| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 37.36 | 49 |
| Intrinsic value (DCF) | 10.48 | -58 |
| Graham-Dodd Method | 0.10 | -100 |
| Graham Formula | 0.05 | -100 |
Likewise Group plc (LSE: LIKE) is a leading UK-based distributor of floorcoverings and matting products, catering to both domestic and commercial markets. Operating under well-known brands such as Dandy, BRUKE STRAKE, Marquee Floors, and Likewise, the company offers a comprehensive range of flooring solutions, including carpets, vinyl, laminate, luxury vinyl tile (LVT), artificial grass, underlays, and accessories. Additionally, Likewise manufactures and sells doormats, rugs, and runners, positioning itself as a one-stop shop for flooring needs. Founded in 2012 and headquartered in Solihull, the company serves customers across the UK and internationally. As part of the Consumer Cyclical sector and Furnishings, Fixtures & Appliances industry, Likewise Group benefits from steady demand in residential and commercial construction, renovation, and interior design markets. The company’s multi-brand strategy and diversified product portfolio enhance its resilience against market fluctuations.
Likewise Group presents a niche investment opportunity in the UK flooring distribution market, with a market capitalization of approximately £52.9 million. The company reported revenue of £139.5 million in FY 2023, with net income of £844k, reflecting modest profitability. Operating cash flow was positive at £5.8 million, though high total debt (£30.4 million) relative to cash reserves (£5.7 million) raises liquidity concerns. The lack of dividends may deter income-focused investors, but growth potential exists in commercial flooring demand and international expansion. The stock’s beta of 0.821 suggests lower volatility than the broader market, making it a relatively stable play in the cyclical furnishings sector. Risks include exposure to UK construction activity and competitive pricing pressures.
Likewise Group competes in a fragmented flooring distribution market, where differentiation hinges on brand strength, product diversity, and supply chain efficiency. The company’s multi-brand approach allows it to target various customer segments, from budget-conscious homeowners to high-end commercial clients. Its vertically integrated manufacturing of doormats and rugs provides cost advantages over pure distributors. However, the UK market is crowded with both specialized flooring distributors and large DIY retailers that offer flooring as part of broader home improvement assortments. Likewise’s focus on wholesale distribution gives it an edge in B2B relationships but limits direct consumer engagement compared to omnichannel competitors. The company’s international footprint is still developing, leaving it vulnerable to domestic economic cycles. Supply chain disruptions and raw material inflation could pressure margins, though Likewise’s established supplier network mitigates some risks. Its ability to scale efficiently while maintaining service quality will be critical in outpacing regional competitors.