Headlam boasts strong results

Floor coverings distributor Headlam Group has reported a rise in revenue, operating profit and pre-tax profit for the full year ended December 31st.

Revenue rose 6.4%, from £535.7m to £569.8m, while operating profit gained £2m to £28m. Pre-tax profit increased from £25m to £27.6m. Earnings per share were up from 21.5p to 24.6p.

Tony Brewer, Headlam's Group Chief Executive, said: "the revenue result for 2011 is the highest ever recorded by the group and represents a very satisfactory achievement given the current trading environment.

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"The first ten weeks of 2012 have continued a positive trend with all five business sectors and each product category in the UK continuing to produce increases in revenue against the corresponding period of last year.

"Markets remain challenging and somewhat unpredictable due to the general economic outlook combined with uncertainty over both raw material prices and currency exchange. However through the group's strategy and structure combined with extensive product and marketing initiatives, we are confident that our individual businesses can collectively outperform the market."

UK like-for-like (LFL) revenues increase by 7.7% indicating a further increase in market share, while continental European revenues decrease by 5% on a LFL basis.

Cash at the end of the period fell from £44.76m to £41.94m. The dividend was raised from 12.4p to 14.15p.

The share price rose 1.58% to 290.00p by 12:03pm.

NR