierarchy groups financial assets and liabilities into three
levels based on the significance of inputs used in measuring the fair value of
the financial assets and liabilities.
The fair value hierarchy has the following levels:
- Level 1: quoted prices (unadjusted) in active markets for identical assets
or liabilities;
- Level 2: inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices); and
- Level 3: inputs for the asset or liability that are not based on observable
market data (unobservable inputs).
The only financial instruments the Group holds which are measured at fair
value through the Income Statement (as level 2 above) are forward currency
contracts and, in the prior period, deferred consideration. All other
financial assets and liabilities are held at amortised cost.
The tables below set out the Group's accounting classification of each class
of its financial assets and liabilities.
30 June 31 December
2025 2024
£ £
Financial assets at amortised cost
Trade receivables 15,283,555 14,114,781
Other receivables 3,242,733 3,421,566
18,526,288 17,536,347
All of the above financial assets' carrying values are approximate to their fair values, as at each reporting date disclosed.
30 June 31 December
2025 2024
£ £
Non-current financial liabilities at amortised cost
Bank loans 2,177,392 2,289,402
Lease liabilities 16,576,766 18,140,677
18,754,158 20,430,079
30 June 31 December
2025 2024
£ £
Current financial liabilities at amortised cost
Trade payables 29,198,189 21,638,744
Other payables 620,880 533,997
Accruals 1,746,027 1,462,027
Invoice discounting facility 7,930,213 7,002,510
Bank loans 659,726 118,168
Lease liabilities 3,711,171 4,373,760
Deferred consideration - held at fair value - 4,250,515
43,866,206 39,379,721
All of the above financial liabilities' carrying values are considered by
management to be approximate to their fair values, as at each reporting date
disclosed.
At 30 June 2025, subsidiary companies held time option and forward Euro
contracts totalling €523,234 and time option and forward USD contracts
totalling $1,607,391 These contracts had a fair value of (£26,157) at period
end and crystallise between 1 July 2025 and 31 December 2025.
13. Share capital
Consolidated and Company 30 June 31 December
Issued and fully paid 2025 2024
No. No.
Ordinary shares of £0.01 each (2024: Ordinary shares of £0.01 each) 247,483,480 247,483,480
The Company has one class of ordinary share which carry no right to fixed
income.
At the Annual General Meeting of the Company held on 27 June 2025, special
resolutions were passed by members of the Company to authorise the
disapplication of pre-emption rights in respect of shares allotted by the
authority of the Directors of up to 10% of the issued share capital of the
Company (5% for general purposes and an additional 5% specifically for
financing or refinancing acquisitions or other capital investments, in line
with the Pre-Emption Group's Statement of Principles). In addition, a special
resolution was passed to authorise the Directors of the Company to purchase
own shares up to an aggregate 10% of the Company's issued share capital, where
the Directors believe that it is in the interests of the Company to do so. The
authority granted under each resolution expires at the earlier of, the end of
the next AGM of the Company or 15 months from the date of the AGM in which the
authority was granted. More information can be found in the Company's AGM
notice on 16 May 2025. This can be found on the company website:
www.likewiseplc.com/documents-reports-and-presentations
(http://www.likewiseplc.com/documents-reports-and-presentations) .
At 30 June 2025, the Company held in an Employee Benefit Trust 1,427,350 of
its own shares with a nominal value of £14,274 which were purchased for
consideration of £403,636. The shares were purchased at the market value at
the date of each transaction. The Employee Benefit Trust has waived any
entitlement to the receipt of dividends in respect of its holding of the
Company's ordinary shares. The market value of these shares at 30 June 2025
was £335,427. In the current period no shares were repurchased by the EBT and
600,000 were transferred to employees to satisfy SAYE share awards.
On 8 January 2025 and 12 May 2025, the group undertook a share buyback
programme of £0.01 ordinary shares of the company. This resulted in the
repurchase of 1,991,543 shares during the period, with a total of 2,317,895
shares held in treasury as at the period end.
14. Share-based payments
The Group has a number of share options plans including a Savings-Related
Share Option Plan ("SAYE") for all employees of the Group. In accordance with
the terms of the plan, as approved by shareholders, employees of the Group may
be granted options to purchase ordinary shares. There are no performance
criteria for the SAYE and options are issued to participants in accordance
with HMRC rules. Vesting is conditional on continuity of service.
As at 31 December 2024, 10,002,625 share options remained active. During the
current period 3,110,144 new options were issued and 1,171,538 options lapsed
on employees leaving the Group. During the current period, 600,000 options
were exercised with an average option price of £0.10 as detailed in note 14.
The average remaining contractual life of the remaining 11,341,231 options is
approximately 3.0 years.
In addition, as at 31 December 2024, 6,925,000 share options remained active
which were issued under Enterprise Management Incentives (EMIs). There were no
options granted, lapsed or exercised in the period leaving 6,925,000 options
active as at 30 June 2025. The average remaining contractual life of options
which are not yet vested is approximately 0.3 years. The options outstanding
as at the reporting date that have vested and are exercisable for a period of
up to 10 years from their respective grant dates.
In addition, as at 31 December 2024, 4,700,000 share options remained active
which were issued under a Company Share Option Plan ("CSOP"). There were no
options granted, 550,000 options lapsed and there were none exercised in the
period leaving 4,150,000 options active at 30 June 2025. The remaining
contractual life of these options is approximately 1.0 years.
Share options are valued using the Black-Scholes model. The inputs to the
model are the option price and share price at date of grant, expected
volatility (20% / 44% / 45% dependant on the scheme), expected dividend rate
(0%/ 1.56% dependant on the scheme) and risk free rate of return (4% / 4.25% /
5% dependant on the scheme). The model has been adjusted for expected
behavioural considerations.
The cost of options is amortised to the Statement of Comprehensive Income over
the service life of the option resulting in a charge of £120,872 for the
period (2024 - credit of £26,034). A deferred tax asset has not been
recognised in the period relation to the charge for share based payments.
An amount of £16,020 (2024 - £31,340) was released from the share-based
payment reserve during the period in respect of share options exercised by
employees. The corresponding amount was credited to retained earnings,
representing the cumulative charges previously recognised in relation to those
employees who have since exercised their options.
15. Retirement benefit plans
Likewise Floors Limited, a subsidiary of the Group, operates a pension scheme
providing benefits based on final pensionable pay. The Scheme is closed to new
members and is closed to future accrual. For pensions earned after 5 April
1997 and for Guaranteed Minimum Pensions earned between 6 April 1988 and 5
April 1997, increases in payment will be in line with CPI rather than RPI.
Revaluations of pensions in deferment are linked to RPI.
The assets of the Scheme are held separately from those of the Group in
trustee-administered funds. The level of contributions is determined by a
qualified actuary on the basis of triennial valuations. The liabilities have
been rolled forward based on data at 31 December 2023.
The latest set of workings and assumptions can be found in the full Likewise
Group Plc financial statements to 31 December 2024. At 31 December 2024, there
was £450,000 surplus recognised to the statement of financial position. An
updated valuation could not be obtained at 30 June 2025 and so no further
disclosure has been made in this set of interim financial statements.
16. Post balance sheet events
On 11 July 2025, the Company made a final dividend payment in respect of the
year ended 31 December 2024 at a value of £609,942.
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