REG - Likewise Group PLC - Final Results for the year ended 31 December 2025
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RNS Number : 1072C Likewise Group PLC 28 April 2026
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.
28 April 2026
Likewise Group plc
("Likewise", or the "Company")
Final Results for the year ended 31 December 2025
Strong trading performance delivering growth, improved profitability
and a robust balance sheet
Likewise Group plc (AIM:LIKE), the fast growing and progressive Flooring
Distributor in the UK, is pleased to announce its audited Final Results for
the year ending 31 December 2025 ("FY25").
Financial Highlights
· Total Group revenue increased 9% to £163.1 million (2024:
£149.8 million)
· Further Gross Margin improvement of 0.4% to 31.1% (2024: 30.7%)
· Underlying EBITDA increased to £10.4 million (2024: £8.8
million)
· Underlying Profit Before Tax rose by 56% to £3.1 million (2024:
£2.0 million)
· Net cash generated from operating activities increased to £8.8
million (2024: £7.2 million)
· Proposed final dividend increased by 10% to 0.275 pence per
Ordinary Share
· Total Dividend increase of 10% to 0.4125 pence per share
· Sales for January to March 2026 increased by 15%, with April
maintaining similar momentum
· Strong current balance sheet. £31.6 million in property assets
and just £5.1 million of fixed borrowings
Outlook
The Group has made an excellent start to the year with a particularly positive
trend in the first four months. Whilst the Global uncertainty make the future
months very difficult to predict, with longstanding supplier relationships,
experienced supply chain management and a robust Balance Sheet, the Group is
in a strong position to continue making significant gains in market share.
The additional Hub in Leeds, combined with the extension in Newport and
cutting capacity in Derby provide operational headroom for the Group to
achieve its 2026 and 2027 targets.
Therefore in the medium term, the Board is confident in achieving our
objectives, which will include further investment to materially increase our
operational capabilities combined with strategically enlarging our Sales Teams
to take advantage of market opportunities.
Chairman and Chief Executive Statement
Total Group Revenue increased by 9% to £163.1 million (FY24: £149.8
million). Underlying Profit Before Tax increased 56% to £3.1 million (FY24:
£2.0 million).
Further significant progress has been made in the first four months of 2026
with Total Group Revenue increasing by 15% as the Group rapidly approaches its
original target of £200 million Sales. There are many opportunities in the UK
flooring market to now meaningfully exceed this figure and the Board has
authorised additional investment in the infrastructure and continues to
evaluate other projects.
Key to the Groups development and success is the excellent Management Teams
that have been established across the UK in the last six years and all of our
staff who contribute to the ongoing development of the Group.
Every Commercial and Sales Manager has served their apprenticeship, learning
all aspects of the business including IT, Logistics, Product, Finance and have
longstanding Customer and Supplier relationships, which provides a tremendous
foundation to continue the growth of the Group.
Operations and Investment Highlights
The Group now has 13 operating locations and with 77 new and replacement
trucks being purchased since January '25 to the end of '26, the delivery fleet
will total over 160 during this Autumn.
The Distribution Hub in Glasgow continues to improve productivity of Cut
Lengths of Carpet and Residential Vinyl. Furthermore, we are now increasing
the Pallet capacity with additional Racking and the investment of a VNA Order
Picker will also enhance the unit picking process. The business in Scotland
had a particularly strong Q4 2025 and this has continued into 2026.
Likewise North East based in Newcastle continues to maximise in both the
Residential and Commercial segments.
In Leeds, Likewise North is very much established as the leading distributor
of all flooring categories with particular strength throughout the M62
corridor. The new 5 metre wide Cutting Table installed in Leeds during January
2026 underpins an important contribution to the overall cutting capacity of
Likewise Floors. To compliment this, A&A in Manchester is now gaining
traction and with a settled Sales Team we are optimistic for the year ahead.
The Group has acquired the freehold of a 2nd Distribution Hub in Leeds which
will streamline our supply chain management of Palletised goods from the Far
East and Europe. This will allow the planning of incoming containers to be far
more efficient and also release capacity at our other Centres.
Likewise Midlands in Birmingham continues to expand with a very experienced
Sales Team and also providing a vital logistics link as the centre of the
Likewise Floors Network. Creating more capacity across the Group will allow
Midlands additional opportunities to further expand their market presence.
The extension in Newport is on schedule to be operational as planned in July
2026. This really transforms the operations and opportunity for Likewise
Wales, also creating the 4th Distribution Hub for Likewise Floors. The
additional cutting will provide Likewise Floors with 30% more capacity and
will allow the Group to push towards £250 million Sales Revenue.
Likewise South West is now becoming established from its Plymouth Logistics
Centre. With further investment planned, this will allow this business to be a
prominent player in Devon and Cornwall.
Likewise South in Newbury has made excellent progress and the benefits created
by the Newport investment will also enable further growth for South.
In London and the South East both businesses based in Sidcup and Sudbury are
continuing to take market share. With ongoing investment in their Sales Teams
we would expect to be the leading distributor in this important geographical
area.
The outlook for Likewise Matting & Rugs continues to improve with key
customers in DIY, Garden Centres, Hardware Stores and Independent Retailers.
The realigned Sales Team from the beginning of 2026 is performing well,
providing the business with an enhanced performance.
Valley Wholesale Carpets ("Valley") based in Erith, Derby, Newport and
Plymouth has a great opportunity to expand its market position in Carpet,
Residential Vinyl, Underlay, Laminate, Artificial Grass and Luxury Vinyl Tile
to its extensive retail customer base. With increased cutting capacity now
established in Derby, plus the extension in Newport, Valley is also expanding
its Point of Sale options to increase market presence. Valley has over 30%
additional operational capacity to significantly enlarge its business.
Delta Carpets and H&V Carpets continue to make positive progress with
foundations created in 2025 to push the businesses forward in 2026. Our
Premium Carpet Brand, Floors by Lewis Abbott has recently launched six new
products to enlarge the Collection to fourteen. With the dedicated Sales Team
we believe Floors by Lewis Abbott can become a significant player in the UK
premium carpet sector.
Through the 108 Sales Executives, the Group continues to increase market
presence in Flooring Retailers and Contractors. This is achieved by a constant
flow of new products featuring the latest colour and texture trends as the UK
flooring market continues to evolve. The activity placing a comprehensive
collection of attractive Point of Sale ensures our customers are at the
forefront of product innovation.
Due to the current global uncertainties there is inevitably pricing pressure
on various raw materials and finished products. We are in discussions with our
suppliers and will implement price increases from 1(st) May. With our
longstanding supplier relationships and experience in supply chain management,
we are confident of navigating the coming months.
The Likewise Floors Business to Business Website continues to absorb an
increasing proportion of our daily Orders. Trade Customers can check stock and
place orders at anytime 24 / 7 with the orders going immediately into our
Picking and Cutting Queues. Furthermore, this increases the efficiency of our
customers as they have complete transparency of our stock as they arrange
installation with the ultimate end user.
Likewise Floors has recently launched a Product Information Website which
allows people interested in Product through seeing PLC , PR, Social Media,
Delivery Trucks to be guided to their local Retailer who has Displays of the
particular Product they are interested in.
Notwithstanding the overall uncertainty, the Group has made a particularly
strong start to 2026 and is optimistic regarding the medium-term outlook.
The Board is considering a number of Freehold investments to materially
enlarge the Group's operational capability which would provide the capacity to
create a significantly larger business than we have today.
The additional Pallet Distribution Hub in Leeds is operational. The Group has
agreed non-binding Heads of Terms to purchase the Freehold of a new 60,000
square feet High Bay Distribution Hub in the East Midlands. Intended to be
operational in six months, this location is ideally positioned between Leeds,
Birmingham and Sudbury to maximise our delivery capability.
The Group has support from our principal bankers to make these Freehold
investments, further demonstrating the confidence the Board and all
stakeholders have in the significant growth potential in Sales and subsequent
Profitability.
Dividend
The Directors recommend a final dividend increase of 10% to 0.275 pence per
ordinary share be paid. The final dividend will be paid, subject to
shareholders' approval at the Annual General Meeting on 17(th) June 2026. The
total dividend will increase 10% to 0.4125 pence per ordinary share. This
dividend has not been included as a liability in these financial statements.
The final dividend will be paid on Friday, 10(th) July 2026 to shareholders on
the register at the close of business on Friday, 29(th) May 2026, the
ex-dividend date being Thursday, 28(th) May 2026.
The last day for investors to elect for the Dividend Re-Investment Plan (DRIP)
will be 19(th) June 2026.
Outlook
The Group has made an excellent start to the year with a particularly positive
trend in the first four months. Whilst the Global uncertainty make the future
months very difficult to predict, with longstanding supplier relationships,
experienced supply chain management and a robust Balance Sheet, the Group is
in a strong position to continue making significant gains in market share.
The additional Hub in Leeds, combined with the extension in Newport and
cutting capacity in Derby provide operational headroom for the Group to
achieve it's 2026 and 2027 targets.
Therefore in the medium term, the Board is confident in achieving our
objectives, which will include further investment to materially increase our
operational capabilities combined with strategically enlarging our Sales Teams
to take advantage of market opportunities.
Tony Brewer, Chief Executive of Likewise, said:
"We have really impressive Management and Teams of people in our Operating
Centres across the UK. We are confident in continuing to outperform the market
and improve our operating margins as the Group benefits from greater scale.
We very much appreciate the contribution from all of our staff and thank them
along with our suppliers, customers, shareholders and all stakeholders for
their continued support as we accelerate our pace along this exciting
journey."
Details and Videos of Glasgow, Leeds and Newport developments are on our
website www.likewiseplc.com plus the Product Information Website
www.likewisefloors.com (http://www.likewisefloors.com)
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)
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.
STRATEGIC REPORT
Introduction
The directors present their Strategic Report and the audited financial
statements of the Group for the financial year ended 31 December 2025.
Business Overview
Likewise Group plc is a leading wholesale distributor of floor-coverings, rugs
and matting products serving customers throughout the UK. Having established
the business in 2018 and floated on AIM in August 2021, the Group has
continued its growth strategy through accretive acquisitions of regional
wholesale distribution businesses as well as establishing new distribution
centres and hubs throughout the UK.
With a management team that has significant experience and knowledge of the
sector, the Group has been able to successfully develop an extensive
distribution network and leverage the trade brand name to rapidly grow the
business over the past number of years.
From one site in 2018, the Group now operates from 13* locations servicing the
entire UK Flooring market. For more information with regards the Group's
trading locations, please visit www.likewiseplc.com
(http://www.likewiseplc.com)
· 108 experienced Sales Representatives and Management (2024: 96)
· 159 Commercial Vehicles offering a next day service (2024: 144)
· Dedicated B2B websites offering 24/7 ordering
· Continued Investment in Point of Sale to drive future growth
Group strategy
The Group continues to focus on its strategic plan to realise value creation
for suppliers, customers and shareholders by creating a National Supplier and
Distributor of Floor-covering products in the UK. As the Group continues to
near its plan to realise a £200m turnover business, the Board is looking
ahead to outline its strategic objectives to achieve a £250m business in the
medium term:
Organic Growth Geographical Expansion Targeted Acquisitions
Continued growth of existing channels via experienced sales teams and Further investment in new distribution centres and sales teams creates Accretive acquisition opportunities will always be considered where they offer
fostering long-standing relationships with customers opportunities to increase market share in these regions the potential to increase operational gearing through combined synergies
Whilst acquisitions helped realise meaningful growth opportunities for the
Group in the formative investment phase, the Board has focused more recently
on organic growth of existing businesses and expanding the geographic
footprint of the Group via new start-up locations.
Benefitting from the wider logistics network, leveraging the Group trade brand
names and investing in experienced, knowledgeable sales personnel have all
contributed to the Group's ability to rapidly grow meaningful businesses in
these new territories. Following the purchase of a Freehold Distribution
Centre in February 2025 near Plymouth, the Group has succeeded in establishing
its initial footprint and has enhanced its reach across the UK floor-covering
market.
In the year, the Board focused on improving the Group's operational gearing
and continues to consider opportunities where they are accretive to the Group,
achieving synergistic savings by delivering the incremental turnover via the
Group's current infrastructure.
The Board is committed to realising benefits for shareholders and does not
believe significant payments for goodwill are in the interest of the Group,
nor its investors. As such, future acquisitions will be considered where
they introduce new products or markets, deliver operational synergies for the
Group, or, where they can be effectively integrated into the Group's existing
network.
Following the relocation of the A&A distribution centre in the prior year,
2025 was the first year where all current operations were in newly built or
refurbished sites leading to both operational and logistical efficiencies. A
significant phase of capital investment has been completed, positioning the
business with a solid standing to benefit from improved profitability,
enhanced operational gearing and the ability to pursue future opportunities
which may arise.
Key performance indicators
The Board consider the following as financial key performance indicators
(KPIs) for the Group: revenue, adjusted profit before tax and operating cash
flow. These are the key metrics used by the Board to assess the Group's
performance and to ensure realisation of the Group strategic objectives.
Underlying PBT Revenue £m Operating Cash Flow
2025: £3,124,430 2021: £60m 2025: £8,787,093
(2024: £2,006,853) 2022: £124m (2024: £7,216,861)
2023: £140m
2024: £150m
2025: £163m
Milestone: £200m
OUR PURPOSE AND BUSINESS MODEL
Product development, market presence and efficient service
Our purpose is to provide quality flooring to independent retailers and
contractors, supported by an extensive business model of providing quality
service to our customers, underpinned by product development, first class
flooring marketing and professional distribution, as well as, sales
excellence, by building and developing long-term relationships.
