Headlam will reveal its accelerated turnaround plan next Tuesday. The group has seen sales drop by 5% in the past four months.
The decision by the group’s interim executive chairman Stephen Bird and the board that the plan needed to be pushed forward saw Chris Payne and Toni Wood, ceo and chief customer officer, leave the flooring distributor on 3 October.
Shareholders have been warned that sales were worse than expected in the past four months and this will impact the bottom line more than anticipated.
‘In response, the board has already initiated a comprehensive programme of restructuring, cost reduction and operational improvements and is accelerating the implementation of these measures. Further details of the programme will be presented on 11 November.
‘These actions are designed to return the group to profitability and strengthen its market position, even if market conditions remain subdued. The group also remains focused on strengthening the financial position including potential further property disposals.
‘The board is confident that these measures, combined with the group’s market position and established relationships with suppliers and customers, provides a platform for a return to sustainable profitability and growth.’
