Likewise Group PLC is a distributor of floorcoverings and matting and has the opportunity to consolidate the domestic and commercial floorcovering markets to become one of the UK’s largest distributors in this sector.
Currently, the UK domestic flooring market is worth C:£2 billion. Although there are a number of larger industry competitors, the market remains fragmented with small local and regional companies accounting for c.50% of the UK market. Likewise PLC believes that, through a number of industry and macro factors, the market will polarise towards larger competitors, and that the Likewise Group can be well positioned to benefit from this trend.
Likewise PLC intends to utilise the expertise and industry knowledge of the Board, Executive Board and Advisors to develop an alternative to larger industry competitors. Management believe this can be achieved through a mixture of organic growth, operational leverage and where appropriate acquisitions.
Prior to the IPO the Group has acquired William Arms Limited and the trade and assets of Bruce Starke & Co, both of which have been fully integrated into the Group and will form part of the core business.
The Directors believe that a public listing will provide a permanent source of capital from which the Group can execute its growth strategy, raise the profile of the Group and provide the ability to incentivise key employees.
It is the belief of the Board that value can be generated for shareholders, suppliers and consumers by creating a national supplier and distributor of UK floorcoverings as a competing alternative to the current larger suppliers to the industry.
To date, the Group has acquired the entire share capital of William Arms Limited, the trade and assets of Bruce Starke & Co Limited, the entire share capital of Lewis Abbott Limited, Heatseam Limited, H&V Carpets BVBA and A&A Carpets Limited which have been fully integrated into the Group.
It is the intention of the Board that where future acquisitions are considered, they will focus around increasing scale, advancing the commercial and operational reach of the Group into new regions and consolidate the Group’s overall market position.
The floor and wall covering market is made up of manufacturers, typically located overseas due to lower input costs and access to raw materials, distributors, retailers and installers. It is the strategy of Likewise to consolidate the distribution and retail sections of the market to gain national scale and gain pricing power with overseas manufacturers amongst other benefits.
The UK floor and wall covering market, is worth c.£3.2 billion and is expected to increase at a CAGR of 2.1% from 2019 to 2024 to reach £3.5 billion split between residential, commercial, public and industrial markets. It is the strategy of the Group to focus on the residential and commercial areas of the market.
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