LONDON (ShareCast) - (Sharecast News) - Floor coverings distributor Headlam said on Wednesday that its full-year results will be towards the lower end of current market expectations amid weakness in the UK floor covering market, as it posted a drop in interim like-for-like sales.
In the six months to 30 June, total revenue was up 1% to £337.5m. However, LFL revenue was down 5.2%, versus a 2.1% increase in the first half of last year, with LFL sales growth in Continental Europe of 1.7%, down from 3%.

Underlying pre-tax profit edged up 0.9% to £17.73m and the company maintained its interim dividend at 7.55p a share.

Headlam said trading for the year to date remains broadly consistent with that experienced in the first half, with the UK market still soft and conditions likely to remain the same through the second half of the year. Still, the company said it was encouraged by the fact that the order intake so far for August is in line with its expectations.

From 1 September, the group will introduce price increases ranging from 2% to 10%, averaging around 3%, which it said reflect supplier increases as a consequence of raw material price inflation.

Chief executive Steve Wilson said: "We are pleased to report further growth and an increase in our market position during the first six months of 2018. However, given the current softness in the UK floorcovering market and the associated trading impact on the company's UK businesses coupled with the current indications that these conditions are likely to continue during the second half of the year, the board now expects that the full year outcome, whilst ahead of the full year 2017, will be towards the lower end of current market expectations."

At 1015 BST, the shares were down 4% to 431.33p.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE