Likewise Group PLC Acquisition of Delta Carpets (0184H)

TIDMLIKE

RNS Number : 0184H

Likewise Group PLC

01 April 2022

1 April 2022

Likewise Group plc

("Likewise" or the "Group")

Acquisition of Delta Carpets

Likewise Group plc (AIM:LIKE), the fast growing UK floor coverings distributor, is pleased to announce that its subsidiary, Likewise Floors Limited, has acquired 100% of the issued share capital of Delta Carpets (Holdings) Limited and its wholly owned subsidiary Delta Carpets Limited (together "Delta").

Delta, based in Leeds, is a distributor of Carpets, Residential Vinyl, Laminate, Luxury Vinyl Tile and Flooring Accessories to Independent Flooring Retailers in the North of England, Midlands and South Wales.

In the financial year ended 31 December 2021, Delta delivered Sales Revenue of GBP6.5 million and Profit Before Tax of GBP0.4 million. Net Assets acquired are approximately GBP1.1 million and are subject to a completion accounts mechanism as at 31 March 2022.

Over the next few months Delta will be relocated to the Likewise Distribution Centre in Morley, Leeds. Delta will continue to operate as a separate business under the Delta Trade Brand but share the Group's logistics capacity.

All of the Delta employees will be offered continuity of employment and the opportunity to transfer to Likewise. For Sales and Marketing, Delta will remain as an autonomous business in the Likewise structure and logistics will be integrated into the Likewise Distribution Hub.

The four Delta shareholders and directors will assist in this transition for between one and three months following completion.

Total consideration is GBP3.0 million, including GBP1.0 million of cash within Delta, GBP1.5 million payable in cash on completion plus 0.5 million Likewise Shares will be issued with an underpinned value of GBP0.5 million on the second anniversary of completion.

Total Voting Rights

Application has also been made for 500,000 ordinary shares of GBP0.01 each to be admitted to trading on AIM ("Admission"), with dealings expected to commence at 8.00 a.m. on or around 4 April 2022.

Following Admission of the consideration shares, the total number of voting rights in the Company will be 243,794,980. Shareholders may use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

Tony Brewer, Chief Executive of Likewise, said:

"The acquisition of Delta further develops the geographical presence and customer base of Likewise. The increased capacity created by the new Distribution Hub in Birmingham releases capacity in Leeds to enable the logistics capability to integrate Delta and provide an enhanced service to customers.

Many thanks to the Delta directors and shareholders; Graham, Tim, Stephen and Stuart for the manner in which the acquisition has been conducted and best wishes for the future. Furthermore we welcome the Delta Team within the Likewise structure.

We will provide an update on current trading next Monday 4th April 2022."

For further information, please contact:

 
 Likewise Group plc                                   Tel: 0121 817 
  Tony Brewer, Chief Executive                         2900 
  Roy Povey, Chief Financial Officer 
 Zeus (Nominated Adviser & Joint Broker)              Tel: 0203 829 
  Jordan Warburton / David Foreman / James Edis        5000 
  (Investment Banking) 
  Dominic King (Corporate Broking) 
 Ravenscroft Consultancy & Listing Services Limited   Tel: 01481 
  (Joint Broker)                                       732746 
  Semelia Hamon (Corporate Finance) 
 Novella Communications (Financial PR)                Tel: 0203 151 
  Fergus Young / Tim Robertson                         7008

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April 01, 2022 10:13 ET (14:13 GMT)

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