City briefs; Headlam, Rotala

Headlam, the Birmingham based floorcoverings distributor, has said its financial performance for H1 2022 was “pleasing given the economic environment and inflationary impact on consumer spending”.

Total revenue was £323.8m (H1 2021: £329.9m), with a 5.1% increase in France and The Netherlands helping to offset a 2.9% decline in the UK related to weakness in the residential sector.

Also helping to offset costs was manufacturer price increases as operational costs inflated during this period.

This led to an improved underlying profit before tax performance of £17.3m (H1 2021: £16.7m).

Whilst the residential sector revenue declined by 5%, the commercial sector increased by 4.9%, recovery was mainly from pandemic related issues.
 
Chris Payne, Chief Executive, said: “We are pleased with our performance thus far in 2022, particularly given the economic backdrop.

“Profitability has been improved, market share gains made, and our strategy is proving to provide a countermeasure and protection against a weaker underlying market. We believe we are set fair especially for when headwinds ease.”

For Tividale-based Rotala, a provider of transport solutions across the UK, the firm saw passenger numbers recover slowly but steadily in H1 2022.

Rotala reported a profit after tax of £2.1m (2021: £800k)

Simon Dunn, Chief Executive said: “During the COVID-19 pandemic, we decided to focus on cash conservation and debt reduction with the objective of emerging from the pandemic with a robust balance sheet, fit for renewed commercial operation. We believe that we have achieved these objectives.  

“As the bus industry recovers from the effects of COVID-19, bus networks are being reviewed and rationalised and this is causing a good deal of turbulence in the industry which should bring a continuing flow of acquisition opportunities to Rotala, much like the acquisitions made in the first half of FY 2022. We are well placed to take advantage of these opportunities as they arise. ”