Headlam Group Reports Decreased Pretax Profit for H1 2023

Headlam Group, the U.K.-listed floor-coverings distributor, has announced a slip in their first-half pretax profit due to increased costs and ongoing macroeconomic and industry challenges. The company reported a pretax profit of £4.5 million for the first six months of the year, compared to £21.6 million in the same period last year.

Despite facing a challenging market backdrop, Headlam Group managed to achieve a 2.5% increase in revenue, reaching £331.8 million. However, U.K. volumes were 5% lower during this period.

The board has declared an interim dividend of 4.0 pence per share, which is a decrease from the 6.2 pence per share paid in the previous year.

Despite the current challenges, Headlam Group remains confident about their 2023 expectations.

Chief Executive Chris Payne commented on the situation, saying, "The macroeconomic and industry headwinds that affected residential volumes and our first-half profit are expected to persist into 2024. Nevertheless, by continuing to invest in broadening Headlam's business base, we are laying the groundwork for significant profit growth in the coming years as the market improves."