Headlam Group PLC AGM Trading Update (0485A)

TIDMHEAD

RNS Number : 0485A

Headlam Group PLC

24 May 2019

24 May 2019

Headlam Group plc

('Headlam' or the 'Company')

AGM Trading Update

Headlam Group plc (LSE: HEAD), Europe's leading distributor of floorcoverings, provides the following trading update in respect of the first four months of the year (the 'Period') ahead of its Annual General Meeting ('AGM') being held at 10.00 am today.

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. This early stage trading performance is pleasing, with the Company maintaining its overall expectations for the full year ahead of the traditionally stronger second half of the year.

In the UK, both the residential and commercial sectors delivered a positive performance, with the commercial sector notably strong. In Continental Europe, continuing the 2018 performance, the residential sector was once again the much stronger performer.

Activity relating to the build of the new regional distribution centre in Ipswich is proceeding in-line with timetable and, as previously indicated, is anticipated to be operational mid-2020. The Company's other efficiency initiatives, as detailed within the 2018 Annual Report and Accounts, continue to be pursued, with outputs from several trials being analysed and their attendant impact on future operational and financial performance assessed.

The Company will release its next trading update on 24 July 2019 prior to entering its close period and ahead of announcing its interim results for the six months ending 30 June 2019 on 28 August 2019.

*Like-for-like revenue is calculated based on constant currency from activities and businesses that made a full contribution in both the 2019 and 2018 periods and is adjusted for any variances in working days.

Enquiries:

 
Headlam Group plc                              Tel: [phone] 
Steve Wilson, Chief Executive                  Email: [e-mail] 
 Chris Payne, Chief Financial Officer 
 Catherine Miles, Director of Communications 
Investec Bank plc (Corporate Broker)           Tel: [phone] 
David Flin / Alex Wright 
Panmure Gordon (UK) Limited (Corporate         Tel: [phone] 
 Broker) 
Erik Anderson / Dominic Morley 
 / Ailsa MacMaster 
Buchanan (Financial PR and IR)                 Tel: [phone] 
Mark Court / Sophie Wills / Catriona 
 Flint 
 

Notes for Editors:

Operating for 26 years and employing over 2,600 people, Headlam is Europe's leading distributor of floorcoverings.

Headlam provides the distribution channel between suppliers and trade customers of floorcoverings. Working in partnership with suppliers from 22 countries manufacturing a diverse range of floorcovering products and ancillary accessories, Headlam provides an unparalleled route to market for their products across the UK and certain Continental European territories.

The utilisation of an outsourced distribution channel enables manufacturers to focus on their core activities, incur reduced costs associated with distribution, and benefit from localised sales, marketing and distribution expertise that provides a more effective and greater route to market for their products.

To maximize customer and market penetration, Headlam comprises 65 individual businesses in the UK and Continental Europe (France, the Netherlands and Switzerland) each operating under their own unique trade brand and utilising individual sales teams.

Headlam's extensive customer base, operating within both the residential and commercial sectors and comprising principally independent retailers and flooring contractors, receives the broadest product offering supported by next day delivery as well as additional marketing and other support.

Headlam's offering is enabled through its unrivalled operating expertise, long-established supplier and customer relationships, and comprehensive distribution network. Following years of considerable investment, Headlam's distribution network currently comprises four national distribution hubs, 19 regional distribution centres and a supporting network of smaller warehouse premises, trade counters, showrooms and specification centres.

In 2018, Headlam worked with 199 suppliers and fulfilled over 5.3 million customer orders.

www.headlam.com

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May 24, 2019 02:00 ET (06:00 GMT)