Likewise Group (LIKE) H1 2024 earnings summary

Executive summary

• H1 revenue rose 6.2% YoY to £70.7m despite challenging UK flooring markets; Likewise Floors sales increased 16.8%.

• Underlying operating profit edged up to £1.21m, while underlying profit before tax fell to £0.34m as financing costs rose.

• Continued investment in logistics and sales capacity supports medium-term growth plans; the Board expressed confidence in 2025 and beyond.

Financial highlights

• Revenue was £70.745m versus £66.563m in H1 2023; gross profit increased to £21.974m from £19.943m.

• Reported operating profit was £575k, versus £164k restated in H1 2023; reported loss before tax was £317k and loss after tax £329k.

• Underlying EBITDA rose to £3.63m from £3.11m; underlying operating profit was £1.21m versus £1.19m.

• Operating cash flow was £2.88m, compared with £1.68m in H1 2023; £4.27m of deferred acquisition consideration was paid.

Outlook and guidance

• Q4 is a traditionally busy trading period, but the size of any upturn is difficult to predict amid restructuring across the UK flooring industry.

• Product launches planned for Q3 and Q4 2024 are at the highest level in the business’s history, with growth opportunities expected into 2025.

• Existing logistics capacity can support sales above £200m; expansion at Newport could add processing capacity from 2026, funded through existing facilities and free cash flow.

• Plans include extending geographical reach into South West England with an additional logistics centre for Valley and Likewise operations.