Likewise Group plc (LON:LIKE) Chief Executive Officer Tony Brewer caught up with DirectorsTalk to discuss supply chain pressures, pricing, market outperformance, logistics investment, and the company’s strong start to 2026.
Q1: Tony, let’s start off with the topic of the moment, the Iran war. Given the inevitable impact of the war, how do you see the outlook for supply of goods and the pricing environment?
A1: We’re working very carefully with our suppliers who we’ve got really long-standing relationships with. A lot of our raw material is derivatives of oil and gas, particularly carpet yarn, polypropylene, and polyester. A lot of that comes out of Southeast Turkey in terms of the raw material being extruded into carpet yarn, also PVC, of course and it’s just very important that we’re very careful with our suppliers.
We understand the need for price increases due to the increase in raw material, and we continue to work very closely with them. Given our long-standing relationship, I believe we’re well at the forefront of ensuring we keep that supply channel coming through.
Q2: How would you say Likewise is able to consistently outperform the UK flooring market?
A2: I think along with that relationship with suppliers, we’ve got excellent teams of management around the country and with them, superb sales teams, and staff throughout the business. I think it’s very important that our management and people in our business understand all aspects. That’s the supply relationships, the IT, the logistics, and of course, very importantly, product knowledge and customer relationships.
Q3: Now, in the independent flooring retailers, how are products displayed?
A3: We put numerous types of points of sale daily into retailers. It’s very much a three-way investment with the manufacturer, ourselves, and the retailer and across our array of carpet products, residential vinyl, laminate, luxury vinyl tile, engineered wood, artificial grass, and of course, importantly, commercial products into the flooring contractor. We do that through both the Likewise businesses and through Valley Wholesale Carpets currently extending their portfolio to include residential vinyl, laminate, and soon to be luxury vinyl tile.
Q4: What additional service propositions do you offer to make you and your customers more efficient?
A4: Well, alongside all that point of sale going into retailers and the stock holding to support that and to be able to service next day delivery to the retailer and contractors’ premises, we also importantly have a business to business website, which we launched in 2022.
That gives retailers access to our stock files at any time of the day to check stock and place orders. Furthermore, with regard to using IT, we recently launched a product information site. So, any consumer that sees Likewise and is interested in their product offering can search on the website.
Of course, we’re trade only, there are no prices, there’s no contact us on the site, but what it does do is push the consumer as they navigate through the site to the retailer, most local to them who has a display stand of that particular product they’re looking for.
Q5: Now, logistically, can you handle the increased volumes? What investment plans do Likewise have going forward?
A5: So, we’ve recently purchased an additional distribution centre in Leeds, particularly for incoming containers and pallets of laminate and luxury vinyl tile. We’re just about to complete the extension to our Newport facility to create the fourth hub for Likewise Floors. And we’re now cutting within the Derby operation of Valley. So all of those factors really would allow ourselves revenue to increase from what is getting close to 200 million now to 250 million. And then the board is continuing to look at investment opportunities. And we’ve agreed to purchase the freehold of a 60,000 square foot high bay distribution centre in the East Midlands. With that on board, that can allow us to further accelerate that sale of revenue towards 300 million.
Q6: Just looking back then, what have been the key financial highlights over the last 18 months?
A6: Sales increased 9% in the year just finished in ‘25 that we announced last week, gross margin just adding up by 40 basis points to 31.1% and importantly, that pre-tax profit increasing by 56% to 3.1 million. That gave the board the confidence to increase the final dividend and recommend an increase of 10%, which would mean a total dividend increase also 10%.
Into this year, we’ve seen a very positive sales trend in the first four months with sales up 15%. Obviously, we’ve got probably some challenging months to come, as everybody has, as we navigate through the challenges around war.
Q7: Last but not least, Tony, could you just summarise the Likewise performance?
A7: I think we continue to increase sales revenue consistently year after year with strong like for like increases over 7% in 24, 9% in 25. And as I’ve said, that 15% increase so far this year and that’s a result really, again, of those excellent management teams we have around the country, the sales teams that work with them, supplier support and new product coming into the business.
Of course, the relationship we have with independent retailers and contractors and with the extra capacity that we’re putting in, particularly in Leeds, Derby, and Newport. That really allows us to expand the business, and we look very positively towards the remainder of this year.
