Trading in January and February has continued where 2021 left off, according to Headlam.
The group returned to the black with pre-tax profit of £27.6m from sales of £667.2m in 2021.
Underlying operating margin rose from 3% to 5.6% and the group says it is on track to hit 7.5% during 2023.
An extra £30m is to be returned to shareholders through a special dividend and share buy-back programme, on top of its normal dividend.
The group says it is making progress on gaining market share: performance of new and improved trade counters under the national roll-out programme exceeding initial expectations, with good customer feedback and accelerating roll-out; several new customers have been won in the multiple retailer customer segment, with substantial scope to increase business with them and there has been a leasing customer response to enhanced digital offer, including the mobile app launched in November 2021.
‘2021 was a very positive year for the company on a number of fronts. Financial performance rebounded strongly from 2020, when the first half was materially impacted by the emergence of COVID-19; industry wide issues were able to be largely mitigated; and significant progress was made in implementing the business change strategy. Importantly, none of these achievements would have been possible without the commitment and support of the company’s people, and the Board wishes to express its thanks to them,’ says Philip Lawrence, Headlam chairman.
‘The company’s strategy is meaningful organic revenue growth from an efficient and modernised operating base, with its successful delivery being demonstrated and benefits becoming increasingly evident. The company enters 2022 a far more focused, capable and modern business, with greater opportunity and competitive advantage to support customers and grow financial performance.’