Underlying Results
For the year ended 31 December 2025
Underlying Loss from new operation/ Invest-ment in point of sale Strategic restruct-uring cost Amort'n Share Except-ional investmentcosts Reported
acquisi-tion related costs
performance of related
(adjusted) intangibles costs/
(credit)
£ £ £ £ £ £ £ £
Revenue 163,095,329 - - - - - - 163,095,329
Cost of sales (112,361,004) - - - - - - (112,361,004)
Gross profit 50,734,325 - - - - - - 50,734,325
Distribution costs (21,416,795) - - - - - (108,000) (21,524,795)
Admin costs (24,426,857) (358,521) (286,136) (378,772) (497,092) (182,462) (216,155) (26,345,995)
Profit/(loss) from operations 4,890,673 (358,521) (286,136) (378,772) (497,092) (182,462) (324,155) 2,863,535
Finance income 58,910 - - - - - - 58,910
Finance costs (1,825,153) - - - - - - (1,825,153)
Loss on revaluation - - - - - - - -
Profit/(loss) before tax 3,124,430 (358,521) (286,136) (378,772) (497,092) (182,462) (324,155) 1,097,292
Underlying Results
For the year ended 31 December 2024
Underlying Loss from new operation/ Invest-ment in point of sale Strategic relocation & restructuring cost Amort'n Share Exceptional bad debt and customers exit costs Reported
acquisi-tion related costs
performance of related
(adjusted) intangibles costs/
(credit)
£ £ £ £ £ £ £ £
Revenue 149,793,661 149,793,661
Cost of sales (103,777,804) (103,777,804)
Gross profit 46,015,857 46,015,857
Distribution costs (19,054,217) (57,812) (19,112,029)
Admin costs (23,173,462) (133,993) (349,050) (716,246) (464,121) 26,034 (223,054) (25,033,892)
Profit/(loss) from operations 3,788,178 (133,993) (349,050) (774,058) (464,121) 26,034 (223,054) 1,869,936
Finance income 24,027 24,027
Finance costs (1,805,352) (44,259) (1,849,611)
Loss on revaluation - (18,885) (18,885)
Profit/(loss) before tax 2,006,853 (152,878) (349,050) (818,317) (464,121) 26,034 (223,054) 25,467
Adjusted Results
The adjusted results summary, presents a detailed comparison between
underlying and non-underlying profit, highlighting exceptional items that
management has identified as non-recurring costs. These items are separated to
provide a clearer understanding of the company's financial performance,
excluding these exceptional expenses that do not reflect the ongoing
operational efficiency of the business that should be used as the basis for
expected future performance. This approach ensures a more accurate
representation of the company's underlying profitability and more importantly,
its potential in the future.
These costs include:
Loss from New Operations & Acquisition Related Costs
2025 marked the completion of the Group's planned national UK infrastructure
with the acquisition of the freehold distribution centre in Plymouth in
February. Although modest in scale, the site represents a significant
strategic milestone, enabling Likewise and Valley to service the South West of
England, namely Devon and Cornwall, and thereby completing the Group's
nationwide logistics network. These regions had not previously been served by
the Group.
As with any new greenfield operation, there is an initial period of
substantial investment, particularly in the site itself and in building a
capable sales team. Such investments require time to mature before delivering
the anticipated returns. Consequently, while these operations are expected to
be accretive to Group profitability over the longer term, they are loss-making
during the early stages. Given the absence of any prior presence in the region
for either Valley or Likewise, it was anticipated that losses would be
incurred during the first 24 months of operation.
In the prior year, the Group also incurred acquisition-related costs
associated with the final contingent consideration payment relating to the
2022 acquisition of Delta Carpets Holdings Limited. This payment was made in
April 2024, and all contingent and deferred consideration obligations were
fully settled in that year.
Exceptional Investment in Point of Sale
These costs relate to expenses incurred in increasing the Group's market
presence by providing heavily discounted in-store retail displays to retailers
to accelerate the Group's growth in market share. This amount relates to
specific strategic stand placements over and above what is incurred in the
ordinary course of business recognised in the Consolidated Statement of Profit
or Loss. These display units are used for sales and marketing purposes.
Accordingly, the Board has adopted a prudent approach by recognising the cost
as an expense in the profit or loss statement, rather than capitalising these
displays as assets and incurring depreciation charges in future periods.
Strategic Relocation & Restructuring Costs
Strategic relocation and restructuring costs incurred during the year reflect
the Group's ongoing investment in reorganising and developing the Likewise
Matting business, alongside the continued restructuring of A&A Carpets in
Manchester, to better align both operations with the Group's broader strategic
objectives.
Following the implementation of these changes, both businesses have begun to
see positive outcomes. The Matting sales and administrative team has been
streamlined, and new management at A&A has had a beneficial impact on the
wider team, contributing to improved performance in both businesses in the
early part of 2026.
The prior year costs included the initial phase of restructuring expenditure
at A&A in advance of the site's relocation to a new facility in
Manchester, together with dual running costs at the Scotland Distribution Hub
following its move to purpose-built premises. This investment supported the
continued growth of the Scotland business and the Group's broader long-term
capacity requirements.
Exceptional Investment & Bad debts
Following the 2023 relocation to purpose-built premises, which established
Scotland as the third large-scale Distribution Hub within Likewise Floors'
network, additional investment was made to introduce a second cutting shift in
response to forecast capacity demands.
This required significant upfront recruitment and training of a skilled
cutting team, while enhancing utilisation of existing equipment across both
shifts. As this investment precedes the realisation of demand, given the time
needed to reach full operating efficiency, it has been classified as a
non-underlying cost in 2025, with benefits expected to support demand in FY26
and beyond.
In addition, the Group has successfully developed the premium flooring range
under Floors by Lewis Abbott in recent years. However, the Board recognises a
significant opportunity to expand its presence in the premium segment, an area
that has not been a primary focus during Likewise's development to date.
With a strong core range now established across Carpets, Luxury Vinyl Tile
(LVT) and Engineered Wood, targeted investment has now been made in developing
a dedicated sales team to realise further opportunities for this trade brand.
This initiative is intended to strengthen engagement with current customers
with in-store displays, drive new stand placements, and drive incremental
revenue growth of this segment.
The prior year disclosure relates to a significant bad debt on a major
customer within the Rugs and Matting division, together with the strategic
withdrawal of a retailer from the floor-covering market. The resulting
administration led to an exceptional bad debt write-off, while the market exit
reduced trading-particularly in the second half-limiting the Group's ability
to mitigate the financial impact.
Exceptional Investment & Bad debts
Amortisation costs and Share Based Payment Charges relate to non-cash
reporting adjustments incurred during the year and further details can be
found in notes 15 and 31 respectively.
Non-financial KPIs
The Board additionally monitors the square footage of available warehouse
space as a non-financial KPI. The warehouse capacity as at 31 December 2025
was 490,806 square feet (2024: 474,995).
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 31 December 2025
2025 2024
Note £ £
Revenue 3 163,095,329 149,793,661
Cost of sales (112,361,004) (103,777,804)
Gross profit 50,734,325
46,015,857
Distribution costs (21,524,795) (19,112,029)
Administrative expenses (26,345,995) (25,033,892)
Operating profit 5 2,863,535
1,869,936
Interest income 8 58,910 24,027
Finance costs 10 (1,825,153) (1,849,611)
Revaluation of deferred consideration 11 - (18,885)
Profit before taxation 1,097,292
25,467
Income tax (charge)/credit 9 (208,485) 749,135
Profit for the year 35 888,807
774,602
Other comprehensive income:
Items that will not be reclassified to profit or loss 16 5,477,837
Revaluation of property, plant and equipment 308,659
Actuarial gain on defined benefit pension scheme 26 70,000 450,000
Tax relating to items not reclassified 9 (1,362,385) (220,924)
Total items that will not be reclassified to profit or loss 4,185,452
537,735
Items that may be reclassified to profit or loss
- Exchange (losses)/gains arising on translation of foreign operations
14,846 (11,936)
Total items that may be reclassified to profit or loss 14,846
(11,936)
Total other comprehensive income for the year 4,200,298
525,799
Total comprehensive income for the year 5,089,105 1,300,401
Profit for the financial year is all attributable to the owners of the parent
company.
Total comprehensive income for the year is all attributable to the owners of
the parent company.
2025 2024
Note Pence per share Pence per share
Earnings per share 13
Basic 0.36 0.32
Diluted 0.34 0.31
The notes on 55 to 88 form part of these group financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2025
2025 2024
Note £ £
Non-current assets
Goodwill 15 5,624,284 5,624,284
Intangible assets 15 3,384,684 3,776,896
Property, plant and equipment 16 55,035,645 48,601,857
Retirement benefit surplus 26 520,000 450,000
64,564,613 58,453,037
Current assets 22,670,460 20,042,078
Inventories 19
Trade and other receivables 20 21,260,288 19,235,903
Cash and cash equivalents 3,969,812 2,199,078
47,900,560 41,477,059
Current liabilities 31,279,698 26,773,525
Trade and other payables 23
Current tax liabilities 9 - 15,107
Borrowings 22 9,669,420 7,108,326
Lease liabilities 24 4,411,891 4,642,269
45,361,009 38,539,227
Net current assets 2,539,551 2,937,832
Non-current liabilities
Borrowings 22 2,115,356 2,235,997
Lease liabilities 24 17,075,068 18,140,677
Deferred tax liabilities 25 2,923,155 1,337,048
22,113,579 21,713,722
Net assets 44,990,585 39,677,147
Equity
Called up share capital 27 2,529,835 2,474,835
Share premium account 28 18,989,870 17,677,390
Revaluation reserve 29 6,860,085 2,777,172
EBT reserve 30 (314,017) (375,060)
Treasury shares 31 (461,038) (58,584)
Share option reserve 32 777,140 610,698
Warrant reserve 33 128,170 128,170
Foreign exchange reserve 34 (44,592) (59,438)
Retained earnings 35 16,525,132 16,501,964
Total equity 44,990,585 39,677,147
The notes on pages 55 to 88 form part of these consolidated financial
statements.
The financial statements were approved by the Board of Directors and
authorised for issue on and are signed on its behalf by:
..............................................
A J Brewer
Chief Executive
Company registration number 08010067 (England and Wales)
COMPANY STATEMENT OF FINANCIAL POSITION
As at 31 December 2025
2025 2024
Note £ £
Non-current assets
Intangible assets 15 354,401 353,746
Property, plant and equipment 16 4,532,415 4,894,020
Investments 17 42,387,282 42,240,552
47,274,098 47,488,318
Current assets
Trade and other receivables 20 2,388,638 4,436,932
Cash and cash equivalents 1,565,973 131,676
3,954,611 4,568,608
Current liabilities
Trade and other payables 23 10,886,046 10,576,604
Borrowings 22 119,440 105,816
Lease liabilities 24 550,250 500,193
11,555,736 11,182,613
Net current assets (7,601,125) (6,614,005)
Non-current liabilities
Borrowings 22 2,115,356 2,235,997
Lease liabilities 24 4,741,070 5,034,804
6,856,426 7,270,801
Net assets 32,816,547 33,603,512
Equity
Called up share capital 27 2,529,835 2,474,835
Share premium account 28 18,989,870 17,707,900
Treasury shares 31 (461,038) (58,584)
Share option reserve 32 777,140 610,698
Warrant reserve 33 128,170 128,170
Foreign exchange reserve 34 (32,726) (78,224)
Retained earnings 35 10,885,296 12,818,717
Total equity 32,816,547 33,603,512
The notes on pages 55 to 88 form part of these parent financial statements.
As permitted by s408 Companies Act 2006, the company has not presented its own
income statement and related notes. The company's loss for the year was
£996,796 (2024: £1,767,354 profit).
The financial statements were approved by the Board of Directors and
authorised for issue on and are signed on its behalf by:
..............................................
