Headlam Group PLC
LSE:HEAD
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Headlam Group PLC
Headlam Group Plc engages in the marketing, supply, distribution, and sale of floor covering and certain other ancillary products. The company is headquartered in Birmingham, Warwickshire and currently employs 2,239 full-time employees. The firm has 63 operating segments in the United Kingdom and three operating segments in Continental Europe (France and the Netherlands). The Company’s customer base covers both the residential and commercial sectors. The company is focused on providing customers with services through the product offering, unrivalled product knowledge and tailored solutions, sales team and marketing support, e-commerce support, and nationwide delivery and collection service. The firm has approximately 21 distribution hubs and centers.
Headlam Group Plc engages in the marketing, supply, distribution, and sale of floor covering and certain other ancillary products. The company is headquartered in Birmingham, Warwickshire and currently employs 2,239 full-time employees. The firm has 63 operating segments in the United Kingdom and three operating segments in Continental Europe (France and the Netherlands). The Company’s customer base covers both the residential and commercial sectors. The company is focused on providing customers with services through the product offering, unrivalled product knowledge and tailored solutions, sales team and marketing support, e-commerce support, and nationwide delivery and collection service. The firm has approximately 21 distribution hubs and centers.
Revenue Decline: Revenue for the first half declined 3.8% on a like-for-like basis and 4.7% in absolute terms, reflecting ongoing market weakness.
Loss Before Tax: The company reported a loss before tax of £19.9 million from continuing operations, with discontinued European businesses contributing a further £2.1 million loss.
Transformation Plan: Management increased the targeted benefit of the transformation plan to £35 million, with progress on customer-facing changes and network simplification underway.
Property Disposals: Significant property assets are being sold to streamline operations, providing optionality and strong buyer interest.
Market Conditions: While the market remains challenging and consumer confidence is fragile, management sees positive lead indicators such as rising housing transactions and incomes.
Guidance & Outlook: Consensus expects breakeven by the end of 2026 into 2027; management aims to achieve sustainable profitability through self-help measures, not just market recovery.
Strategy Focus: The company is doubling down on the UK, exiting Continental Europe, and focusing on both independent retailers and growth in Trade Counters and Larger Customers.
