6th Mar 2019 10:19
LONDON (Alliance News) - Floorcoverings distributor Headlam Group PLC edged its 2018 payout higher Wednesday after profit remained broadly flat on higher costs, despite revenue growing in a "soft" market.
In 2018, pretax profit narrowed modestly by 0.7% to GBP40.4 million from GBP40.7 million the year prior. This was despite revenue rising 2.3% to GBP708.4 million from GBP692.5 million the year before.
Profit was hurt by a broad-based rise in costs. In addition, exceptional administrative expenses increased in 2018 to GBP2.9 million from GBP2.4 million the year before.
Underlying pretax profit - excluding exceptional costs - widened modestly 0.7% to GBP43.4 million from GBP43.1 million the year before.
"Despite the generally softer trading backdrop that was evident throughout 2018, it was pleasing that total revenue and underlying profit increased in the year," Headlam Chief Executive Officer Steve Wilson said.
Headlam proposed a 17.45 final dividend per share, up 1.1% from 17.25p the year prior. For the full year, the dividend rose 0.8% to 25.0p from 24.8p the year before.
"Our focus for 2019 and 2020 is operational and financial improvement through the pursuit of efficiency initiatives," Wilson continued. "These will help mitigate against any future weaker trading backdrops and enable the delivery of an improved performance going forward."
"We have had a positive start to the year, with both the UK and Continental Europe up on a like-for-like revenue basis for the year-to-date," Wilson added.
Shares in Headlam were 1.4% higher at 424.00 pence on Wednesday.
Related Shares:
Headlam