(Alliance News) - Headlam Group PLC said Thursday it expects final results for 2019 to be "marginally ahead" of market expectations.
In a trading update for the year ended December 31, the floor-coverings distributor said total revenue increased on both an absolute and like-for-like basis, with growth in Continental Europe outperforming that of the UK, "which was marginally positive on a like-for-like basis".
Headlam said market expectations for its 2019 revenue are GBP705.5 million, a slight decrease from the GBP708.4 million the company reported in 2018.
The company reaffirmed that it will pay an ordinary dividend for 2019 at the same level as 2018, despite lower underlying pretax profit.
Market expectations for pretax profit are GBP39.3 million, according to Headlam, while in 2018 it was GBP40.4 million.
For the full year 2018, the dividend was raised 0.8% to 25.0p from 24.8p in 2017.
Headlam said the residential sector fared better than the commercial sector in continental Europe but the reverse was true in the UK. As a result, the company's overall business mix shifted towards the commercial sector.
Looking ahead, the company said the 2020 capital investment will be primarily focused on its new regional distribution centre currently being constructed in Ipswich.
The timing and investment in the distribution centre remains on track, the company said, with operational completion expected for Easter 2020 at a total cost of GBP26 million.
Headlam will announce its annual results on March 5.
Headlam shares were up 2.8% in London at 545.00 pence each on Thursday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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Headlam (HEAD)