Floorcoverings distributor Headlam has reported continued challenging conditions although its new management team has already made improvements.
According to its latest trading update for the four months ended 30 April 2026, the Group has continued to experience challenging trading throughout the Period and revenue for the Group’s continuing operations was 21% lower Year on Year.
“This decline in overall market share is in part a reflection of the planned reduction in certain sales activity as the business implements its new core customer strategy to refocus on independent retailers and flooring contractors, coupled with the continuation of difficult end market conditions. As a result, the Group continues to incur significant underlying operating losses,” Headlam said.
“Under the leadership of the new management team who have now been in place for eight weeks, certain operational improvements have already been implemented. In addition, the Group has put through a price increase in May and targeted surcharges reflecting recent higher raw material input prices, which are being passed onto customers.
“The company will continue to monitor any further impact from macroeconomic and geopolitical issues and act accordingly. The team remains focused on delivering further significant operational and commercial improvements and will report on progress in more detail with our interim report.”
The Group’s net debt at the end of the Period was £(40.3)m compared to £(31.4)m at the 2025 year-end, reflecting the impact of ongoing operating losses and one-off transformation costs, offset in part by lower working capital in the Period. Headlam also confirmed that two new Non-Executive Directors have joined the Board, appointing Nick Kelsall and Wilf Walsh.
Rob Barclay, CEO, commented: “It has been a busy couple of months since joining. The Board remains of the view that, while there is lots to do on multiple fronts, there is a pathway to return to profitability during 2027. To deliver this we need to act with speed and decisiveness, and this is the focus of my team.”
