Likewise Group Hits Its Stride: FY24 Results Show Accelerating Momentum
If you’ve been keeping an eye on UK flooring distributors, Likewise Group’s latest results deserve a standing ovation. The company isn’t just laying carpets – they’re laying the groundwork for serious growth. Let’s unpack what’s driving this momentum.
Financial Fireworks: Steady Growth Meets Operational Leverage
The headline numbers tell a story of disciplined expansion:
- £149.8m revenue (up 7.4% YoY), with Likewise Floors soaring 15.5%
- Gross margin up 40bps to 30.7% – no easy feat in a cost-conscious market
- Operating cash flow of £7.2m (up 18% from 2023)
While adjusted PBT dipped slightly to £2m (from £2.3m), this reflects deliberate investment in H1. The real story? Monthly run rates now annualise to £170m – that’s 13% ahead of FY24’s total. When the gears mesh, this business throws off serious cash.
Operational Muscle: Building a National Powerhouse
Likewise isn’t just growing – they’re engineering scalability:
- 12 distribution hubs now covering the UK (up from 1 in 2018)
- 87 suppliers spanning Europe to Far East – crucial for product diversity
- 96 customer-facing execs embedded in local markets
Geographical Footprint: Chess, Not Checkers
Recent moves reveal a strategic masterclass:
- Plymouth hub acquisition completes national coverage
- Newcastle and Leeds centres dominating northern markets
- Birmingham becoming the “epicentre” of logistics network
This isn’t random expansion – it’s creating an interconnected web that drives efficiency. The 60% planned extension in Newport could be transformative for Welsh and South West penetration.
Balance Sheet Bulletproofing
With £23.5m in owned property assets against just £2.3m debt, Likewise boasts a fortress-like foundation. This isn’t just about safety – it’s strategic flexibility. The Plymouth and Newport expansions? Fully funded from internal cash flow.
The Road Ahead: £200m in Sight
Management’s confidence shines through:
- FY25 sales up 10.2% YTD (11.5% like-for-like)
- New product launches across premium carpets/commercial ranges
- Valley Wholesale integration delivering synergies
CEO Tony Brewer’s comments about “the next 3-5 years” suggest this is Act I, not the finale. The £250k share buyback signals board confidence, while the 7.1% dividend hike rewards patient investors.
The Bottom Line
Likewise is transforming from regional player to national contender. With infrastructure build-out largely complete, operational gearing should turbocharge margins. The £200m target looks achievable – and possibly conservative. For investors? This could be the quiet before the storm of re-rating.
Key dates for diaries:
– Ex-div: 5 June 2024
– Final dividend payment: 11 July 2024
– DRIP deadline: 20 June 2024
One to watch? Absolutely. The flooring sector might not be glamorous, but when executed this well, it’s a thing of beauty.
