Headlam speeds dividend on upbeat profit forecast

29th Jul 2021 10:55

(Sharecast News) - Headlam said it would speed up payment of normal dividends as the flooring distributor predicted annual results well ahead of expectations.
After a slow start to the first two months of the first half, commercial sector revenue picked up and was only 3.2% less in June than two years earlier. Residential sales were strong throughout.

July was in line with two years earlier before the busy summer period for refurbishment in the commercial sector. As a result, Headlam predicted annual underlying pretax profit of at least £35m compared with market expectations for £29m. The equivalent profit was £17.1m in 2020 and £39.5m in 2019.

"The company now expects full year performance to be materially ahead of current market expectations," Headlam said in a trading update. "The board will now expedite the resumption of normalised levels of dividend payments. A return to a full dividend payment based on earnings will occur at the time of the interim results."

Headlam shares rose 7.2% to 525.4p at 11:23 BST.