Floorcoverings group Headlam has reported consistent trading, in line with expectations, as Chairman steps down.
According to its latest trading update in respect of the first four months of the year, Q1 2022 revenue was broadly in line with its plan, followed by a slightly weaker performance in April 2022 due to overall ‘softening in the residential sector and some delayed orders’.
In the four months, residential sector revenue for the group was down 0.5% against the prior year period on a like-for-like basis. However, the Company’s branded, higher-end and higher-margin products performed above plan, and delayed orders are now coming through.
The commercial sector continued to show recovery from its severely impacted position in both 2020 and 2021 due in large part to COVID-19 related restrictions. In the four months, commercial sector revenue for the group was up 5.8% against the prior year period on a like-for-like basis.
The overall revenue performance in the period was in-line with 2021. Profit performance was above 2021 due to strong margins continuing into 2022, supported by the Company’s ongoing focus on operational efficiency through cost control.
Headlam added that Patrick Butcher, formerly Group CFO at Capita plc, The Go-Ahead Group plc and Network Rail, has joined the Company as Interim Chief Financial Officer on a temporary basis while the current independent search process for a permanent Chief Financial Officer is ongoing.
“The Board would also like to take the opportunity to again express its deepest thanks to Philip Lawrence who is stepping down as Non-Executive Chairman after seven years on the Board,” the group said.
Commenting, Chris Payne, Chief Executive, said: “With our comprehensive growth focused strategy which is demonstrating progress, we believe we are well positioned despite the expected weakening in the residential sector of the marketplace. We look forward to the busier trading months ahead and the ongoing delivery of our strategy.”
Keith Edelman, Non-Executive Chairman (designate, subject to the annual director re-election shareholder vote at today’s AGM), commented: “I would like to put on record the thanks of the Board for Philip’s contribution. Philip has been instrumental in developing a far stronger Board for Headlam, and under his Chairmanship the Company has developed and is now delivering on its strategy. We wish him well for the future.”