Strong UK market boosts floorcoverings group Headlam
COLESHILL-based floorcoverings group, Headlam has seen a significant increase in first half revenue based on a strengthening UK consumer market.
For the six months to June 30, 2016 group revenue rose 4.8% to £328.7m (H1 2015: £313.5m), with operating profit up 18.5% to £15.4m (H1 2015: £13.0m) and pre-tax profit up 22.4% to £15.11m (H1 2015: £12.35m).
Further gains were achieved in the 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%.
Meanwhile, Headlam Corporate, the group’s newest business, made good progress in its target market of specified commercial flooring.
Tony Brewer, Headlam’s group chief executive, 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, he said the referendum result had given rise to a weakening in sterling, and the group had sought to mitigate the adverse inflationary effect by implementing price increases earlier this month for residential floorcoverings imported from Continental Europe. It said the move appeared 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,” he added.
