Headlam Share Discussion Threads

[johndoe23] 25/4/2022 13:40

Correction, two 150k shares bought plus one 50k shares. Funny how price doesn't rise on this buying bit a few pi sells this morning and the MM drop the share price!

[johndoe23] 25/4/2022 13:38

Two more 100k buys and a 50k buy this morning.

[97peter] 23/4/2022 13:41

Agree.
I cannot see, when HEAD are buying back shares at a steady rate each day, plus big buys of 50,000 and 100,000 shares being bought, why the share price is still at 380p?? It should be over 395p with all the buybacks and big buy share trades?? How are the MM’s holding this back?? Especially with a 26.3p divi and ex divi date of 5 May not far away, strange!!!!

[johndoe23] 22/4/2022 12:52

Surprised share price hasn't ticked up ahead of ex div in two weeks.

[pugugly] 09/3/2022 11:53

Webcast Sounds very promising at the moment - but then of course it would!!
The digital offering and room visualistion and revenue to date from this sector gives confidence that they are ahead of competitors in the digital area.

[sphere25] 09/3/2022 08:55

Taken a few here, try and catch a bounce with a stop under 350p. The report has some cautionary tones going forward but they appear to sound like they can weather the storm. Clearly that all depends on how far things escalate in Ukraine, the impact on the likes of oil and gas and how that all feeds through to overall growth.

We have abit of a technical bounce going on out there, but barring some significant positive news, caution very much still needed, the last bounce didn't last long and got sold into.

There was an interesting move after we closed yesterday on news that Ukraine had agreed to not apply for NATO membership. It turned out the news wasn't actually news, but the reaction in the market was notable. Oil reversed significantly, energy plays went straight with it and there was a significant turn around in those correlated oil plays like airlines, hotels and other shares that are getting clobbered.

IF there is game changing news, it could be very easy to be on the wrong side judging by the way the market moved yesterday. Brutally sharp moves could follow, even bigger than at present.

All imo
DYOR

[tomps2] 09/3/2022 07:43

Headlam Group (HEAD) full year 2021 results presentation

Headlam’s CEO, Chris Payne presents the full year 2021 results for the period ending 31st December 2021.

Watch the video here:

Or listen to the podcast here:

[km18] 18/2/2022 17:32

...from last year...

Company overview:
Headlam is Europe’s leading floorcoverings distributor, providing supply and distribution channels between suppliers and customers. The company works with suppliers across the globe, providing them with cost efficient and effective route to market for their products. Headlam brings value to both sides of the supply chain with processing and distributions expertise and well-build marketing strategies. Between UK and Europe, HEAD is operating 66 businesses, each having its own brand and individual sales team. Their customer base covers both residential and commercial sector, but the residential is the larger of the two. Over the past few years the company has made several acquisitions and is continuously working towards revenue and margin enhancements.
Results in FY 2020 were impacted by the pandemic with revenue falling by 15.3% and dividends suspended, as the company ended with a statutory loss before tax of £17.1m. Cash flow managed to stay positive, even with substantial debt retirement. Recent broker forecasts have been quite low, in complete contrast with the recent trade update. Full year performance is expected to be “materially ahead of expectations”, as the company brought revenue level equal to H1 2019 and 45.2% above 2020. Following the strong trade of the first half the company is updating its anticipated PBT to “no less than £35m”. Moreover, strong balance sheet  and confidence in growth prospects are the basis on which Headlam decides to pay full dividend based on earnings at the time of the interim results....

...from WealthOracleAM

[jeffian] 03/2/2022 19:25

I always used to think that a Return of Capital accompanied by a share reduction was the most honest way of dealing with it but the Government put the kibosh on that by insisting that RoC should be treated the same as dividends for tax purposes. Even so, I'd rather pay a bit of tax and end up with some real cash to invest or re-invest as I choose rather than a notional increase in the value of my shares which Mr. Market may - or may not - deliver.

[essentialinvestor] 03/2/2022 18:34

HEAD have only used buy backs once, may be twice from memory in nearly 30 years.


UK cyclicals getting hit hard, back to 4.15/4.20 type level?.

[bda3490] 02/2/2022 18:59

I’m always sceptical about share buy backs. Ok they up the EpS but so many company options have triggers for EPS. Dividend does the job

Or distribute the share premium account it dodges GGT

[whittler100] 01/2/2022 15:48

What we were told on 27/1 was “the Company is considering a potential surplus return, the mechanism and quantum of which are expected to be announced within the final results in March 2022 alongside the proposed 2021 final ordinary dividend”.
Today in the presentation Chris Payne expanded a touch more.

Yes, I would also prefer a special dividend over a share buyback.

[jeffian] 01/2/2022 15:32

You don't need to "suspect"; we were told as much in the TU issued on 27/1!

