12th Jul 2016 07:11
LONDON (Alliance News) - Floorcoverings distributor Headlam Group PLC on Tuesday said it continues to trade in line with the board's expectations and said it will be increasing selling prices for its residential floorcoverings imported Belgium and the Netherlands due to the weakening of the sterling.
Headlam said its revenue for the six months ended June 30 was up 4.8% on the same period a year earlier, noting that in the UK like-for-like revenue grew 3.4%, with residential growing 4.7% and commercial up by 0.4%.
Headlam said combined revenue from its Continental European businesses, measured in constant currency, increased by 2.8% and, on translation to sterling, combined revenue grew by 8.9%.
The outcome of the last month's UK vote on European Union membership has resulted in the weakening of the sterling, Headlam said, and one effect of this prevailing sterling euro exchange rate is an increased cost to the group of residential floorcoverings, which are imported from Belgium and the Netherlands, by around 6.0%. As a result, selling price increases of a similar amount will be implemented by the group for these products over the course of the next month, Headlam said.
The company noted that it was "too early to forecast any other effects that the referendum result may have on the group's business but the board will continue to monitor the situation carefully and manage the group accordingly".
Headlam will post its interim results on August 24.
Shares in Headlam were untraded early Tuesday, having last traded at 440.00 pence.
By Hannah Boland; [email protected]; @Hannaheboland
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