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12 Nov 2014 07:00
12 November 2014
Trading update
Headlam Group plc ("Headlam"), Europe's leading floorcoverings distributor, announces its trading update for the nine month period from 1 January 2014 to 30 September 2014.
The group's revenue increased by 6.0% during the nine month period compared with the previous year. As anticipated, the incremental trading performance during the third quarter was less than the like for like achieved during the first six months due to the stronger quarter three comparatives for last year.
In the UK, quarter three like for like revenues increased by 4.5% compared with quarter three last year and as a consequence, the nine month like for like performance of 6.6% was slightly softer than the 7.9% improvement reported at this year's half way stage. The revenue contribution from the acquired businesses increased by £6.4 million compared with the previous year taking the nine month performance to £9.7 million.
During the period, revenues from the Continental European businesses, measured in constant currency, decreased by 1.5% due to further deterioration in the collective performance during quarter three. On translation to sterling, the revenue deficit for the period amounted to 6.5%.
The group's gross margin for the nine month period has shown a slight improvement compared with the position at the half year and is now 40 basis points below the equivalent position last year. The improvement is a result of modest progress in both the UK and on the Continent.
Tony Brewer, Headlam's Group Chief Executive, said:
"UK revenues during October maintained the positive trend with like for like performance in line with quarter three whilst revenues achieved by the Continental businesses showed further slippage.
Subject to group trading targets being achieved during November and December, the board remain confident that the group will deliver its internal performance objective for 2014."
End
Enquiries:
Headlam Group plc
Tony Brewer, Group Chief Executive Tel: 01675 433000
Stephen Wilson, Group Finance Director
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