Headlam makes strong recovery, returns to FY profit

9th Mar 2022 07:31

(Sharecast News) - Floor coverings specialist Headlam said on Wednesday that it had made a strong recovery from the Covid-19 pandemic in 2021, reporting both improved revenues and operating losses.

Headlam said full-year statutory operating profits came to £29.1m, a marked improvement when compared to the prior year's loss of £12.2m, driven by a 15.4% increase in total revenues.

The London-listed company stated it had successfully mitigated industry-wide issues, including supply chain disruptions, and that it had maintained its inventory position availability levels throughout the year.

Headlam also said its disposal of Belcolor, the group's Swiss operations, had allowed it to focus on other operations and look at different growth opportunities.

As a result, Headlam declared a final ordinary dividend of 8.6p, giving it a total ordinary dividend payout for 2021 of 16.4p.

Separately, Headlam announced that it will undertake a share buyback programme of a maximum aggregate consideration of £15.0m, stating its current net funds position was "comfortably above" current capital requirements despite increased levels of investment.

As of 1020 GMT, Headlam shares were up 4.98% at 362.19p.