(Alliance News) - Headlam Group PLC on Tuesday reported decreased revenue and profit for 2023, and lowered its total dividend.
The Birmingham, England-based floor coverings distributor said pretax profit plummeted 83% to GBP7.1 million in 2023, from GBP41.8 million the year before. Basic earnings per share dropped 76% to 9.6 pence from 40.1p.
Headlam declared a final dividend of 6.0p, down from 11.2p in 2022. The total dividend for the year fell 43% to 10.0p from 17.4p.
Revenue decreased 1.1% annually, to GBP656.5 million from GBP663.6 million. Earnings before interest, tax, depreciation and amortisation fell 37% to GBP36.7 million from GBP57.9 million.
Headlam said the reduced profit was mainly due to macro-economic and industry headwinds. These included a "challenging market backdrop" in the UK, with fewer residential property transactions as the cost of living crisis driving consumers to spend less on home improvements.
"2023 has been a challenging year for the flooring industry, with reduced demand in the residential market and high operating cost inflation, which looks set to continue in 2024," commented Chief Executive Chris Payne.
However, Headlam said the market's medium-term outlook "remains strong", and that it thinks volumes will "improve significantly over the coming years as the market recovers".
Shares in Headlam traded 2.7% lower at 199.50p in London on Tuesday afternoon.
By Emma Curzon, Alliance News reporter
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Headlam (HEAD)