REG - Headlam Group PLC - Pre-Close Trading Update

HeadlamAnnouncement

19/01/2023 07:00

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RNS Number : 1830N  Headlam Group PLC  19 January 2023

19 January 2023

 

Headlam Group plc

('Headlam' or the 'Company')

 

Pre-Close Trading Update

 

Headlam (LSE: HEAD), the leading floorcoverings distributor, today provides a
Pre-Close Trading Update in respect of the year ended 31 December 2022 (the
'Period') ahead of announcing final results in March 2023.

 

Trading Update

 

Revenue and underlying profit before tax for the Period are both expected to
be marginally ahead of market expectations¹.

 

This performance reflects good progress made under the Company's strategy
along with pleasing performances from the commercial sector and Continental
Europe, coupled with support from product price inflation. Larger customer
wins and effective execution of the early stage of the trade counter roll out
helped offset weaker residential demand in the UK due to the cost of living
crisis. The Company also continued to focus on efficiency measures against a
backdrop of high operational cost inflation.

 

Outside of Trading

 

Since the start of the year, the Company has acquired a leading distributor of
rugs and made further key appointments, both of which strengthen delivery of
the revenue growth and efficiency strategy.

 

Melrose Interiors² based in Bradford is the largest independent supplier to
the UK online rug industry, and also has operations in third-party logistics,
recycling, and an in-house rug and sampling / pattern book department. Melrose
brings a number of new larger customers to the group, including major high
street and online retailers, a customer segment where the Company is targeting
growth and will work with Melrose to scale up opportunities. Melrose also has
market leading environmental credentials through its award winning  RE lay
brand of recycled rugs, and its value creating upcycling of surplus carpet
from across the industry into samples and pattern books.

 

Toni Wood has joined the Executive Team as Chief Customer Officer, having
previously been Chief Marketing and Growth Officer at ufurnish.com and prior
to that Chief Commercial and Marketing Officer for DFS Furniture PLC. The new
role will lead customer and digital strategy, encompassing customer
communications, brand development, marketing, and ecommerce. This will broaden
and modernise the Company's interface with customers, and drive improved
performance of the Company's wide cross section of recognisable product
brands.

 

The Share Buyback programme is progressing well, having materially accelerated
following the Board's decision to increase the daily trading volume limits in
November 2022. At current rates, the total £15.0 million programme it is
expected to be complete by the end of Q1 2023.

 

Investor Presentation

 

Headlam is pleased to announce that Chris Payne, Chief Executive, will
provide a live presentation relating to this Pre-Close Trading Update via
the Investor Meet Company platform today (19 January 2023) at 3.30pm GMT.

Investors can sign up to Investor Meet Company for free and add to
meet Headlam via:

https://www.investormeetcompany.com/headlam-group-plc/register-investor
(https://protect-eu.mimecast.com/s/d6GLCnznDU7yZrGI9WveI?domain=investormeetcompany.com)

Investors who already follow Headlam on the Investor Meet Company platform
will have automatically been invited.

¹Company-compiled consensus market expectations for revenue and underlying
profit before tax, on a mean basis, are available on the Company's website at
www.headlam.com (http://www.headlam.com)

 

²Melrose Interiors' unaudited revenue for the year ended 31 December 2022 was
approximately £8 million

 

 Headlam Group plc                                Tel: 01675 433 000
 Chris Payne, Chief Executive                     Email: headlamgroup@headlam.com (mailto:headlamgroup@headlam.com)
 Catherine Miles, Director of IR and ESG
 Panmure Gordon (UK) Limited (Corporate Broker)   Tel: 020 7886 2500
 Tom Scrivens / Atholl Tweedie                    Tel: 020 7418 8900

 Peel Hunt LLP (Corporate Broker)
 George Sellar / John Welch
 Alma PR (Financial PR)                           Tel: 020 3405 0205
 David Ison / Matthew Young                       Email: headlam@almapr.co.uk

 

 

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