Headlam makes GBP54 million in property disposals; names new chair

Fri, 20th Dec 2024 09:02

(Alliance News) - Headlam Group PLC on Friday said it has sold three properties for a total of nearly GBP54 million in a simplification drive, and it announced the retirement of its chair.

The Birmingham-based floor coverings specialist said the GBP53.9 million sale of three properties in Ipswich, Gildersome and Leeds to a single buyer was done at a premium of 64% to the properties' book value and 14% to their last market valuation.

Collectively, the properties had a book value of GBP32.9 million. As a result, the sales generated a profit of around GBP21 million for Headlam.

The group now holds a net cash position, with its remaining property portfolio valued at GBP95.0 million.

Chief Executive Officer Chris Payne said: "These property transactions, on highly attractive terms, have been enabled by the progress we are making in optimising our operations, whilst also unlocking cash from our business, and further strengthening our balance sheet to re-invest in the Headlam proposition as the UK's leading floor coverings distributor."

Headlam also on Friday said Keith Edelman intends to step down as chair, to be replaced by former Videndum PLC CEO Stephen Bird in May 2025. Edelman will stay with Headlam until its annual general meeting in May, but will not seek re-election as a director.

Shares in Headlam Group were up 6.5% at 140.00 pence each in London on Friday morning.

By Emily Parsons, Alliance News reporter

Comments and questions to newsroom@alliancenews.com