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Weak UK market impacts half year results at floorcoverings supplier

Floorcoverings distributor Headlam Group plc has reported a slight decline in half years with its UK market being described as ‘weak’.

According to its latest trading update for the six months to 30 June 2022, total revenue was £323.8 million down from £329.9 million against last year.

Despite the decline, Headlam reported a 5.1% uplift in Continental Europe (France and The Netherlands), which helped to offset a 2.9% decline in the UK related to weakness in the residential sector.

“Manufacturer-led price increases helped offset operational cost inflation during the Period,” the company said, adding: “This, and the Company’s continued focus on operational efficiency and cost control, led to an improved underlying profit before tax performance of £17.3 million (H1 2021: £16.7 million).”

While residential sector revenue declined 5.0% in the Period, the commercial sector increased 4.9% as it showed recovery from mainly COVID-19 related issues in the prior two years, with the ongoing summer months being an important trading period.

Headlam added that it remains on track to meet expectations for the year and also confirmed that the appointment of a permanent Chief Financial Officer is ‘progressing well’.

Chris Payne, Chief Executive, said: “We are pleased with our performance thus far in 2022, particularly given the economic backdrop. Profitability has been improved, market share gains made, and our strategy is proving to provide a countermeasure and protection against a weaker underlying market. We believe we are set fair especially for when headwinds ease.”

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