Floorcoverings group rolls out plans to expand Midlands operations
WARWICKSHIRE floorcoverings group Headlam has announced plans to expand its Midlands operations after increases in full year revenue and profits together with a strong start to trading in 2012.
The Coleshill company, one of Europe’s leading floorcoverings distributors, saw revenue rise 6.4% to £569.8m (2010: £535.7m), with pre-tax profit up 10.3% to £27.6m (2010: £25m).
Earnings per share rose 14.4% to 24.6p (2010: 21.5p) and the dividend per share rose 14.1% to 14.15p (2010: 12.40p).
In response to growth the company has revealed plans to enlarge its Midlands operations.
It has obtained planning permission to extend its distribution centre in Tamworth, increasing its footprint from 147,400 sq ft to 160,200 sq ft. This will allow the group’s Residential and Commercial businesses to further develop their activities in the middle to higher market sectors.
In Coleshill, it has agreed to acquire, subject to planning permission, land adjacent to the existing distribution centre in order to increase the size of the centre from 159,500 sq ft to 283,800 sq ft.
This will provide the capacity necessary to increase central stock holding in certain product sectors to satisfy the demand from regional distribution centres and manage future working capital investment on a more efficient basis.
The firm saw UK like for like revenues increase by 7.7% in 2011 indicating a further increase in market share, this offset continental European revenues, which decreased by 5% on a like for like basis
Tony Brewer, Headlam’s group chief executive, said: “The first 10 weeks of 2012 have continued a positive trend with all five business sectors and each product category in the UK continuing to produce increases in revenue against the corresponding period last year.
“Markets remain challenging and somewhat unpredictable due to the general economic outlook combined with uncertainty over both raw material prices and currency exchange. However, through the group’s strategy and structure combined with extensive product and marketing initiatives, we are confident that our individual businesses can collectively outperform the market.”
