City briefs: Headlam; Luceco
Floorcoverings distributor Headlam, has announced its interim results for H1 2022.
The Birmingham-based firm has reported a total revenue of £323.8m (H1 2021: £329.9m), with a 5.2% uplift in continental Europe helping to offset a 2.9% decline in the UK, related to weakness in the residential sector.
It has also seen it’s statutory profit before tax increase to £21.6m (H1 2021: £14m), due to proceeds received as part of an ongoing insurance claim creating a net profit from non-underlying items.
Headlam says its revenue performance to date is continuing to be only marginally below the prior year and it remains on track to meet market expectations whilst trading remains challenging.
Chris Payne, Chief Executive of Headlam said: “The financial performance in the Period was pleasing given the economic environment and inflationary impact on consumer spending.
“Commissioned specialist research indicated that the company improved its market share in the period, and new customers have also been secured within the multiple retailers / larger customers space.
“All of this provides a high degree of confidence that the company’s strategy of driving additional revenue opportunities from a more efficient and modernised operating base and improving the service offering to all customers is the right one”.
Luceco, the supplier of wiring accessories, EV chargers, LED lighting, and portable power products, also have revealed its H1 2022 results.
The Telford firm’s results remain well ahead of pre-pandemic levels as its revenue increased by 29% to £106.4m and an adjusted operating profit of £11.5m, a 60% increase from H1 2019.
Whilst there has been a slowdown in DIY demand post lockdown, Luceco says the market demand for its products is ‘stronger than current results suggest, due to customer restocking’.
Chief Executive Officer of Luceco, John Hornby said: “Our trading performance relative to prior year comparatives reflects the very buoyant demand we experienced in 2021, boosted by COVID lockdowns and stocking up by our distributor customers. It also reflects slower demand in 2022 as DIY markets have normalised and as our customers have run their stocks down.
“Whilst we were not able to match the record benchmark set last year, our results remain significantly ahead of pre-pandemic levels, underlining the strategic progress we have made over recent years.
“The current headwind from customer destocking is likely to continue into early 2023 but is fundamentally temporary in nature. Our margins and cash generation are improving and our balance sheet is in good shape. I am encouraged by the progress and potential of our recently acquired businesses, particularly the access they have given us to the growing EV charging market.
