AGM Statement

Headlam Group PLC
25 May 2007


To : Company Announcements Office

Primary Markets Division

The London Stock Exchange

Company announcements Tel [phone]


Company: Headlam Group plc

Embargoed for release 10:30 a.m. 25 May 2007


                                                                     25 May 2007


                                 AGM STATEMENT


Following its Annual General Meeting ('AGM') today, Graham Waldron, Chairman of
Headlam Group plc ('Headlam'), stated the following:


Trading

Sales during the first 21 weeks of 2007 compared with the corresponding period
last year increased by 2.4% on a like for like basis.


Increased sales of Residential and Commercial products contributed to this
positive trend in both the UK and Continental Europe.  This has been achieved
through the continuing development of product ranges and the group's market
position with independent retailers and flooring contractors.


Share buy-back
The group's strategy remains focused on building shareholder value and the 
predictable cash flows which are generated by the business will ultimately 
result in Headlam having surplus cash.  The board has decided to commence a 
share buy-back programme to return cash to shareholders and improve balance 
sheet efficiency.  There is authority to purchase up to 15.0% of the issued 
share capital and the board anticipate purchasing shares to the value of at 
least £20 million during the current financial year.


Retirement of non-executive director

After nearly nine years as an independent non-executive director, Tom Anderson
has decided to resign from the board following the conclusion of the AGM.  I
would like to place on record our thanks for the contribution and wise council
he has made during his time with Headlam.  We wish him well in retirement.


Outlook

Given the favourable trading performance during the first 21 weeks of 2007, the
group looks forward to another year of growth.



Enquiries:

Headlam Group plc

Tony Brewer, Group Chief Executive                Tel: [phone]

Stephen Wilson, Group Finance Director


End






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