20th May 2016 06:55
LONDON (Alliance News) - Floorcoverings distributor Headlam Group PLC on Friday said it has seen further improvement in its operating margin since the start of 2016 on the back of good revenue growth and in-line expenses.
In a statement to be made at the company's annual general meeting on Friday, Chairman Dick Peters said Headlam saw revenue growth of 4.5% in the first four months of 2016.
In the UK, the overall like-for-like increase in revenue was 4.0%, with a strong expansion in residential activity at 6.1%. Peters said this was "significantly" ahead of the UK commercial business which declined by 0.4% in the period.
Revenue from its Continental European businesses collectively improved by 2.2% on a constant currency basis, Peters said, with all three countries in which it operates - France, Switzerland and the Netherlands - contributing to the positive result. Peters said this reverses the 3.8% revenue decline registered for the year ended December 31.
"The group's revenue increase, in combination with gross margin and expenses in-line with trading expectations, has resulted in the operating margin showing further improvement compared with the equivalent period last year," Peters said.
"Whilst early in the year, and with the busy trading months ahead, the board remains confident of achieving further progress during 2016," Peters added.
By Hannah Boland; [email protected]; @Hannaheboland
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