Headlam Group PLC Trading Update (2760I)

TIDMHEAD

RNS Number : 2760I

Headlam Group PLC

08 December 2015

8 December 2015

Headlam Group plc

("Headlam" or "the group")

Trading update

Headlam, Europe's leading floorcoverings distributor, is pleased to provide a trading update for the eleven month period to 30 November 2015. The group expects to announce its results for the full year to 31 December 2015 on Thursday 3 March 2016.

Group revenue for the eleven month period has increased by 3.0% compared with 2014, slightly down on the growth of 4.0% reported at the half year. As anticipated, the incremental trading performance during the second half to date has been less than that achieved during the first half which partially reflects solid second half comparatives in 2014.

In the UK, like for like revenues over the five month period to 30 November 2015 increased by 2.8%, compared with the first half increase of 5.4%. The eleven month like for like increase is 4.1%. The revenue contribution from acquired businesses during the eleven month period amounted to GBP6.3 million.

Revenues from the Continental European businesses, measured in constant currency, have declined by 4.1% over the eleven months, with the five months to November showing a smaller decrease compared with the first half contraction of 4.8%. On translation to sterling, the revenue deficit for the period amounted to 9.9% compared with 11.1% during the first half.

Outlook

Whilst the improvement in group revenue during the second half of 2015 to date has been slightly lower than growth rates achieved during the first half, the UK business has performed strongly and growth will be above the year's floorcovering market growth forecasts of 3.4%. In addition, the deterioration in Continental revenues appears to have stabilised.

December has started well and, as ever, subject to trading continuing as anticipated during the remaining important weeks of the year, the group remains on track to achieve results in line with the board's expectations for 2015.

Forthcoming Change of Auditor

In the group's 2014 Annual Report, the board noted the Guidance to Audit Committees in relation to audit tenders, following the publication of the 2012 UK Corporate Governance Code.

During the current year, in line with emerging best practice, the group has undertaken a competitive tender process in respect of audit services. Following a recommendation from the Audit Committee, the board has invited PricewaterhouseCoopers LLP to accept appointment as auditors in respect of the group's accounts for the year ended 31 December 2016.

The board would like to thank KPMG for their services as auditor to the group since 1992 and looks forward to working with PwC in the future.

For more information please contact:

 
 Headlam Group plc                    Tel: +44 (0) 
                                       16 7543 3000 
 Tony Brewer, Group Chief Executive 
 Stephen Wilson, Group Finance 
  Director 
 
 
 Investec Bank plc (Joint Corporate   Tel: +44 (0) 
  Broker)                              20 7597 4000 
 Garry Levin / David Flin / Josh 
  Levy 
 
   Arden Partners plc (Joint Corporate Broker)                            Tel: [phone] 

Jonathan Keeling / Steve Douglas

 
 Buchanan                  Tel: +44 (0) 
                            20 7466 5000 
 Mark Court / Helen Chan 
 

Notes to Editors

Headlam Group plc

Headlam is involved with the marketing, supply and distribution of an extensive range of floorcovering products. The group's activities and facilities are located throughout the UK, France, Switzerland and the Netherlands.

More information is available at http://www.headlam.com/

This information is provided by RNS

The company news service from the London Stock Exchange

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December 08, 2015 02:00 ET (07:00 GMT)