A J Brewer
Chief Executive
Company registration number 08010067 (England and Wales)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2025
Share Share Re- EBT Treasury Share Warrant Foreign exchange reserve Retained earnings Total
capital
premium
valuation reserve
reserve
shares
option reserve
reserve
attributable
account
to equity
holders of parent
Note £ £ £ £ £ £ £ £ £ £
Balance at 1 January 2025 2,474,835 17,677,390 2,777,172 (375,060) (58,584) 610,698 128,170 (59,438) 16,501,964 39,677,147
Year ended 31 December 2025
Profit for the year - - - - - - - - 888,807 888,807
Other comprehensive income for the year:
Revaluation of property, plant and equipment 16 - - 5,477,837 - - - - - - 5,477,837
Actuarial gains on pensions scheme 26 - - - - - - - - 70,000 70,000
Currency translation differences - - - - - - - 14,846 - 14,846
Tax relating to other comprehensive income 9 - - (1,344,885) - - - - - (17,500) (1,362,385)
Total comprehensive income for the year - - 4,132,952 - - - - 14,846 941,307 5,089,105
Dividends 12 - - - - - - - - (952,645) (952,645)
Issue of share capital 27 55,000 1,281,970 - - - - - - - 1,336,970
Transfer to retained earnings - 30,510 (50,039) 1,043 - (16,020) - 34,506 -
Share options issued 32 - - - - - 182,462 - - - 182,462
Settlement of SAYE shares 32 - - - 60,000 - - - - - 60,000
Purchase of own shares 31 - - - - (402,454) - - - - (402,454)
Total contributions by and distributions to owners 55,000 1,312,480 (50,039) 61,043 (402,454) 166,442 - - (918,139) 224,333
Balance as at 31 December 2025 2,529,835 18,989,870 6,860,085 (314,017) (461,038) 777,140 128,170 (44,592) 16,525,132 44,990,585
The notes on pages 55 to 88 form part of these group financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2024
Share capital Share premium account Re-valuation reserve EBT Treasury Share Warrant reserve Foreign ex-change reserve Retained earnings Total attributable to equity holders of parent
reserve
shares
option reserve
Note £ £ £ £ £ £ £ £ £ £
Balance at 1 January 2024 2,439,645 17,396,190 2,626,976 - - 903,295 128,170 (47,502) 16,075,807 39,522,581
Year ended 31 December 2024
Profit for the year - - - - - - - - 774,602 774,602
Other comprehensive income for the year:
Revaluation of property, plant and equipment 16 - - 308,659 - - - - - - 308,659
Actuarial gains on pensions scheme 26 - - - - - - - - 450,000 450,000
Currency translation differences - - - - - - - (11,936) - (11,936)
Tax relating to other comprehensive income 9 - - (108,424) - - - - - (112,500) (220,924)
Total comprehensive income for the year - - 200,235 - - - - (11,936) 1,112,102 1,300,401
Dividends 12 - - - - - - - - (916,688) (916,688)
Share options exercised 27 35,190 311,710 - - - - - - - 346,900
Transfer to retained earnings - - (50,039) - - (180,704) - - 230,743 -
Share options issued 32 - - - - - (26,035) - - - (26,035)
Cash settlement in lieu of share exercise - - - - - (85,858) - - - (85,858)
Purchase of own shares 31 - (30,510) - (375,060) (58,584) - - - - (464,154)
Total contributions by and distributions to owners 35,190 281,200 (50,039) (375,060) (58,584) (292,597) - - (685,945) (1,145,835)
Balance as at 31 December 2024 2,474,835 17,677,390 2,777,172 (375,060) (58,584) 610,698 128,170 (59,438) 16,501,964 39,677,147
The notes on pages 55 to 88 form part of these group financial statements.
COMPANY STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2025
Share capital Share premium account Treasury Share option reserve Warrant reserve Foreign exchange reserve Retained earnings Total
shares
equity
Note £ £ £ £ £ £ £ £
Balance at 1 January 2025 2,474,835 17,707,900 (58,584) 610,698 128,170 (78,224) 12,818,717 33,603,512
Year ended 31 December 2025
Loss for the year - - - - - - (996,796) (996,796)
Translation in relation to foreign subsidiary - - - - - 45,498 - 45,498
Total comprehensive income for the year 45,498 (996,796) (951,298)
Transactions with owners:
Issue of share capital 27 55,000 1,281,970 - - - - - 1,336,970
Dividends 12 - - - - - - (952,645) (952,645)
Share options issued 32 - - - 182,462 - - - 182,462
Purchase of own shares 31 - - (402,454) - - - - (402,454)
Transfer to retained earnings 32 - - - (16,020) - - 16,020 -
Balance as at 31 December 2025 2,529,835 18,989,870 (461,038) 777,140 128,170 (32,726) 10,885,296 32,816,547
The notes on pages 55 to 88 form part of these group financial statements.
COMPANY STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2024
Share capital Share premium account Treasury Share option reserve Warrant reserve Foreign exchange reserve Retained earnings Total
shares
Equity
Note £ £ £ £ £ £ £ £
Balance at 1 January 2024 2,439,645 17,396,190 - 903,295 128,170 (38,124) 11,818,688 32,647,864
Year ended 31 December 2024
Profit for the year - - - - - - 1,767,354 1,767,354
Other comprehensive income for the year
Translation in relation to foreign subsidiary - - - - - (40,100) - (40,100)
Total comprehensive income for the year - - - - - (40,100) 1,767,354 1,727,254
Transactions with owners:
Share options exercised 27 35,190 311,710 - - - - - 346,900
Dividends 12 - - - - - - (916,689) (916,689)
Share options issued 32 - - - (26,035) - - - (26,035)
Cash settlement in lieu of share exercise 32 - - - (85,858) - - - (85,858)
Own shares acquired 31 - - (58,584) - - - - (58,584)
Released to retained earnings* 32 - - - (180,704) - - 149,364 (31,340)
Balance as at 31 December 2024 2,474,835 17,707,900 (58,584) 610,698 128,170 (78,224) 12,818,717 33,603,512
The notes on pages 55 to 88 form part of these group financial statements.
Share option charges transferred to retained earnings represent the cumulative
charges recognised up to the relevant option holders vesting period that have
subsequently lapsed, been exercised or have since expired. Once crystallised
the balance held within the share-based payment reserve has been transferred
to retained earnings with no impact on equity reserves. An amount of £nil
(2024: £31,340) was released from the share-based payment reserve during the
period, in respect of options in the Company's shares held by employees of
subsidiary companies. These options have been exercised by these employees and
as such released from the Share Based Payment Reserve. The corresponding
reduction is recognised within investment in subsidiaries.
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2025
2025 2024
Note £ £ £ £
Profit for the year before taxation 1,097,292 25,467
Adjustments for: 10 1,825,153 1,849,611
Finance costs
Finance income 8 (58,910) (24,027)
Gain on disposal of property, plant and equipment 5 (77,019)
(20,634)
Amortisation and impairment of intangible assets 15 497,092 464,121
Depreciation and impairment of property, plant and equipment 16 5,462,740 5,050,181
Foreign exchange gains on cash equivalents 5 4,877 10,522
Revaluation of consideration 11 - 18,885
Equity settled share based payment expense/(credit) 32 182,462
(26,034)
Decrease in provisions - (45,103)
Movements in working capital: 19 (2,628,382) 211,721
(Increase)/decrease in inventories
Increase in trade and other receivables 20 (2,024,385) (1,555,918)
Increase in trade and other payables 23 4,506,173 1,258,069
Cash generated from operations 8,787,093 7,216,861
Income taxes refunded 658 13,416
Net cash inflow from operating activities 8,787,751 7,230,277
Investing activities
Purchase of intangible assets 15 (104,880) (302,520)
Purchase of property, plant and equipment 16 (3,256,180) (1,392,423)
Proceeds from disposal of property, plant and equipment 73,135
117,898
Interest received 8 58,910 24,027
Cash settlement in lieu of share exercise 32 - (85,858)
Deferred consideration paid - (4,269,400)
Net cash used in investing activities (3,229,015) (5,908,276)
Financing activities
Net proceeds from issue of shares 27 1,336,970 346,900
Purchase of treasury shares 31 (402,454) (58,584)
Proceeds from transfer of shares from EBT 30 60,000 (405,570)
Increase in invoice discounting 22 1,785,013 1,847,378
Trade loan received 22 762,457 -
Repayment of bank loans 22 (107,017) (118,577)
Payment of lease liabilities 24 (5,484,527) (4,718,625)
Interest paid 10 (795,240) (785,928)
Dividends paid to equity shareholders 12 (952,645) (916,688)
Net cash used in financing activities (3,797,443) (4,809,694)
Net increase/(decrease) in cash and cash equivalents 1,761,293 (3,487,693)
2025 2024
Note £ £ £ £
Cash and cash equivalents at beginning of year 2,199,078 5,709,229
Effect of foreign exchange rates 9,441 (22,458)
Cash and cash equivalents at end of year 3,969,812 2,199,078
The notes on pages 55 to 88 form part of these group financial statements.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2025
1 Accounting policies
Company information
Likewise Group PLC is a public company limited by shares incorporated in
England and Wales and listed on the Alternative Investment Market (AIM). The
registered office is Unit 4 Radial Park, Radial Way, Birmingham Business Park,
Solihull, Birmingham, B37 7WN. The principal activity of the Group is the
wholesale distribution of floor-coverings and associated products. Further
information on the nature of its operations are disclosed in the strategic and
directors' report.
The group consists of Likewise Group PLC and all of its subsidiaries.
1.1 Accounting convention
The consolidated financial statements have been prepared in accordance with UK
adopted international accounting standards (IFRS) and with those parts of the
Companies Act 2006 applicable to companies reporting under IFRS unless
otherwise stated.
The financial statements are prepared in sterling, which is the functional
currency of the group. Monetary amounts in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost
convention, except for properties held under revaluation model. The principal
accounting policies adopted are set out below.
The Company financial statements have been prepared accordance with Financial
Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in
accordance with applicable accounting standards.
As permitted by FRS 101, the company has taken advantage of the following
disclosure exemptions from the requirements of IFRS:
• inclusion of an explicit and unreserved statement of compliance
with IFRS;
• presentation of a statement of cash flows and related notes;
• disclosure of the objectives, policies and processes for
managing capital;
• disclosure of the categories of financial instrument and the
nature and extent of risks arising on these financial instruments;
• a reconciliation of the number and weighted average exercise
prices of share options, how the fair value of share-based payments was
determined and their effect on profit or loss and the financial position;
• the effect of financial instruments on the statement of
comprehensive income;
• related party disclosures for transactions with wholly owned
members of the group.
No new or amended accounting standards effective in 2025 had a material impact
on the Group or the Company.
IFRS 18 Presentation and Disclosure in Financial Statements (effective for
annual periods beginning on or after 1 January 2027) will replace IAS 1
Presentation of Financial Statements. IFRS 18 introduces new presentation and
disclosure requirements to improve comparability and transparency of financial
performance.
The Group is assessing the impact of IFRS 18; however, it is not yet
practicable to quantify the effect of adoption.
Other standards and amendments issued but not yet effective are not expected
to have a material impact on the Group's financial statements.
1.2 Basis of consolidation
The consolidated group financial statements consist of the financial
statements of the parent company Likewise Group PLC together with all entities
controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 December 2025. Where necessary,
adjustments are made to the financial statements of subsidiaries to bring the
accounting policies used into line with those used by other members of the
group.
All intra-group transactions, balances and unrealised gains on transactions
between group companies are eliminated on consolidation. Unrealised losses are
also eliminated unless the transaction provides evidence of an impairment of
the asset transferred.
Subsidiaries are consolidated in the group's financial statements from the
date that control commences until the date that control ceases.
1.3 Going concern
The consolidated financial statements for the Group have been prepared on a
going concern basis.
The Group utilises invoice financing arrangements and has access to additional
authorised facilities to support working capital. The Group has operated
within these facilities throughout the year and continues to do so in 2026.
The directors are confident that the Group will be able to operate within its
available facilities.
The Board have assessed going concern through a cash flow model to December
2027, based on 2025 actuals, 2026 budget and 2027 forecasts. These cashflows
indicate the Group has adequate resources to operate within its current
financing arrangements for the foreseeable future.
Given the Group's strong balance sheet, cash reserves, available financing and
positive forecast performance, the directors consider it appropriate to
continue to adopt the going concern basis in preparing the financial
statements.
1.4 Revenue
Revenue comprises sales of goods to customers outside the Group, less an
appropriate deduction for discounts, and is stated at the fair value of the
consideration net of value added tax and other sales taxes.
Revenue and receivables are recognised when performance obligations are
satisfied and the goods are delivered to customers as this is the point in
time that the consideration is unconditional, control of goods has passed and
only the passage of time is required before the payment is due.
1.5 Goodwill
Goodwill represents the excess of the cost of acquisition of businesses over
the fair value of net assets acquired. It is initially recognised as an asset
at cost and is subsequently measured at cost less impairment losses.
Any gain on a bargain purchase is recognised in profit or loss in the period
of the acquisition where the fair value of assets acquired is in excess of the
consideration paid.
Goodwill is not amortised but is reviewed for impairment at least annually.
For the purposes of impairment testing, goodwill is allocated to the
cash-generating units expected to benefit from the acquisition.
Cash-generating units to which goodwill has been allocated are tested for
impairment at least annually, or more frequently when there is an indication
that the unit may be impaired. If the recoverable amount of the
cash-generating unit is less than the carrying amount of the unit, the
impairment loss is allocated first to reduce the carrying amount of any
goodwill allocated to the unit and then to the other assets of the unit
pro-rata on the basis of the carrying amount of each asset in the unit. In
accordance with IAS 36, an impairment loss recognised for goodwill is not
reversed in subsequent periods, even if the recoverable amount of the
cash-generating unit increases in a later period.
1.6 Intangible assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost
and are subsequently measured at cost less accumulated amortisation and
accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately
from goodwill at the acquisition date where it is probable that the expected
future economic benefits that are attributable to the asset will flow to the
entity and the fair value of the asset can be measured reliably; the
intangible asset arises from contractual or other legal rights; and the
intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets
less their residual values over their useful lives on the following bases:
· Brand name 10 - 15
years straight line
· Customer base 10 - 15 years
straight line
· Software 3
years straight line
1.7 Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently
measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets
less their residual values over their useful lives on the following bases:
Freehold land and buildings 2%
straight line
Long Leasehold land and buildings 2% straight line
Leasehold improvements 10%
straight line
Fixtures, fittings and computer equipment 10% - 33% straight line
Plant and
equipment 10%
- 33% straight line
Motor
vehicles
17% - 33% straight line
Right of use assets - Leasehold property Over the term of the lease
Right of use assets - Other Over
the term of the lease
The gain or loss arising on the disposal of an asset is determined as the
difference between the sale proceeds and the carrying value of the asset, and
is recognised in the Statement of profit or loss.
