I have been a bit of a fanboy of Headlam Group (HEAD) - Europe's leading floorcoverings distributor, providing the channel between suppliers and trade customers of floorcoverings - for a while now. So what did its ‘trading and ESG update’ say today?
Floorcoverings distributor Headlam (HEAD) has announced that Steve Wilson has “stepped down” as Chief Executive and from the company having “been instrumental in the company's success throughout his 30 years with Headlam, the last five years as Chief Executive”. Bad news or time for a change?
There is typically always lots of corporate reporting on a Thursday. I am not surprised to see Shell (RDSB) shares down today, despite talking about a boost to its cashflow in the third quarter. Alternatively on the share price rise of Mondi (MNDI), which might have chatted about a 'strong performance in the third quarter with higher average prices across the business and strong volume growth year-on-year’, but also ‘a backdrop of sharply higher input costs’. As always with shares, you have to try and work out what is already factored in (and what is not). Anyhow, I thought I would talk about Headlam (HEAD), Europe's ‘leading floorcoverings distributor, providing the channel between suppliers and trade customers of floorcoverings’.
It has been a really good last year to be a Headlam (HEAD) shareholder but here a couple of months ago I felt there was more to come, and I was pleased to read these thoughts here from Tom and Steve observing their appreciation hopes too. So is there any reason to change tack after the company’s first half numbers out a few days ago?
Early in July we noted shares in Europe’s leading floorcoverings distributor Headlam Group (HEAD) looked a recovery buy at a 495p offer price, considering there clear potential for outperformance of forecasts based on the trading momentum and the operational improvement programme being implemented. A “Pre-Close Trading Update” sees the shares currently at 528p. Is there still further upside?
By my reckoning the last Thursday of July is the busiest for global stock market obsessives like me...hence why it has taken me until first thing Friday to write about some larger cap UK market highlights from the day before. First up is ‘Europe's leading distributor of floorcoverings’, Headlam (HEAD).
A trading update earlier this month from Headlam Group (HEAD) included “total revenue for the year-to-date is now in-line with the 2019 comparator, having been slightly below for the four months to 30 April 2021” and “the company's Operational Improvement Programme delivering revenue growth opportunities and cost improvements”. This combination suggests there is further recovery value in the shares.
