Headlam stumbles as weak demand drags revenue down

Birmingham-based flooring distributor Headlam Group has reported a downturn in revenue, largely attributed to ongoing weak consumer spending.

With hopes for a market recovery pushed back to 2025, its latest announcement shows that the company’s full-year revenue fell 9.7%, totalling £593m.

Group revenue fell 7.4% in the second half of 2024, a slight improvement from the 11.8% decline in the first half.

In May 2024, the company said it expected to report a significant pre-tax loss after seeing a double-digit decline in revenue for the first half of 2024.

The company expects an underlying pre-tax loss of approximately £34m for the year, pending audit.

While growth in larger customers and trade counters helped mitigate the impact, it wasn’t enough to offset the struggles of its regional distribution arm, which was heavily hit by weak market conditions.

In an effort to strengthen its financial position at the end of December, the company sold three properties for £53.9m, unlocking cash flow to reinvest in its future.

The move resulted in a net cash gain of £11m and a property portfolio valued at £95m, aligning with the firm’s ongoing transformation plan.

Headlam’s full-year results are expected in March 2025, along with an update made during the year on the transformation plan.

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