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Interim Results

Headlam profits up

24 August 2016 07:31

Headlam's group revenue rose by 4.8% to £328.7 million in ths six months to the end of June and operating profit increased by 18.5% to £15.4 million.

Profit before tax was up 22.4% at £15.11 million; basic earnings per share rose by 23.1% to 14.4 pence and the interim dividend is up 11.7% at 6.7p per share. The group had net funds of £33.9 million as at 30 June (30 June 2015: £26.0 million).

Operational highlights:

- Further gains achieved in UK market share with like-for-like revenues increasing by 3.4% and an additional working day in 2016 adding a further increase of 0.9%

- Headlam Corporate, the group's newest business, making good progress in its target market of specified commercial flooring

- Lifestyle Floors' revenue up 34.8% to £21.1 million (H1 2015: £15.6 million)

- Further expansion of the service centre network with centres in Croydon, Hull and Bristol opened in the first half bringing the total to 32 with a further three centres in development Group chief executive Tony Brewer said: "It is pleasing to report further progress during the first half of 2016, reflecting the continued outperformance of our UK business, an improving trend in our Continental Europe businesses and the ongoing delivery of our strategy to increase market share.

"August is traditionally one of the group's peak trading months in the UK with the annual summer refurbishment of educational institutions. To date, this seasonal business seems to have been unaffected by the result of June's referendum on EU membership.

"However, the referendum result gave rise to a weakening in sterling, and the group has sought to mitigate this adverse inflationary effect by implementing price increases earlier this month for residential floorcoverings imported from Continental Europe. It is pleasing that these price increases appear to have had no adverse impact on the level of residential revenues to date.

"Our market appears to be robust and, subject to the key trading period in the run-up to Christmas, the board remains confident of achieving full year expectations."

Story provided by StockMarketWire.com

Related Company: HEAD

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