Headlam trading in line as it swings to profit

Headlam said it was trading in line with expectations as the flooring supplier swung to a first-half profit and declared an interim dividend.

Pretax profit for the six months to the end of June was £14m compared with a £24.5m loss a year earlier as revenue increased 45% to £329.9m to approach the £335m recorded in the first half of 2019.

Headlam proposed an interim dividend of 5.8p a share as it resumed paying out to shareholders based on earnings after scrapping the dividend in the crisis.

After a slow start to 2021, business picked up driven by residential sales, which rose 4.7% from 2019. Commercial revenue fell 12.8% from two years earlier though commercial revenue picked up as the half progressed.

Headlam predicted annual results well ahead of expectations in July and said it was trading in line with that increased guidance.

Steve Wilson, Headlam's chief executive, said: "The pleasing performance in the period demonstrates a strong and sustained recovery following the initial impact of Covid-19 , with the company operating effectively throughout despite further lockdowns at the start of the year.

"As a consequence of this performance, along with balance sheet strength and confidence in the prospects for the business, we have returned to a normal dividend profile more rapidly than initially anticipated."

Headlam shares, up almost 40% in 2021, fell 3.4% to 496.5p at 11:36 BST.