Properties classified as freehold and long leasehold land and buildings are
measured using the revaluation model. The Group's policy is to obtain
independent third-party valuations for each property on a rolling three-year
cycle. In the intervening years, management assesses fair value by considering
relevant market data and comparing it to the most recent external expert
valuation. Where material changes are identified, properties are revalued or
impaired accordingly.
Properties are therefore carried at their revalued amounts, being fair value
at the date of valuation less subsequent accumulated depreciation and
impairment losses. Fair value is typically based on market value.
Revaluation gains and losses are recognised in other comprehensive income and
accumulated in equity. However, to the extent that a revaluation gain reverses
a loss previously recognised in profit or loss, or a revaluation loss exceeds
the accumulated revaluation surplus, such amounts are recognised in profit or
loss.
1.8 Non-current investments
Interests in subsidiaries, associates and jointly controlled entities are
initially measured at cost and subsequently measured at cost less any
accumulated impairment losses. The investments are assessed for impairment at
each reporting date and any impairment losses or reversals of impairment
losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the parent company. Control is the
power to govern the financial and operating policies of the entity so as to
obtain benefits from its activities.
1.9 Impairment of tangible and intangible assets
At each reporting end date, the group reviews the carrying amounts of its
tangible and intangible assets to determine whether there is any indication
that those assets have suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to determine
the extent of the impairment loss (if any). Where it is not possible to
estimate the recoverable amount of an individual asset, the group estimates
the recoverable amount of the cash-generating unit to which the asset belongs.
Intangible assets with indefinite useful lives and intangible assets not yet
available for use are tested for impairment annually, and whenever there is an
indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in
use. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the
asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated
to be less than its carrying amount, the carrying amount of the asset (or
cash-generating unit) is reduced to its recoverable amount. An impairment loss
is recognised immediately in profit or loss, unless the relevant asset is
carried at a revalued amount, in which case the impairment loss is treated as
a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the
asset (or cash-generating unit) is increased to the revised estimate of its
recoverable amount, but so that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss
been recognised for the asset (or cash-generating unit) in prior years. A
reversal of an impairment loss is recognised immediately in profit or loss,
unless the relevant asset is carried at a revalued amount, in which case the
reversal of the impairment loss is treated as a revaluation increase.
1.10 Inventories
Inventories are valued at the lower of cost and net realisable value, being
the estimated selling price less costs to complete and sell. Cost is based on
the cost of purchase on a first in, first out basis. Work in progress and
finished goods include labour and attributable overheads.
At each reporting date, inventories are assessed for impairment. If
inventories are impaired, the carrying amount is reduced to its selling price
less costs to complete and sell. The impairment loss is recognised immediately
in the Statement of profit or loss.
1.11 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with
banks, other short-term liquid investments with original maturities of three
months or less, and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities.
1.12 Financial assets
Financial assets are recognised in the group's statement of financial position
when the group becomes party to the contractual provisions of the instrument.
Financial assets are classified into specified categories, depending on the
nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through
profit and loss are measured at fair value and any transaction costs are
recognised in profit or loss. Financial assets not classified as fair value
through profit and loss are initially measured at fair value plus transaction
costs.
Financial assets at fair value through profit or loss
When any of the above-mentioned conditions for classification of financial
assets is not met, a financial asset is classified as measured at fair value
through profit or loss. Financial assets measured at fair value through profit
or loss are recognized initially at fair value and any transaction costs are
recognised in profit or loss when incurred. A gain or loss on a financial
asset measured at fair value through profit or loss is recognised in profit or
loss, and is included within finance income or finance costs in the statement
of income for the reporting period in which it arises.
Impairment of financial assets
Financial assets carried at amortised cost and FVOCI are assessed for
indicators of impairment at each reporting end date.
The expected credit losses associated with these assets are estimated on a
forward-looking basis. A broad range of information is considered when
assessing credit risk and measuring expected credit losses, including past
events, current conditions, and reasonable and supportable forecasts that
affect the expected collectability of the future cash flows of the instrument.
Trade and other receivables are recorded initially at transaction price and
subsequently measured at amortised cost. This results in their recognition at
nominal value less an allowance for any doubtful debts. This allowance for
expected credit losses (ECL) may be established where evidence of credit
deterioration is observed. In order to assess credit deterioration, the Group
considers reasonable and supportable information that is relevant and
available without undue cost or effort. This includes both quantitative and
qualitative information and analysis, based on its historical experience and
informed credit assessment, that includes forward-looking information. An
additional reserve is established, where required, when a loss is both
probable and the amount is known.
ECLs are a probability-weighted estimate of lifetime credit losses. Under the
ECL model, the Group calculates the allowance for credit losses by considering
on a discounted basis the cash shortfalls it would incur in various default
scenarios for prescribed future periods and multiplying the shortfalls by the
probability of each scenario occurring. The allowance is the sum of these
probability weighted outcomes. Credit losses are measured as the present value
of all cash shortfalls (i.e. the difference between the cash flows due to the
entity in accordance with the contract and the cash flows that Group expects
to receive) with a discount factor applied to such overdue amounts.
The discount matrix ("ECL Matrix") below is applied to derive an ECL for
overdue amounts:
31 - 60 days overdue 0% discount
61 - 90 days overdue 0% discount
91 - 120 days overdue 5% discount
Over 120 days overdue 50% discount
The Group reserves the right to exercise its discretion in the application of
discounts outside of the ECL Matrix based on extenuating circumstances that
may apply from time to time to the Company's trade debtors. An example of such
an extenuating circumstance may occur when an overdue amount has been
collected post a reporting or measurement date.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash
flows from the asset expire, or when it transfers the financial asset and
substantially all the risks and rewards of ownership to another entity.
1.13 Financial liabilities
The group recognises financial debt when the group becomes a party to the
contractual provisions of the instruments. Financial liabilities are
classified as either 'financial liabilities at fair value through profit or
loss' or 'other financial liabilities'.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other
short-term monetary liabilities, are initially measured at fair value net of
transaction costs directly attributable to the issuance of the financial
liability. They are subsequently measured at amortised cost using the
effective interest method. For the purposes of each financial liability,
interest expense includes initial transaction costs and any premium payable on
redemption, as well as any interest or coupon payable while the liability is
outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the group's
obligations are discharged, cancelled, or they expire.
1.14 Equity instruments
Equity instruments issued by the parent company are recorded at the proceeds
received, net of direct issue costs. Dividends payable on equity instruments
are recognised as liabilities once they are no longer payable at the
discretion of the company.
1.15 Taxation
The tax expense represents the sum of the tax currently payable and deferred
tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable
profit differs from net profit as reported in the income statement because it
excludes items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or deductible. The
group's liability for current tax is calculated using tax rates that have been
enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable
profit, and is accounted for using the balance sheet liability method.
Deferred tax liabilities are generally recognised for all taxable temporary
differences and deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which deductible
temporary differences can be utilised. Such assets and liabilities are not
recognised if the temporary difference arises from goodwill or from the
initial recognition of other assets and liabilities in a transaction that
affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end
date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be
recovered. Deferred tax is calculated at the tax rates that are expected to
apply in the period when the liability is settled or the asset is realised.
Deferred tax is charged or credited in the Statement of Profit or Loss except
when it relates to items charged or credited directly to equity, in which case
the deferred tax is also dealt with in equity and recognised through the
Statement of Comprehensive Income. Deferred tax assets and liabilities are
offset when the group has a legally enforceable right to offset current tax
assets and liabilities and the deferred tax assets and liabilities relate to
taxes levied by the same tax authority.
1.16 Provisions
Provisions are recognised when the group has a legal or constructive present
obligation as a result of a past event and it is probable that the group will
be required to settle that obligation, and a reliable estimate can be made of
the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration
required to settle the present obligation at the reporting end date, taking
into account the risks and uncertainties surrounding the obligation. Where a
provision is measured using the cash flows estimated to settle the present
obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are
expected to be recovered from a third party, a receivable is recognised as an
asset if it is virtually certain that reimbursement will be received and the
amount of the receivable can be measured reliably.
1.17 Employee benefits
The costs of short-term employee benefits are recognised as a liability and an
expense, unless those costs are required to be recognised as part of the cost
of inventories or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in
which the employee's services are received.
Termination benefits are recognised immediately as an expense when the group
is demonstrably committed to terminate the employment of an employee or to
provide termination benefits
1.18 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an
expense as they fall due.
The cost of providing benefits under defined benefit plans is determined
separately for each plan using the projected unit credit method, and is based
on actuarial advice.
The change in the net defined benefit liability arising from employee service
during the year is recognised as an employee cost. The cost of plan
introductions, benefit changes, settlements and curtailments are recognised as
an expense in measuring profit or loss in the period in which they arise.
The net interest element is determined by multiplying the net defined benefit
liability by the discount rate, taking into account any changes in the net
defined benefit liability during the period as a result of contribution and
benefit payments. The net interest is recognised in profit or loss as other
finance revenue or cost.
Remeasurement changes comprise actuarial gains and losses, the effect of the
asset ceiling and the return on the net defined benefit liability excluding
amounts included in net interest. These are recognised immediately in other
comprehensive income in the period in which they occur and are not
reclassified to profit and loss in subsequent periods.
The net defined benefit pension asset or liability in the balance sheet
comprises the total for each plan of the present value of the defined benefit
obligation (using a discount rate based on high quality corporate bonds), less
the fair value of plan assets out of which the obligations are to be settled
directly. Fair value is based on market price information, and in the case of
quoted securities is the published bid price. The value of a net pension
benefit asset is limited to the amount that may be recovered either through
reduced contributions or agreed refunds from the scheme.
1.19 Share-based payments
The fair value of equity instruments granted to employees is charged to the
Statement of Profit or Loss, with a corresponding increase in equity. The fair
value of share options is measured at grant date using the Black-Scholes
pricing model and spread over the period during which the employee becomes
unconditionally entitled to the award. The charge is adjusted to reflect the
number of shares or options that vest.
When the share-based payment awards vest, the Company issues new equity
instruments to employees in settlement of the granted awards. The amount equal
to the employees fair value of share options vested and issued is released to
retained earnings.
When the terms and conditions of equity-settled share-based payments at the
time they were granted are subsequently modified, the fair value of the
share-based payment under the original terms and conditions and under the
modified terms and conditions are both determined at the date of the
modification. Any excess of the modified fair value over the original fair
value is recognised over the remaining vesting period in addition to the grant
date fair value of the original share-based payment. The share-based payment
expense is not adjusted if the modified fair value is less than the original
fair value.
Cancellations or settlements (including those resulting from employee
redundancies) are treated as an acceleration of vesting and the amount that
would have been recognised over the remaining vesting period is recognised
immediately.
1.20 Leases
At inception, the group assesses whether a contract is, or contains, a lease
within the scope of IFRS 16. A contract is, or contains, a lease if the
contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration. Where a tangible asset is
acquired through a lease, the group recognises a right-of-use asset and a
lease liability at the lease commencement date. Right-of-use assets are
included within property, plant and equipment, apart from those that meet the
definition of investment property.
1.20 Leases (continued)
The right-of-use asset is initially measured at cost, which comprises the
initial amount of the lease liability adjusted for any lease payments made at
or before the commencement date plus any initial direct costs and an estimate
of the cost of obligations to dismantle, remove, refurbish or restore the
underlying asset and the site on which it is located, less any lease
incentives received.
The right-of-use asset is subsequently depreciated using the straight-line
method from the commencement date to the earlier of the end of the useful life
of the right-of-use asset or the end of the lease term. The estimated useful
lives of right-of-use assets are determined on the same basis as those of
other property, plant and equipment. The right-of-use asset is periodically
reduced by impairment losses, if any, and adjusted for certain remeasurements
of the lease liability.
The lease liability is initially measured at the present value of the lease
payments that are unpaid at the commencement date, discounted using the
interest rate implicit in the lease or, if that rate cannot be readily
determined, the group's incremental borrowing rate. Lease payments included in
the measurement of the lease liability comprise fixed payments, variable lease
payments that depend on an index or a rate, amounts expected to be payable
under a residual value guarantee, and the cost of any options that the group
is reasonably certain to exercise, such as the exercise price under a purchase
option, lease payments in an optional renewal period, or penalties for early
termination of a lease.
The lease liability is measured at amortised cost using the effective interest
method. It is remeasured when there is a change in: future lease payments
arising from a change in an index or rate; the group's estimate of the amount
expected to be payable under a residual value guarantee; or the group's
assessment of whether it will exercise a purchase, extension or termination
option. When the lease liability is remeasured in this way, a corresponding
adjustment is made to the carrying amount of the right-of-use asset, or is
recorded in profit or loss if the carrying amount of the right-of-use asset
has been reduced to zero.
The group has elected not to recognise right-of-use assets and lease
liabilities for short-term leases of machinery that have a lease term of 12
months or less, or for leases of low-value assets including IT equipment. The
payments associated with these leases are recognised in profit or loss on a
straight-line basis over the lease term.
1.21 Invoice discounting
The Group has an invoice discounting arrangement. The amount owed by customers
to the Group are included within trade receivables and the amount owed to the
invoice discounting company is included within borrowings. The amount owed to
the invoice discounting company represents the difference between the amounts
advanced by the invoice discounting company and the invoices discounted. The
interest element of the invoice discounting charges and other related costs
are recognised as they accrue and are included in the Statement of Profit or
Loss with other finance costs.
