Headlam Share Discussion Threads

[tudes100] 31/8/2016 23:49

Thanks for response EI, read annual report and still none the wiser about how they actually make all these different businesses practically work (other than the shared DC's). Can only assume that their commercial customers are likely targeted through telesales rather than field reps to avoid expensive duplication of effort. Interesting business model though, can't say I've come across many companies that seem to have so many businesses effectively run separately that compete in the same market. Maybe it doesn't matter and is not too different to a franchise model that encourages competition between outlets but ensures outlets just aren't too close together.

[jeffian] 31/8/2016 23:28

If he's anything like our cats, he'll be good for the carpet trade!

[essentialinvestor] 31/8/2016 22:00

The sector is cyclical, my cat Gump is aware of that one. They still made over £20 million annually on pre tax in the last financial crisis.

[essentialinvestor] 31/8/2016 16:30

Added a few under 4.51.

[essentialinvestor] 31/8/2016 10:12

In terms of overlap yes possible, however geographic diversity would largely mitigate imv. Headlam have previously merged a couple of their UK distributors, this is clearly not a favoured approach. Each individual business has agreed annual profit targets. Inefficiencies are not something I would associate with the Headlam model. All just IMV only, plenty of detail provided in the Annual report.

[essentialinvestor] 30/8/2016 15:22

As I am looking to add further may be in my interest to sound less positive ) The answer to your CAPEX question can be found in the recent statement.

[tudes100] 30/8/2016 01:52

Had a really good look at HEAD at the weekend & had a few questions that perhaps some of the PI's who have been in the share a while wouldn't mind clearing up for me. Firstly re the business model, how do they ensure that all their disparate businesses don't compete with each other ? Of course there is geographic separation but running each business alone seems very complex & prone to massive overlap (inefficiency ?). Secondly does anyone have any idea whether the delayed investment in the Ipswich distribution centre is definitely happening this financial year ? Investment costs quoted are £19.7m over 2 years so I'm assuming no special divi's if this is the case. Thanks.

[essentialinvestor] 26/8/2016 14:17

Added a few under 4.60.

[essentialinvestor] 24/8/2016 11:30

The consensus forecasts for this year taken from Digital Look are for 0% EPS growth, so following a 23% plus for H1 on earnings per share and coupled with that outlook statement, those estimates now look way too low IMV.

[my retirement fund] 24/8/2016 11:10

Looks to be on the up

[essentialinvestor] 24/8/2016 10:10

What strikes me about Headlam is that it is run with the longer term success of the business in mind. They make continual improvements to service and processes through investments. Some may see low barriers to entry but this is only half right as HEAD have built scale, range and distribution capability over the years. The wider market shares gains underscore this, consistently growing ahead of their market The share price does move around a bit, however I can live with that.

[cisk] 24/8/2016 09:52

Essential, yes a great company, well run (very conservatively from what I can tell) and grows slowly gobbling up smaller competitors as and when. Price looks cheap on fundamentals and supported by a good yield. Happy holder!

[essentialinvestor] 24/8/2016 09:18

Agree it's a cash generating machine. Headlam one of the first shares I bought back in 1992 from memory. My youth may be gone but it's still a great company, some things never change.

[cisk] 24/8/2016 07:49

excellent results. I want to increase my holding. They are throwing off cash - cash up 30% despite paying off loan & special dividends, totalling £10m, without these cash would have been up nearly 70%. I suspect we might see another special dividend next year

[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......