Headlam Share Discussion Threads

[touche] 24/8/2016 07:48

Great set of numbers. In at the open for a top up. My only concern was the price increase risk which appears to be a non issue. Brexit now a positive with foreign earnings.

[effortless cool] 24/8/2016 07:39

Results look very good. All key metrics better. No Brexit impact. FX-driven price increases holding.

[battlebus2] 24/8/2016 07:29

The positive trend continues with increased Revenue profits and dividend. Looks cheap at £4.50 imv.

[deadly] 12/7/2016 19:49

Fall after that TU looks like it's in bargain territory.

[essentialinvestor] 06/6/2016 11:33

Added a few at 471.

[jeffian] 20/5/2016 17:41

#143, It's marketing spam for a website. Check gooner108's posts - all links to the same site. Other username is thomasthetank1.

[battlebus2] 20/5/2016 13:19

You have to pay......

[postmanpat11] 20/5/2016 13:09

Cheers, is it possible to get more info? Would like to see the full note if possible

[rhomboid] 20/5/2016 07:58

http://www.investegate.co.uk/headlam-group-plc--head-/rns/agm-statement/201605200700077901Y/ "The group's performance has advanced well in the current financial year with revenue growth of 4.5% over the first four months to 30 April 2016. In the UK, the overall like-for-like increase in revenue was 4.0% with a strong expansion in residential activity at 6.1%, significantly ahead of the commercial business which marginally declined by 0.4% during the period. "Revenues from the Continental European businesses collectively improved by 2.2%, measured in constant currency, with all three countries contributing to the positive result and reversing the 3.8% decline registered for the year ended 31 December 2015. "The group's revenue increase, in combination with gross margin and expenses in-line with trading expectations, has resulted in the operating margin showing further improvement compared with the equivalent period last year. "Whilst early in the year, and with the busy trading months ahead, the board remains confident of achieving further progress during 2016."

[essentialinvestor] 08/4/2016 11:52

Gap around 4.87 to fill perhaps.

[essentialinvestor] 08/3/2016 14:49

Headlam's infrastructure, size of operation and client relationships are difficult to replicate, particularly in the UK. If you want a quality manufacturer there is JHD on 27X forward earnings. Agree the market will usually award manufactures a premium as is the case with JHD.

[cisk] 08/3/2016 14:28

jeffian, completely agree, yes VCP is a manufacturer so of course is different, I was however surprised at the calculated ROCE / margins, as HEAD came out better than VCP. I don't know VCP that well but would have thought their margin higher given the capital investment required in manufacturing. I wonder what impact the recent floodings have had on sales?

[jeffian] 08/3/2016 14:04

I'm not sure you're comparing like with like. Although they both deal with carpets, VCP is primarily a manufacturer whilst HEAD is purely a wholesaler/distributor. Wholesalers (in any product) tend to be given a low rating by the market because of the low 'barriers to entry'. HEAD implicitly acknowledges this by hoovering up as many small independent distributors as it can, offering economies of scale and efficiency as its usp to the retailers it supplies.

[cisk] 08/3/2016 13:48

I just did a quick comparison on HEAD v VCP on stockopedia. On virtually every measure HEAD came out best - indeed the growth of Victoria's share price is astounding and it now looks very expensive. Headlam, on the other hand, still looks cheap given the resilience of their earnings, and as others have mentioned, the cash generative abilities of the company, not to mention the cash at bank. I think their balance sheet is very conservative - just the kind I like! I added a few more after the excellent results last week, and will look to add more on any weakness.

[essentialinvestor] 07/3/2016 15:45

Headlam tends to be under the radar as it's outside the ASX. During the financial crisis HEAD still churned out £22 Million annually on pre tax, while continuing to invest. This business model is significantly more robust than some assume, one of the main reasons being the majority of people tend to redecorate one room at a time. Lifestyle Floors now appears to be enjoy growing brand recognition and traction in the market place, they started this from scratch. Establishing Headlam Corporate to showcase their higher end commercial product range is an astute move imv. The special dividend just announced will hopefully be the first of many. Echo the other recent positive posts- if you are investing on a multi year view the outlook looks bright.

[jeffian] 07/3/2016 14:02

"The content of this section is only available to Investors Chronicle online subscribers."

[battlebus2] 07/3/2016 13:29

Piece in Investors Chronicle how the capex plan is paying off. on.ft.com/1YmddA3

[essentialinvestor] 03/3/2016 09:42

With the positive momentum continuing would have thought 37 on EPS for the current year imv?. Net off the cash and you are paying about 13x forward earnings, any thoughts on that?. Special dividend of 6 pence paid on 25th of April, 14.7 Final paid in July.

[essentialinvestor] 03/3/2016 09:02

These are stand out results. The increase in cash generation is exceptional coupled with the first two months L4L number. 10% of the market cap now in cash.

[wjccghcc] 03/3/2016 08:24

Also added. It is a cashflow machine. With their capex cycle coming to an end, I suspect there will be special dividends for the forseeable future.

[cisk] 03/3/2016 08:22

Great results, with a nice little special divi tucked in. I'm very satisfied with this workhorse, give me these results any day over something more volatile. And love the fact that they expanded during the downturn and have net cash.

[battlebus2] 03/3/2016 08:00

Yes, i've been in and out of these a few times as I falsely believed their market was slowly a tad but with like for like up 6.3% for the first weeks of this year it maybe time to buy a few back. Dividend also up 18%..