"Given this, the Company's ongoing strong cash generation profile, and having reference to previously published Capital Allocation Priorities, the Company is considering a potential surplus return, the mechanism and quantum of which are expected to be announced within the final results in March 2022 alongside the proposed 2021 final ordinary dividend."

I just hope the "mechanism" isn't a share buyback, which doesn't return anything to remaining shareholders but artificially boosts EPS and NAV to the benefit of Directors' performance targets.....

[whittler100] 01/2/2022 15:18

As expected, a good presentation on IMC from Headlam today delivered by the acting CEO (CFO) Chris Payne. My description of Headlam is “moving from content & a little sleepy to growth”. The next couple of years could be interesting. I suspect from what we are told in the presentation that HEAD will be offering a special dividend &/or share buyback probably announced in March.

[whittler100] 27/1/2022 14:54

I rather liked that HEAD update which I felt would just be in line but turned out a smidgen better, Mr Market was snoozing early on so I added a few more; seems to have woken up now.

[whittler100] 27/1/2022 08:25

PH, unless one plans to sell into a day rise, I actually think it’s a good day to put out a strong TU; gives us an opportunity if we so wish to top up whilst the market is unsettled.

[purplepelmets] 27/1/2022 08:08

Not a good day to be putting out a belting trading update. We was robbed. Well done HEAD excellent performance considering..

[thorpematt] 21/1/2022 16:08

EI,
Thanks, it's a mandatory offer, so a low-ball at this juncture. I am hoping the IIs vote that one down.

I am eyeing the chart here and thinking this may be an equally lowly price to go shopping.

regards
TM

[whittler100] 21/1/2022 15:48

All we need EssentialInvestor is a Dr. Who Tardis; keep looking on eBay for a reconditioned one!
Still got paper photocopies of Company Refs entering such gems as CKN at well below £1 back in the day; if only I had held etc etc.
Fortunately, record-keeping, successes & mistakes, is much easier these days.

[essentialinvestor] 21/1/2022 15:29

One of the first stocks I ever bought, around 1992/3, from memory.

Remember the price I paid, 76 pence a share. Time flies by!!

[whittler100] 21/1/2022 15:24

That’s right EssentialInvestor; Stephen Wilson was previously CFO with HEAD and a board member for many years. When Ton Brewer stepped down as CEO in 2016, Stephen Wilson became CEO. Incidentally, ex-CEO Tom Brewer started up what I guess you could call a rival to Headlam; Likewise, the senior directors/ senior management are fairly dominated by ex-Headlam managers. LIKE looks to be an interesting company.

[essentialinvestor] 21/1/2022 14:10

whitter, he was with the company for the time you mentioned but not as CEO,
his tenure in that position was short. He replaced the long serving CEO,
so two CEO departures over the last few years.


I am guessing the recent one may have something to do with the Domus acquisition.

On the day on of announcement I mentioned on here that was a la la land price,
buying from PE who were probably laughing all the way to the bank - profitability
of Domus has not been mentioned once since and HEAD wrote down the value of
the acquired business recently.


Matt, well done on PHTM.

[thorpematt] 20/1/2022 22:43

Looks like someone is buying at 420p

....seems to be a floor under the price at that level.

[whittler100] 20/1/2022 18:49

I will be keeping a close eye on Headlam TU on 27/01/22. The long-serving CEO, with over 30 years of service, stepped down in Oct 21 as the Key Improvement Prog was introduced. The wording in the RNS announcing the stepping down of the CEO was very gracious & fitting for a guy with 30 years of service but once I saw that strategy presentation that was critical of leadership/strategy, he was IMO waiting in the departure lounge; just a matter of time before he departed.

I did have a decent position in HEAD but sold down 80% on 2/9/21 on Q2 results day; just felt a little concerned about the ” Subdued commercial sector activity”. Since that time & maybe in keeping with the markets, the price has drifted about -12%.

The last TU: 25/11/21: “Revenue for the year to date is tracking broadly in line with current market expectations which were significantly upgraded in July 2021. A robust performance in the residential sector has helped to offset a persisting subdued commercial sector, with other features of the market being the ongoing industry-wide supply issues, and associated inflationary pressures, all of which the Company has been largely able to mitigate. Profit performance has been pleasing and reflects the previous and ongoing actions to improve operating efficiency and margin. As a consequence, the Company expects to deliver underlying profit before tax for the year ending 31 December 2021 marginally ahead of current market expectations”.

The obvious attractions continue to be: Strong balance sheet; Pays a decent dividend that is well covered by FCF; PEG of 0.2 (Stock shows a PEG of 0.8)& of course, the planned growth strategy, overall in the long term a sound business. On the downside, we have the usual knock-on Covid uncertainties, supply issues, contractor market been a touch soft to recover during pandemic etc. Then we have the interim CEO (the current CFO) gap until a new CEO is in place. So, whilst I feel comfortable regarding the long-term future of HEAD, I will wait for that TU on 27th to reassure me of the short to medium-term.