REG - Headlam Group PLC - AGM Trading Update

HeadlamAnnouncement

25/05/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230525:nRSY5720Aa&default-theme=true

RNS Number : 5720A  Headlam Group PLC  25 May 2023

25 May 2023

Headlam Group plc

('Headlam' or the 'Company')

 

AGM Trading Update

 

Revenue growth despite suppressed residential volumes

 

Headlam (LSE: HEAD), the UK's leading floorcoverings distributor, is releasing
the following trading update for the first four months of the year ahead of
its Annual General Meeting being held later today.

 

Effective delivery of the strategy has led to a robust revenue performance and
continued market share gains* so far this year. Revenue for the first four
months was 3.4% above the same period in 2022 despite volumes in the
residential sector market being down due to the current economic environment
and in particular weak consumer confidence. There was also limited
contribution from manufacturer-led price increases which were prevalent in
2022.

New and increased revenue contributions from the larger customers and trade
counters growth strategies have helped offset lower underlying core
residential trading volumes. Additionally, the commercial sector has performed
well and continues to be buoyant ahead of the traditionally busy summer
trading period.

Notwithstanding the overall positive year on year revenue performance, the
lower residential volumes coupled with the moderation in price increases has
reduced gross margin in the first four months of the year. However, the
Company is deploying several mitigating actions. These include undertaking
further cost control, reviewing prices, in particular where prices have
previously been held despite the inflationary environment, and
launching/relaunching products under the own product brands strategy ahead of
the busier second half trading period. Many of these actions have already been
successfully implemented and are starting to contribute to overall business
performance, albeit the benefits are mostly second half weighted and overall
profit performance remains dependent on consumer sentiment in the residential
market.

*Source: commissioned specialist research from MTW Research

Enquiries:

 

 Headlam Group plc                                Tel: 01675 433 000
 Chris Payne, Chief Executive                     Email: headlamgroup@headlam.com (mailto:headlamgroup@headlam.com)
 Adam Phillips, Chief Financial Officer
 Catherine Miles, Director of IR and ESG

 Panmure Gordon (UK) Limited (Corporate Broker)   Tel: 020 7886 2500
 Tom Scrivens / Atholl Tweedie

 Peel Hunt LLP (Corporate Broker)                 Tel: 020 7418 8900
 George Sellar / John Welch

 

Notes to Editors:

 

Operating for over 30 years, Headlam is the UK's leading floorcoverings
distributor. The Company works with suppliers across the globe manufacturing
the broadest range of products, and gives them a highly effective route to
market, selling their products into the large and diverse trade customer base.

 

The Company has an extensive customer base spanning independent and multiple
retailers, small and large contractors, and housebuilders. It provides its
customers with a market leading service through the largest product range,
in-depth knowledge, ecommerce and marketing support, and nationwide next day
delivery service and trade counter collection sites.

 

To maximise customer reach and sales opportunity, Headlam operates 67
businesses and trade brands across the UK and Continental Europe (France and
the Netherlands), which are supported by the group's network, central
resources and processes.

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTDZLFLXELEBBK