Headlam reports pick-up in trading

Headlam said it was on track to meet full-year expectations as the floor covering distributor reported a pick-up in trading.

Revenue from operations trading for a year or more, excluding currency swings, rose 3.5% in the first four months of 2019, Headlam said in a trading statement before its annual meeting.

Like-for-like revenue rose 3.1% in the UK and 5.8% in continental Europe against "soft comparatives" a year earlier, the company said. Total revenue rose 5.5%.

Headlam shares were 4.9% to 482.5p at 0929 BST.

Residential and commercial sales rose in the UK with commercial particularly strong while in Europe retail was stronger. The update marks an improvement from the previous year when UK weakness helped drive down group like-for-like sales.

"This early stage trading performance is pleasing, with the company maintaining its overall expectations for the full year ahead of the traditionally stronger second half of the year," Headlam said.

The new regional distribution centre in Ipswich is on track to open in mid-2020 and the company is examining a range of efficiency initiatives, it said.