Good morning, and welcome to the Likewise Group PLC investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged, and they can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I would like to submit the following poll, and I would now like to hand you over to CEO Tony Brewer. Good morning to you.
Many thanks. Thanks, everybody, for taking the time to join this presentation. Most of you on this meeting will know the structure of the group, but we're selling all types of floor covering to independent retailers and flooring contractors throughout the U.K. We've now established 12 distribution and logistics centers with the addition in May of the Plymouth facility coming on stream. That completes our coverage of the U.K. We have a good cross-section of suppliers from the U.K., Western Europe, Turkey, the Far East, and that's across our key flooring products of carpet, residential vinyl, luxury vinyl tile, laminate, artificial grass, underlay for residential carpet and other flooring accessories, screeds, adhesives, and commercial products. To develop our business, we now have 99 key sales executives across our management and sales teams, with the addition of 21 additional sales executives in the last 18 months.
Also we've increased our delivery fleet now to 152 vehicles, providing a next-day service to our customers. The 561 staff we now have through management, sales teams, telesales, warehouse, and drivers have longstanding flooring experience across the vast majority of those employees and management. We believe there are still huge opportunities to increase our market presence through every large point of sale. If we take our various sales activities, whether that be Likewise, Valley Wholesale Carpets, we have de-duplicated just over 7,000 unique customers. We believe whilst our initial objective was to get through GBP 200 million, we now believe there's many opportunities to go for GBP 250 million and beyond. In terms of the first six months, we've seen sales revenue increase by just over 10%. Likewise Floors sales actually ahead at 14.1%.
Whilst we're certainly competitive in the marketplace in terms of pricing, equally, we are not buying market share. You'll see there a slight improvement in the gross margin of 0.2% up to 31.3%. EBITDA now at GBP 4.4 million, and very importantly, profit from operations increased by 38% to GBP 1.67 million, and the profit before tax increasing 120% now to GBP 0.74 million. That gives us a really good position to achieve our objectives for the year. Positive cash generation of GBP 5.2 million, and that allows us to increase the interim dividend, and I'll talk a bit more about that during the presentation. In terms of the sales revenue, good start to the year in January and February, as you can see at the top line, and a really strong spring where we saw like-for-like sales improving by 14.1% in April.
Inevitably, that hot summer has an effect, but we are still showing like-for-like increases of in excess of 8.5%, and that really puts us, as you can see from that graph, in a very good position for that traditional busy autumn trade selling period. In terms of the income statement, given the key numbers, PBT well upon previous year, and also if you take that non-underlying column, where previously we would have had a restructuring cost where we were coming out of old premises, dilapidation cost, dual running cost, that is now a lot cleaner. Where really that column is things like share-based payments and depreciation and amortization of goodwill, and to be fair, the start-up costs for the southwest operation out of Plymouth. Similarly, the balance sheet in very good shape, with that freehold property, a key feature. Stock up slightly, but very much in line with sales development.
Debtor days are actually reduced and very much under control. As you can see, cash and cash equivalents increasing year-on-year. So a very solid position for a relatively young business. I mentioned the dividend. We started paying a dividend in 2021 at GBP 0.002 . In 2023, we introduced an interim dividend, and with the 10% increase on the interim in 2025, that kind of indicates an overall dividend of circa GBP 0.004 , which is literally double what we have achieved previously and very much in line with our earnings aspiration. I think we always say that the key to this business is the management and our staff, and we believe we have got an excellent team of managers across the various businesses, a good blend of experience, and there are some really good people, young people coming through the business.
It is very much a case that these people have learned their trade literally, understand the IT and the logistics, have product knowledge and product understanding, have relationship with suppliers and, of course, customers, and it is really vital. I think the other interesting feature is that we have got young people coming through the business that are aspiring to join that management team, and I think that gives us a really good position for the future. In terms of our sales teams, as I mentioned, we have recruited 21 new sales executives since the start of 2024. We are now up to 99 people that are constantly visiting our customers, placing new point of sale, and servicing our customers' needs.
