Update on transformation plan
Headlam Group PLC has announced an update on its transformation plan aimed at returning the company to profitability by 2027. The strategy involves refocusing on independent retailers and contractors, consolidating purchases to leverage its scale as Europe's largest flooring purchaser, reducing its physical footprint, improving stock turnover, and decreasing the number of stock-keeping units. These actions are expected to lead to the disposal of surplus properties and a materially lower inventory, positioning the Group for a sustainable financial future.
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Headlam (LSE: HEAD), the UK's leading floor coverings distributor, provides the following update on its transformation plan to return the Group to profitability.
The highlights of our action plan are:
- Refocus on independent retailers and contractors, whilst eliminating loss-making revenue
- Consolidating our purchases and leveraging our scale as UK and Europe's largest purchaser of flooring
- Reduce footprint further reflecting revised business model
- Improve stock turn
- Reduce SKUs
The Board believes that delivering successfully upon these actions will return the Group to profitability and provide a sustainable financial position.
The key action plan outcomes include:
- A return to profitability in 2027
- Surplus properties disposed
- Materially lower inventory
We are hosting an analyst presentation at 9am, which will be recorded and made available to view on our website from 3pm today. The slide deck used in the presentation will be available on our website at 9am.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.