Debt refinancing secured

27 January 2026

Headlam Group plc

('Headlam', the 'Company', the 'Group')

Debt refinancing secured

Headlam (LSE: HEAD), the UK's leading floor coverings distributor, is pleased to announce an asset-based lending facility ("ABL") replacing our existing revolving credit facility ("RCF") and uncommitted overdraft.

The committed ABL, secured against certain Group assets, has a three year tenure (to January 2029) with the option to extend for up to two more. The facility of up to £85m flexes depending on the Group's asset base, with the intention being that it provides headroom and liquidity as the business needs evolve. The facility is provided by Barclays Bank plc and Wells Fargo Capital Finance (UK) Limited.

Based on current interest rates it is expected that the Group will pay a similar rate of interest on the new facility, with similar covenants applying.

The RCF was due to expire in October 2027.

Commenting, Stephen Bird, Interim Executive Chairman, said:

"We are pleased to have secured new financing, for up to five years, and deliver another important milestone in our transformation plan. We will provide additional information on our progress and future plans at our full year results in March."

Enquiries

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 as it forms part of domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018, as amended. Upon the publication of this announcement, this inside information is now considered to be in the public domain. The person responsible for arranging the release of this announcement on behalf of the Company is Adam Phillips, Chief Financial Officer.

Notes to Editors

Operating for over 30 years, Headlam is the UK's leading floorcoverings distributor. The Group works with suppliers across the globe manufacturing the broadest range of products, and gives them a highly effective route to market, selling their products into the large and diverse trade customer base. The Group has an extensive customer base, providing them with a market leading service through the largest product range, in-depth knowledge, ecommerce and marketing support, and nationwide delivery service. To maximise customer reach and sales opportunity, Headlam operates businesses, trade brands and product brands across the UK and Continental Europe (France and the Netherlands), which are supported by the group's network, central resources and processes.