16th Jan 2019 10:48
LONDON (Alliance News) - Headlam Group PLC on Wednesday said it expects to slightly beat market expectations in 2018, but said that it expects continued weakness in the market due to Brexit uncertainties.
The distributor of floorcoverings said it expects to report final results for the year to the end of December 2018 marginally ahead of 2017 and in-line with market expectations.
Company-compiled consensus market expectations for 2018 revenue, underlying pretax profit and total dividend are GBP708.7 million, GBP43.6 million and 24.88 pence per share respectively.
In 2017, Headlam reported revenue of GBP707.8 million, pretax profit of GBP40.7 million and paid a dividend of 24.80p.
Looking ahead, Headlam said it is currently anticipated that the UK market will show further general weakness during 2019, particularly in the residential sector where the company's distribution business is more heavily weighted. As a result, the company expects revenue for the current year to be in-line with 2018.
Underlying pretax profit in 2019 is expected to be lower year-on-year, in the range of GBP39 million to GBP41 million, due to an anticipated movement in revenue mix and inflationary pressure on distribution costs and administrative expenses.
The company currently intends to maintain the 2019 dividend in-line with 2018, despite the profit guidance for the year.
"In the face of a year which presents general uncertainty, a high degree of difficulty predicting any outcome, and an anticipation of further weakening in markets due to the wider economic environment, I believe we are taking a prudent view," said Chief Executive Steve Wilson.
"We are focused on expediting the efficiency initiatives to improve our performance going forward, irrespective of any weaker trading conditions and remain committed to providing improving returns to shareholders," added Wilson.
Headlam shares were trading 1.6% lower on Wednesday at 393.50 pence each.
Related Shares:
Headlam