Headlam Group PLC Pre-Close Trading Update
RNS Number : 8181G
Headlam Group PLC
29 July 2021
29 July 2021
Headlam Group plc
('Headlam' or the 'Company')
Pre-Close Trading Update
Full year performance anticipated to be materially ahead of
current market expectations
Resumption of normalised dividends
Headlam (LSE: HEAD), Europe's leading floorcoverings
distributor, is pleased to provide a trading update ahead of
announcing its interim results for the six months ended 30 June
2021 ('H1 2021') on 2 September 2021.
As announced in the 1 July 2021 Capital Markets Day Trading
Update, H1 2021(1) revenue was in-line with H1 2019(1) and 45.2%
ahead of H1 2020(1), which was significantly impacted by COVID-19
related closures. Performance improved through the period, with
initial soft trading in the first two months being followed by good
monthly performances. The residential sector was strong throughout,
with the weak commercial sector curtailing overall performance to
H1 2019 levels. However, this weakness continued to be recouped
throughout the period, and in June 2021 commercial sector revenue
was only 3.2% below June 2019.
July 2021 has traded in-line with July 2019 prior to the Company
entering the traditionally busy summer period for refurbishment
activity within the commercial sector.
Given this sustained year-to-date performance and the Company's
traditional second-half revenue weighting, the Company now expects
full year performance to be materially ahead of current market
expectations(2). After factoring in prudent revenue assumptions,
and performance-related employee bonus payments due to the current
outperformance, it is anticipated that 2021 underlying profit
before tax will be no less than GBP35.0 million(1)(,) (2) (unless
exceptional or unforeseen circumstances prevail). The Company will
provide further updates as necessary as the year progresses.
Additionally, as a consequence of the trading performance above,
strong balance sheet, and confidence in the prospects for the
business, the Board will now expedite the resumption of normalised
levels of dividend payments. A return to a full dividend payment
based on earnings(3) will occur at the time of the interim results
when the 2021 interim dividend is declared.
(1) Performance for continuing operations only. Excludes the
contribution from the Swiss business in 2021, and the comparison
years, following its disposal in May 2021.
(2) Company-compiled consensus market expectations for 2021
revenue and underlying profit before tax (prior to any updates
following this announcement) are GBP653.5 million and GBP29.0
million respectively (on a mean and post IFRS 16 adoption
(3) The Company's published Capital Allocation Priorities can be
found at headlam-ar-2020-web.pdf (page 9), and includes the
targeted parameters in relation to dividend payments: 'A bi-annual
ordinary dividend distribution paid out of cash with a target cover
ratio of 2x earnings for the combined pay-out, and an interim and
final dividend payment split of approximately 1/3 : 2/3.'
Headlam Group plc Tel: 01675 433 000
Steve Wilson, Chief Executive Email: email@example.com
Chris Payne, Chief Financial
Catherine Miles, Director of
Investec Bank plc (Corporate Tel: 020 7597 5970
David Flin / Alex Wright
Panmure Gordon (UK) Limited Tel: 020 7886 2500
Erik Anderson / Edward Walsh
/ Ailsa MacMaster
Alma PR (Financial PR) Tel: 020 3405 0205
Susie Hudson / Harriet Jackson firstname.lastname@example.org
/ Faye Calow
This announcement contains information which, prior to its
disclosure, was inside information as stipulated under Regulation
11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310
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;
-- e-commerce support;
-- 'just-in-time' nationwide delivery and collection service; and
-- other support including the provision of credit.
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(END) Dow Jones Newswires
July 29, 2021 02:00 ET (06:00 GMT)
Gráfica de Acción Histórica
De Sep 2021 a Oct 2021
Gráfica de Acción Histórica
De Oct 2020 a Oct 2021