Headlam Share Discussion Threads

[essentialinvestor] 01/7/2020 11:23

Continuing to slip downwards.

[essentialinvestor] 17/6/2020 14:15

I've known Headlam since 1992/93, although dont have any inside track on
the wider sector.

To their credit they have navigated multiple previous downturns.

Clearly there is a cyclical element to the business.

[jeffian] 16/6/2020 09:24

NOTICE OF ADMISSION TO OFFICIAL LIST

The following securities have been admitted to the Official List of The International Stock Exchange with effect from 30 May 2019 at 08:00.

Likewise Group plc
341,994 ordinary shares of GBP0.01 each
ISIN – GB00BHNWH003

As a result of this additional issue 152,341,994 ordinary shares of GBP0.01 each are now listed on the Exchange.

The application was sponsored by Ravenscroft Ltd.

[cisk] 16/6/2020 05:37

How does one buy shares in Likewise? Can’t see them listed anywhere...

[essentialinvestor] 15/6/2020 17:49

Indeed, cant be discounted and appreciate the inside view.

[jeffian] 15/6/2020 17:44

Well you can see why they called it "Likewise" - they're all ex-Headlam!

It's not clear from their IPO whether they've set themselves up to "chip away" at their previous employer or follow Headlam's model of hoovering up smaller players who still make up over 50% of the market. Interesting info, though.

[essentialinvestor] 15/6/2020 11:25

Appreciate the view, many thanks.

Strongly disagreed with the Domus acquisition, posted here at the time it
looked a top of the cycle buy.

I thought smaller competitors may be under severe pressure
and Headlam may take share. Let's see.

[northerngrowler] 15/6/2020 11:04

To put some meat on the bones of my opinion (I do not work for or hold shares in any of these groups but am involved in the sector). In my experience I would say Likewise Group PLC (set up by ex senior Headlam management) and Carpet and Flooring have way outshone anything Headlam have done over the Covid period and perhaps unsurprisingly so have the smaller wholesalers. Headlam operate many flooring distribution businesses and most are operated on a "stand alone" basis but many of these businesses are closely located geographically and do much of the same operation to the same customer with individual back office and on the road sales reps. With the pressures the business must be feeling from the many new kids on the block chipping away at their huge operation they must be feeling the squeeze on sales and margin.

Headlam are a really important player in the flooring distribution market but they are being attacked from so many sides.

Just my opinion but thought would share!

[jeffian] 15/6/2020 09:44

Aye, I was wondering that. I can't imagine a less Covid-affected business; automated warehouses, single-driver vehicles. Sure, they're dependent on the housing market, but what (and who) are others doing better? And what "consolidation"? Begs more questions than it answers.

[essentialinvestor] 15/6/2020 09:19

Can you elaborate on any of that?.

[northerngrowler] 13/6/2020 15:42

Will be interesting to see if Headlam can recover from the covid crisis without having to make fundamental changes that historically they have been slow to react to. In my experience they have not reacted to the recent issues as well as many of their competitors (some run by their former senior management). I think there will be some major consolidation coming if they are to bounce back.

[aim0raider] 12/5/2020 15:44

https://twitter.com/aimraider/status/1259871678483570690?s=21

[jeffian] 27/1/2020 23:42

This is a funny old share. I've held it for donkeys' years but it is not uncommon that it moves up or down 5/6% in a day. Maybe I should be trading it?!

[standish11] 21/8/2019 19:15

hxxps://ttf.co.uk/a-no-deal-brexit-is-now-odds-on-heres-what-that-means-for-timber-trade/table/

I suspect currency valuations will be of ore significance.

[essentialinvestor] 21/8/2019 14:14

A lot of their product comes from the Netherlands.

If the UK is outside of the EU without a deal, do we have any guidance on what
the tariffs may be on wood products?.

Asking hoping someone may have some industry knowledge, thanks.

[essentialinvestor] 21/8/2019 13:29

Might be an opportunity here at lower levels if we are leaving without a deal.
That being said, this may be bid for at some stage.

[undervaluedassets] 24/5/2019 13:56

market wrongfooted by today's upbeat update. .

historically was looking cheap even before today's announcement ...

[effortless cool] 24/5/2019 06:10

A surprisingly positive AGM update from HEAD this morning.

"Like-for-like revenue* increased by 3.1% and 5.8% in the UK and Continental Europe respectively against the same period in the prior year, resulting in an overall like-for-like revenue* increase of 3.5% in the Period against the soft comparatives of the prior year. In absolute terms, total revenue increased by 5.5% in the Period".

Although they just hold management expectations for the year, with broker consensus forecasting a 0.6% drop in revenue, it is likely in my view that upgrades will be in the pipeline.

[jeffian] 11/4/2019 08:21

I note that the CEO and CFO have been awarded nearly £700k of nil-cost options based largely on Total Shareholder Return and increases in earnings per share. Well let's hope they do a bit better than the last couple of years!




"The awards have been granted subject to performance conditions based on: (1) the Company's compound annual growth in Earnings Per Share ('EPS') over a three-year performance period starting with 2019 (as regards 80% of the Ordinary Shares subject to the award); and (2) the Company's Total Shareholder Return ('TSR') over that performance period relative to the TSRs of the constituents of the FTSE SmallCap Index (excluding investment trusts) (as regards 20% of the Ordinary Shares subject to the award). The awards are subject to a further underpin performance condition that the extent of vesting reflects the overall financial performance of the Company over the three-year performance period."

[essentialinvestor] 06/3/2019 17:20

From memory, a lot of their product is imported through the Netherlands.

If you are concerned or want some more information, it may be possible to
speak with the CEO, Or just e-mail.

[essentialinvestor] 06/3/2019 12:53

Notice Domus does not get a mention.

The PE owners timed their exit to perfection as per,
as I mentioned at the time.

[westcountryboy] 06/3/2019 12:50

Sorry for opening the Brexit Pandora's box! The varying replies confirm my point - it would just help to have a bit more concrete information to help investors judge the risks here. Many other companies manage this.

[essentialinvestor] 06/3/2019 12:15

Ian, I must be imagining the fact that the UK is skirting recession atm.
Or that two businesses in my local area have made people redundant, while opening offices
in Dublin. Or that inward investment to the UK has collapsed.
Inward investment is one of the foundations of future UK employment.
Takes a while to show up in the stats, however notice the UK claimant count
over the last 12 months. It's on a steadily rising trend.

[jeffian] 06/3/2019 11:30

They are a distributor, not a manufacturer, and have distribution companies/depots all over Europe which (like so many Brexit scare stories) will be almost entirely unaffected.