Buoyant housing market boosts floorcoverings firm

A BUOYANT housing market in the UK is having a beneficial effect on the performance of Coleshill-based carpets and floorcoverings supplier Headlam.

The company said it had seen a strong improvement in residential activity for the year to date and this was being reflected in turnover.

Chairman Dick Peters outlined the situation to shareholders in his address to the company’s AGM.

He said: “The group’s performance has advanced well in the current financial year with revenue growth of 4.5% over the first four months to April 30, 2016.  In the UK, the overall like-for-like increase in revenue was 4.0% with a strong expansion in residential activity at 6.1%, significantly ahead of the commercial business which marginally declined by 0.4% during the period.”

Revenues from the company’s operations in Continental Europe collectively improved by 2.2%, measured on a constant currency basis – thereby reversing the 3.8% decline registered last year.

“The group’s revenue increase, in combination with gross margin and expenses in-line with trading expectations, has resulted in the operating margin showing further improvement compared with the equivalent period last year,” added Mr Peters.

“Whilst early in the year, and with the busy trading months ahead, the board remains confident of achieving further progress during 2016.”