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Share Name Share Symbol Market Type Share ISIN Share Description
Headlam Group Plc LSE:HEAD London Ordinary Share GB0004170089 ORD 5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  3.00 1.01% 300.00 296.00 299.00 301.00 292.00 292.00 27,745 16:35:24
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Household Goods & Home Construction 667.2 27.6 28.8 10.4 255

Headlam Group PLC AGM Trading Update

19/05/2022 7:00am

UK Regulatory (RNS & others)


Headlam (LSE:HEAD)
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TIDMHEAD

RNS Number : 0219M

Headlam Group PLC

19 May 2022

19 May 2022

Headlam Group plc

('Headlam' or the 'Company')

AGM Trading Update

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

Financial performance

Q1 2022 revenue was broadly in line with plan, followed by a slightly weaker performance in April 2022 due to overall softening in the residential sector and some delayed orders. In the four months, residential sector revenue for the group was down 0.5% against the prior year period on a like-for-like basis. However, the Company's branded, higher-end and higher-margin products performed above plan, and delayed orders are now coming through.

The commercial sector continued to show recovery from its severely impacted position in both 2020 and 2021 due in large part to COVID-19 related restrictions. In the four months, commercial sector revenue for the group was up 5.8% against the prior year period on a like-for-like basis.

The overall revenue performance in the period was in-line with 2021. Profit performance was above 2021 due to strong margins continuing into 2022, supported by the Company's ongoing focus on operational efficiency through cost control.

Strategic progress

The Company's strategy is focused on driving additional revenue opportunities from a more efficient operating base, including capturing market share in underweight customer segments. Encouraging progress was made in the period, including: further new customer gains and increase in SKUs in the multiple retailer segment; 25% of sales now coming from the new and improved digital channels (2019: 11%); and the revenue performance of the trade counter network which is subject to improvement and significant roll-out being up 13% for invested sites on the same period last year (on a like for like basis). Additionally, activity was focused on preparations for new product launches over the coming months to support market share gain.

Outlook

As expressed at the time of the March 2022 Final Results announcement, the continuing inflationary environment is likely to impact consumer spending during the year, thereby suppressing underlying volumes and revenues in the industry. However, the Company's strategy, set out above, should provide a countermeasure and some protection against the weaker underlying market. Additionally, the continuing manufacturer-led price increases due to cost inflation will continue to provide a support to revenue performance and help offset operational cost inflation.

The summer months are an important period for the commercial sector activity owing to refurbishment, repair and maintenance particularly in educational and other establishments. With a severely impacted industry-wide commercial sector performance in the previous two years, there is an expectation that some of the work previously not undertaken will take place this year.

Given the above, and the performance to date, the Company continues to be comfortable with profit expectations(1) for the year.

Outside of trading

Patrick Butcher, formerly Group CFO at Capita plc, The Go-Ahead Group plc and Network Rail, has joined the Company as Interim Chief Financial Officer on a temporary basis while the current independent search process for a permanent Chief Financial Officer is ongoing. The Board currently anticipate being able to provide an update on the search prior to or at the Company's next scheduled Pre-Close Trading Update on 28 July 2022. The Board would also like to take the opportunity to again express its deepest thanks to Philip Lawrence who is stepping down as Non-Executive Chairman at today's AGM after seven years on the Board.

Commenting, Chris Payne, Chief Executive, said:

"With our comprehensive growth focused strategy which is demonstrating progress, we believe we are well positioned despite the expected weakening in the residential sector of the marketplace. We look forward to the busier trading months ahead and the ongoing delivery of our strategy."

Keith Edelman, Non-Executive Chairman (designate, subject to the annual director re-election shareholder vote at today's AGM), commented:

"I would like to put on record the thanks of the Board for Philip's contribution. Philip has been instrumental in developing a far stronger Board for Headlam, and under his Chairmanship the Company has developed and is now delivering on its strategy. We wish him well for the future."

Investor Presentation

Headlam Group plc is pleased to announce that Chris Payne, Chief Executive, will provide a live presentation relating to the AGM Trading Update via the Investor Meet Company platform today (19 May 2022) at 3.00pm BST.

The presentation is open to all existing and potential shareholders. Investors can sign up to Investor Meet Company for free and add to meet Headlam Group plc via:

https://www.investormeetcompany.com/headlam-group-plc/register-investor

Investors who already follow Headlam Group plc on the Investor Meet Company platform will have automatically been invited.

(1)Company-compiled consensus market expectations for revenue and underlying profit before tax, on a mean basis,

are available on the Company's website at   www.headlam.com . 

Enquiries:

 
Headlam Group plc                                          Tel: 01675 433 000 
Chris Payne, Chief Executive                               Email: headlamgroup@headlam.com 
Catherine Miles, Director of IR and ESG 
Panmure Gordon (UK) Limited (Corporate Broker)             Tel: 020 7886 2500 
Erik Anderson / Edward Walsh / Ailsa MacMaster 
Peel Hunt LLP (Corporate Broker)                           Tel: 020 7418 8900 
George Sellar / John Welch / Andrew Clark 
Alma PR (Financial PR)                                     Tel: 020 3405 0205 
Susie Hudson / Rebecca Sanders-Hewett / Lily Soares Smith  Email: headlam@almapr.co.uk 
 

Notes for Editors:

Operating for 30 years, Headlam is Europe's leading floorcoverings distributor, providing the channel between suppliers and trade customers of floorcoverings.

Headlam works with suppliers across the globe manufacturing a diverse range of floorcovering products, and provides them with a cost efficient and effective route to market for their products into the highly fragmented trade customer base.

To maximise customer reach, Headlam operates 66 businesses across the UK and Continental Europe (France and the Netherlands). Each business operates under its own trade brand and utilises individual sales teams while being supported by the group's distribution network, central teams and resources.

The Company's extensive customer base covers both the residential and commercial sectors, with principal customer groups being independent retailers and smaller flooring contractors alongside other customer segments such as larger (multiple) retailers, housebuilders, specifiers, and larger contractors (including local government / authorities).

Headlam provides customers with a market leading service through:

   --       the broadest product offering; 
   --       unrivalled product knowledge; 
   --       tailored service propositions and solutions; 
   --       sales team and marketing support; 
   --       ecommerce support and digital applications; 
   --       nationwide delivery; and 
   --       trade counter and collection service. 

www.headlam.com

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END

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(END) Dow Jones Newswires

May 19, 2022 02:00 ET (06:00 GMT)

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