Headlam Group PLC Pre-close Trading Update (9523U)
July 18 2018 - 2:00AM
UK Regulatory
TIDMHEAD
RNS Number : 9523U
Headlam Group PLC
18 July 2018
18 July 2018
Headlam Group plc
('Headlam' or the 'Company')
Pre-close Trading Update
Headlam Group plc (LSE: HEAD), Europe's largest distributor of
floorcoverings, provides a trading update in respect of the six
months ended 30 June 2018 (the 'Period') ahead of announcing its
interim results for the Period on Wednesday, 22 August 2018.
As described in the AGM Trading Update announced on 24 May 2018,
trading during the first four months of the year was characterised
by a soft UK market backdrop affecting revenue in both the
residential and commercial sectors as well as a decline in revenue
attributable to the Company's largest customer. These two features
continued to affect trading to a similar degree through May and
June 2018.
Total revenue increased by 0.6% (in reportable currency) during
the Period compared with the prior year but declined by 4.5% on a
like-for-like* basis. UK revenue declined by 0.5% compared with the
prior year period whilst the like-for-like* performance showed a
decline of 5.5%. On the Continent revenue increased by 6.8% and
grew on a like-for-like* basis, improving by 1.8%.
Through a combination of infill strategic acquisitions and the
implementation of management actions focused on a number of
operational initiatives, the Company continues to consolidate its
market leading position and maintain its focus on profitability. In
addition to the acquisition of Dersimo BV previously announced in
March 2018, the Company completed the acquisition of CECO
(Flooring) Limited based in Northern Ireland and Ashmount Flooring
Supplies Limited located in North London in March and July 2018
respectively**.
Subject to no further downturn in market conditions and the
Company experiencing the usual weighting of trading to the
traditionally stronger second half of the year, the Board is
currently confident of delivering expectations for 2018.
Interim results analyst meeting
A meeting for analysts will be held at 10am on the day of the
announcement of the interim results, 22 August 2018, at the offices
of Buchanan, 107 Cheapside, London EC2V 6DN. For analysts wishing
to attend, please contact Buchanan on the details below or email
headlam@buchanan.uk.com.
*Like-for-like revenue is calculated based on constant currency
from activities and businesses that made a full contribution in
both the 2018 and 2017 periods and is adjusted for any variances in
working days
**Details available on the Company's website at
www.headlam.com/news-enquires/other-news
The Company adopted IRFS 15, Revenue from contracts with
customers, as at 1 January 2018, the consequences of which have not
been reflected in the above reported performance statistics. The
effect of adopting IFRS 15 will be disclosed in the interim
results.
Enquiries:
Headlam Group plc Tel: 01675 433 000
Steve Wilson, Chief Executive
Chris Payne, Chief Financial Officer
Investec Bank plc (Corporate Broker) Tel: 020 7597 5970
Garry Levin / David Flin / Alex
Wright
Panmure Gordon (UK) Limited (Corporate Tel: 020 7886 2500
Broker)
Erik Anderson / Andrew Potts /
Ailsa MacMaster
Buchanan (Financial PR and IR) Tel: 020 7466 5000
Mark Court / Sophie Wills / Catriona
Flint
Notes for Editors:
Headlam is Europe's largest distributor of floorcoverings having
grown significantly via organic growth and acquisition since
1992.
Headlam's core business provides the distribution link between
suppliers and customers of floorcoverings, providing suppliers with
the greatest coverage and customer penetration for their products
across the UK and Continental Europe, and customers with the
broadest range of products supported by next day delivery.
The Company is engaged with suppliers across 16 primary
countries whose products cover a significant proportion of the
floorcoverings market including carpet, residential vinyl,
engineered wood, laminate, luxury vinyl tiles, ceramic tiles,
underlay and commercial flooring. The Company's customers are
within both the residential and commercial sectors and comprise
principally independent retailers and flooring contractors.
The Company comprises 65 wholly-owned businesses in the UK and
Continental Europe (UK 61, Continental Europe 4) each operating
under their own trade brand and utilising their individual sales
team which achieves greater market penetration.
Each of the businesses is supported by the Company's centralised
and financial resources and extensive distribution network across
the UK and Continental Europe.
Email: HeadlamGroup@headlam.com
www.headlam.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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