REG - Likewise Group PLC - Trading Update

LikewiseAnnouncement

06/12/2023 07:00

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RNS Number : 7904V  Likewise Group PLC  06 December 2023

 

6 December 2023

Likewise Group plc

 

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

 

Trading Update and Positive Outlook for 2024

 

Likewise Group plc (AIM:LIKE), the fast growing and progressive UK floor
coverings distributor is pleased to announce that November 2023 has proved to
be its record performance month with Total Sales Revenue of £14.0 million.

 

This is despite challenging market conditions which are undoubtedly, adversely
impacted by macro-economic head winds.

 

Group Revenue to the end of November 2023 increased 13.3% against the
corresponding period last year, whilst Revenue in the emerging Likewise Floors
business increased 29%, reflecting excellent organic growth. The growth
experienced has been predominantly driven by increased volume rather than
price inflation.

 

The Group remains on track to achieve current market expectations for the
financial year ending 31 December 2023.

 

Positive Outlook and Investment for 2024

 

The Group continues to invest in Logistics, Sales Teams and Point of Sale to
expand its geographical coverage and presence with existing customers.

 

Following successful development in South Wales, Valley Wholesale Carpets
Limited ("Valley") is now expanding into Bristol and South West England.
Further capacity has been created in Derby which will allow Valley to
meaningfully increase processing volumes in 2024.

 

A&A, acquired in 2020, has developed its Residential business and is now
also investing in additional Sales Management to expand into Commercial
Flooring. The Group is near to agreement to relocate A&A into new premises
and is progressively benefiting from the Likewise Logistics Network.

 

Likewise has established a presence in South Wales by recruiting a Team in
both Residential and Commercial Flooring to operate from the previously
under-utilised Distribution Centre in Newport, with further support of the
extensive Likewise product portfolio.

 

The new Glasgow Distribution Hub is now established and Likewise operational
procedures are being implemented to allow Likewise Scotland to be a key
component to the Likewise Logistics Network, whilst also providing
considerably more capacity to increase business in their home Scottish market.

 

Further investment has been made to develop the Management and Sales Teams in
Likewise South East and Likewise London to significantly increase market
penetration in these important geographical areas.

 

Likewise South will continue to increase its reach by investing in additional
Sales Resource for Bristol and South West England.

 

Likewise has also invested in the Delta, H&V and Floors by Lewis Abbott
Trade Brands during 2023 which have currently provided limited return but are
poised to improve their market presence and return on investment during 2024.

 

The development of the Group reflects the excellent relationship with
Suppliers and very importantly the presence in Independent Retailers and
Flooring Contractors through our experienced Sales Teams.

 

Likewise has undoubtedly increased market share during 2023 and with capacity
in the Logistics Network developed over the last three years, can look forward
to further growth in 2024, towards the Group's medium term ambition of
exceeding £200 million Annual Sales Revenue.

 

Tony Brewer, Chief Executive of Likewise, said:

 

"The growth of the Group has been achieved through the huge contribution from
our Management and Staff plus the support from our Suppliers, Customers and
Shareholders. We thank all our Stakeholders and wish them a Happy Christmas
and a prosperous New Year."

 

 

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 (Corporate Broking)

 WH Ireland (Joint Broker)                                            Tel: +44 (0) 20 7220 1666

 Hugh Morgan / Antonio Bossi (Corporate Finance)

 Fraser Marshall / Harry Ansell (Corporate Broking)

 Ravenscroft (Joint Broker)                                           Tel: +44 (0) 01481 732 746

 Semelia Hamon (Corporate Finance)

 Novella Communications (Financial PR)                                Tel: +44 (0) 0203 151 7008

 Claire de Groot / Tim Robertson

 

 

ENDS

 

 

 

 

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