This just gives an indication to the Likewise businesses of the point of sale that we are putting into retailers on a daily basis and literally measuring that by salesperson each week of how many have been placed. We very much believe this is a key part of our future development. Some specifics are that we started trading with Associated Weavers, one of the leading carpet manufacturers from Belgium, in quarter four last year, and that has been a really positive development for us. We started off with five ranges. We have added another six, and that will go to seven and eight, so a really extensive product portfolio. Similarly, on the right-hand side of that page with Unilin, again, we started quarter four last year, and it has become our best-selling laminate very quickly.
Another key feature is that in May of this year, following meetings at the back end of last year, we have now launched a range with Karndean, and we are progressively putting those displays you can see on the left-hand side of the page into retailers. With the Harrogate exhibition coming up in just over a week's time, there will be more of those displays going into the marketplace. Similarly, the Floors by Lewis Abbott range, we have recruited three dedicated sales executives. One has joined, one is joining next week, and one in another month's time. These are people who are experienced in selling premium products. In addition to the eight ranges we launched last year, we are launching another four again at the Harrogate exhibition.
A further premium product is the engineered wood, which again, we launched very back end of last year, and that is really developing well and takes us into an additional segment within the marketplace. Valley Wholesale Carpets. Valley has had huge success over the years with positioning tens or hundreds of thousands of pattern books into retailers. We enhanced that last year by putting those two carpet stands you can see in the center of the display. Then more recently, the laminate on the right-hand side. Again, Valley will be showing at the Harrogate exhibition and launching the vinyl stand you can see on the left-hand side of the page. So a lot more market presence from Valley.
In terms of the infrastructure, as we said, we have got 12 locations around the U.K. that have been put together literally over the last five years, as you can see from those dates. Five sites of which the company owns the freehold, valued at GBP 23.5 million, with just GBP 2.3 million of debt. Again, that strength in our balance sheet. But there has been a huge amount of work to put that infrastructure together over the last five years. Just to give you some idea of that network. So in Likewise, we have got Birmingham, Leeds, and Glasgow as the main hubs for carpet, residential vinyl, and artificial grass, anything which is wide width. You will know that we received planning permission for the extension of the Newport facility, and by quarter two of next year, that will be an additional distribution hub for both Likewise and Valley.
You may note from previous slides, there is an additional line now coming from Glasgow to Leeds, whereby with that second cutting shift we have introduced in Glasgow in the spring of this year, we needed additional vehicles to bring goods back where relevant back into England. Valley's network is driven by Erith. That is the powerhouse of Valley, where all the cutting is currently done. But again, we have just introduced and employed experienced people to be able to cut carpet. We had the cutting machine in place for a little time, but now we have started to cut in Derby, and that allows Valley to very much progress its business.
That really demonstrates the overall geographical presence we have got, albeit, as I am sure you all appreciate, we are very much committed to keeping Likewise and Valley completely separate from a sales and marketing and operational point of view.
This just demonstrates, again, going back to that cutting capacity. As I've said, we invested in the additional cutting shift, which is typically six people, to give us capacity in Glasgow. Furthermore, in Leeds, we've ordered a new cutting machine, which is a very significant investment, which will be put in place as we close for the Christmas holidays and be operational by the end of January. That will give us further capacity in Leeds. As I've mentioned, within Valley, within Erith and Derby, plenty of capacity, particularly in Derby. That Newport extension becoming operational in Q2 next year really pushes us forward. I think it's a very important step for us that it allows us to, wherever our realistic aspirations are on sales revenue increases, we have the capacity there to handle those sales revenue increases. Just a sketch there of the Newport extension.
The light gray on the left-hand side is 35,000 sq ft, and we have now permission to put a 20,000 sq ft extension. You can see from the diagram on the right, the extension actually higher. That gives us plenty of capacity to start a cutting shift in quarter two next year, and as sales volumes require, put a second cutting shift in to follow that. In terms of our market presence, Likewise pretty well covered, albeit there's still areas of the country where we know our market share is relatively low, and we continue to work to increase that, and similarly with extending Valley's geographical area to cover the whole of England and South Wales. Just going back to that sales trend, as I said, particularly strong spring. Summer may be slightly off, but still 8.5% ahead on a like-for-like basis. Extremely positive.
