Headlam Group PLC  

Headlam Group PLC (LSE: HEAD) is listed under the FTSE-All Share Index, operating as a floorcoverings operator. Primarily, the operating activities of the company and its subsidiaries are engaged in selling, distributing, supplying, and marketing of floorcoverings and other subordinate products within the UK and certain continental European territories..

Trading Update for First Four Months ended on April 2024 (Released on 14 May 2024)

• Financial Update: Revenue for the period decreased by 12.3% year on year, with the UK down 11.6% and Continental Europe down 16.9%. April's revenue did not exhibit the usual seasonal uplift. Cash and working capital stood well positioned, with net debt at GBP 43 mn and close to GBP 60 mn of cash and undrawn facilities available at the end of April 2024.
• Strategic Highlights: In recent years, the Group has focused on broadening its customer base and simplifying its sales teams and operations. Despite these efforts, volumes have declined for three consecutive years, and recent macro data suggests continued weakness in RMI, consumer spending on home improvements, and housing transactions. Consequently, the Group is accelerating its strategy to further integrate and simplify its business, with recovery in the floor coverings market expected to be delayed until 2025.
• Outlook: The company expects a significant pre-tax loss in the H1 FY24 due to a double-digit decline in revenue. Improvement is expected in the H2 FY24 due to mitigating actions and gradually improving market conditions, though market growth is not anticipated until 2025. Full-year profit is expected to be significantly below current market expectations.

Share Price Chart

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Headlam Group PLC (LSE: HEAD) was trading at the closing market price of GBX 143.50 (as of 17 June 2024)

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 17 June 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 4: Dividend Yield may vary as per the stock price movement.