Flooring group Headlam issued a profits warning today, saying that its market was contracting.
Its shares crashed 20.1p to 342p as the group, which distributes hard flooring and carpets across Europe, admitted demand had “remained difficult.” It said markets “have shown continued signs of contraction during the first six months of 2013”.
Headlam said revenue during the first four months of the year was down on 2012. It added: “While the early indications for May reflected some of the recovery evident in March and April, activity levels dropped as the month continued... Trading during June was a progression of May and revenue for the month was marginally down compared with the previous year.”
It said first-half earnings will be about 10% below those of last year. “In the continued absence of any real improvement in our floor-covering markets, an element of uncertainty around the group’s trading performance during the second half is likely to prevail,” Headlam added. That is despite the second half usually being its busiest time of the year.
Headlam said, however, that it still expects to be able to pay out the same dividend as last year.
