Revenue and profits rise for floorcoverings group
COLESHILL-based floorcoverings group Headlam has seen full year revenues and profits rise following strong performances across the group.
In the year to December 31, 2014, revenue rose 5.3% to £635.2m (2013: £603.1m), while underlying operating profit was up 13.7% at £31.5m (2013: £27.7m).
Underlying earnings per share were up 16.7% at 28.6p (2013: 24.5p) and the final dividend was up 15.5% from 10.65p to 12.30p.
During the year the company also repaid £10m on its committed facilities reducing the drawdown to £20m on a £40m facility. It ended the year with net funds of £24.7m (2013: £14m).
The year saw several operational highlights including further gains in UK market share with like for like revenues increasing by 5.9% – exceeding the estimated market growth of 2.4%.
Nevertheless, the said Continental European markets remained weak and the trading environment for its Continental businesses continued to be difficult.
During the year it made further bolt-on acquisitions and the service centre network was extended to 27 with the addition of sites in Stoke, Norwich, Hayes and Leicester.
Looking ahead, Tony Brewer, Headlam’s group chief executive, said: “The momentum created in the UK through the final quarter of 2014, has continued into January and February 2015 with 3.1% like for like growth over the two month period.
“As we enter March, our UK businesses are well placed to take advantage of improving market conditions with a comprehensive array of product launches and marketing initiatives.
“Whilst our businesses in Continental Europe continue to experience difficult markets, we are confident that the group, overall, will achieve further progress during the year.”
