Likewise has hailed strong organic growth as sales more than doubled in the first half.
The flooring distributor saw sales rise by 106% to £57.8m.
Shareholders were told that organic growth was running at 27.3%.
‘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,’ says Tony Brewer, Likewise ceo.
The growth in organic sales was achieved through a clearly defined strategy of investing in established sales representatives, combined with multiple sales and marketing initiatives, he says.
‘This activity will be further accelerated in the third quarter of 2022 with extensive new product launches and additional POS displays planned to take advantage of the traditionally busier trading period in the Autumn.’
The group’s distribution network continues to be developed. Construction is underway in Glasgow on a 1.86million cuft 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 begun and the 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.
‘All of these developments culminate in enlarging the logistics capacity to over 15million cubic feet compared to 8million 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.
‘Likewise is confident in continuing to increase market share through extensive product launches supported by additional sales and marketing activity with the focus on increasing profitability and subsequent reinvestment to further strengthen the business for the benefit of all suppliers, customers, employees and shareholders.’
