"Weak market" hits Headlam profits
January 19, 2024
UK sales at leading flooring distributor Headlam were flat in 2023 following poor consumer demand up to Christmas which means the Group's profits are likely to be two-thirds down on 2022 levels.
In a trading statement to investors, the PLC said its underlying profit before tax for the year are expected to be in line with market expectations, estimated to be an adjusted earnings figure around £11m compared to £37.1m reported for 2022.
"The UK residential market was weak from September, as consumers cut back spending on home improvement projects," says Headlam. Sales in continental Europe were hit harder with a 7.7% decline.
Other sectors performed better. "The Group's revenue from the commercial sector was more robust, along with revenue from Larger Customers and Trade Counters, which finished the year up 26% and 8.5% respectively, with December being a record month for average daily sales in our Trade Counters business," said the statement.
Headlam's full year results are scheduled to be announced on 5th March 2024
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