Headlam Regulatory News (HEAD)

18 May 2011

Interim Management Statement

Headlam Group plc ("Headlam"), Europe's leading floorcoverings distributor, announces its Interim Management Statement for the period from 1 January 2011 to 30 April 2011.

During the four months to 30 April 2011, group revenue increased by 3.9%.

In the UK, revenue increased by 5.8% with the underlying like for like performance improving by 8.2%. This positive start to 2011 has been broadly consistent across our 49 businesses and five market sectors. Similarly, an increase in revenue has been achieved by each of our product categories. Gross margin for the first four months is very slightly ahead of the same period in 2010.

Revenues from our Continental European businesses measured in constant currency, reduced by 6.3%. The effects of currency translation offset this reduction by 2.1%, which meant that when measured in sterling, the decline in Continental revenues amounted to 4.2%. Gross margins for the four months to 30 April 2011 were ahead compared with the corresponding period last year, substantially compensating for the revenue shortfall.

There has been no significant change in the group's financial position compared with the position disclosed at 31 December 2010.

Tony Brewer, Headlam's Group Chief Executive, said:

"We said in March 2011, when we released our 2010 full year results that the year had started positively. The sustained performance is testament to the continued efforts from our management teams, sales people and all our employees and is further confirmation of the enduring strength of the group's operating strategy.

Whilst trading has been encouraging, and at this early stage of the year we are on target to achieve the group's performance objectives, we nevertheless remain cautious, due to market conditions continuing to be challenging."

End

Enquiries:

Headlam Group plc

Tony Brewer, Group Chief Executive Tel: 01675 433000

Stephen Wilson, Group Finance Director