Trading Update

 5 November 2025

Headlam Group plc

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

Trading Update

Headlam (LSE: HEAD), the UK's leading floor coverings distributor, provides the following trading update for the four months ended 31 October 2025 (the "Period").

Trading Performance

The Group has continued to experience challenging market dynamics and execution during the Period. Revenue was down 5%1 in the Period. This performance is below our expectations outlined at the interim results in September 2025, and therefore the Board expects full year performance to be below expectations.

Actions Underway

In response, the Board has already initiated a comprehensive programme of restructuring, cost reduction and operational improvements and is accelerating the implementation of these measures. Further details of the programme will be presented on 11 November 2025.

These actions are designed to return the Group to profitability and strengthen its market position, even if market conditions remain subdued. The Group also remains focused on strengthening the financial position including potential further property disposals.

The Board is confident that these measures, combined with the Group's market position and established relationships with suppliers and customers, provides a platform for a return to sustainable profitability and growth.

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

Footnotes

1) Year-on-year revenue on a same working day basis. Excludes revenue from France and the Netherlands where the businesses are held for sale.

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 spanning independent and multiple retailers, small and large contractors, and housebuilders. It provides its customers with a market leading service through the largest product range, in-depth knowledge, ecommerce and marketing support, and nationwide next day 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.