Floorcovering group Headlam cheered by UK pick-up

FLOORCOVERING group Headlam has seen revenues climb almost 4% in the first four months of the year boosted by a recovery in its UK markets.

The Coleshill company, which operates the brands YourFloors.co.uk and FunOnTheFloor.com, said overall group revenue during the period to April 30, 2011 increased by 3.9% while in the UK, revenue increased by 5.8% with the underlying like for like performance improving by 8.2%.  

The group said the positive start to 2011 had been broadly consistent across its 49 businesses and five market sectors.  Similarly, an increase in revenue has been achieved by each of the group’s product categories.  

Gross margin for the first four months is very slightly ahead of the same period in 2010.

Revenues from the group’s Continental European businesses measured in constant currency, reduced by 6.3%. The effects of currency translation offset this reduction by 2.1%, which meant that when measured in sterling, the decline in Continental revenues amounted to 4.2%.  

Gross margins for the four months to April 30, 2011 were ahead compared with the corresponding period last year, substantially compensating for the revenue shortfall.

Headlam said there had been no significant change in the group’s financial position compared with that at December 31, 2010.
 
Tony Brewer, Headlam’s group chief executive, said: “We said in March 2011, when we released our 2010 full year results that the year had started positively.  The sustained performance is testament to the continued efforts from our management teams, sales people and all our employees and is further confirmation of the enduring strength of the group’s operating strategy.
 
“Whilst trading has been encouraging, and at this early stage of the year we are on target to achieve the group’s performance objectives, we nevertheless remain cautious, due to market conditions continuing to be challenging.”
 
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