2 Critical accounting estimates and judgements
In the application of the company's accounting policies, the directors are
required to make judgements, estimates and assumptions about the carrying
amount of assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on historical
experience and other factors that are considered to be relevant. Actual
results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised, if the revision affects only that period, or in the
period of the revision and future periods if the revision affects both current
and future periods.
The estimates and assumptions which have a significant risk of causing a
material adjustment to the carrying amount of assets and liabilities are
outlined below.
Deferred Tax
The recognition of deferred tax assets, particularly those arising from unused
tax losses, requires significant management judgement. Deferred tax assets are
only recognised to the extent that it is probable that future taxable profits
will be available against which the losses can be utilised. This assessment
involves evaluating both the timing and the likelihood of future
profitability, taking into account factors such as historical performance,
forecasted earnings, industry trends, and the impact of any planned strategic
initiatives.
In making this judgement, the Group has prudently only considered it's
two-year financial forecasts, the nature and timing of expected income
streams, and any expiry limitations associated with the tax losses. A deferred
tax asset will be recognised up to the total of the forecast taxable profits
for the two-year period of assessment as well as any deferred tax liabilities
that these losses could be offset against at the balance sheet date. Changes
in these assumptions or in the tax environment may result in adjustments to
the amount of deferred tax assets recognised. At the reporting date, deferred
tax assets have been recognised only where the Group considers it probable
that sufficient taxable profits will arise to allow the benefit of the losses
to be utilised.
Intangible assets
The Group recognises identifiable intangible assets, such as brands and
customer relationships, at fair value on acquisition of the relevant
subsidiaries. Any excess paid over the value of net assets acquired is
recognised as Goodwill in the Consolidated Statement of Financial Position and
is allocated to the appropriate business.
The annual amortisation charge and useful life is based on the period over
which management expects to benefit from the intangible assets, based on past
experience and knowledge of the business acquired.
Goodwill
Goodwill is recognised on acquisition of subsidiaries. This value is the
excess paid over the net assets acquired which cannot be separately identified
as an intangible asset. Goodwill is not amortised but is subject to an annual
impairment review.
The impairment assessment compares the carrying value of Goodwill with its
recoverable amount. The recoverable amount is determined by performing a
discounted cash flow (DCF) analysis of the Cash Generating Unit (CGU) with
reference to divisional budgets prepared by management. To prepare the DCF,
management are required to use estimates and judgement for the parameters
applied to the model of growth and termination growth rate percentages along
with the discount factor. The percentages used to calculate the growth rates
are based on prior performance along with budgets for the coming year. The
discount factor is based on the proportion of the company's cost of capital
weighted between the use of debt and equity finance.
Inventory valuation
Inventories are stated at the lower of cost and the estimated selling price
less costs to complete and sell.
Inventory provisions are recognised to provide for short length stock
dependent on its length and using the directors judgement of likely future
sale to calculate it's likely realisable value. In addition, a provision is
recognised for any aged stock, on an increasing basis, once it's been held in
inventory for at least one year.
A significant shift in consumer market or customer demand may result in the
directors inclusion of an additional specific provision based on their
assessment of likely future sale.
Valuation of land and buildings
The Group measures its freehold and long leasehold land and buildings using
the revaluation model, carrying them at fair value less subsequent accumulated
depreciation and impairment losses. Fair value is typically determined with
reference to market value.
Independent external valuation specialists are engaged to perform valuations
on a rolling three-year basis. In the intervening periods, management assesses
fair value by considering relevant market data and comparing it to the most
recent external valuation. Where material changes are identified, properties
are revalued or impaired accordingly.
Revaluation gains and losses are recognised in other comprehensive income and
accumulated in equity. However, where a revaluation loss exceeds previously
recognised gains, or reflects a clear consumption of economic benefits, the
excess is recognised in the income statement.
The valuation of the Group's property portfolio is sensitive to
movements in the commercial property market, and significant changes in market
conditions may impact reported values. Further details are provided in Note
16.
3 Revenue
Revenue is derived from the wholesale and distribution of floor-coverings and
related products. The Group operates as a single, reportable segment, under
IFRS 8 Operating Segments. Therefore, no segmental analysis is presented.
No individual customer accounted for more than 10% of total revenue. An
analysis of revenue from continuing operations is set out below.
2025 2024
£ £
Revenue analysed by class of business
Sale of goods 163,095,329 149,793,661
2025 2024
£ £
Revenue analysed by geographical market
United Kingdom 162,997,744 149,671,433
Rest of Europe 97,585 122,228
163,095,329
149,793,661
4 Auditor's remuneration
2025 2024
£ £
Fees payable to the company's auditor and associates:
For audit services
Audit of the financial statements of the group and company 163,500 150,000
No non-audit services were provided by the company's auditor in the year ended
31 December 2025 (2024: nil).
5 Operating profit
2025 2024
£ £
Operating profit for the year is stated after charging/(crediting):
Exchange losses 4,877 10,522
Depreciation of property, plant and equipment 5,462,740 5,050,181
Profit on disposal of property, plant and equipment (77,019) (20,634)
Amortisation of intangible assets (included within administrative expenses) 497,092 464,121
Cost of inventories recognised as an expense 112,361,004 103,777,804
Share-based payments 182,462 (26,034)
Loss from new operations and acquisition-related costs 358,521 133,993
Exceptional investment in point of sale 286,136 349,050
Strategic relocation and restructuring costs 378,772 686,090
Exceptional investment costs 324,155 -
Exceptional bad debt and customer exit costs - 223,054
The below summarises exceptional costs incurred within the table above:
Loss from New Operations & Acquisition Related Costs
2025 marked the completion of the Group's planned national UK infrastructure
with the acquisition of the freehold distribution centre in Plymouth in
February, completing the Group's nationwide distribution network.
The initial period of investment, including the site as well as the
development of a capable sales team will require time to mature before
delivering the anticipated returns. Consequently, whilst expected to be
accretive to Group profitability over the longer term, it is anticipated to be
a loss-making entity during the first 24 months of operation.
Loss from New Operations & Acquisition Related Costs (continued)
In the prior year, the Group also incurred acquisition-related costs
associated with the final contingent consideration payment relating to the
2022 acquisition of Delta Carpets Holdings Limited. This payment was made in
April 2024, and all contingent and deferred consideration obligations were
fully settled in 2024.
Exceptional Investment in Point of Sale
Expenses incurred by increasing the Group's market presence by providing
heavily discounted in-store retail displays to retailers to accelerate the
Group's growth in market share via a high volume of strategic stand placements
and recognised in the Consolidated Statement of Profit or Loss. The Board has
adopted a prudent approach by recognising the cost as an expense in the profit
or loss statement, rather than capitalising these displays as assets and
incurring depreciation charges in future periods.
Strategic Relocation & Restructuring Costs
Strategic relocation and restructuring costs incurred during the year reflect
the Group's ongoing investment in reorganising and developing the Likewise
Matting business, alongside the development of A&A Carpets in Manchester,
in alignment with the Group's broader strategic objectives.
Early positive signs follow the streamlined sales and admin teams in Matting,
and the benefits of new management at A&A, both contributing to improved
performance in Q1 2026.
Prior year costs included the initial phase of restructuring expenditure at
A&A ahead of relocation to a new transhipping facility in Manchester, and
dual running costs at the Scotland Distribution Hub (after a move to
purpose-built premises), to support the broader growth of the Group's
long-term capacity requirements.
Exceptional Investment & Bad debts
Relocation of Likewise Scotland in 2023, established it as the third
large-scale Distribution Hub within the Group network, additional investment
into a second cutting shift was made due to forecast capacity demands.
Significant upfront recruitment and training of a skilled cutting team and
enhanced utilisation of existing equipment was required. The investment
precedes the realisation of demand and due to the time needed to reach full
operating efficiency, it was classified as a non-underlying cost in 2025, with
benefits realised in FY26 and beyond.
In addition, to the successful development of the premium flooring range,
Floors by Lewis Abbott, the Board recognises a significant opportunity to
expand its fledgling presence in the premium segment.
The strong core range established across Carpets, Luxury Vinyl Tile (LVT) and
Engineered Wood, is supported by targeted investment in its dedicated sales
team to realise further opportunities for this trade brand. This initiative
strengths our engagement with current customers with in-store displays, drive
new stand placements, and drive incremental revenue growth of this segment.
The prior year disclosure relates to a significant bad debt on a major
customer within the Rugs and Matting division, together with the strategic
withdrawal of a retailer from the floor-covering market. The resulting
administration led to an exceptional bad debt write-off, while the market-exit
reduced trading - particularly in the second half - limiting the Group's
ability to mitigate the financial impact.
Other Exceptional Items
Amortisation costs and Share Based Payment Charges relate to non-cash
reporting adjustments incurred during the year and further details can be
found in notes 15 and 31 respectively.
6. Employees
The average monthly number of persons (including directors) employed by the
group during the year was:
2025 2024
Number Number
Directors 4 4
Other employees 557 503
Total 561 507
2025 2024
£
£
Their aggregate remuneration comprised:
Wages and salaries 22,026,868 20,581,935
Social security costs 2,716,104 2,156,661
Pension costs 582,440 567,015
Share based payments 182,462 (26,034)
25,507,874 23,279,577
The average monthly number of persons (including directors) employed by the
company during the year was 14 (2024: 11).
7 Directors' remuneration 2025 2024
£ £
Remuneration for qualifying services 529,336 521,644
Social security costs 70,504 63,329
Company pension contributions to defined contribution schemes - 6,400
Share based payments 4,602 9,406
604,442 600,779
Remuneration disclosed above includes the following amounts paid to the
highest paid director:
2025 2024
£ £
Remuneration for qualifying services 336,374 304,974
There were no additional fees paid to non-executive directors in the current
or preceding year.
The number of directors accruing benefits under money purchase pension schemes
during the year amounts to nil (2024: nil).
8 Interest income 2025 2024
£ £
Financial instruments measured at amortised cost:
Bank deposits 58,910 24,027
9 Income tax expense 2025 2024
£
£
Current tax
UK corporation tax on profits for the current period Adjustments in respect of - 9,377
prior periods
(15,237) (7,686)
Total UK current tax (15,237)
1,691
Deferred tax
Origination and reversal of temporary differences 170,178 (750,826)
Adjustments in respect of prior periods 53,544 -
223,722 (750,826)
Total tax charge/(credit) 208,485 (749,135)
The charge for the year can be reconciled to the profit per the income
statement as follows:
2025 2024
£ £
Profit before taxation 1,097,292 25,467
Expected tax charge based on a corporation tax rate of 25.00% (2024: 25.00%) 274,323 6,367
Effect of expenses not deductible in determining taxable profit 1,398,741 40,534
Movement in deferred tax not recognised (67,298) (678,509)
Adjustment in respect of prior years (10,233) (7,686)
Deferred tax adjustment in respect of prior years (21,504) -
Fixed asset differences 57,835 53,188
Deferred tax (charged)/credited directly to OCI (1,344,885) (108,424)
Other tax adjustments, reliefs and transfers (6,187) (54,605)
Temporary differences in respect of business combinations (71,857) -
Taxation charge/(credit) for the year 208,485 (749,135)
In addition to the amount charged to the income statement, the following
amounts relating to tax have been recognised directly in other comprehensive
income:
2025 2024
£ £
Deferred tax liability arising on:
Revaluation of property 1,344,885 108,424
Actuarial gain on defined benefit pension scheme 17,500 112,500
1,362,385 220,924
As at 31 December 2025, the Group has tax losses of £15,406,715 (31 December
2024: tax losses of £13,893,692) which are available for offset against
future taxable profits.
10 Finance costs 2025 2024
£
£
Interest on bank overdrafts and loans 194,593 184,466
Interest on lease liabilities 1,177,419 1,201,163
Interest on invoice discount facilities 453,141 463,982
Total interest expense 1,825,153 1,849,611
Interest paid during the financial year, as reported in the consolidated
statement of cash flows, comprised £194,593 (2024: £184,466) in respect of
bank overdrafts and loans, £147,506 (2024: £137,480) relating to assets
acquired under finance leases, and £453,141 (2024: £463,982) in respect of
invoice discounting facilities.
Included within interest on lease liabilities is £1,029,913 (2024:
£1,063,683) of operating lease interest recognised under IFRS 16
11 Revaluation of deferred consideration 2025 2024
£
£
Loss on revaluation of deferred consideration - (18,885)
12 Dividends 2025 2024 2025 2024
per share per share Total Total
Amounts recognised as distributions: Pence Pence £ £
Final dividend paid 0.2500 0.2500 609,942 610,720
Interim dividend paid 0.1375 0.1250 342,703 305,969
0.3875 0.3750 952,645 916,689
13 Earnings per share 2025 2024
Number of shares Number Number
Weighted average number of ordinary shares for basic earnings per share 249,623,206 245,580,592
Effect of dilutive potential ordinary shares:
- Weighted average number outstanding share options 5,890,470 4,034,800
- Warrants 2,800,000 2,800,000
Weighted average number of ordinary shares for diluted earnings per share 258,313,676 252,415,392
2025 2024
Earnings £ £
Continuing operations
Profit for the period from continued operations 888,807 774,602
2025 2024
Pence per Pence per
share share
Earnings per share for continuing operations
Basic earnings per share 0.36 0.32
Diluted earnings per share 0.34 0.31
The diluted profit per share attributable to the ordinary equity holders of
the Company has been presented to two decimal places in the current and prior
year (formally presented to one decimal place).
