Headlam Share Price (HEAD)

Looks cheap to me with the 25p dividend cover but wary of anticipated slowdown which may worsen as BREXIT looms later this year. One to watch.

Beware, two of Headlams long serving directors are setting up a business which appears to be in direct competion with Headlam.I ask the question why? .This has happened many times in the flooring trade.Likewise could be a share to watch,see this months Contract Flooring Journal.

I bailed on the trading update due to the LfL comparisons and Carpetrights woes, which turned out to be a good move. I still like the company but I'm wary of the move towards big projects such as those targeted by the Domas acquisition. A nice pullback and today's bounce may suggest a bottom around 410p. One to watch - looking for the turn in LfL.

Londoner7

Headlam Group results showed a drastic slowdown in the UK with LFL growth of 0.5% vs. Europe�s 4.2%. This is a sharp reversal in UK growth of 4.7%. But management is optimistic about the future and says earnings are in-line with expectations.

I think the recent acquisition in Domus will help plug any earnings shortfall in 2018.
Overall, I think Headlam is a progressive dividend payer and a much better business to hold in your investment portfolio than Carpetright, Topps Tiles and United Carpet Group.

The phrase �Europe biggest floorcovering distributor� tells you it is a simple business to understand.
For further details on Headlam, click http://bit.ly/2mLZyHa

It's an illiquid stock in the quiet periods between updates but I've found that buying modest lots on limit prices gets around the large spread. I now have a decent stake. Time will tell if my patience pays off.

Londoner7