Headlam To Miss 2022 Market Views Amid Weaker Sales Trend

By Michael Susin

Headlam Group PLC said on Thursday that underlying pretax profit for 2022 will miss market expectations due to the cost of living crisis in the UK residential sector and a slower end-of-year trading.

The UK-listed floor-coverings distributor said that underlying pretax profit–one of the company’s preferred metric, which strips out exceptional and other one-off items–is forecast to be marginally below the market expectations of 39.9 million pounds ($48.1 million ), according to a company-provided consensus. However, it expects the figure to be more than the GBP35.9 million reported in 2021, it said.

Headlam said that the seasonal uplift from the beginning of November to date has been below historic levels and this trend is expected to continue until the end of the year.

“The company’s strategy of driving new revenue to gain market share from a more efficient operating base has helped provide a countermeasure against the market weakness, and will continue to do so during 2023,” it added.

Shares at 0851 GMT were down 22.0 pence, or 7.6%, at 269.0 pence.

Write to Michael Susin at michael.susin@wsj.com

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