AGM Trading Update

RNS Number : 3567Z

Headlam Group PLC

21 May 2021

 

21 May 2021

Headlam Group plc

('Headlam' or the 'Company')

AGM Trading Update

Pleasing performance with trading improving throughout the Period

Headlam (LSE: HEAD), Europe's leading floorcoverings distributor, provides the following trading update in respect of the first four months of the year (the 'Period') ahead of its Annual General Meeting ('AGM') being held at 10.00 today.

Overall performance was pleasing and in-line with internal expectations, with trading improving throughout the Period following a soft start. Revenue for the Period was up 30.6% against the 2020 period which was significantly impacted by COVID-19 related site closures from late March 2020, and only slightly below the 2019 comparator despite continuing lockdown measures.

March and April 2021 delivered good performances, with April 2021 seeing a consistent performance throughout the month.

Strong residential sector performance continued to compensate for a weak commercial sector, which has been more meaningfully impacted by COVID-19, albeit there was a discernible improvement as the Period progressed.

Trading to-date in May 2021 has continued the performance experienced during the previous two months. The Company intends to provide its next update on trading on 1 July 2021, the proposed date of its Capital Markets Day.

Outside of trading, the Company has now completed the disposal of its Swiss operation allowing increased focus on its activities which afford greater opportunity; strengthened the Board with the appointment of Simon King as a Non-Executive Director; and commenced proposed improvements to its sales operations to allow for more effective sales generation, with a reduction in the headcount resource required.

The Company has also separately today announced an overview of its Environmental, Social and Governance ('ESG') Strategy, and published an accompanying full ESG Strategy Report on its website ( https://www.headlam.com/environmental-social-and-governance-esg/esg-report/esg-strategy-report/ ). The Company will provide bi-annual updates on its progress in addressing its identified most material ESG issues, with the next update being published in November 2021.

Enquiries:

Headlam Group plc Steve Wilson, Chief Executive Chris Payne, Chief Financial Officer Catherine Miles, Director of Communications	Tel: [phone] Email:  [e-mail]
Investec Bank plc  (Corporate Broker) David Flin / Alex Wright	Tel: [phone]
Panmure Gordon (UK) Limited  (Corporate Broker) Erik Anderson / Edward Walsh / Ailsa MacMaster	Tel: [phone]
Alma PR  (Financial PR) Susie Hudson / Harriet Jackson / Faye Calow	Tel: [phone] [e-mail]

Notes for Editors:

Headlam is Europe's leading floorcoverings distributor, providing the channel between suppliers and trade customers of floorcoverings.

Headlam works with suppliers across the globe manufacturing a diverse range of floorcovering products, and provides them with a cost efficient and effective route to market for their products into the highly fragmented customer base. Alongside long-established processing and distribution expertise, suppliers benefit from Headlam's marketing and customer servicing into the most extensive customer base.

To maximise customer reach, Headlam operates 66 businesses across the UK and Continental Europe (France, and the Netherlands). Each business operates under its own trade brand and utilises individual sales teams while being supported by the Company's network and centralised resources.

The Company's customer base covers both the residential and commercial sectors, with the principal customer groups being independent retailers and smaller flooring contractors alongside other groups such as larger retailers, housebuilders, specifiers, and local authorities.

Headlam is focused on providing customers with a market-leading service through:

·	the broadest product offering;
·	unrivalled product knowledge and tailored solutions;
·	sales team and marketing support;
·	e-commerce support;
·	'just-in-time' nationwide delivery and collection service; and
·	other support including the provision of credit.

www.headlam.com

 

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