Headlam Group (HEAD) Trading Update summary

Revenue performance

• Year-on-year revenue decline improved from 6.6% in January to 1.4% in April, with a total four-month decline of 4.7%.

• Strategic growth initiatives, including Larger Customers and Trade Counters, showed continued revenue growth.

• Regional Distribution revenue declined but showed sequential improvement during the period.

Transformation and operational updates

• Progress made on transformation plan, with network optimisation in the South East, Scotland, and now the Midlands.

• Nottingham distribution centre closure expected in Q3, consolidating operations into Coleshill and Tamworth.

• Accelerated transformation plan aims to grow revenue and reduce costs due to slower market recovery.

Market outlook and profitability

• Early signs of market improvement and benefits from sales organisation changes observed.

• Residential business relaunched the Lifestyle brand with new display stands and incentives.

• Commercial segment secured new contracts and projects to support future revenue.

• Underlying loss before tax for 2025 expected to be weighted towards H1, with H2 benefiting from market and transformation tailwinds.

• Confidence in substantial profitability recovery beyond 2025.