Likewise Group plc (LSE:LIKE) expects to deliver full-year 2026 results materially ahead of market expectations after reporting a 36.7% increase in October revenue, extending the strong sales momentum recorded during the preceding months.
The UK flooring distributor said revenue growth for the year to date reached 22.8% compared with the corresponding period in 2025, supported by contributions from across its operating businesses.
The combination of higher sales, operational efficiencies and improving profitability has prompted the board to forecast profit before tax of at least £6 million for the financial year ending 31 December 2026.
The company is also progressing with the integration of assets acquired from the administrators of Headlam Group plc, which it expects to support further expansion during 2027.
October Revenue Growth Accelerates to 36.7%
Likewise reported that the positive trading trends highlighted during late summer and early autumn continued into October, with revenue growth accelerating to 36.7% for the month.
The performance lifted year-to-date revenue growth to 22.8%, reflecting increased activity across the group’s distribution operations.
The company said all its principal businesses contributed to the improvement, including Likewise Floors, Delta, A&A, H&V, Lewis Abbott, Likewise Rugs & Matting and Valley Wholesale Carpets.
Management attributed the stronger financial performance to rising sales volumes and operational gearing, with the existing distribution infrastructure supporting higher revenue and improved profitability.
As a result, the board now expects FY2026 profit before tax to reach a minimum of £6 million, materially exceeding prevailing market forecasts.
The company did not provide a revised full-year revenue estimate in the trading statement.
Headlam Asset Integration Advances
Likewise continues to integrate the businesses, brands and distribution assets acquired from the administrators of Headlam Group.
The transaction has expanded the group’s logistics infrastructure, product portfolio and customer reach across the UK flooring market.
Management said integration activities are progressing across the acquired operations, with efforts focused on restoring stock availability, maintaining customer service and incorporating additional distribution capacity.
The company expects the acquired assets to strengthen its competitive position and contribute to future revenue growth.
Likewise is also managing a stock agency agreement covering inventory from the administration process, with the objective of selling existing stock while minimising disruption to suppliers and customers.
Several exclusive product ranges associated with the acquired brands are being replenished within Likewise Floors and Valley Wholesale Carpets.
These measures are intended to maintain continuity of supply across residential and commercial flooring markets.
Thatcham Distribution Hub Expands Logistics Capacity
A central element of the acquisition is the 90,000-square-foot High Bay Distribution Hub in Thatcham, which Likewise purchased on a freehold basis.
The acquisition was funded from existing cash resources following the group’s equity placing in July 2026.
Following the purchase, Likewise owns the freehold of eight properties with a combined valuation of approximately £56 million, against £11 million of fixed debt.
Stock deliveries to the Thatcham facility commenced on 22 October, allowing the company to begin building inventory ahead of its integration into the wider logistics network.
The distribution centre is expected to become an important part of Likewise Floors’ operations during November, particularly in serving customers across southern England.
Management also expects the facility to improve distribution services supporting Newport, Birmingham, Sudbury, Plymouth and Sidcup.
The additional capacity forms part of the group’s strategy to strengthen its national distribution network and support higher sales volumes.
Concept Flooring Supplies and Crucial Trading Prepare for Growth
Likewise reported progress in restoring operations at Concept Flooring Supplies following the acquisition of its assets.
The business, which operates from West Bromwich and Stoke-on-Trent, has replenished inventory and is approaching a return to normal service levels for its suppliers and customers.
The company is also rebuilding stock availability at premium carpet brand Crucial Trading.
Orders have been placed with key suppliers to supplement existing inventory, while the bespoke rug manufacturing operation in Kidderminster has resumed processing incoming orders.
Likewise expects both Concept Flooring Supplies and Crucial Trading to make positive earnings contributions during FY2027.
Management believes the businesses will broaden the group’s product offering, improve market coverage and create additional opportunities to increase sales and profitability.
Delivery Fleet to Expand to 192 Vehicles
To support the enlarged distribution network, Likewise plans to increase its delivery fleet by 16 trucks during 2026.
The expansion will take the total number of delivery vehicles to 192 by the end of the year.
Further increases are being considered during the first and second quarters of 2027 as the company integrates additional operations and expands distribution capacity.
The investment is intended to support higher delivery volumes and maintain service standards across the group’s growing customer base.
Combined with the Thatcham distribution hub and other acquired facilities, the additional transport capacity is expected to strengthen Likewise’s ability to serve customers throughout the UK.
Group Targets £300 Million in Annual Revenue
Likewise reiterated its longer-term objective of achieving annual sales revenue of £300 million.
The board believes the combination of organic growth, expanded logistics infrastructure and acquired businesses could accelerate progress towards that target over the coming years.
However, management acknowledged that trading conditions in FY2027 remain difficult to forecast.
The company expects the integration of the Headlam assets to provide additional growth opportunities, while continued development of its existing businesses should support further market share gains.
Chief Executive Officer Tony Brewer said the group’s progress during 2026 reflected the impact of product development, display initiatives and investment in its commercial operations.
“The Group has made significant progress during the year,” Brewer said.
He also welcomed employees joining Likewise through the Headlam transaction and recognised the contribution of the group’s workforce, which now totals 738 people.
Management expects 2027 to be an important period as the business works to realise the commercial opportunities created by its expanded operations.
Outlook
Likewise Group enters the final two months of 2026 with strong sales momentum and an upgraded profit outlook.
October revenue growth of 36.7% and year-to-date growth of 22.8% have strengthened the board’s confidence that full-year profit before tax will reach at least £6 million, materially ahead of current market expectations.
The integration of acquired Headlam assets, including the Thatcham distribution centre, Concept Flooring Supplies and Crucial Trading, is expected to provide additional capacity and earnings opportunities during 2027.
While the board remains cautious about predicting next year’s trading performance, it believes the enlarged distribution network and continued growth of existing businesses will support progress towards its longer-term annual revenue target of £300 million.
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