Interim Management Statement

RNS Number : 2634R

Headlam Group PLC

16 November 2012

 



16 November 2012

Interim Management Statement

Headlam Group plc ("Headlam"), Europe's leading floorcoverings distributor, announces its Interim Management Statement for the ten month period from 1 January 2012 to 31 October 2012.

The group's revenue increased by 3.8% over the ten months compared with the same period in the previous year.

In the UK, revenue increased by 6.6% with the underlying like for like performance improving by 5.6%.  Revenues from our Continental European businesses reduced by 8.5% during the period which, when measured in constant currency, equated to 2.4%.

The erosion in UK gross margin percentage evident during the first six months has continued during the second half with the full year likely to be consistent with the position reported at the half year.

On the Continent, the performances across the three countries have continued as previously reported with the markets in each of the territories remaining difficult.  However, despite the trading conditions, gross margin achievement has been resilient which, in part, continues to compensate for the loss of revenue.

There has been no significant change in the group's financial position compared with the position disclosed at 30 June 2012.

Tony Brewer, Headlam's Group Chief Executive, said:

"A consistent theme highlighted in each of our previous trading reports this year has been the challenging and competitive nature of the markets we serve.  Market weakness has been a constant issue since the second half of 2008 and is the primary reason behind the increasingly competitive environment in the UK.

However, notwithstanding these continuing market pressures, provided planned revenue is achieved during the remainder of November and December, the board is confident that the group will deliver its internal performance target for 2012."

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Enquiries:

Headlam Group plc                                                   

Tony Brewer, Group Chief Executive                            Tel: [phone]

Stephen Wilson, Group Finance Director                                 

 

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