Likewise Group Reports 120% Profit Surge and Dividend Hike in H1 2025

Likewise Group H1 2025: 120% profit surge, dividend up 10%, and capacity primed for growth

Likewise Group has delivered a tidy set of interim numbers for the six months to 30 June 2025. Revenue is up double-digits, profits have accelerated faster than sales, cash generation is strong, and the interim dividend is going up. There is plenty of investment going into logistics capacity too, which matters for margins and market share in a distribution-led model.

Key numbers investors should know

Metric	H1 2025	YoY change / context
Revenue	£77.9 million	+10.2% (H1 2024: £70.7 million)
Likewise Branded sales	Not disclosed in £	+14.1%
Gross margin	31.3%	+0.2% pts
Underlying EBITDA	£4.4 million	+21.0%
Underlying profit from operations	£1.67 million	+38.4%
Underlying profit before tax	£0.74 million	+120% (H1 2024: £0.34 million)
Reported profit before tax	£0.23 million	H1 2024: loss of £0.32 million
Operating cash flow	£5.2 million	H1 2024: £2.88 million
Interim dividend	0.1375 pence per share	+10%; payable 14 Nov 2025 (ex-div 9 Oct, record 10 Oct)
Like-for-like sales to end-August	+10.2%	Maintained into July and August

“Underlying” excludes amortisation of acquired intangibles, separately disclosed items and share-based payments. EBITDA is earnings before interest, tax, depreciation and amortisation.

What drove the improvement

Sales momentum held up despite a “particularly hot” late Spring and Summer that can dampen flooring demand. Likewise Branded products did the heavy lifting with 14.1% growth, supported by product launches seeded in H2 2024 and new strategic supplier partnerships.

Margins ticked up to 31.3%, a small but welcome improvement that, coupled with higher volumes, fed straight into operating leverage. That is the benefit of a built-out network: more revenue flowing through largely fixed logistics and distribution costs. The result was a 120% jump in underlying profit before tax to £0.74 million.

Operations and capacity: building for £200m+ revenue

The company is investing where it counts for a distributor: local presence and cutting capacity. Highlights include:

• 21 new sales executives added in the last 18 months to push share gains at independent retailers and flooring contractors.
• A new freehold logistics centre in Plymouth (8,000 sq. ft., £1.15 million) to open up Devon and Cornwall.
• Extra cutting and processing capacity at Glasgow and Derby, with planning now granted to expand Newport into a Distribution Hub from Q2 2026.

Management says these moves could lift cutting capacity by over 40%, allowing the Group to process and deliver sales well in excess of £200 million. The Board is also weighing further investment to take sales over £250 million. That signals confidence in both demand and the scalability of the network.

Cash, balance sheet and financing

Operating cash generation stepped up to £5.2 million, reflecting better profitability and disciplined working capital. Inventories rose by £2.7 million ahead of the busy Autumn period, offset by higher trade payables, leaving net working capital £1.0 million positive at June.

Likewise remains within its banking facilities and has additional headroom via a trade loan facility of up to £1.75 million. The business continues to use invoice financing – standard practice in distribution – and is shifting vehicle funding from leasing to asset finance to save costs and add flexibility. Net assets stand at £39.8 million, underpinned by a sizeable freehold property base.

Dividend raised and dates to note

The interim dividend is increased by 10% to 0.1375 pence per share, implying around 0.4 pence for the full year on current guidance. Key dates:

• Ex-dividend: 9 October 2025
• Record date: 10 October 2025
• Payment date: 14 November 2025
• DRIP election deadline: 24 October 2025

A higher interim payout, plus like-for-like growth holding into July and August, underpins the Board’s “progressive” dividend stance aligned with earnings.

Quality of earnings: underlying vs reported

It is worth noting the difference between underlying and reported profits. Non-underlying charges of £507,370 – including items such as amortisation of acquisition intangibles and share-based payments – reduced reported profit before tax to £229,696. That is still a swing from a reported loss last year, but it shows the company is not yet producing large headline profits.

Finance costs of £957,603 remain a drag, reflecting rate rises and the cost of leasing and funding a sizeable logistics footprint. The trajectory is the story here: higher volumes and small margin gains are steadily overcoming fixed costs.

Shareholder activity: buybacks and options

Likewise repurchased 1,991,543 shares in the period, ending with 2,317,895 shares held in treasury. The Employee Benefit Trust held 1,427,350 shares at period end. Share options remain a feature across SAYE, EMI and CSOP schemes, with 600,000 options exercised in the half.

Outlook: on track into the busy Autumn

Management points to like-for-like sales up 10.2% through August and says the Group is on track to meet market expectations for 2025. The enlarged sales force, supplier partnerships and additional processing capacity should support the seasonally stronger Autumn trading period.

My take: why this update matters

• Positive: double-digit sales growth in a tricky market, modest margin expansion, and clear operational gearing pushing profits up faster than sales.
• Positive: strong operating cash flow and disciplined working capital fund investment without stressing the balance sheet; dividend up 10% is a tangible signal.
• Positive: capacity plan is specific – Plymouth open, Newport hub approved for Q2 2026, and a path to £200m+ revenue throughput.
• Watch-for: reported profits remain slim and sensitive to costs; finance charges near £1 million in the half show the importance of further scale and margin control.
• Watch-for: the initial losses from new locations (£190,062) are normal but will need to turn as volumes build.

Overall, this is a solid progress report: the network is doing what it should, cash conversion is good, and management is leaning into growth. If like-for-like momentum holds through the peak season, FY 2025 should land in line with guidance and set the stage for the Newport step-up in 2026.