Flooring distributor Likewise saw sales jump by almost 14% last year.
Turnover rose by 13.6% to £140.2m, almost £6m more than analysts had forecast. The group says it still expects underlying profits to be in line with market expectations, given the level of expansion investment in 2023.
‘Undoubtedly the most encouraging factor during the high sales volume in November and even greater activity in the first two weeks of December, averaging £660,638 per day, was the ability of the logistics infrastructure that has been developed over the past three years being able to efficiently process and deliver the additional demand created,’ it says.
‘The group has invested heavily in POS and sampling to significantly increase its market presence over the past 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.
‘Valley Wholesale Carpets was able to accommodate the volumes and utilise the additional cutting capacity that was established through further investment in the Derby distribution centre. This will allow Valley to expand its business with greater POS and the opportunity to increase its product range in 2024 to existing customers, in addition to increasing its geographical presence into south-west England following the successful development in south Wales. This enlarged sales volume will be absorbed through increased capabilities in both the Derby and Newport distribution centres.’
The group says Likewise London and Likewise South East are set to increase their sales management and infrastructure, allowing both businesses to expand their market presences. Likewise South is also extending its geographical reach to now develop business with customers in Bristol and the south-west of England while Likewise Wales launches this month.
‘The strategic investments in Derby, Newport plus Glasgow, Manchester and Birmingham in conjunction with the established locations in Erith, Newcastle, Leeds, Newbury, Sidcup and Sudbury, provides the group with the logistics infrastructure to deliver the extensive sales and marketing initiatives in progress.’
‘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 past 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,’ says Tony Brewer, Likewise Group chief executive.
