LIKEWISE Group, which says it’s a fast-growing UK floorcoverings distributor, has announced its unaudited interim results for the six months ended 30 June 2022.
Notwithstanding the economic ramifications of the terrible war in Ukraine, the group says it’s still made significant progress, which ‘demonstrates the group’s ability to develop the business in challenging markets. Product cost pressures resulted in a new trade price list being issued in May 2022. The group also continues to experience and manage inflationary costs, particularly fuel and packaging materials’.
Furthermore, the company continues, with the infrastructure well developed, the group’s in a strong position to continue its progress irrespective of market conditions and take further advantage when consumer demand improves.
Likewise has established an extensive distribution infrastructure from its two national distribution hubs in Leeds and Birmingham, plus distribution centres in Glasgow, Newcastle, Newbury, Sudbury and Peckham. This reportedly allows the Likewise trade brand to service customers on a daily basis in most parts of the UK.
Says the company: ‘The acquisition of Valley Wholesale Carpets (‘Valley’) in January 2022 was an important strategic step for the group. Valley currently operates from two distribution hubs in Erith and Derby. The freehold distribution hub in Derby is now being extended to 52,000sq ft, providing increased storage and a carpet cutting machine has been installed to enlarge the cutting capacity within Valley.’
In October the dormant 35,750sq ft freehold distribution centre in Newport will commence operations. This will increase Likewise and Valley’s trading area to include South Wales and southwest England.
Delta Carpets was acquired in April 2022 and is now reportedly fully operational from the Likewise distribution hub in Leeds. Delta will develop its business utilising the Likewise logistics network.
Construction is nearing completion on the new 42,000sq ft leasehold high bay distribution facility in Glasgow which will reportedly be a major increase in capacity for development in Scotland and will also ‘benefit the whole of Likewise through the established distribution infrastructure into England’.
Negotiations are at an advanced stage to be able to relocate A&A into a new 46,700sq ft leasehold high bay distribution facility in northwest Manchester to be operational from early 2024.
The logistics capacity of the group has increased from 8m cubic feet to 15m cubic feet in the past year and importantly this provides extra capacity to meaningfully increase sales revenue and profitability over the coming years.
Says Likewise: ‘The group also continually develops new products with manufacturing partners and has significantly increased its market presence. This has been achieved by a clearly defined strategy of investment in recruiting established sales representatives to create experienced sales teams. They are placing new wall stands, lecterns and various other point-of-sale displays into independent retailers. The positive relationship with flooring retailers and contractors is vital to the ongoing development of Likewise into a prominent trade brand in the UK flooring industry.
Continues Likewise: ‘The board has chosen to accelerate these investments including additional delivery trucks, material handling and cutting equipment, plus increased stock holding, to strengthen the medium-term opportunities for the group.
‘The business-to-business website is now fully operational giving Likewise customers the opportunity to check stock and place orders at any time. The take up on this facility is extremely encouraging and further enhances the customer service proposition.’
The positive sales revenue trend reportedly continued through July, August and September which, Likewise says, positioned it well for the traditionally busy autumn trading in Q4.
It says: ‘Activity has increased on new products which has significantly improved the market presence of our various businesses in particularly to flooring retailers but also contractors, cumulating in the number of active accounts increasing each month.
‘Given the performance in the past two years combined with the infrastructure development and strong management teams, sales representatives and all employees, the group is confident of continuing to develop towards its medium-term targets.’
Likewise continues: ‘October, November and early December typically represent the most active trading period in the UK flooring industry. With the aforementioned activity, the group is well-placed to take full advantage while being conscious of the importance of Q4.’
Tony Brewer, ceo of Likewise Group, said: ‘Likewise has made considerable progress in the past two years. The acquisition of Valley was a particularly important step. The increase in net assets and subsequently solid balance sheet provides the group with strong foundations for the future.
‘With the extensive logistics, sales and marketing investment we’re confident in progressively building a substantial and profitable floorcovering distribution business.’
www.likewiseplc.com