Likewise Group (AIM:LIKE) has launched a proposed equity fundraising of up to approximately £29.2 million at 28.5p per share, a discount of roughly 14.9% to Wednesday's closing price of 33.5p.
The AIM-listed flooring distributor is using the proceeds to help fund the £9.5 million freehold acquisition of a new 60,000 sq. ft. high-bay distribution facility in Corby, England.
The Corby site will become Likewise Floors' fifth distribution hub and is expected to be operational at the start of 2027, subject to the acquisition exchanging and completing.
The fundraising splits into a placing raising approximately £24.2 million, a subscription of roughly £3.0 million, and a retail offer of up to £2.0 million, each structured across firm and conditional tranches.
The firm elements proceed without shareholder approval via a non-pre-emptive cash box structure and existing AGM authorities, while the conditional tranches require approval at a general meeting set for 14 August.
Likewise separately plans to raise roughly £9.0 million from NatWest through a new £7.2 million commercial mortgage facility and a £1.8 million VAT bridging facility, already credit-approved but pending legal documentation.
Management said the Corby acquisition expands the group's freehold property portfolio, supporting margins and reducing exposure to rising rental costs, and provides infrastructure to help the group toward its medium-term target of £300 million in annual revenue.
First-half revenue rose 16.3% to £91.1 million, with gross margin up 0.7 percentage points to 32.1%.
The company said it remains on track to meet market forecasts for the full year despite absorbing roughly £0.5 million in higher annualised fuel costs.
The general meeting to approve the conditional fundraising elements takes place on 14 August.
News Intelligence what this means for the company
Likewise Group is raising £29.2m in equity (at a 14.9% discount to Wednesday's close) plus £9m in debt to fund a £9.5m freehold acquisition of a 60,000 sq. ft. distribution hub in Corby, expected live in early 2027, and to strengthen its balance sheet. The equity raise is material relative to the company's scale: at 28.5p per share, the placing of £24.2m represents dilution, though the debt component and freehold acquisition (which reduces exposure to rising rents and supports margins) align with management's stated path toward a £300m revenue target. H1 revenue grew 16.3% to £91.1m and gross margin expanded 0.7 percentage points despite £0.5m in higher annualised fuel costs.
The acquisition adds a fifth distribution hub and locks in freehold ownership, reducing future rental inflation risk and supporting margin expansion—a structural benefit to the medium-term growth case. However, the equity raise at a 14.9% discount and the need for shareholder approval on 14 August introduce near-term execution risk and dilution; the company's ability to absorb fuel headwinds while maintaining guidance suggests operational resilience, but the scale of capital deployment (£29.2m equity + £9m debt for a £9.5m asset) warrants scrutiny of returns and debt serviceability.
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