Headlam ahead of forecasts

Headlam Group expects preliminary results before non-recurring items to be ahead of current consensus market forecasts.

The group says it has continued to experience no discernible impact on trading following the EU referendum in June, with only August slightly weaker than expected because of a softer commercial market in the UK.

The company announced on 24 August that it had sought to mitigate cost inflation due to a weakening of sterling by implementing price increases for the residential floorcoverings imported from Continental Europe.

An update today said: "The price increases which, when fully implemented, averaged 3.5% have remained in place since their introduction in August 2016 and, pleasingly, appear to have had no adverse impact on residential sector revenue. As a result of this, and due to continued volatility in foreign exchange rates, it is the company's intention to keep these price increases in place going forward.

"For the ten-month period to 31 October 2016, total revenue was up approximately 5.2% against the same period in the prior year, reflecting a continued strong performance from both the UK and Continental European businesses albeit with the Continental European businesses seeing a slight softening in performance when measured in local currency."

It adds: "Trading in the fourth quarter, traditionally Headlam's busiest trading period and characterised by a high volume of small residential orders, is continuing well. Subject to trade continuing as anticipated during the remaining important weeks of the year, the Company expects to report preliminary results before non-recurring items* ahead of current consensus market expectations."

At 9:15am: (LON:HEAD) Headlam Group PLC share price was +9.25p at 481.75p