Headlam Group (HEAD)

Sector:

Household Goods

Index:

FTSE Small Cap

176.00p
   
  • Change Today:
      3.00p
  • 52 Week High: 310.00
  • 52 Week Low: 172.00
  • Currency: UK Pounds
  • Shares Issued: 80.78m
  • Volume: 17,933
  • Market Cap: £142.17m
  • RiskGrade: 210

Sunday share tips: Dunelm, Headlam

By Alexander Bueso

Date: Sunday 07 Feb 2021

LONDON (ShareCast) - (Sharecast News) - The Sunday Times's Sabah Meddings told readers to 'buy' shares of Dunelm, predicting that it was set to come out of the crisis stronger than before.






Analysts were anticipating that the home retailer would restart its dividend payments next Wednesday, alongside its latest set of interims, the tipster pointed out.

But the key plank of her investment thesis was the firm's successful shift online, having had to grapple with digital-only retailers and discounters for years.

Indeed, Dunelm was taking market share from bricks-and-mortar and online retailers - even with most of its stores closed.

Furthermore, such had been the rebound in demand over the summer that in October Dunelm returned to the government £14.5m of its furlough aid - and shunned help ever since.

And although sales across the March quarter may have fallen by 30%, that's "not too bad in the circumstances," Meddings said.

And with £141m of cash at last count, the company ought to have sufficient liquidity to tidy it over until non-essential retail reopened.

"For a retailer once associated with weekend trips to out-of-town retail parks, Dunelm has pivoted neatly towards online sales, and could emerge stronger from the crisis," Meddings concluded.

"Wilkinson's confidence looks nicely upholstered. Buy."



The Financial Mail on Sunday's Midas column tipped stock in Headlam to continue rising

Headlam sells its carpets and floor coverings to 70,000 across all of Europe, including to big chains such as B&Q and ScS.

Worth noting, its boss, Steve Wilson, has been at the company since its start in 1991, having been given the top job in 2016.

In particular, Wilson has shown a keen eye when it comes to ensuring an efficient distribution.

It hardly pays to make the goods customers demand if you cannot get them to clients, Midas said.

Wilson has also led a drive to take the company online.

Sales are expected to have dropped by 15% to £609m in 2020, but a "swift recovery" is anticipated, the tipster added, with the dividend per share seen rising from around 13.9p in 2021 to 18.9p in 2022.

"Headlam was hit hard when the pandemic erupted last March but the group hunkered down, adapted to new ways of working and used the time to invest in future growth," said Midas.

"These efforts should pay off this year and beyond. At £3.90, the shares are a buy. Over the long-term, there is the promise of an attractive dividend income too."

Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Headlam Group Market Data

Currency UK Pounds
Share Price 176.00p
Change Today 3.00p
% Change 1.73 %
52 Week High 310.00
52 Week Low 172.00
Volume 17,933
Shares Issued 80.78m
Market Cap £142.17m
RiskGrade 210

Headlam Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
54.77% above the market average54.77% above the market average54.77% above the market average54.77% above the market average54.77% above the market average
16.67% above the sector average16.67% above the sector average16.67% above the sector average16.67% above the sector average16.67% above the sector average
Price Trend
67.89% below the market average67.89% below the market average67.89% below the market average67.89% below the market average67.89% below the market average
84.62% below the sector average84.62% below the sector average84.62% below the sector average84.62% below the sector average84.62% below the sector average
Income
63.13% above the market average63.13% above the market average63.13% above the market average63.13% above the market average63.13% above the market average
68.42% above the sector average68.42% above the sector average68.42% above the sector average68.42% above the sector average68.42% above the sector average
Growth
92.62% below the market average92.62% below the market average92.62% below the market average92.62% below the market average92.62% below the market average
92.31% below the sector average92.31% below the sector average92.31% below the sector average92.31% below the sector average92.31% below the sector average

What The Brokers Say

Strong Buy 0
Buy 1
Neutral 1
Sell 0
Strong Sell 0
Total 2
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Headlam Group Dividends

  Latest Previous
  Final Interim
Ex-Div 09-May-24 26-Oct-23
Paid 07-Jun-24 28-Nov-23
Amount 6.00p 4.00p

Trades for 28-Mar-2024

Time Volume / Share Price
16:35 3,616 @ 176.00p
16:35 1 @ 176.00p
16:35 673 @ 176.00p
16:35 86 @ 176.00p
16:35 56 @ 176.00p

Headlam Group Key Personnel

CEO Chris Payne

Top of Page