(Alliance News) - Headlam Group PLC said on Wednesday that it had swung to a pretax profit in 2021 and announced a GBP15 million share buyback programme.
Shares in Headlam were up 8.9% at 375.70 pence on Wednesday afternoon in London.
In 2021, the Birmingham-based floor coverings company swung to a pretax profit of GBP27.6 million from a loss of GBP14.3 million the previous year.
Revenue rose 15% to GBP667.2 million from GBP578.1 million in a strong rebound from the year prior. Within this, the UK and Europe both performed well compared with 2020, up 16% and 11% respectively.
Headlam said it was largely able to mitigate industry wide issues in the year, including supply issues. It added that many of the actions under the business change strategy were completed or integrated, with benefits operationally and financially.
The company proposed a final dividend of 8.6 pence, giving a total payout of 16.4p. In addition to this, the company announced a special dividend of 17.7p and announced a GBP15 million share buyback programme.
In January and February, the company said that trading had been in line with plan with 2021's strong margin performance maintained. In 2021, Headlam's gross margin increased to a record 33% due to an inflationary environment through much of the year.
By Heather Rydings; heatherrydings@alliancenews.com
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Headlam (HEAD)