Likewise warns on "volatile" consumer spending
October 28, 2022
Fast growing UK floor coverings distributor, Likewise plc, has warning that profits will fall below expectations due to volatile consumer spending.
In a trading update to shareholders, the group reported organic sales growth of 23% in Q3 and says full year sales will be ahead of forecasts. But profit before tax margins are now expected to be below current expectations, with little growth from 2021, at c.2%.
"Notwithstanding the increase in revenues, it is expected that the Group's profitability will be lower than originally anticipated due to unfavourable market conditions caused by the terrible war in Ukraine, political instability in the UK and a particularly hot summer," said the company's statement.
"Consumer spending is likely to remain volatile and inflationary cost pressures to continue into 2023," it added.
Likewise said Investment in all aspects of the business had driven the revenue growth and created a nationwide platform with a current logistics capacity of 15m3. "This provides the opportunity to grow revenues and profitability to achieve the long term aspirations of the Group," said the statement.
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