Headlam issues profit warning

Floorcoverings group Headlam warned that first half earnings will be 10 per cent lower than last year, as difficult markets persisted, and believes it is unlikely it will meet full year company expectations."Floorcovering markets both in the UK and on the Continent have remained difficult and, in our view, have shown continued signs of contraction during the first six months of 2013," the group explained in a company statement.Headlam reiterated that revenue during the first four months of the year was down on 2012. While the early indications for May reflected some of the recovery evident in March and April, activity levels dropped as the month continued leaving revenue marginally up on the previous year by the time the month concluded, it added. In the continued absence of any real improvement in its floorcovering markets, an element of uncertainty around the group's trading performance during the second half is likely to prevail, it cautioned, notwithstanding that this is traditionally the group's busiest period of the year. "As a result, the board now believes it is unlikely that the company will meet market expectations for the financial year as a whole."However, despite this outcome, the board remains confident subject to a reasonable second half trading performance that the dividend for the current financial year will be consistent with 2012."CJ Headlam