Headlam Regulatory News (HEAD)

8 March 2022

Headlam Group plc

('Headlam' or the 'Company')

Board Changes

Headlam Group plc (LSE: HEAD), Europe's leading floorcoverings distributor, is pleased to announce that, following an independent search process, Chris Payne, Interim Chief Executive and Chief Financial Officer, has been appointed permanent Chief Executive with immediate effect.

Following an extensive search, the Board believes that Chris is the best person to drive delivery of the business change strategy which is focused on substantial revenue growth opportunities across a broader segment of the market from a more efficient operating base following the actions taken during the last two years.

The Company has commenced the independent search process for a new Chief Financial Officer and intends to appoint an Interim Chief Financial Officer shortly while the search process is ongoing.

After seven years on the Board, Philip Lawrence, Non-Executive Chairman, has decided not to offer himself for re-election at the forthcoming AGM in May 2022, and will step down and leave the Company at that time. During the last four years as Chairman, Philip has overseen the planning, implementation, and considerable development of the business change strategy which is now providing meaningful benefits both operationally and financially, and demonstrating increasing success. In addition, during his tenure, the Board has been considerably strengthened, oversight and governance increased, and a comprehensive ESG strategy initiated.

Keith Edelman, Senior Independent Director, will become Non-Executive Chairman upon conclusion of the AGM in May 2022 (subject to the annual director re-election shareholder vote), and Simon King, Non-Executive Director, will become Senior Independent Director (also subject to the annual director re-election shareholder vote). Additionally, Simon King will assume the position of Chair of the Remuneration Committee from Keith following the AGM.

It is the Board's intention to appoint a new Independent Non-Executive Director, and will commence this search later in the year.

The Company is announcing its final results for the year ended 31 December 2021 on 9 March 2022 (tomorrow). Per the Pre-Close Trading Update in January 2022, profit during 2021 was slightly ahead of expectations, and pleasingly since that update the trading performance in 2022 has continued to be in line with plan.

Philip Lawrence, Non-Executive Chairman, said:

"We are delighted that Chris has been appointed Chief Executive. In the five years since he joined the Company, he has been a highly effective and commercial Chief Financial Officer, and a key architect of the business change strategy. Chris has provided strong leadership over the last five months as Interim Chief Executive which has seen continuing success coming through from the strategy, and we are confident he will lead the Company in achieving its aims.

"I shall be stepping down at the AGM in May 2022 having served seven years with the Company. I have enjoyed my time with Headlam, and as Chairman in the last four years have presided over some notable changes with the Company in a significantly better place to grasp the opportunities of organic growth and scale."

Chris Payne, Chief Executive, said:

"I am delighted to have now been appointed permanent Chief Executive. Over my five years with the Company, I have been heavily involved with operations and the business change strategy in addition to my role as Chief Financial Officer. I have seen many of our actions now come to fruition, and believe the Company is poised for greater success in the future, and I intend to drive through all the opportunities available."

Chris Payne's remuneration arrangements in relation to his appointment as Chief Executive will be detailed in the 2021 Annual Report and Accounts to be published shortly later this month, and are within the existing approved Remuneration Policy.

Enquiries:

Notes for Editors:

Operating for 30 years, Headlam is Europe's leading floorcoverings distributor, providing the channel between suppliers and trade customers of floorcoverings.

Headlam works with suppliers across the globe manufacturing a diverse range of floorcovering products, and provides them with a cost efficient and effective route to market for their products into the highly fragmented trade customer base.

To maximise customer reach, Headlam operates 66 businesses across the UK and Continental Europe (France and the Netherlands). Each business operates under its own trade brand and utilises individual sales teams while being supported by the group's distribution network, central teams and resources.

The Company's extensive customer base covers both the residential and commercial sectors, with principal customer groups being independent retailers and smaller flooring contractors alongside other customer segments such as larger (multiple) retailers, housebuilders, specifiers, and larger contractors (including local government / authorities).

Headlam provides customers with a market leading service through:

· the broadest product offering;

· unrivalled product knowledge;

· tailored service propositions and solutions;

· sales team and marketing support;

· ecommerce support and digital applications;

· nationwide delivery; and

· trade counter and collection service.

www.headlam.com