Likewise FY profits to miss expectations amid increased costs

(Sharecast News) - Likewise Group slumped on Wednesday as the flooring distributor said full-year underlying pre-tax profit would fall short of market forecasts, partly due to increased costs.

In an update for the year to the end of December, the company also cited an imbalance in the revenue increases across its various activities.

Although a miss versus forecasts, profit will still be "significantly ahead" of previous years, Likewise said.

The company said sales revenue continued to rise in the second half, by 7.4%, with a new record month in October resulting in a year-to-date increase of 8.9%.

Likewise Floors saw sales revenue rise 13.3% in the year to the end of October, it said. "This has all been achieved in what would still be considered challenging markets, compounded by the hottest summer on record and demonstrates consistent increases in share over the last five years."

Likewise also insisted that it was still "well on course" to achieve its medium term objectives including growth in both sales revenue and profitability in 2026.

Chief executive Tony Brewer said: "We continue to develop our businesses at an impressive rate thanks to the very important commitment from our management and staff with the fantastic support of our suppliers and customers. The board thanks all involved for their ongoing contribution.

"We are absolutely focussed on improving the performance of the group to allow meaningful investment for the long term benefit of all stakeholders."

At 1340 GMT, the shares were down 13.7% at 24.16p.