14 Impairments
Impairment tests have been carried out where appropriate and the following
impairment losses have been recognised in profit or loss:
2025 2024
£ £
In respect of:
Financial assets -Trade and other receivables recognised in administrative 244,044 393,128
expenses
15 Goodwill and other intangible assets
Goodwill Software modifications Likewise Floors Brandname Likewise Floors Customer Delta Carpets Brandname Delta Carpets Customer Total
base base
£ £ £ £ £ £ £
Cost
At 1 January 2024 5,624,284 2,189,075 2,122,349 513,684 11,124,085
133,983 540,710
Additions - 302,520 - - - - 302,520
At 31 December 2024 5,624,284 436,503 2,189,075 2,122,349 540,710 513,684 11,426,605
Additions - 104,880 - - - - 104,880
At 31 December 2025 5,624,284 541,383 2,189,075 2,122,349 540,710 513,684 11,531,485
Amortisation and impairment
At 1 January 2024 - 693,206 672,077 94,624 89,894 1,561,304
11,503
Amortisation charge for the year - 71,254 145,938 141,490 54,071 51,368 464,121
At 31 December 2024 - 82,757 839,144 813,567 148,695 141,262 2,025,425
Amortisation charge for the year - 104,225 145,938 141,490 54,071 51,368 497,092
At 31 December 2025 - 186,982 985,082 955,057 202,766 192,630 2,522,517
Carrying amount
At 31 December 2025 5,624,284 354,401 1,203,993 1,167,292 337,944 321,054 9,008,968
At 31 December 2024 5,624,284 353,746 1,349,931 1,308,782 392,015 372,422 9,401,180
At 1 January 2024 5,624,284 122,480 1,495,869 1,450,272 446,086 423,790 9,562,781
Impairment tests for cash generating units
Goodwill is tested annually for impairment. It is allocated to cash generating
units as follows:
2025 2024
£ £
Likewise Floors Limited 3,253,210 3,253,210
Lewis Abbott Limited 467,847 467,847
H&V Carpets BVBA 307,230 307,230
A. & A. Carpets Limited 188,441 188,441
Valley Wholesale Carpets Limited 234,864 234,864
Delta Carpets Limited 1,172,692 1,172,692
5,624,284 5,624,284
The Group tests goodwill annually for impairment, or more frequently if there
are indications that goodwill might be impaired.
The goodwill is a reflection of the benefit the acquisitions of subsidiaries
will have on the Group by offering greater geographic coverage and providing
the opportunity to expand this further than is currently the case. The
acquisitions will benefit from the collective marketing and the enhanced
product range available to all Group companies. Ultimately this will enable
the acquired businesses and the existing Group members to provide an improved
customer service, across a wider geographic area, with a greater product
portfolio designed to help the Group to continue its development.
The Group has conducted an analysis of the sensitivity of the impairment test
to changes in the key assumptions used in the supporting five year forecasts
being a pre-taxation discount rate of 8% (2024: 10%) and growth rates ranging
from 1%-3% (2024: 1%-5%) dependent on the specific CGU.
Likewise Floors Limited
The break-even point of goodwill for Likewise Floors Limited is at a growth
level of -233% with terminal growth factor of 2%.
Lewis Abbott Limited
The break-even point of goodwill for Lewis Abbott Limited is at a growth level
of -39% with terminal growth factor of 2%.
H&V Carpets BVBA
The break even point of goodwill for H&V Carpets BVBA is at a growth level
of -44% with terminal growth factor of 1%.
A. & A. Carpets Limited
The break even point of goodwill for A. & A. Carpets Limited is at a
growth level of -21% with terminal growth factor of 1%.
Valley Wholesale Carpets Limited
The break even point of goodwill for Valley Wholesale Carpets Limited is at a
growth level of -7% with terminal growth factor of 1%.
Delta Carpets Limited
The break even point of goodwill for Delta Carpets Limited is at a growth
level of -10% with terminal growth factor of 1%.
15 Intangible assets (continued) - Company
Computer software
£
Cost
436,503
At 31 December 2024
Additions 104,880
At 31 December 2025 541,383
Amortisation and impairment
At 31 December 2024 82,757
Charge for the year 104,225
At 31 December 2025 186,982
Carrying amount
At 31 December 2025 354,401
At 31 December 2024 353,746
16 Property, plant and equipment
Freehold land and buildings Long leasehold land and buildings Leasehold improve-ments Plant and equipment Fixtures, fittings and computer equipment Motor vehicles Right of use assets Leasehold property Right of use assets - other Total
£ £ £ £ £ £ £ £ £
Cost or valuation
At 1 January 2024 11,023,231 11,101,598 4,873,942 2,635,650 8,701,680 57,423,843
305,690 2,392,022 16,390,030
Additions 25,466 25,845 - 181,438 499,371 660,303 1,759,354 1,922,459 5,074,236
Disposals - - - (160,059) (130,000) (228,920) - (268,594) (787,573)
At 31 December 2024 11,048,697 11,127,443 305,690 4,895,321 3,005,021 2,823,405 18,149,384 10,355,545 61,710,506
Additions 1,434,160 - - 587,486 201,680 3,830,296 - 618,252 6,671,874
Disposals - - - (5,261) (44,036) (147,151) (224,357) (2,371,688) (2,792,493)
Revaluation increase 5,048,043 - - - - - - - 5,048,043
At 31 December 2025 17,530,900 11,127,443 305,690 5,477,546 3,162,665 6,506,550 17,925,027 8,602,109 70,637,930
Accumulated depreciation and impairment
At 1 January 2024 101,957 - 81,315 949,477 862,330 895,047 2,713,416 3,434,612 9,038,154
Depreciation charge for the year 163,059 145,600 30,569 505,428 352,992 498,463 1,274,222 2,079,848 5,050,181
Eliminated on disposal - - - (140,646) (89,145) (190,531) - (250,705) (671,027)
Eliminated on revaluation (163,059) (145,600) - - - - - - (308,659)
At 31 December 2024 101,957 - 111,884 1,314,259 1,126,177 1,202,979 3,987,638 5,263,755 13,108,649
Depreciation charge for the year 182,183 145,654 30,348 518,359 333,032 789,758 1,318,203 2,145,203 5,462,740
Eliminated on disposal - - - (5,261) (44,061) (119,208) (224,357) (2,146,423) (2,539,310)
Eliminated on revaluation (284,140) (145,654) - - - - - - (429,794)
At 31 December 2025 - - 142,232 1,827,357 1,415,148 1,873,529 5,081,484 5,262,535 15,602,285
Freehold land and buildings Long leasehold land and buildings Leasehold improve-ments Plant and equipment Fixtures, fittings and computer equipment Motor vehicles Right of use assets Leasehold property Right of use assets - other Total
£ £ £ £ £ £ £ £ £
Cost or valuation
At 1 January 2024 11,023,231 11,101,598 4,873,942 2,635,650 8,701,680 57,423,843
305,690 2,392,022 16,390,030
Additions 25,466 25,845 - 181,438 499,371 660,303 1,759,354 1,922,459 5,074,236
Disposals - - - (160,059) (130,000) (228,920) - (268,594) (787,573)
At 31 December 2024 11,048,697 11,127,443 305,690 4,895,321 3,005,021 2,823,405 18,149,384 10,355,545 61,710,506
Additions 1,434,160 - - 587,486 201,680 3,830,296 - 618,252 6,671,874
Disposals - - - (5,261) (44,036) (147,151) (224,357) (2,371,688) (2,792,493)
Revaluation increase 5,048,043 - - - - - - - 5,048,043
At 31 December 2025 17,530,900 11,127,443 305,690 5,477,546 3,162,665 6,506,550 17,925,027 8,602,109 70,637,930
Accumulated depreciation and impairment
At 1 January 2024 101,957 - 81,315 949,477 862,330 895,047 2,713,416 3,434,612 9,038,154
Depreciation charge for the year 163,059 145,600 30,569 505,428 352,992 498,463 1,274,222 2,079,848 5,050,181
Eliminated on disposal - - - (140,646) (89,145) (190,531) - (250,705) (671,027)
Eliminated on revaluation (163,059) (145,600) - - - - - - (308,659)
At 31 December 2024 101,957 - 111,884 1,314,259 1,126,177 1,202,979 3,987,638 5,263,755 13,108,649
Depreciation charge for the year 182,183 145,654 30,348 518,359 333,032 789,758 1,318,203 2,145,203 5,462,740
Eliminated on disposal - - - (5,261) (44,061) (119,208) (224,357) (2,146,423) (2,539,310)
Eliminated on revaluation (284,140) (145,654) - - - - - - (429,794)
At 31 December 2025 - - 142,232 1,827,357 1,415,148 1,873,529 5,081,484 5,262,535 15,602,285
Freehold land and buildings Long leasehold land and buildings Leasehold improve-ments Plant and equipment Fixtures, fittings and computer equipment Motor vehicles Right of use assets Leasehold property Right of use assets - other Total
£ £ £ £ £ £ £ £ £
Carrying amount
At 31 December 2025 17,530,900 11,127,443 163,458 3,650,189 1,747,517 4,633,021 12,843,543 3,339,574 55,035,645
At 31 December 2024 10,946,740 11,127,443 193,806 3,581,062 1,878,844 1,620,426 14,161,746 5,091,790 48,601,857
At 31 January 2024 10,921,274 11,101,598 224,375 3,924,465 1,773,320 1,496,975 13,676,614 5,267,068 48,385,689
16. Property, plant and equipment (continued)
Property, plant and equipment includes right of use assets, as follows:
Right-of-use assets 2025 2024
£ £
Net values at the year end
Right of use assets - Leasehold property 12,843,543 14,161,746
Right of use assets - Other 3,339,574 5,091,790
16,183,117 19,253,536
Total additions in the year 618,252 3,681,813
Depreciation charge for the year
Right of use assets - Leasehold property 1,318,203 1,274,222
Right of use assets - Other 2,145,203 2,079,848
3,463,406 3,354,070
Assets pledged as security
There is a floating charge against the assets of the subsidiary Likewise
Floors Limited, from NatWest Bank PLC.
There is a fixed charge over the freehold land and buildings held by the Group
in respect of bank loans in place for the Group.
Fair Value Measurement
Included within land and buildings is land with a cost of £6,441,357 (2024:
£6,254,057), which is not depreciated.
The Group's freehold and long leasehold land and buildings are stated at
revalued amounts, being fair value at the date of revaluation, less subsequent
accumulated depreciation and impairment losses.
During the financial year, the Group acquired a new freehold property in
Plymouth, further strengthening the geographical footprint of the Group. Prior
to completion, the property was independently valued by Chartered Surveyors
Cooke & Arkwright. Based on the valuation report, together with an uplift
derived from available market data and consideration of improvements made to
the property during the year, the directors believe that the net book value of
the property as at the balance sheet date is reflective of its market value.
The Group engage independent experts to obtain market valuations on a
three-yearly cycle with management assessments in intervening years to
identify any material movement to current book values recognised.
The freehold investment property in Sudbury was most recently valued at
£10,650,000 on 11 March 2026 by BNP Paribas Real Estate on behalf of NatWest
Group plc, the mortgage holder. The valuation was prepared using the market
(comparative) method, applying a capital value per square foot to the size of
the building. In determining this value, the valuer considered observable
evidence from recent comparable sales, taking into account location, condition
and size, and also had regard to market rental data for similar properties.
The directors have reviewed this valuation and having considered current
market conditions, recent comparable transactions and credentials of the
expert, BNP Paribas, conclude that this provides more timely and robust
evidence for the fair value of the property as at 31 December 2025.
Accordingly, a revaluation adjustment has been recognised.
Management has also assessed the carrying values of the long leasehold
property and the remaining freehold properties. Based on prior independent
valuations and current external market data, management believes that their
fair values do not materially differ from the amounts recognised in the
financial statements.
Previous valuations have been carried out by Cooke & Arkwright, BNP
Paribas Real Estate and Gerald Eve LLP, all of whom are independent chartered
surveyors with appropriate qualifications and recent experience in valuing
properties in the relevant markets.
Fair Value Measurement (continued)
All valuation reports have been prepared in accordance with the Royal
Institution of Chartered Surveyors ("RICS") Valuation - Global Standards
(incorporating the IVSC International Valuation Standards) issued in November
2021 and effective from 31 January 2022, together with the UK National
Supplement effective from 14 January 2019 (the "Red Book").
Property valuations are complex, require a degree of judgement and are based
on data that may or may not be publicly available. Valuation of investment
property and the respective inputs have been classified as level 3 inputs as
defined by IFRS Fair Value Measurement. Level 3 means that the valuation model
cannot rely on inputs that are directly available from an active market;
however, there are related inputs from recent property sales that can be used
as a basis.
The revaluation gain on land and buildings for 2025 of £5,477,837 (2024 -
gain of £308,659) has been recognised within Other Comprehensive Income.
The revaluation surplus is disclosed in note 28.
Assets purchased through finance arrangements
During the year ended 31 December 2025, the directors approved the purchase of
£2,797,442 of assets through asset finance arrangements (2024: £nil).
Following a review of existing operating lease arrangements in respect of
commercial vehicles, the Board determined that acquisition through asset
finance represented a more cost-effective and efficient approach to managing
the Group's fleet.
