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Can somebody shed light on this please because I’ve no idea how or why this is happening but I assume some of you will?
I’m talking generally here. I’m not talking about specific dates or specific share prices just in general but the question is - how can a company Start with a share price of 20p, achieve several short term objectives, grow in size and in Profitability and 5 years later have a share price of 16p - How on earth is this possible?
I’ve wondered for ages how a company can be on the up but the share price on the way down at the same time. It makes absolutely no sense to me?
It begs the question to my mind, What does the company have to do to get a share price of 50p for instance? If they are doing everything right at the moment and are clearly on the right path while the share price is going backwards what do they need to do to get the share price moving forwards?
I don’t know if this is a common occurrence or not or Whether I’m just jinxed? Any insight or opinions would be appreciated 👍
It is worth taking a look at the Headlam Facebook Post yesterday. Likewise Group got more support on it than Headlam.
May 14th for next update.
👍
Tony Judge
Retirement , to the best of my knowledge.
Madtom I see Tony Judge did leave at the end of March resigning from both Delta and Valley 29th March. Any idea on reason?
118K of shares sold drop of 7% prob directors sale
Many shares have good news that isn't reflected in the price at the moment. That can been seen in upsurge of take over activity.
A few of us on here can see at first hand the ground work being done at Likewise and how they have so quickly taken a decent market position. The good news doesn't instantly translate to bottom line but it will.
Growth looks set to continue with 11 sales executives and debt is well under control. These figures don't make sense when you have a comparison like Headlam that had much lower P/E over the last few years. This on a rolling basis has now reversed.
Owners have a lot of skin in the game which tends to look at the longer term and not instant gratification with gimmicks again leading to the future.
I always see good news here and I’m new to this, can anyone explain why this good news isn’t reflected in the SP?
It’s on research tree
little research note here - https://*********************/media/audio-note-likewise-sales-ahead-of-prior-year-despite-weak-markets-13-03-2024/id/20358/c887d847-09f7-4019-bfaa-b7c2dbab64bf
Admittedly I do not know to what level of employee the bonus is being paid but hopefully to all levels and they come as a welcome surprise .
Being an employee I look forward to recieving it, however as of yet, no mention internally :(
I saw the Tony brewer shares sales and thought ffs ! Headlam posted poor results and we do this !,,, however I have it on good authority that Tony sold the shares so he could give all his employees a bonus whilst not affecting likewise numbers . A great gesture and the reason why he has been able to build such a strong team that will continue its path of increased revenue and market capture
Your correct as the trade counters imhv to cut out the retailer in many avenues, headlum claimed that they would only be supplying the trade and the flooring trade only not decorators, plumbers and handy men they where found out badly sending open emails of new trade counters, but c/c estate agents, decorators, plumbers, business owners in general basically cutting out the middle man the retailers that imv made headlum the size they are now
Luxs, Willam123, thanks for your replies.
It looks like the segment I’m ignoring is the ‘sales direct from manufacturers’.
I now see this as a segment that isn’t available to the Likewise business model; which is distribution to traditional retail.
In Headlam’s update they described a spectrum of market opportunity running from traditional retail through, tradespeople & fitters, contractors to the larger sector of multiple retailers and larger housebuilders.
lux’s, I believe you operate in the retail sector, and I remember you expressing frustration with Headlam’s move into trade counters. Therefore, would I be right in thinking the trade counters are competing against you for the tradespeople & fitters and contractors segments?
Also, would I be right in thinking that very few homeowners would use trade counters and attempt to fit the carpet themselves?
Presumably, Likewise has no plans to go the trade counter route?
Likewise has a medium-term target of £200m revenue. Given the current proportion of own-brand (68%) that represents £135m of own-brand revenue. I guess looking at it this way that level of supply is possible from non-branded manufacturers.
Incidentally, at the growth rate, YTD, that’s a 3-4 year timescale for £200m.
Axminster and other higher end flooring will be distributed directly from the manufacturer. Wholesale takes the mass market trade also selling levelling compounds, vinyl, commercial safety flooring Lvt etc. This obviously needs scale to run daily deliveries. Hence if you loose volume drastically and still need to support that amount of infrastructure it could implode without drastically change.
Own brand will normally be bought at better prices because of scale and possibly exclusive. It will be protected to some degree as customer looking in shops find a sample they like will ask for comparison prices from other retailers for that particular product from Likewise Grp driving sales back to them.
Ax minster products dont get sold by wholesale thats kept at manufactures sales direct to retailers this is not the market likewise will ever get. again amtico wont ever be sold by a wholesaler only direct from amtico. carpet manufactures such as cormar, Abingdon, balta , sell ranges direct accounts and too wholesale however own brand likewise are commissioning by carpet manufactures in turkey , Holland ect
Thanks luxs, I wasn't clear in my query.
If you aim to be a larger distributor of carpets within the UK market, can you do that by largely focusing on own brand?
I'd guess many distributors has an own brand product, presumably targeting the discount end of the market, but I'd have thought that the majority of carpet sales are of the traditional manufacture brands e.g. Axminster - that's the limit of my knowledge on such brands. Or are the majority of UK sales own brands from the likes of Carpetright or Tapi?
Yes branded business allows higher margins, creating your own brands /ranges allow this
Can anyone shed any light on the relevance of branded business versus non-branded business within Likewise?
Tony Brewer timed the negative news of disposal of shares , remember dispose gave back at a 1p a share i believe not sold at market value, rns timing has been good .bury bad news in light of headlum poor end of years . then put a much more positive results for likewise the following day
Good update.
Notes on Research Tree are worth a read
Or it could be that just like everyone, even directors are feeling the squeeze and need cash for expenses/mortgages/school fees/building works etc.
Thank you that makes sense
Roy Povey did the same last year. Like for tax reasons? Still holds over 27million so this was a tiny reduction