Mixed bag for Headlam as UK growth countered by sluggish European markets
COLESHILL floor coverings firm Headlam has reported a mixed set of results with revenue up but profit down.
Its preliminary results for the year ended December 31 show revenue of £603.1m, compared to £586m in 2012. But operating profit was down from £29.3m to £22.3m.
However, Headlam remains in bullish mood and has highlighted that it has made further gains in UK market share with like for like revenues increasing by 1.5% despite a difficult start to the year.
Its expanded UK presence is a result of its acquisition of Yorkshire-based Hall’s Flooring and Fells Carpets in November and the establishment of service centres in Coventry, Manchester and Sheffield.
European markets seem to be the main problem.
In its statement to the stock market, the firm said: “Our businesses in France and the Netherlands continue to face challenging markets and depressed profitability. As a consequence, an impairment of £5.4m relating to intangible and tangible fixed assets has been recognised during the year.”
Construction of the firm’s Coleshill distribution centre completed on schedule and became fully operational from January.
Tony Brewer, Headlam’s group chief executive, said: “The final months of 2013 showed progressive improvement and this momentum has carried forward into the first two months of 2014.
“Whilst January and February are relatively lower trading months and compared against weaker comparatives from 2013, both months have produced a positive result. Furthermore, there are indications of a slight improvement in market conditions in the UK and a more stable market in Continental Europe.
“This trading improvement has coincided with the increased investment across the various group initiatives aimed at providing our customers with an ever improving overall service proposition and the group with a strong platform for future growth.
“Therefore, we enter the typically stronger spring selling period in a good position.”
