RNS Number : 5106T
Headlam Group PLC
25 November 2021
25 November 2021
Headlam Group plc
('Headlam' or the 'Company')
Trading and ESG Update
On track to deliver profit marginally ahead of expectations
Headlam Group plc (LSE: HEAD), Europe's leading floorcoverings
distributor, is pleased to provide an update on trading, and
Environmental, Social and Governance ('ESG') actions.
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 Company will announce its Pre-Close Trading Update on 27
January 2022 ahead of announcing final results for the year ending
31 December 2021 in early March 2022.
Following the publication of the Company's first ESG Strategy
Report in May 2021, which set out initial focuses and broader
ambitions in sustainability and ESG, the Company is pleased to
provide an update on its recent actions.
Through collaborating and working with its employees and
external stakeholders, the Company is focused on:
i) reducing its contribution to Greenhouse Gas ('GHG') emissions and climate change;
ii) becoming a more sustainable business, including through
cultural development and increasing oversight of ESG related risks
and opportunities; and
iii) increasing the sustainability of the overall floorcoverings
industry through engagement and example, and supporting the future
transition to a circular economy.
GHG emissions from its transportation activities (both
commercial and non-commercial fleet) are the Company's most
material direct impact on the environment and therefore an area of
immediate focus. The Company's Transport Integration project
centred around more efficient delivery fleet utilisation has thus
far resulted in a 35 reduction in fleet number to 353.
In relation to its non-commercial fleet, the Company has this
month introduced a plug-in hybrid vehicle for drivers so that
during 2022 over 50% of the non-commercial fleet will be plug-in
hybrids. Currently there are no viable options to move the
commercial fleet to electric powered vehicles, but the Company will
continue to actively monitor the situation.
In support of promoting sustainable products into the industry
and increasing awareness by the end consumer, the Company recently
launched a sustainable 'Wool Britannia' product range, with other
launches planned as part of an ongoing campaign.
The Company's current focus in this area is on improving the
support to its workforce, including through cultural development,
engagement, and review of rewards and benefits. During the last few
months, 'Values and Behaviours' and 'Leading through Change'
workshops have been rolled-out across the group, as well as
conferences and training being held on strategic projects. In
addition, enhancements to rewards and benefits are being
implemented from the beginning of 2022 along with a locally focused
community programme, which will be detailed within the 2021 Annual
Report being published in March 2022.
One of the material issues identified through consultation with
stakeholders was 'Supply Chain Risk', and it forms an area of key
near-term focus. Actions to mitigate risk in this area include the
commencement of an engagement programme with key suppliers on
industry sustainability issues, including on any changes to
regulation and potential sustainability partnerships. Additionally,
the Company has recently signed a contract with an independent
party to conduct a full Supply Chain Risk Assessment.
Disclosure, Targets and Measurement of Progress
The Board of Headlam is committed to developing the Company's
ESG Strategy, and has oversight and overall responsibility for the
ESG Strategy and performance. To provide a tool to measure
progress, KPIs and targets will be introduced for certain
environmental related and other actions within the 2021 Annual
Report which will incorporate a full form ESG Report aligned with
both the Task Force on Climate-related Financial Disclosures
('TCFD') and the Sustainability Accounting Standards Board
('SASB'). The 2021 Annual Report will also articulate the Company's
initial strategy in relation to Diversity and Inclusion.
*Company compiled consensus market expectations for 2021 revenue
and underlying profit before tax are GBP684.8 million and GBP35.0
million respectively (on a mean and post IFRS 16 adoption
Headlam Group plc Tel: 01675 433 000
Chris Payne, Interim Chief Executive Email: firstname.lastname@example.org
Catherine Miles, Director of IR
Investec Bank plc (Corporate Broker) Tel: 020 7597 5970
David Flin / Alex Wright
Panmure Gordon (UK) Limited (Corporate Tel: 020 7886 2500
Erik Anderson / Edward Walsh /
Alma PR (Financial PR) Tel: 020 3405 0205
Susie Hudson / Harriet Jackson email@example.com
/ Faye Calow
Notes for Editors:
Headlam is Europe's leading floorcoverings distributor,
providing the channel between suppliers and trade customers of
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 customer base. Alongside long
established processing and distribution expertise, suppliers
benefit from Headlam's marketing and customer servicing into the
most extensive 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 Company's
network and centralised resources.
The Company's customer base covers both the residential and
commercial sectors, with the principal customer groups being
independent retailers and smaller flooring contractors alongside
other groups such as larger retailers, housebuilders, specifiers,
and local authorities.
Headlam is focused on providing customers with a market leading
-- the broadest product offering;
-- unrivalled product knowledge and tailored solutions;
-- sales team and marketing support;
-- ecommerce support; and
-- nationwide delivery and collection service.
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(END) Dow Jones Newswires
November 25, 2021 01:59 ET (06:59 GMT)
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