Headlam Group PLC are proposing a 2021 final ordinary dividend of 8.6 pence per share for approval at May's Annual General Meeting ('AGM'), giving a total annual pay-out for the interim plus final of 14.4 pence, being equivalent to a 2x earnings cover ratio and in line with the Company's published Capital Allocation Priorities, with the 2.0 pence nominal dividend being an additional payment on top.
Other financial highlights include:
Total revenue up 15.4% at £667.2 million, a strong rebound from 2020 which was materially impacted by COVID-19 related closures of operations during the first half (2020: £578.1 million)
Gross margin increased to a record 33.0% (2020: 30.8%) owing to the inflationary environment through much of the year, and other factors including actions under the business change strategy
Underlying operating margin improved to 5.6% (2020: 3.0%), and on track to reach the stated 7.5% target during 2023 through the increasing realisation of benefits from the business change strategy
Underlying operating profit and underlying profit before tax of £37.3 million and £35.8 million respectively (2020: £17.4 million; £15.4 million respectively)
Statutory operating profit of £29.1 million (2020: £12.2 million loss), and a statutory profit before tax of £27.6 million (2020: £14.3 million loss)
Average net funds (excluding lease liabilities) of £38.3 million, a strong recovery from the 2020 average net debt position caused by COVID-19 and demonstrating the cash generative nature of the business (2020: £8.6 million average net debt)
Net funds position as at 31 December 2021 of £17.7 million (1 January 2021: £8.3 million), with a net funds position (excluding lease liabilities) of £53.7 million (1 January 2021: £51.6 million)
