7th Mar 2014 08:51
LONDON (Alliance News) - Headlam Group PLC said Friday revenue rose for the full-year, while pretax profit declined as the firms' French and Dutch businesses recorded depressed figures due to challenging market conditions.
Headlam said group revenue for the year rose 2.9% to GBP603.1 million from the GBP586.0 million reported in 2012. However, the firm said its position was hit by a GBP6.8 million drop in pretax profit on the comparable year, coming in at GBP21.1 million from GBP27.9 million last year.
UK like-for-like sales came in marginally higher that the comparable year, at GBP509.3 million, from GBP492.3 million. Revenue from its continental counterparts remained relatively flat, with revenues slightly down at GBP93.71 million from GBP93.73 million
The floorcoverings distributor said its businesses in France and the Netherlands faced challenging market conditions during the year, depressing profitability, and added that an impairment charge of GBP5.4 million relating to intangible and tangible fixed assets has been recognised during the period.
Headlam also noted that it benefited from its acquisition programme during 2013, with revenue from acquisitions amounting to GBP10.4 million compared with GBP0.7 million in the previous year.
The firm expanded its UK presence during the reporting period with the acquisition of Hall's Flooring and Fells Carpets and the establishment of service centres in Coventry, Manchester and Sheffield. Headlam added that the construction of its Coleshill distribution centre was completed on schedule and became fully operational in January 2014.
The company confirmed a 4.4% increase to the final dividend form 10.20 pence to 10.65 pence, resulting in a total dividend for the year of 15.30 pence, up 3.0% on 2012.
Tony Brewer, Headlam's Group Chief Executive, said, "The final months of 2013 showed progressive improvement and this momentum has carried forward into the first two months of 2014. Whilst January and February are relatively lower trading months and compared against weaker comparatives from 2013, both months have produced a positive result. Furthermore, there are indications of a slight improvement in market conditions in the UK and a more stable market in Continental Europe.
"This trading improvement has coincided with the increased investment across the various group initiatives aimed at providing our customers with an ever improving overall service proposition and the group with a strong platform for future growth," Brewer adds.
Looking ahead, the firm said it is entering its typically stronger spring selling period in a good position, buoyed especially by the good trading environment in the first two months of the year, "We believe that given a normal seasonal cycle and a maintained focus on the continued development of the quality of our businesses, we can look forward with cautious optimism to a resumption of profitable growth from the Group in 2014," said Brewer.
Shares in Headlam were Friday quoted at 462.25 pence per share, untraded.
By Alice Attwood; [email protected]; @AliceAtAlliance
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