Likewise Floor’s sales surged by more than 29% in the 12 months to December 31 2023, thanks to a major investment in the group’s logistics capacity.
In its trading update for the year, the fast-growing UK floor coverings distributor Likewise Group plc announced that total group revenue increased by 13.6% to £140.2 million, with the Likewise Floors division experiencing a 29.1% growth in sales.
The update noted that the increases were “particularly positive” given the “macro-economic headwinds and subsequent challenging market conditions”.
Tony Brewer, chief executive of Birmingham-based Likewise Group, explained that the revenue growth was ahead of current market expectations and that underlying profitability was expected to be in line with market expectations, reflecting continued investment in the future of the business.
The trading update highlighted “the most encouraging factor” as the high sales volumes in November with “even greater activity” averaging £660,638 per day in the first half of December, additional demand that was efficiently processed due to the improved logistics infrastructure.
Mr Brewer said: “The board would like to thank our management and sales team for generating increasing volumes, and particularly our telesales, administration, warehouse, night teams and delivery drivers for their important contributions.
“The ability and commitment of our people combined with the infrastructure coping with ever increasing volumes, demonstrates the ability of the business to surpass its medium term objectives.
“The group has come a long way in the last three years and we look forward to a positive and exciting future as the group capitalises on the many opportunities for the benefit of all our employees, suppliers, customers and shareholders.”
The Likewise Group trading update said that the board was “confident” of achieving the current market expectations for FY24 as the group continues to develop its position in the UK flooring market.
“As demonstrated with the maiden interim dividend declared in September 2023, the board is committed to a progressive dividend policy in line with profitability.”
The trading update went on to describe how the group has invested heavily in point of sale displays and sampling to significantly increase its market presence over the last three years in conjunction with establishing the logistics infrastructure.
“The final quarter of 2023 demonstrated the success of this strategy to date with the ability to generate increasing sales revenue whilst providing the operational expertise to service customers effectively. This strategy will continue into 2024 as the group is confident in continuing to gain market share and through operational gearing, improve profitability.”
