Headlam Regulatory News (HEAD)

21 May 2015

Headlam Group plc

("Headlam" or "the Group")

AGM Statement and Directorate Changes

Headlam Group plc (LSE: HEAD), Europe's leading floorcoverings distributor, will hold its Annual General Meeting at 10.00 a.m. this morning. Headlam's Chairman, Dick Peters, will make the following statement:

"The current year has started well. The Group has continued to deliver improvements in revenue with growth of 2.8% in the four months to 30 April 2015 compared with the same period last year. In the UK, the overall like-for-like increase in revenue was 4.5% with the rise in commercial activity at 6.1% running ahead of residential at 3.7%.

The Group's gross margin has remained healthy with a favourable uptick compared with the first four months of 2014. This, combined with the continued focus on overhead containment and, as a consequence, an evident operational gearing effect, has contributed to a rise in operating margin.

The Continental European businesses collectively showed a further decline in revenues of 7.2% during the period when measured in constant currency. The contraction in the Group's business in France, which has had a particularly difficult first four months, was the principal cause of the reduction.

In summary, the Group's overall trading activity has started brightly and, if the trend continues across the rest of the year, the Board is confident of achieving further progress compared with 2014 and meeting the Group's internal performance targets for 2015."

Directorate Changes

After serving for nine years, Mike O'Leary leaves the Board with effect from 31 May 2015. The Board is grateful for the significant contribution Mike has made to the business during that time.

Philip Lawrence is being appointed as a non-executive director of the company. Philip joins the Headlam Board on 1 June 2015 at which time he will also be appointed to the Nomination, Audit and Remuneration Committees.

Philip is the Chief Executive of the Coal Authority, prior to which he held significant roles with Marconi plc and Deloitte & Touche having trained as an accountant after attaining a BSc in Mathematics.

No information is required to be disclosed under paragraphs 9.6.13 of the Listing Rules.

Commenting on the Board changes, Headlam's Chairman, Dick Peters, said: "We are delighted to welcome Philip to the Board as a non-executive director and look forward to benefiting from his extensive corporate knowledge and expertise. We are sorry to lose the services of Mike O'Leary after nine years. He has made a significant contribution to the business and we wish him well for the future."

With effect from 1 June 2015, Andrew Eastgate will step down as Chairman of the Audit Committee and take on the Chairmanship of the Remuneration Committee and will also succeed Mike O'Leary as the Senior Independent Director. Philip Lawrence will take on the role as Chairman of the Audit Committee.

Enquiries:

Headlam Group plc

Tony Brewer, Group Chief Executive Tel: 01675 433000

Stephen Wilson, Group Finance Director

Buchanan Tel: 020 7466 5000

Mark Court / Helen Chan