Likewise Group PLC (AIM:LIKE) shares slid 8% to 27.5p after the flooring distributor said full-year profits would come in below market expectations, even as sales hit new highs.
The company said revenue grew 7.4% in the second half, with October marking its best month on record. Sales for the year to date are up 8.9%, while the Likewise Floors division has risen 13.3% to the end of October.
Management said the performance was achieved despite “challenging markets” and this year’s extreme summer heat, which had weighed on parts of the sector.
However, the company warned that increased costs and uneven revenue growth across its businesses meant underlying pre-tax profit would fall short of forecasts.
Even so, it expects profit to be “significantly ahead” of previous years and said it remained on track to meet its 2026 growth targets.
Construction has started on a new distribution hub in Newport, due to be operational by the late second quarter of 2026, while logistics networks across Likewise Floors and Valley Wholesale Carpets are being expanded to support future demand.
The group is also ramping up sales and marketing efforts to win more business from independent retailers and flooring contractors.
Likewise disclosed that chief executive Tony Brewer, non-executive director Andrew Simpson and senior manager Adrian Laffey together acquired 116,253 shares through the reinvestment of last month’s interim dividend.