Floorcoverings distributor Headlam has reported a decline in half year sales as well as widening losses.
According to its latest trading update for the first six months of the year to 30 June 2025, total sales fell 3.8% to £244.7m from £256.4m in 2024.
Underlying pre-tax losses resulted at £19.9m, widening from a loss of £15.6m year-on-year.
Gross margin did improve slightly at 30.8% from £30.4%, with the group stating that operating costs have been “well controlled”, with early benefits from the transformation plan more than offsetting inflationary pressures.
Headlam added that stock levels are £12m lower than the same period last year although higher than December 2024.
“The H1 increase reflects targeted investments to improve stock availability and support revenue recovery. Our recently centralised buying processes are expected to reduce stock levels in the second half of the year.
“The transformation plan is progressing well, with benefits starting to take effect in H1 2025 and accelerating through H2 2025 and 2026.”
As for current trading, the group’s year-on-year revenue for July was similar to June, with the two months close to flat year-on-year with August slightly weaker.
Commenting, Chris Payne, Chief Executive, said: “We have made good progress on the transformation plan so far, significantly simplifying the Group and its infrastructure and processes. The benefits have started to be realised towards the end of the first half and will accelerate through the second half of the year.
“Whilst the lead indicators for consumer spending on home improvements are more positive, the flooring market has continued to decline, and the timing of recovery remains uncertain. Against this backdrop we have identified additional benefits from the transformation plan, to offset the market weakness as we continue to drive the Group back to profit.
“As we unlock cash and costs from our business, we continue to invest in the proposition across all our customer groups in order to grow market share and strengthen our position as the UK’s leading floor coverings distributor.”
