Headlam Group PLC Trading Update (6291Y)
07 December 2017 - 6:00PM
UK Regulatory
TIDMHEAD
RNS Number : 6291Y
Headlam Group PLC
07 December 2017
7 December 2017
Headlam Group plc
('Headlam' or the 'Company')
Trading Update
Headlam Group plc (LSE: HEAD), Europe's largest distributor of
floorcoverings, is pleased to provide a trading update in respect
of the ten months to 31 October 2017.
Trading for the ten month period was positive with total revenue
growth of 2.7% against the comparable period in the prior year
(1.7% in constant currency), and UK and Continental Europe
delivering like-for-like revenue* growth of 0.7% and 4.5%
respectively.
While the first half of 2017 delivered total revenue growth of
4.0%, the first four months of the second half was characterised by
weaker markets as evidenced by modest revenue growth of 1.5% (0.6%
in constant currency). In this four-month period, UK like-for-like
revenue* decreased 1.1%, with the commercial sector declining by
2.6% and the residential sector marginally down by 0.4%.
Continental Europe, however, saw more robust growth with
like-for-like revenue* growth of 6.6%, and the residential sector
increasing by 11.3%.
Initial indications are that trading in November 2017 in the UK
showed a marginally improved performance compared with the first
four months of the second half.
Notwithstanding the recent market weakness, which is anticipated
to result in revenue growth for the year being marginally lower
than planned, due to the concerted focus on margin enhancement and
efficiencies throughout the year, the Company continues to expect
to report profit before tax for the financial year ending 31
December 2017 in-line with consensus market expectations.
Going forward the Company will issue a pre-close trading update
in January so that it can provide a more complete update on trading
for the entire important fourth quarter.
Steve Wilson, Headlam's Chief Executive, said:
"We are pleased with our performance despite the weaker
backdrop. Our performance underlines our comparative robustness due
to our market position, scale and ongoing efficiency initiatives.
While weaker markets could continue to subdue overall revenue
growth, we believe we can continue to enhance our margins and
deliver higher levels of profitability going forward."
The Company has separately today announced the acquisition of
Domus Group of Companies Limited ('Domus'), the UK's leading
specification consultant and supplier of hard surfaces for premium
construction and refurbishment projects, for a total maximum
consideration of GBP35.4 million.
*Like-for-like revenue is calculated based on constant currency
from activities and businesses that made a full contribution in
both the 2017 and 2016 periods and is adjusted for any variances in
working days
Enquiries:
Headlam Group plc Tel: 01675 433 000
Steve Wilson, Chief Executive
Catherine Miles, Director
of Communications
Investec Bank plc (Corporate Tel: 020 7597 5970
Broker)
Garry Levin / David Flin
/ Alex Wright
Buchanan (Financial PR and Tel: 020 7466 5000
IR)
Mark Court / Sophie Wills
/ Catriona Flint
Notes for Editors:
Headlam is Europe's largest distributor of floorcoverings having
grown significantly via organic growth and acquisition since
1992.
Headlam's core business provides the distribution link between
suppliers and customers of floorcoverings, providing suppliers with
the greatest coverage and customer penetration for their products
across the UK and Continental Europe, and customers with the
broadest range of products supported by next day delivery. The
acquisition of Domus, the UK's leading specification consultant,
extends the Company's activities into the supply of hard surfaces
for premium construction and refurbishment projects.
The Company is engaged with suppliers across 17 countries whose
products cover a significant proportion of the floorcoverings
market including, carpet, residential vinyl, wood, laminate, luxury
vinyl tile, ceramic, underlay and commercial flooring. The
Company's customers are within both the residential and commercial
sectors and comprise principally independent retailers and flooring
contractors.
The Company comprises 62 wholly-owned businesses in the UK and
Continental Europe each operating under their own trade brand and
utilising their individual sales team which achieves a greater
reach into the customer base.
Each of the businesses is supported by the Company's centralised
and financial resources and extensive distribution network across
the UK and Continental Europe.
www.headlam.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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