These acquisitions replaced previously leased assets and included additional
vehicles to support the Group's continued geographic expansion, increasing
market share and growth. The assets have been capitalised within the motor
vehicles category in the fixed asset register.
The Board will continue to assess the Group's fleet strategy as existing
leases expire, with future investments funded through a combination of cash
reserves and asset finance, as appropriate. Decisions will be guided by
operational effectiveness and the best interests of shareholders.
Property, Plant and Equipment - Company
Fixtures and fittings Motor vehicles Right of use assets - leasehold property Right of use assets - other Total
£ £ £ £ £
Cost
At 1 January 2024 65,281 96,995 5,513,875 39,248 5,715,399
Additions 11,068 - - - 11,068
At 31 December 2024 76,349 96,995 5,513,875 39,248 5,726,467
Disposals (4,665) - - (39,248) (43,913)
At 31 December 2025 71,684 96,995 5,513,875 - 5,682,554
Accumulated depreciation and impairment
At 1 January 2024 34,670 6,466 409,931 15,269 466,336
Charge for the year 14,229 19,399 319,400 13,083 366,111
At 31 December 2024 48,899 25,865 729,331 28,352 832,447
Charge for the year 11,910 19,399 319,400 10,896 361,605
Eliminated on disposal (4,665) - - (39,248) (43,913)
At 31 December 2025 56,144 45,264 1,048,731 - 1,150,139
Carrying amount
At 31 December 2025 15,540 51,731 4,465,144 - 4,532,415
At 31 December 2024 27,450 71,130 4,784,544 10,896 4,894,020
At 1 January 2024 30,611 90,529 5,103,944 23,979 5,249,063
17 Investments - Company
Non-current
2025 2024
£ £
Investments in subsidiaries 42,387,282 42,240,552
Fair value of financial assets carried at amortised cost
The directors believe that the carrying amounts of financial assets carried at
amortised cost in the financial statements approximate to their fair values.
18 Subsidiaries
Details of the company's subsidiaries at 31 December 2025 are as follows:
Name of Class of % Held
undertaking
Address Principal activities
shares held Direct Indirect
Likewise Floors Limited 1 Wholesale distribution of floor-coverings and associated products Ordinary 100.00 -
Valley Wholesale Carpets Limited (100% subsidiary of Valley Wholesale Carpets 1 Wholesale distribution of floor-coverings and associated products Ordinary - 100.00
(2004) Limited)
Likewise Holdings Limited 1 Holding company Ordinary 100.00 -
H&V Carpets BVBA 2 Wholesale distribution of floor-coverings and associated products Ordinary 100.00 -
Likewise Trading Limited 1 Holding company Ordinary 100.00 -
Valley Wholesale Carpets (2004) Limited 1 Holding company Ordinary 100.00 -
Delta Carpets (Holdings) Limited (100% subsidiary of Likewise Floors Limited) 1 Holding company Ordinary - 100.00
Delta Carpets Limited (100% subsidiary of Delta Carpets (Holdings) Limited) 1 Dormant company Ordinary - 100.00
William Armes Limited (100% subsidiary of Likewise Holdings Limited) 1 Dormant company Ordinary - 100.00
A. & A. Carpets Limited 1 Dormant company Ordinary 100.00 -
Likewise Limited 1 Dormant company Ordinary 100.00 -
Lewis Abbott Limited (100% subsidiary of Likewise Trading Limited) 1 Dormant company Ordinary - 100.00
Factory Flooring Outlet Ltd (100% subsidiary of Likewise Floors Limited) 1 Dormant company Ordinary - 100.00
Registered office addresses:
1.Unit 4 Radial Park, Radial Way, Birmingham Business Park, Solihull, England,
B37 7WN
2.Nijverheidsstraat 26, 8760 Meulebeke, Belgium
19 Inventories
2025 2024
£ £
Finished goods 22,670,460 20,042,078
The amount of inventories impaired during the year was as follows: 1,074,886 970,085
20 Trade and other receivables - Group
2025 2024
£ £
Trade receivables 15,710,062 14,518,173
Provision for impairment of trade receivables (433,343) (403,392)
15,276,719 14,114,781
Other receivables 4,146,371 3,421,565
Prepayments 1,837,198 1,699,557
21,260,288
19,235,903
Fair value of trade receivables
The directors consider the carrying value of Group trade and other receivables
is approximate to its fair value, after incorporating an impairment provision
of £433,343 (2024: £403,392).
Trade receivables comprise amounts due from customers for goods sold. The
Group's normal trade credit terms range from 30 to 60 days and therefore all
are classified as current. There are a limited number of customers who are
granted extended credit terms but these are not considered material to the
financial statements. Trade receivables are recognised initially at the amount
of consideration that is unconditional. The Group holds the trade receivables
with the objective to collect the contractual cash flows and therefore
measures them subsequently at amortised cost.
The Group's credit risk is primarily attributable to its trade receivables.
The amounts presented in the Consolidated Statement of Financial Position are
net of allowances for doubtful receivables. An allowance for impairment is
made where there is an identified loss event which, based on previous
experience, is evidence of a reduction in the recoverability of the cash
flows.
The Group has no significant concentration of credit risk, with exposure
spread over a large number of customers.
The carrying amounts of the trade receivables include receivables which are
subject to a factoring agreement. Under this arrangement, the subsidiary
trading companies have transferred the relevant receivables to the factor in
exchange for cash and are prevented from selling or pledging the receivables.
However, the subsidiaries retain the late payment and credit risk. The Group
therefore continues to recognise the transferred assets in their entirety in
its Consolidated Statement of Financial Position. The amount repayable under
the factoring agreement is presented as secured borrowing. The Group considers
the held to collect business model to remain appropriate for these receivables
and hence continues measuring them at amortised cost.
The relevant carrying amounts are:
2025 2024
£ £
Factored receivables 11,716,697 9,336,680
Associated secured borrowing (8,787,523) (7,002,510)
Trade and other receivables - Company
2025 2024
£ £
Amount owed by fellow group undertaking 1,526,477 3,690,288
Other receivables 348,646 409,664
Prepayments 513,515 336,980
2,388,638 4,436,932
The £1,526,477 (2024: £3,690,288) included within amounts owed by group
undertakings are balances that are unsecured, interest‑free and have no
fixed date of repayment. These amounts are repayable on demand; however,
repayment is considered unlikely to occur within the next twelve months.
21 Allowances for doubtful debts
Expected credit loss assessment:
2025 2024
Trade receivables Balance Rate Loss allowance Balance Rate Loss allowance
£ £
£ % £ %
Not more than 30 days 9,157,448 - - 8,097,393 - -
More than 30 days but not more than 60 days 4,622,933 - - 4,386,456 - -
More than 60 days but not more than 90 days 871,147 - - 916,716 - -
More than 90 days but not more than 120 days 129,500 5 6,475 262,879 5 13,144
More than 120 days 929,034 50 464,517 854,729 50 427,365
Adjustments - - (37,649) - (37,117)
15,710,062 433,343 14,518,173 403,392
The below ECL calculation table has been adjusted to exclude debtors where
there are specific payment plans in place:
2025 ECL
Adjusted ECL calculation: £
More than 90 days but not more than 120 days - 5% 129,500 6,475
More than 120 days - 50% (adjusted) 415,088 207,544
Additional specific loss allowance 219,324
544,588 433,343
Movement in the allowance for doubtful debts
2025 2024
£ £
Balance at 1 January 2025 403,392 369,399
Additional allowance recognised 29,951 33,993
Balance at 31 December 2025 433,343 403,392
22 Borrowings
Current Non-current
2025 2024 2025 2024
£ £ £ £
Borrowings held at amortised cost
Bank loans 881,897 105,816 2,115,356 2,235,997
Invoice discounting 8,787,523 7,002,510 - -
9,669,420 7,108,326 2,115,356 2,235,997
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
receivable 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 by Likewise Floors Limited and has a
fixed service charge of £18,000 per annum.
The Group has a bank loan with an original principal of £2,495,000, drawn
down in July 2023. Repayments commenced in September 2023 and are scheduled to
continue until July 2038. The loan is secured by a fixed and floating charge
over the Group's assets and carries interest at a floating rate based on the
Bank of England base rate plus a margin of 2.35%.
As the loan bears interest at a floating rate, the Group is exposed to
interest rate risk.
On 7 June 2024, the subsidiary company, Valley Wholesale Carpets Limited,
renewed a trade loan facility with Barclays Bank PLC. The facility provides
borrowing of up to £1,750,000.
As at 31 December 2025, £762,457 had been drawn down on this trade loan
facility (31 December 2024: £nil). Drawdowns bear interest at a floating rate
based on the Bank of England base rate plus a margin of 2.2%. The facility
also incurs a quarterly fixed management arrangement fee.
Borrowings - Company
Current Non-current
2025 2024 2025 2024
£ £ £ £
Borrowings held at amortised cost
Bank loans 119,440 105,816 2,115,356 2,235,997
There is a fixed charge over the freehold land and buildings held by the Group
in respect of the bank loan.
23 Trade and other payables 2025 2024
£ £
Trade payables 27,267,713 23,080,542
Accruals 1,473,941 1,517,149
Social security and other taxation 2,063,940 1,819,793
Other payables 474,104 356,041
31,279,698 26,773,525
Trade payables and accruals principally comprise amounts outstanding in
relation to trade purchases and ongoing costs. Trade payables are unsecured
and the Group has financial risk management procedures in place to ensure that
all payables are paid within pre-agreed credit terms.
The directors consider the carrying value of trade and other payables is
approximate to its fair value due to their short-term nature.
Trade and other payables - Company
2025 2024
£ £
Trade payables 426,635 288,114
Amounts owed to fellow group undertakings 10,173,863 10,026,317
Accruals 146,653 168,567
Social security and other taxation 133,295 88,406
Other payables 5,600 5,200
10,886,046 10,576,604
The £10,173,863 (2024: £10,026,317) included within amounts owed to group
undertakings are balances that are unsecured, interest-free and have no fixed
date of repayment. These amounts are repayable on demand, however, repayment
is considered unlikely to occur within the next twelve months.
24 Lease liabilities
2025 2024
£ £
Maturity analysis 4,723,784 5,099,219
Within one year
In two to five years 11,974,348 11,902,627
In over five years 10,434,021 12,408,443
Total undiscounted liabilities 27,132,153 29,410,289
Future finance charges (5,645,194) (6,627,343)
Lease liabilities in the financial statements 21,486,959 22,782,946
Lease liabilities are classified based on the amounts that are expected to be
settled within the next 12 months and after more than 12 months from the
reporting date, as follows:
2025 2024
£ £
Current liabilities 4,411,891 4,642,269
Non-current liabilities 17,075,068 18,140,677
21,486,959 22,782,946
2025 2024
£ £
Amounts recognised in profit or loss include the following: 1,177,419
Interest on lease liabilities 1,201,163
Depreciation on right of use assets 3,463,406 3,354,070
Profit on termination of lease liabilities (31,802) (1,393)
Expense relating to short-term leases 226,279 426,942
4,835,302 4,980,782
Lease liabilities - Company
2025 2024
£ £
Maturity analysis 570,863 582,645
Within one year
In two to five years 2,283,452 2,283,452
In over five years 5,492,318 6,139,034
Total undiscounted liabilities 8,346,633 9,005,131
Future finance charges (3,055,313) (3,470,134)
Lease liabilities in the financial statements 5,291,320 5,534,997
Lease liabilities are classified based on the amounts that are expected to be
settled within the next 12 months and after more than 12 months from the
reporting date, as follows:
2025 2024
£ £
Current liabilities 550,250 500,193
Non-current liabilities 4,741,070 5,034,804
5,291,320 5,534,997
25 Deferred taxation
2025 2024
£ £
Deferred tax balances 2,923,155 1,337,048
The following are the major deferred tax liabilities and assets recognised by
the group and movements thereon during the current and prior reporting period.
Fixed asset timing difference Arising Capital Short term timing differences Losses and other deduction Total
from business combination
gains
£ £ £ £ £ £
Asset/(Liability) at 1 January 2024 (1,571,298) (954,004) (1,550,446) 38,335 2,170,463 (1,866,950)
Deferred tax movements in prior year
Charge/(credit) to profit or loss (92,396) 98,217 52,592 (27,096) 719,509 750,826
Credit to other comprehensive income - - (108,424) (112,500) - (220,924)
Asset/(Liability) at 1 January 2025 (1,663,694) (855,787) (1,606,278) (101,261) 2,889,972 (1,337,048)
Deferred tax movements in current year
Charge/(credit) to profit or loss (748,414) 98,216 57,385 4,710 364,381 (223,722)
Charge/(credit) to other comprehensive income - - (1,344,885) (17,500) - (1,362,385)
Asset/(Liability) at 31 December 2025 (2,412,108) (757,571) (2,893,778) (114,051) 3,254,353 (2,923,155)
Deferred taxation - Company
Liabilities Assets
2025 2024 2025 2024
£ £ £ £
Deferred tax balances - - - -
The following are the major deferred tax liabilities and assets recognised by
the company and movements thereon during the current and prior reporting
period.
Fixed asset timing difference Short term timing differences Losses Total
and other deduction
£ £ £ £
Asset at 1 January 2024 (35,902) 3,735 935,283 903,116
Deferred tax movements in prior year
Charge/(credit) to profit or loss (53,677) (1,774) (847,665) (903,116)
Asset at 1 January 2025 (89,579)- 1,961 87,618 -
Deferred tax movements in current year
Charge/(credit) to profit or loss 6,253 2,466 (8,719) -
Asset at 31 December 2025 (83,326) 4,427 78,899 -
26 Retirement benefit schemes
2025 2024
Defined contribution schemes £ £
Charge to profit or loss in respect of defined contribution schemes 582,441 567,015
The group operates a defined contribution pension scheme for all qualifying
employees. The assets of the scheme are held separately from those of the
group in an independently administered fund.
