REG - Likewise Group PLC - Trading Update

LikewiseAnnouncement

04/01/2024 07:00

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RNS Number : 5878Y  Likewise Group PLC  04 January 2024

 

4 January 2024

Likewise Group plc

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

Trading update

Investment to increase Logistics Capacity delivers Record Sales

Likewise Group plc (AIM:LIKE), the fast growing and progressive Flooring
Distributor, is pleased to announce that Gross Sales Revenue for the year
ended 31 December 2023 ("FY23") increased by 13.6% to £140.2 million. Sales
in Likewise Floors increased 29.1% in FY23. These increases are particularly
positive given the macro economic headwinds and subsequent challenging market
conditions.

The Group's Sales Revenue for FY23 is ahead of current market expectations and
underlying profitability is expected to be in line with market expectations,
reflecting the continued investment in the future of the business. The Board
is confident of achieving the current market expectations for FY24 as the
Group continues to develop its position in the UK Flooring Market. As
demonstrated with the maiden Interim Dividend declared in September 2023, the
Board is committed to a progressive dividend policy in line with
profitability.

Undoubtedly the most encouraging factor during the high sales volume in
November and even greater activity in the first two weeks of December,
averaging £660,638 per day, was the ability of the Logistics Infrastructure
that has been developed over the last three years being able to efficiently
process and deliver the additional demand created.

The Group has invested heavily in Point of Sale Displays and Sampling to
significantly increase its market presence over the last three years in
conjunction with establishing the Logistics Infrastructure. The final quarter
of 2023 demonstrated the success of this strategy to date with the ability to
generate increasing Sales Revenue whilst providing the Operational expertise
to service customers effectively.

This strategy will continue into 2024 as the Group is confident in continuing
to gain market share and through operational gearing, improve profitability.

Valley Wholesale Carpets Limited ("Valley"), with its main Distribution Hub in
Erith, was able to accommodate the volumes and utilise the additional Cutting
Capacity that was established through further investment in the Derby
Distribution Centre. This will allow Valley to expand its business with
greater Point of Sale and the opportunity to increase its Product range in
2024 to existing customers, in addition to increasing its geographical
presence into South West England following the successful development in South
Wales. This enlarged sales volume will be absorbed through increased
capabilities in both the Derby and Newport Distribution Centres.

The beginning of 2024 will commence with Likewise London increasing its Sales
Management and infrastructure with a similar initiative in Likewise South
East, allowing both businesses to expand their market presences.

Likewise South is also extending its geographical reach to now develop
business with customers in Bristol and the South West of England.

January 2024 sees the launch of Likewise Wales with an experienced Team
operating from the Newport Distribution Centre. They are expected to quickly
develop a significant presence in both Commercial and Residential markets.

 

Heads of Terms are agreed for A&A Manchester to relocate to new premises
in Spring 2024. A&A will benefit from being part of the Likewise Logistics
Network which has now allowed A&A to develop into Commercial Flooring in
North West England as well as providing an improved delivery service to its
Residential customers in the North of England and Midlands.

Likewise Scotland is now able to really expand its presence through
significantly increased capacity in the Glasgow Distribution Centre which can
also provide extra capability for both storage and processing into the overall
Likewise Logistics Network.

Further investment in the Birmingham Distribution Hub allows this important
location to have an increasing influence on the development of Likewise Floors
and specifically the capacity to develop the ever expanding Likewise Midlands
business.

Additional sales resource in H&V Carpets, Floors by Lewis Abbott and Delta
Carpets provides each of these businesses with every opportunity to expand in
2024.

The strategic investments in Derby and Newport plus Glasgow, Manchester and
Birmingham in conjunction with the established locations in Erith, Newcastle,
Leeds, Newbury, Sidcup and Sudbury, provides the Group with the Logistics
Infrastructure to deliver the extensive Sales and Marketing initiatives in
progress.

Tony Brewer, Chief Executive of Likewise Group plc, said:

"The Board would like to thank our Management and Sales Team for generating
increasing volumes, and particularly our Telesales, Administration, Warehouse,
Night Teams and Delivery Drivers for their important contributions.

 

The ability and commitment of our people combined with the infrastructure
coping with ever increasing volumes, demonstrates the ability of the business
to surpass its medium term objectives.

 

The Group has come a long way in the last three years and we look forward to a
positive and exciting future as the Group capitalises on the many
opportunities for the benefit of all our employees, suppliers, customers and
shareholders."

 

 

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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