5th Mar 2015 09:48
LONDON (Alliance News) - European floorcoverings distributor Headlam Group PLC Thursday raised its total dividend for 2014 by 14%, having delivered growth in both profits and revenue during the year, boosted by market share gains in the UK.
The company posted a pretax profit of GBP30.3 million, higher than the GBP26.4 million profit it recorded in 2013, driven by a 5.3% increase in revenue to GBP635.2 million from GBP603.1 million.
Headlam said it was buoyed by further market share gains in the UK, where like-for-like revenue was up 5.9%, exceeding the estimated market growth of 2.4%, it said.
Headlam declared a 15.5% increase in its final dividend to 10.65 pence, taking its total dividend for 2014 to 17.50 pence per share, up 14.5% on last year's pay out.
"The momentum created in the UK through the final quarter of 2014, has continued into January and February 2015 with 3.1% like for like growth over the two month period. As we enter March, our UK businesses are well placed to take advantage of improving market conditions with a comprehensive array of product launches and marketing initiatives," said Chief Executive Tony Brewer in a statement.
"Whilst our businesses in Continental Europe continue to experience difficult markets, we are confident that the group, overall, will achieve further progress during the year," he added.
Headlam said trading from its Continental businesses in recent years has been "disappointing", which it 2014 it put down to weakness in its Switzerland business. However, it said it is still committing to additional investment to expand and improve its facilities in Europe.
In 2014, the company said the revenue performance from its French business was slightly ahead of last year, whilst its Dutch businesses achieved "reasonable progress" in what it described as a difficult market.
"The businesses in both territories registered an improvement in underlying earnings. However, the market weakness evident in the first half in Switzerland continued during the second half resulting in a further reduction in annual revenue and profit," the company said.
The company made further bolt-on acquisitions in 2014 and early 2015. In 2014, Headlam completed the acquisition of two small bolt-on businesses - RPS and Myttons. RPS was transferred into its existing distribution facility in Nottingham, while Myttons provided the company with an opportunity to establish a service centre in Norwich. During January 2015, the company acquired Matty's Wholesale Carpets, and integrated its operations into its distribution facility in Coleshill, Warwickshire.
"Unlike a number of recent acquisitions where the businesses acquired have been losing market position, Matty's Wholesale Carpets has been a very successful business and should prove to be immediately earnings enhancing," the company said.
Headlam shares were trading 1.4% higher Thursday morning at 455.00 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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