City briefs: Big losses for West Mids listed firms

Headlam Group, the floorcoverings distributor, has posted huge statutory losses of £24m for the six months to 30 June, while revenues have also seen a sharp downturn – falling almost a third to £242.1m.

Despite this, the company said there had been “strong revenue recovery” in June following the reopening of all principal distribution centres by late May 2020 and reopening of retail businesses in mid-June 2020.

Steve Wilson, chief executive, said: “Our overall performance in the first half of the year was significantly impacted by the COVID-19 pandemic. However, through the implementation of swift actions, and the subsequent demand-led and phased approach to the reopening of closed operations, we were able to prioritise the safety of people and protect the resilience of our Balance Sheet.

“We have returned to profitability in the second-half with a pleasing performance to-date given the economic backdrop, and the mitigating actions we have in place should there be a substantial resurgence of COVID-19 combined with the ongoing Operational Improvement Programme will enhance our sustainability and future performance.”

Another listed firm to have suffered a big loss is Melrose Industries, which this morning posted a statutory operating loss of £581m for the six months to June 30.

Justin Dowley, chairman of Melrose Industries, said:”These are extraordinary times which we have addressed with rigorous cash management and decisive restructuring actions; recently, and encouragingly, we have started to see trading improving in some key end markets. Crucially, we own good businesses with significant improvement opportunities and have an experienced management team with an excellent track record.

“We have delivered good returns in tough times before and as we continue to make the strategic changes needed to position our businesses within their changed market environments, we are confident of doing so again.”

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