Headlam has seen recent sales performance almost match 2024 as it looks to its transformation plan to deliver £35m of profits.
The group says that ‘year-on-year revenue for July was similar to June, with the two months close to flat year-on-year with August slightly weaker.’
This compares with a 3.8% decline in the six months to 30 June.
‘As we move into Q4, the market shifts into the peak residential trading period and the group annualises relatively softer comparatives: accordingly, we anticipate a continuation of the improving revenue trajectory observed during the first half,’ it says.
Benefits from the transformation plan – designed to boost profits by £35m – have started to show, with these ‘accelerating through H2 2025 and 2026.’
Its investment in its trade counters operation has been completed.
‘We have made good progress on the transformation plan so far, significantly simplifying the group and its infrastructure and processes. The benefits have started to be realised towards the end of the first half and will accelerate through the second half of the year. Whilst the lead indicators for consumer spending on home improvements are more positive, the flooring market has continued to decline, and the timing of recovery remains uncertain. Against this backdrop we have identified additional benefits from the transformation plan, to offset the market weakness as we continue to drive the group back to profit. As we unlock cash and costs from our business, we continue to invest in the proposition across all our customer groups in order to grow market share and strengthen our position as the UK’s leading floor coverings distributor,’ says Chris Payne, Headlam chief executive.
