Likewise interim pre-tax profits more than double

(Sharecast News) - Flooring distributor Likewise Group said on Tuesday that interim revenues had grown by double-digits, while also reporting margin improvement and a sharp rise in profitability, despite sector-wide challenges and subdued seasonal demand. Likewise said group revenues rose 10.2% year-on-year to £77.9m in the six months ended 30 June, with Likewise-branded sales up 14.1%.

Gross margins edged 20 basis points higher to 31.3%, while underlying earnings increased 21% to £4.4m, and underlying pre-tax profits more than doubled, rising 120% to £740,000.

The AIM-listed group also noted that cash generated from operations had risen 80.7% to £5.2m, supporting a 10% increase in its interim dividend to 0.1375p per share.

Likewise stated that its performance reflected operational gearing benefits from its established infrastructure, alongside the impact of new product launches and supplier partnerships. It also highlighted that it had continued to invest in its logistics network, completing a new freehold facility in Plymouth and expanding processing capacity in Glasgow and Derby. Planning permission has also been granted for a new distribution hub in Newport, due to open in Q226.

Chief executive Tony Brewer said: "Notwithstanding the particularly hot weather taking the edge off our sales growth, the group has achieved a very strong performance in the first eight months, including July and August, with like-for-like Sales improving by 10.2%. We have created the foundations to benefit from the typically busier Autumn period.

"The group is in a particularly strong position to capitalise on the many opportunities, which provide a very exciting future for all involved."

As of 1000 BST, Likewise shares were up 1.38% at 27.98p.

Reporting by Iain Gilbert at Sharecast.com