Sales at Birmingham-based floor covering distributor Likewise Group plc have more than doubled in the first six months of 2022 to £57.8 million - an increase of 106.1% over the corresponding period last year.
Chief executive Tony Brewer told shareholders at the company’s first AGM since listing on AIM in August 2021, that the growth is in part due to acquisitions, with organic sales growth of businesses owned in the same period of 2021 running at 27.3%.
He said: “The acquisition of Valley Wholesale Carpets in January 2022 was a particularly important strategic step for Likewise, and the addition of Delta Carpets in April 2022 confirmed the group’s intention to bring bolt-on opportunities into the infrastructure being established.”
He added that the growth in organic sales revenue was achieved through a clearly defined strategy of investing in established sales representatives, combined with multiple sales and marketing initiatives.
“This activity will be further accelerated in the third quarter of 2022 with extensive new product launches and additional point-of-sale displays planned to take advantage of the traditionally busier trading period in the Autumn,” he said.
To support Likewise’s sales and marketing activity, the group’s distribution network continues to be developed. Construction is under way in Glasgow on a new 1.86 million cubic feet distribution centre which will be operational in the first quarter of 2023.
The search is progressing to relocate A&A in Manchester. Productivity continues to increase ahead of plan in Birmingham, and Newbury is now servicing parts of the South of England. Agreement has also been reached to relocate Likewise London into new premises to provide an improved service to customers in London and the South East.
The extension to the Derby freehold distribution centre has commenced and the currently unused Newport facility will be operational during the third quarter of 2022 to allow Valley to supply new customers in South West England and South Wales.
Mr Brewer said: “All of these developments culminate in enlarging the logistics capacity to over 15 million cubic feet compared to 8 million cubic feet in 2021, and provide the group with a comprehensive geographic reach and capacity to achieve its medium-term objectives.
“While having to absorb higher energy, fuel and packaging costs, the group is on target to achieve the management expectations for the year and, more importantly, establish the foundations to create a substantial floorcovering distribution business in the medium to long term."
