Headlam has warned that the UK residential sector has weakened in the past two months.
After a 6.3% drop in the six months to 30 June, performance has ‘weakened slightly.’
‘The revenue performance in the past two months has continued that of the period, with revenue year to date continuing to be only marginally below the prior year period. Within this, the UK residential sector performance has weakened slightly further since the period end. However, the company’s UK commercial sector activity has continued to be more buoyant, with its strengthening helping to offset the residential weakness. Additionally, Continental Europe has again been a positive contributor across both sectors,’ says Chris Payne, Headlam chief executive.
‘The opportunities now available to the group are much expanded from recent years given the comprehensive strategy being pursued. The maximization and acceleration of these opportunities is an immediate priority given the current economic backdrop which is continuing to suppress underlying volumes in the residential sector. Thus far, the strategy has proven to have provided a countermeasure and protection against the weaker market.
‘The company currently remains on track to meet market expectations for the year, although the marketplace will undeniably continue to present weakness and uncertainty, and the operational cost inflation headwinds remain including the company’s energy costs. Should the market weakness deepen, the company has a number of measures it could take to help offset. It is important though to look beyond the near-term environment, and as previously highlighted, the group believes it is set fair especially for when headwinds ease.’