Like-for-like sales up 10.2% to the end of August. I think you can see from that graph, very well-positioned for that busy autumn selling period. Just summarizing, I think we have made significant progress. We have over the last five years, but particularly over the last 12 months if we take the last four months of 2024 and the first eight months of 2025. As I've demonstrated, we have the logistics capacity, and with that additional benefit of Newport, that is pretty significant going into 2026. We believe we have excellent management and sales teams and staff in general across our businesses, and huge support from our suppliers and ever-increasing involvement with our customers. We believe there are widespread industry opportunities to continue to develop this business.
Whilst we set out a few years ago and said we'd get 10% market share with a goal of GBP 200 million, I think the board is now turning its attention to how do we deliver GBP 250 million and beyond. Many thanks and hopefully that's given you a comprehensive update.
That's great, Tony. Thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the Q&A tab situated in the top right corner of your screen. Tony, we did receive a number of questions throughout today's meeting from investors, and if I may, I will get us started with the first question here which reads as follows: Is revenue growth primarily from new customers, regional expansion, or is there now growing optimism from existing customers?
I think it's all of that. I think we've been increasing our geographical presence. Inevitably, with all those displays going into retailers, we're looking to take a bigger share of retailers' business. There has been an evolution of all those aspects. I think it's a combination of doing more business with existing customers and increasing that geographical presence.
Thank you, Tony. The next question is on competition. Do you see your main competitors being very aggressive in pricing to protect their market shares and pricing remain rational?
I think probably there's been, probably pricing in the commercial market has probably been more aggressive. I think that's where you have branded suppliers such as Polyflor, Altro, who create the market presence and market demand for their products, and we service that demand, and that can be quite price sensitive, and it's easier for people to pull a lever on price to try and win business in that particular sector. I think in the residential, where we are creating the demand, working with our supplier to develop new product, and not all necessarily exclusive, but degrees of exclusivity or creating buyers with the manufacturer, then that's probably less price sensitive. But as I've said earlier, we're certainly competitive, but we're not buying market share.
Perfect. Thank you very much. The next question you may have answered, but just for completeness, how much of the growth was price driven versus volume?
It is virtually all volume.
Perfect.
There has been very little price increase. A little bit in the commercial market, but nothing really in residential.
Thank you very much. Next question is, can you expand on how the business is exposed to consumer sentiment and housing market fluctuations?
Well, certainly a buoyant housing market, certainly in terms of house moves, benefits us for sure. Some of us have been in this industry a long time and seen various economic cycles. When the house moves slow, then refurbishment. If you think about our typical order is one cut length, 5 m by 4 m, refurbishing one room in the house. As I've said many times over the years, the other aspect is where people do move home, most people won't refurbish the whole of that new property in one go, both in terms of their deciding what they want to do with the rooms and also as their budget allows. So it always begs the question, where does a house move blend into a refurbishment? The business is very much driven by individual orders for one room at a time.
Understood. Thank you very much. The next question on competition once again. Some of your competitors are refocusing their activity on big customers instead of local businesses. Do you see this as a good opportunity for you to increase sales at a higher rate?
Yeah, sure. We're absolutely committed to the independent retailer. We believe there's very much opportunities there. The independent retailers and flooring contractors, as I said earlier on, debtor days are paying us on time. Believe there's 7,000 or more out there. Again, we've seen the coming and going of various multiples over the years. The independent retailer has continued to be successful.
Thank you. The next question here is, any plans to target the contract sector more in the near medium term?
Well, within Likewise, a significant amount of the business, about a third, is commercial. We are very much into the commercial sector. In Valley, to be fair, it is pretty much wholly residential.
Perfect. Well, look, Tony, that was the last question from today. Thank you for addressing those questions. The company can review all questions submitted today, and we will publish those responses on the Investor Meet Company platform. Tony, before I redirect investors to provide you with their feedback, which is particularly important to the company, could I please just ask you for a few closing comments?
Thank you. Well, just first of all, to thank everybody for joining the meeting. I have hopefully demonstrated that the group has continued to make extremely good progress this year, and we are very well positioned for that autumn traditional busy selling period. Thanks to everybody for their support.
Fantastic. Tony, thank you once again for updating investors today. Could I please ask investors not to close this session as you will now be automatically redirected to provide your feedback in order that the board can better understand your views and expectations. This will only take a few moments to complete and I am sure will be greatly valued by the company. On behalf of the management team of Likewise Group PLC, we would like to thank you for attending today's presentation and good morning to you all.
Thank you.