Contributions made by the Group to the scheme are disclosed above.
The amount outstanding at the reported date in respect of contributions to the
scheme were £98,138 (2024: £78,003).
Defined benefit scheme
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 1998 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 contributions paid for the current and preceding financial year amounted
to £Nil. The Group expects to contribute £nil to the scheme in the coming
financial year.
Given that the defined benefit pension scheme is in surplus at 31 December
2025, there is expected to be no material impact on the Group's future cash
flows.
Reconciliation of defined benefit obligation and fair value of scheme assets
2025 2024
Key assumptions % %
Discount rate: 5.60 5.50
Salary growth rate 2.40 2.50
Mortality rates - for male/female aged 65 now 1.00 1.00
Inflation assumption (RPI) 2.90 3.10
Mortality assumptions
Assumed life expectations on retirement at age 65:
Retiring today: 85.7 85.6
- Males
- Females 88.2 88.1
Aged 45 now: 86.7 86.6
- Males
- Females 89.3 89.3
The amounts included in the statement of financial position arising from the
group's obligations in respect of defined benefit plans are as follows:
2025 2024
£
£
Present value of defined benefit obligations 1,095,000 1,151,000
Fair value of plan assets (1,615,000) (1,601,000)
Surplus in scheme (520,000) (450,000)
Asset recognised in statement of financial position (520,000) (450,000)
The retirement benefit obligation recognised in the consolidated statement of
financial position represents the surplus in the defined benefit scheme. Any
surplus resulting from this calculation is limited to the present value of any
economic benefits available in the form of refunds from the plans or
reductions in future contributions to the plans.
The Trust Deed provides Likewise Floors Limited, the subsidiary whom operates
the scheme, with an unconditional right to a refund of surplus assets assuming
the full settlement of plan liabilities in the event of a plan wind-up.
Furthermore, in the ordinary course of business the Trustee has no rights to
unilaterally wind up, or otherwise augment the benefits due to members of, the
plan. Based on these rights, any material net surplus in the plan is
recognised in full.
Movements in the present value of defined benefit obligations: 2025 2024
£
£
At 1 January 1,151,000 1,231,000
Benefits paid (97,000) (101,000)
Actuarial gains (20,000) (32,000)
Interest cost 61,000 53,000
At 31 December 1,095,000 1,151,000
The defined benefit obligations arise from plans which are wholly unfunded
Movements in the fair value of plan assets
At 1 January 1,601,000 1,555,000
Interest income 61,000 53,000
Return on plan assets (excluding amounts included in net interest) 50,000 94,000
Benefits paid (97,000) (101,000)
At 31 December 1,615,000 1,601,000
Amounts recognised in other comprehensive income:
2025 2024
£
£
Amounts recognised in other comprehensive income
Costs/(income):
(70,000)
(450,000)
Actuarial changes related to plan assets
Scheme obligations would have been affected by changes in assumptions as
follows:
2025 2024
%
%
A decrease in the interest rates of 0.05% would - increase 4.4 4.4
A decrease in inflation of 0.05% would - decrease 5.0 5.0
An increase in the long term rate of mortality improvement of 0.5% would - 1.5 1.5
increase
27 Share capital
Consolidated and company
2025 2024 2025 2024
Number
£
£
Number
Ordinary share capital Issued and fully paid Ordinary shares of 1p each
252,983,480 247,483,480 2,529,835 2,474,835
The Company has one class of ordinary share which carry no right to fixed
income.
On 11 August 2025, the Company allotted 5,500,000 new £0.01 Ordinary Shares
for consideration of £0.25 per share, totaling £1,375,000. These shares were
issued as an equity subscription for future capital investment.
28 Share premium account
2025 2024
£ £
At the beginning of the year 17,677,390 17,396,190
Issue of new shares 1,320,000 311,710
Share issue expenses (38,030) -
Revaluation of shares held in Trust 30,510 (30,510)
At the end of the year 18,989,870
17,677,390
This reflects proceeds generated on issue of shares in excess of their nominal
value and is a non-distributable reserve.
29 Revaluation reserve
2025 2024
£ £
At the beginning of the year 2,777,172 2,626,977
Property revaluation 5,477,837 308,659
Deferred tax on property revaluation (1,344,885) (108,425)
Transfer to retained earnings (50,039) (50,039)
At the end of the year 6,860,085 2,777,172
This is used to record increases in the fair value of fixed assets and
decreases to the extent that the decrease relates to a previous increase on
the same asset. The revaluation reserve is a non-distributable reserve. The
gain will transfer to retained earnings upon crystallisation of the gain upon
disposal of the property. The excess depreciation on revalued assets in
comparison to historical cost depreciation is transferred from the revaluation
reserve to retained earnings.
30 EBT reserve
2025 2024
£ £
At the beginning of the year (375,060) -
Share buyback - (375,060)
Settlement of SAYE shares 60,000 -
Other costs (300) -
Reserves transfers 1,343 -
At the end of the year (314,017) (375,060)
The Group has established an Employee Benefit Trust (EBT) to facilitate the
purchase and holding of the Company's shares. The EBT is legally independent
from the Group but it is consolidated into the Group's financial statements
due to the Group's deemed control over the trust. The shares held by the EBT
may be cancelled or used to satisfy employee share option plans in the future.
31 Treasury shares
2025 2024
£
£
At the beginning of the year (58,584) -
Purchase of own shares (402,454) (58,584)
At the end of the year (461,038) (58,584)
On 16 July 2024, the Group commenced a share buyback programme of £0.01
ordinary shares of the company. Tranche One of the share buyback programme
paused on 30(th) August 2024 and resulted in the repurchase of 326,352 shares.
On 10 January 2025, the share buyback scheme recommenced with Tranche Two
ultimately pausing on 12 March 2025, and resulted in the repurchase of
1,031,214 shares.
On 12 May 2025, the share buyback scheme recommenced with Tranche Three
ultimately paused on 10(th) June 2025 and resulted in the repurchase of
960,329 shares.
32 Share option reserve
2025 2024
£
£
At the beginning of the year 610,698 903,295
Share based payment charge / (credit) 182,462 (26,035)
Cash settlement in lieu of share exercise - (85,858)
Transfer to retained earnings (16,020) (180,704)
At the end of the year 777,140 610,698
This represents the cumulative fair value of options granted.
Equity settled share option plans
The Group operates a number of Savings-Related Share Option Plans ("SAYE")
that are available to all employees. In accordance with the terms of the
plans, as approved by shareholders, employees may be granted options to
purchase ordinary shares. There are no performance conditions attached to SAYE
options, and grants are made in line with HMRC rules. Vesting is conditional
upon continued employment.
As at 31 December 2024, 10,002,625 SAYE options remained outstanding. During
the year, 3,110,144 options were granted, 1,984,334 options lapsed due to
employees leaving, and 600,000 options were exercised at a weighted average
exercise price of £0.10 per share. Following these movements, the total
number of SAYE options outstanding at the year end was 10,528,435. The average
remaining contractual life of these options is approximately three years.
As at 31 December 2024, 6,925,000 share options granted to management under
the Enterprise Management Incentive ("EMI") scheme remained outstanding.
During the year, no new options were granted and 300,000 options lapsed due to
employees leaving. The remaining 6,625,000 options are fully vested. Employees
participating in the scheme have up to 10 years from the grant date to
exercise their options.
As at 31 December 2024, 4,700,000 share options granted under the Company
Share Option Plan ("CSOP") remained outstanding. During the year, no new
options were granted, 650,000 options lapsed due to employee departures, and
no options were exercised. A total of 300,000 options vested during the
period. Participants have up to 10 years from the grant date to exercise their
options. Following these movements, 4,050,000 options remained outstanding at
the year end. The average remaining contractual life of these options is
approximately one year.
Share options are valued using the Black-Scholes model. The inputs to the
model are the option price and share price at the 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%-5%). The
model has been adjusted for expected behavioural considerations.
33 Warrant reserve
2025 2024
£
£
At the beginning and end of the year 128,170 128,170
This represents the cumulative fair value of warrants granted.
34 Foreign exchange reserve
2025 2024
£
£
At the beginning of the year (59,438) (47,502)
Translation loss arising in the year 14,846 (11,936)
At the end of the year (44,592)
(59,438)
This reflects the exchange differences on the translation of the foreign
subsidiary.
35 Retained earnings
This includes all current and prior period gains and losses.
36 Capital risk management
The Group's capital management objectives are:
· to ensure the Group's ability to continue as a going concern; and
· to provide long term returns to shareholders.
The Group defines and monitors capital on the basis of the carrying amount of
equity plus its outstanding borrowings, less cash and cash equivalents as
presented on the face of the Consolidated Statement of Financial Position as
detailed below:
2025 2024
£
£
Equity 44,990,585 39,677,147
Borrowings 33,271,735 32,127,269
Cash and cash equivalents (3,969,812) (2,199,078)
74,292,508 69,605,338
The Board of Directors monitors the level of capital as compared to the
Group's commitments and adjusts the level of capital as is determined to be
necessary by issuing new shares or adjusting the level of debt.
The Group is not subject to any externally imposed capital requirements.
37 Changes in liabilities arising from financing activities
Cash and cash equivalents Borrowing due within one year Borrowing due after one year Lease liabilities Total
£ £ £ £ £
At 1 January 2024 5,709,230 (5,273,300) (2,342,222) (22,775,357) (24,681,649)
Cash flows (3,487,693) - - - (3,487,693)
Effect of foreign exchange rates (22,458) - - - (22,458)
Repayment of bank loans - 12,352 106,225 - 118,577
Interest accrued in period - - - (1,063,683) (1,063,683)
Increase in invoice discounting facility - (1,847,378) - - (1,847,378)
New/amended lease liabilities - - - (3,662,531) (3,662,531)
Repayment of lease liabilities - - - 4,718,625 4,718,625
At 31 December 2024 2,199,079 (7,108,326) (2,235,997) (22,782,946) (29,928,190)
Cash flows 1,761,292 - - - 1,761,292
Effect of foreign exchange rates 9,441 - - - 9,441
New short-term trade loan - (762,457) - - (762,457)
Repayment of bank loans - (13,624) 120,641 - 107,017
Interest accrued in period - - - (1,029,913) (1,029,913)
Increase in invoice discounting facility - (1,785,013) - - (1,785,013)
New/amended lease liabilities - - - (3,158,627) (3,158,627)
Repayment of lease liabilities - - - 5,484,527 5,484,527
At 31 December 2025 3,969,812 (9,669,420) (2,115,356) (21,486,959) (29,301,923)
38 Events after the reporting date
On 20 April 2026, Likewise Floors Limited completed the acquisition of a
freehold property in Leeds for £2.85m, excluding SDLT and associated fees.
The property will serve as an additional hub in the region and has been
finance through an additional term loan facility provided by its principal
banker, NatWest.
This strategic investment represents a significant step in strengthening the
Group's logistics infrastructure. The new facility is expected to enhance
the efficiency of supply chain operations, particularly in the management of
palletised goods, sourced from the Far East and Europe. By enabling more
effective planning and coordination of incoming container shipments, the hub
will support improved operations and inventory management. In addition, the
increased capacity provided by the new Leeds site will alleviate pressure on
the Group's existing distribution centres allowing for better utilization of
resources across the network and supporting future growth.
39 Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel, including directors, is set out
below in aggregate for each of the categories specified in IAS 24 Related
Party Disclosures.
2025 2024
£
£
Short-term employee benefits 974,332 974,254
Post-employment benefits 33,596 119,290
Share-based payments 14,162 18,105
1,022,090 1,111,649
As at 31 December 2024, a total of 704,434 share options issued under the
Group's Sharesave (SAYE) scheme were outstanding in respect of Key Management
Personnel. During the financial year, 300,000 options vested and were
exercised, and a further 207,666 options were granted. Following these
movements, 612,100 options remained outstanding at the year end.
The figure disclosed for the 2024 financial year omitted 254,838 SAYE options
granted to Key Management Personnel during the year. In addition, the
brought-forward and carried-forward figures include 149,596 SAYE options held
by employees who are now classified as Key Management Personnel.
The average remaining contractual life of these SAYE options is approximately
three years.
As at 31 December 2024 and 31 December 2025, 2,200,000 Enterprise Management
Incentive (EMI) options were fully vested. Employees are permitted up to 10
years from the date of grant to exercise these EMI options.
The brought-forward and carried-forward figures include 100,000 EMI options
held by employees who are now classified as Key Management Personnel.
No further options were granted to Key Management Personnel during the
financial year.
Remuneration of key management personnel - Company
The remuneration of key management personnel, including directors for the
company, was as follows:
2025 2024
£
£
Short-term employee benefits 650,063 521,644
Post-employment benefits 5,896 6,400
Share-based payments 8,201 9,406
664,160 537,450
Other Information
Balances and transactions between the Company and its subsidiaries, which are
related parties, have been eliminated on consolidation and are not disclosed
in this note.
All transactions between the Group were conducted in the ordinary course of
business and on normal commercial terms.
No material related party transactions outside the Group occurred during the
reporting period.
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