Headlam has seen the rate of dropping sales continue to decline in recent trading.
The group saw UK sales – both revenue and volume – increase in June for the first time since 2022. This helped group sales slow the rate of decline from 6.6% in January and 1.5% in April to 0.6% in June.
Sales in the six months to the end of June were down 3.8% in the UK and 3.9% overall.
It expects the underlying pre-tax loss for the period to be £20m.
‘Strong progress continues to be made on the transformation plan. We are well progressed in the transition of operations from our Nottingham distribution centre into other sites; this property is on track to be closed by the end of August. In June, we launched fully centralised procurement for stock purchases, which is expected to bring cost savings and working capital improvements,’ it says.
It has hired Alvarez & Marsal as transformation advisers to help it identify ‘significant further opportunities to enhance profitability and cash generation through gross margin improvements and cost efficiencies.’
It expects to increase the £25m profit improvement target, designed to be fully achieved by the end of 2027. ‘We have now identified opportunities to increase that and will provide a detailed update in our half year results announcement in September.
‘Based on an ongoing improving revenue profile, building on the trajectory achieved in H1, combined with the additional transformation plan benefits identified, the board expects results for the full year to be in line with expectations.’
