Headlam Regulatory News (HEAD)

12 July 2016

Headlam Group plc

("Headlam" or "the group")

Half Year Trading Update

Headlam (LSE: HEAD), Europe's leading floorcoverings distributor, announces its pre-close trading update for the six months ended 30 June 2016.

The group continues to trade in line with board expectations with revenue for the six month period increasing by 4.8% compared with the same period last year.

In the UK, like for like revenues in the period increased by 3.4% compared with the first six months last year, with residential increasing by 4.7% and commercial up by 0.4%.

Combined revenues from the Continental European businesses, measured in constant currency, increased by 2.8%. On translation to sterling, combined revenues increased by 8.9%.

The recent UK referendum has resulted in the weakening of sterling against other key currencies. One effect of the prevailing sterling euro exchange rate is to increase the cost to the group of residential floorcoverings, which are imported predominantly from Belgium and the Netherlands, by on average 6.0%. As a consequence, selling price increases of a similar amount will be implemented by the group for these products over the course of the next month.

It is too early to forecast any other effects that the referendum result may have on the group's business but the board will continue to monitor the situation carefully and manage the group accordingly.

Headlam intends to issue its interim results for the six months ended 30 June 2016 on Wednesday 24 August 2016.

Enquiries:

Headlam Group plc

Tony Brewer, Group Chief Executive Tel: +44 (0) 1675 433000

Stephen Wilson, Group Finance Director

Arden Partners plc (Joint Corporate Broker) Tel: +44 (0) 121 423 8900

Jonathan Keeling / Steve Douglas

Notes to Editors:

Headlam Group plc

Headlam markets, supplies and distributes an extensive range of floorcovering products. The group's activities and facilities are located throughout the UK, France, Switzerland and the Netherlands.

More information is available at http://www.headlam.com/