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I don't know who you consider to be the Valley boss. I was referring to the Valley vendors (sellers) Stephen Mitchell and Kate Mitchell.
This is from the acquisition RNS:
"Post a one-month transition period following Acquisition Completion, none of the Valley Wholesale Carpets Vendors are expected to continue their involvement with or engagement in the Valley Wholesale Carpets Group's business."
I believe the former valley boss is very much still working with likewise at this stage . and has not left the business
Madtom,
I didn’t mean to imply the payment itself is a surprise, or not priced in. Rather my query is on the implications of the payment to the balance sheet.
Cash at the interims was £4.5m – tight given the expected payment due. When I saw the appointment of WH Ireland as joint broker I anticipated some commercial activity to bolster the balance sheet ahead of the payment. Perhaps it’s happened, e.g., a further loan, which didn’t warrant an RNS.
The Valley vendors are not involved in the current business, but own 5m shares, so further discussions on deferment are another possibility.
I was surprised that today’s update didn’t add any clarity on the matter, then again, it could be that Likewise expect to close the year with free cash flow, and all will be sorted.
Those are my thoughts and I wondered on yours as a regular poster here.
Until we get clarity, I think this deferred consideration is the ‘elephant in the room’.
Hi Londoner,
As it’s been well documented from the initial Valley transaction, I’ve always expected that deferred payment has always been ‘priced in’ to the share value.
There should be no surprise to anyone.
Madtom, what are your thoughts on the deferred consideration due next month?
Highlights !!
*Record group monthly turnover = £14 million (Nov 23)
*Year on Year group sales - Up 13.3%
*Likewise branded sales - up 29% y-on-y
( representing major gain in market share )
The fact that these numbers are produced in a very difficult market ( look at other flooring trade listed companies recent statements/results) speaks volumes for the ground work being done and these results speak for themselves.
Very optimistic for the future of my investment 🤞
The updates from this company just keep getting better.
Market share improving all the while & lots more to come looking at the geographical strategies & investment.
This share has to be well undervalued compared to previous high’s and this very strong base on which to build on.
Do you mean a shop presence yes we do
Luxs - I get it !!
I get as frustrated as you at times, as I’m invested.
But I do believe in the strategy of growth and general direction of the company. The economy is a major hindrance and that will change over time.
Patience is required here, however the updates keep me positive.
As for the POS/Sampling issue you experience - are you a ‘trade counter ‘ customer or do you have a designated sales representative to liaise with. ?
Its not so much what the sales increase in the last update, more what it could have been better if better if pos stronger in many cases
Madtom i have in excess of 140k shares in likewise still running at loss, and I've spoken to tb many times of my frustration with poor pos in lvt for intence. i would like to use them more but again and again cant help to pull my hair out
Well for sure well my friend in chester has three showrooms and a large online flooring business yet he has only been given one lvt sample book for three shops think about that
Of course it’s vital that pos/sampling is initially offered to those that are likely to offer the best return in sales.
Sampling does come at a cost and it’s important that it is placed appropriately.
Likewise london however a friend in the trade in chester also says pos is shocking
I am kind of connected to them, I’ve known AJB and co for the best part of 30 years.
I was in the Newbury branch 6 weeks ago and there was an abundance of sampling and merchandise there.
That said, the general turnaround time for sampling or new ranges is horrendous - if, for instance, there was a new product coming in, it could literally be 12 months before we get sampling so they need to get a handle on how long these things take.
Make no mistake though, they know what they’re doing…
Luxs… Also be interested what location branch are you having problems with as we do business with Newbury branch in the south and experience the absolute opposite. Stock has never been an issue quicker to receive than Headlam. Samples also not a problem?
Which brand or outlet ?
I am conected in the trade and i can say the sampling is poor asked numerous times for samples been told waiting for next batch to be produced again and again
I am ‘loosely’ trade connected and my contacts tell me the opposite….. that new product & new displays are widely available. A constant battle for floor space but progress being made across the group.
The industry is currently a bit flat with cost of living etc but market share for ‘LIKE’ is expanding as recent trading updates tells us !!
The sales increases reported in the last update don’t seem to reflect your comments? You may well be correct but I guess only time will tell!
I don,t think we will see any great gains in this share for couple of years ,and think improvements needed in basics stock levels , adequate p.o.s which clearly not anywhere near yet.
Great to see a steady stream of buys.
This is still well undervalued IMHO & I’ll keep topping up when funds allow.
Not sure why it’s bleeped out but there’s a new interview with Tony Brewer on Directors talk interviews
https://www.***************************/likewise-group-tony-brewer-capturing-beyond-10-of-2-billion-flooring-market-video/4121132514
https://www.***************************/likewise-group-tony-brewer-capturing-beyond-10-of-2-billion-flooring-market-video/4121132514?fbclid=iwar1zaagkfar7wdpsfdqzupaz0uhswdnldprqqboee458sj_jn8g40uahq-w_aem_ablo6imksvq51cf9tufmrc0zukyeb2xxe3i7ud44qiuzasnx-nb6qteosihqytge3aq