Floorcoverings distributor Likewise Group plc has announced that it has raised c.£1.4 million through an equity subscription to accelerate its growth.
The business has secured funds through an equity subscription for 5,500,000 new ordinary shares of 1 pence each in the Company by Onward Opportunities Limited, an existing institutional shareholder in order to accelerate organic growth opportunities.
Tony Brewer, Chief Executive of Likewise Group plc, said: “The Board has taken the opportunity to create additional capital for the future development of the Group. As previously communicated, it is intended to fund the impending Newport extension from internal cash flow, however the Board is actively considering further initiatives to meaningfully increase the operational capability and enabling sales revenue to exceed £250 million.
“Therefore, this new capital will be retained in an investment account and not absorbed into the Group’s working capital cycles. We thank Laurence Hulse and the Team at Onward Opportunities for their ongoing support.”
Laurence Hulse, Lead Fund Manager of Onward Opportunities Limited, said: “Onward Opportunities first invested in Likewise a year ago at 14p into its nursery of holdings, having spotted some emerging competitive advantages, and that these were driving increased profitability and market share gains.
“This year, those advantages appear to be intensifying with associated revenue and profit gains in spite of a tough market backdrop, leading Onward Opportunities to increase its investment further into the company. “As Onward Opportunities Limited is one of the few UK funds with fund inflows this year, it can provide growth capital directly into the company to accelerate some of Likewise’ competitive advantages. This is the sort of capital allocation function that public markets can so ably provide. Onwards.”
