Update on transformation plan

11 November 2025

Headlam Group plc

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

Update on transformation plan

Headlam (LSE: HEAD), the UK's leading floor coverings distributor, provides the following update on its transformation plan to return the Group to profitability.

The highlights of our action plan are:

· Refocus on independent retailers and contractors, whilst eliminating loss-making revenue

· Consolidating our purchases and leveraging our scale as UK and Europe's largest purchaser of flooring

· Reduce footprint further reflecting revised business model

· Improve stock turn

· Reduce SKUs

The Board believes that delivering successfully upon these actions will return the Group to profitability and provide a sustainable financial position.

The key action plan outcomes include:

· A return to profitability in 2027

· Surplus properties disposed

· Materially lower inventory

We are hosting an analyst presentation at 9am, which will be recorded and made available to view on our website from 3pm today. The slide deck used in the presentation will be available on our website at 9am.

Enquiries

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.