Headlam sees UK sales drop 5%
September 7, 2023
Headlam has confirmed the strength of the market headwinds that have seen profits slump and UK sales volume drop by 5% in the first six months of 2023.
The Group flagged these issues last month and now its latest half year results to June 30, 2023, signal the extent of the issue in that underlying profits before tax were just £6m compared to £17.3m this time last year.
This performance was “principally impacted by the macro and industry headwinds of lower residential trading volumes and high operating cost inflation” said the Group but despite the disappointing UK figures, overall revenue was up 2.5% to £332m for the first half.
Chris Payne, Chief Executive, said: "I am pleased to say the Group delivered revenue growth and good cash generation in the first half, particularly in the strategic growth areas with strong growth in larger customers and trade counters.
“However, the macroeconomic and industry headwinds that drove residential volumes, and our first half profit, lower are likely to persist into 2024. Despite this, the continued investment in broadening Headlam's business base will provide the foundation for significant profit uplift in the coming years as the market improves," he said.
Headlam revealed two small further acquisitions during the period worth £2.3m in total - one in the Netherlands, Het Stoffen Gilde, a curtains and fabrics, and the other in the UK of PD Pattern Books which enables in-house sampling production. The latter is being integrated into the nearby Melrose Interiors (also acquired by Headlam this year).
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