Headlam FY underlying profits seen 'marginally below' guidance

Floor coverings group Headlam said on Thursday that trading in the UK residential sector had continued to be impacted by the ongoing cost of living crisis, leading it to now expect full-year underlying profitability to come in 'marginally below' guidance.

Headlam said growth in the commercial sector had helped to "partially offset" the residential weakness and added that its performance in continental Europe continued to be "positive" across both sectors.

The London-listed group highlighted that revenue was only "marginally below" the prior year period for the 10 months ended 31 October and now expects underlying profitability for the year to remain ahead of 2021 be "marginally below" the low end of market expectations.

So Farr in November, Headlam said it had seen "a seasonal uplift" but noted that this was still below historic levels - a trend it expects to continue for the remainder of the year.

As of 0930 GMT, Headlam shares were down 5.50% at 27 5.0p.

Reporting by Iain Gilbert at Sharecast.com