Completion of Acquisition and Trading Update

RNS Number : 5233Y

Likewise Group PLC

14 January 2022

 

14 January 2022

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

Likewise Group plc

("Likewise", the "Company" or the "Group")

Completion of Acquisition and Trading Update

Following the announcement made by the Company on 10 January 2022 titled "Result of General Meeting and Total Voting Rights" ("Announcement"), Likewise (AIM:LIKE), the distributor of residential and commercial flooring to retailers and contractors, is pleased to confirm that the acquisition of Valley Wholesale Carpets (2004) Limited ("Valley") has now completed.

The Group is also very pleased to confirm that David Stottor will join as Managing Director of Valley on Monday 17 January 2022 and lead the business with Simon Miller, the existing Operations Director, in Derby. They will work with the current management and staff of Valley to further develop the business.

Likewise is particularly encouraged that David Mitchell, who founded Valley in 1982, has offered his experience and expertise to work with David and Simon to facilitate a smooth handover.

Valley will continue to operate autonomously from its existing distribution centres in Erith and Derby. It is also the Group's intention to expand the geographical reach of Valley from the currently unused Newport DC into South West England and South Wales.

Likewise also announces that its total revenue for the financial year ended 31 December 2021 ("FY21") increased by 29% to c.£61 million (FY20: c.£47 million) and management expect that FY21 profit before tax will be in line with market expectations.

Tony Brewer, Chief Executive of Likewise, said:

"The acquisition of Valley is a major step forward in the development of Likewise. Our intention is to accelerate the product, sales and marketing of the enlarged Group to establish solid foundations to secure the development for future years.

"The Group continues to be highly active and in the last month alone, has entered into a new lease to relocate Likewise North East into larger premises in Newcastle. Agreement in principle has also been reached to secure the facility adjacent for c.50% more capacity in Manchester for A&A, whilst Birmingham is on schedule to be operational at the end of January creating significant extra order processing capability.

"Notwithstanding other opportunities before the Group, Likewise is well placed with the new logistics infrastructure to achieve its medium term objectives.

"The positive progress of Likewise in the last eighteen months has resulted in sales revenue increasing by 29% to £61 million in 2021 and expected profit in line with market expectations. This combined with the acquisition of Valley provides excellent opportunities for all our stakeholders; suppliers, customers, management, staff and shareholders. Many thanks to all involved for your contribution and support."

The capitalised terms used in this announcement have the same meanings as in the Circular dated 17 December 2021, unless otherwise stated.

For further information, please contact:

Likewise Group plc Tony Brewer, Chief Executive Roy Povey, Chief Financial Officer	Tel: [phone]
Zeus Capital Limited   (Nominated Adviser & Joint Broker) Jordan Warburton / David Foreman / James Edis (Corporate Finance) Dominic King (Corporate Broking)	Tel: [phone]
Ravenscroft Consultancy & Listing Services Limited  (Joint Broker) Semelia Hamon (Corporate Finance)	Tel: [phone]
Novella Communications  (Financial PR) Fergus Young / Tim Robertson	Tel: [phone]

 

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