Flooring distributor Headlam shares plummet as sales slow down in first half
Shares in floor covering distributor Headlam dived five per cent after markets opened today as it reported a steep drop in sales in the first half of the year.
Like-for-like revenue at the firm took a hit compared to last year, falling 5.2 per cent. Before tax profit edged up 0.9 per cent to £17.73m – while it held the dividend at 7.55p.
The firm said the "softness" of the UK market meant that difficult trading conditions would persist throughout the rest of 2018. It warned investors its full-year results would likely be at the lower end of current market expectations.
Steve Wilson, chief executive, said:
We are pleased to report further growth and an increase in our market position during the first six months of 2018. However, given the current softness in the UK floor covering market and the associated trading impact on the company's UK businesses coupled with the current indications that these conditions are likely to continue during the second half of the year, the board now expects that the full year outcome, whilst ahead of the full year 2017, will be towards the lower end of current market expectations.
Despite a difficult trading environment which has seen another flooring firm Carpetright close 92 stores, Headlam has made a number of acquisitions to bolster its offerings in the Netherlands and North London.