REG - Likewise Group PLC - Trading Update & Notice of Results

LikewiseAnnouncement

04/04/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230404:nRSD2365Va&default-theme=true

RNS Number : 2365V  Likewise Group PLC  04 April 2023

4 April 2023

 

 

Likewise Group plc

 

("Likewise", the "Company" or the "Group")

 

Q1 2023 Trading Update & Notice of Results

Likewise Group plc (AIM:LIKE), the fast growing UK floor coverings
distributor, is pleased to announce that Group Revenue in Q1 2023 increased by
19.7% against the corresponding period last year. Revenue in the Likewise
Branded businesses has grown by 25.7%, reflecting a continually improving
return on the investment in the sales infrastructure.

Following research by Business Insider Magazine, Likewise was announced as the
fastest growing business based in the Midlands over the last three years
culminating in 2021. In 2022 the Group grew by a further 104%.

Over the last two years the Group has made significant progress in developing
a comprehensive Logistics Infrastructure. In January 2021 the 80,000 square
feet Distribution Hub was opened in Leeds, followed in H2 2021 with
establishing the 57,000 square feet high bay Birmingham Distribution Hub,
which became operational in 2022.

In January 2022 the Newcastle business moved into a much improved Logistics
Centre. The Newbury Logistics Centre opened in July 2022 enabling the Group to
develop business with customers in the South of England.

The Logistics Infrastructure continues to develop with the Likewise London
business and Floors by Lewis Abbott completing their move to Sidcup in January
2023, providing much improved service to customers in the South East of
England.

The Group now has possession of the 47,000 square feet high bay Distribution
Centre in Glasgow. Racking systems and a Cutting Table are currently being
installed and this facility will become operational during Spring 2023 which
will allow the business in Scotland to significantly enlarge and also provide
additional stocking capacity to support the Likewise Logistics Network in
England and Wales.

Focus continues to be on relocating A&A in Manchester. Whilst this has
been ongoing for some time we are optimistic of an imminent solution. This is
the final piece in this stage of the Group's Logistics development.

Valley Wholesale Carpets Limited ("Valley"), acquired in January 2022,
continues to be an important contributor to Group Profitability and Cash Flow
reflecting a particularly positive return on the investment. Valley has now
started supplying customers in South Wales and will imminently commence
trading in the South West of England.

The Group's Distribution Hubs in Glasgow, Leeds, Birmingham and Sudbury,
Manchester Distribution Centre, plus Facilities in Newcastle, Newbury and
Sidcup in addition to the Valley Network in Erith, Derby and Newport totalling
15 million cubic feet, will allow the Group to meet its medium term
objectives.

We stated in January that a key focus for this year was to achieve an
improving return on the extensive investment in Sales Representatives and
Point of Sale Displays. Whilst we are still early on this journey with many
opportunities before us there is no doubt that significant progress has been
made with a 25.7% increase in Likewise Branded Revenue.

The Group will continue to take a proactive approach to further Sales and
Marketing investment in specific geographical locations. Whilst being very
much focused on organic growth, the Group will consider further acquisitions
if they provide the appropriate strategic rationale.

In conjunction with all of the above, the Group has created the logistics
capability to double its current cutting capacity for Carpet, Residential
Vinyl and Artificial Grass. This is consistent with the Group's aspirations to
have a business well in excess of £200 million Group Revenue in the medium
term.

Likewise has now become a key funding partner of Carpet Recycling UK,
reflecting the Group's contribution to the floor covering industry combined
with the wider environmental responsibilities. The Group is also investing in
initiatives to recycle Cardboard and Polythene in addition to 73% of the
Group's fleet of cars being Electric or Hybrid. The Group will continue to
examine opportunities to improve its ESG credentials.

The Group has a strong Balance Sheet with Net Assets of c.£40 million
including Freehold Property of £21.4 million. The Group is inherently cash
generative which will accelerate as the speed of investment reduces from 2024.

Whilst the first three months can only ever provide limited indication of the
year as a whole, early trends are positive and the Board remains confident in
meeting market expectations for 2023.

 

Tony Brewer, Chief Executive of Likewise said:

"Q1 has been positive and the Group will continue to take market share in
existing geographical regions notwithstanding the huge opportunity as the
Group moves into new UK territories.

The Board would again like to thank all 466 staff and management, suppliers,
customers and shareholders for their ongoing support and look forward to the
future with increasing optimism."

 

Notice of Results

Likewise will release its Final Results for the year ended 31 December 2022
("FY22") on 16 May 2023.

As previously announced Group Revenue in FY22 increased by 104% to c.£124.4
million (FY21: £60.5 million) and management expect that FY22 adjusted profit
before tax will be in line with market expectations.

Investor Presentation

Tony Brewer will provide a live investor presentation via the Investor Meet
Company platform on 5 April 2023 at 10:00am BST.

 

For further information, please contact:

 Likewise Group plc                                                      Tel: 0121 817 2900

 Tony Brewer, Chief Executive

 Roy Povey, Chief Financial Officer
 Zeus (Nominated Adviser & Joint Broker)                                 Tel: 0203 829 5000

 Jordan Warburton / David Foreman / James Edis (Investment Banking)

 Dominic King (Corporate Broking)

 Ravenscroft Consultancy & Listing Services Limited (Joint Broker)       Tel: 01481 732 746

 Semelia Hamon (Corporate Finance)
 Novella Communications (Financial PR)                                   Tel: 0203 151 7008

 Claire de Groot / Tim Robertson

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCNKNBNDBKBDQK