The Headlam Group Plc has proposed a final ordinary dividend of 6.0 pence per share (2022: final ordinary dividend 11.2 pence per share). If approved by shareholders at the 2024 AGM to be held on 23 May 2024, it will be payable on 7 June 2024 to shareholders on the register as at 10 May 2024 and is expected to be a cash outflow of £4.8 million.
Other financial highlights include:
- Group revenue down 1.1%, with UK flat despite challenging market backdrop, as growth in revenue from Larger Customers (+26%) and Trade Counters (+8.5%) offset decline in Regional Distribution; Continental Europe revenue down 7.7%
- UK volume declined 5%, in line with the market, reflecting reduction in residential property transactions (which declined 20% in 2023) and cost of living crisis reducing consumer spending on home improvements
- Underlying Profit Before Tax of £11.0 million (2022: £37.1 million) in line with revised expectations
- Year-on-year decline in profit principally driven by the macro and industry headwinds, including: £11 million profit impact from lower volume, £10 million from operating cost inflation, £5 million unwind of manufacturer-led price benefit in the prior year and £4 million profit reduction from strategic investments; partially mitigated by £10.3 million of efficiencies and cost savings
- Strong cash generation with £26.0 million of positive Underlying Operating Cash Flow (2022: £12.8 million), higher than previous two years, reflecting stabilised working capital
- Net debt increased by £31.4 million (Leverage of 1.3x) after £18.2 million capital expenditure, £6.1 million acquisitions and £17.4 million returns to shareholders (ordinary dividends and share buybacks). £71.0 million of cash and undrawn facilities at year end
- Strong balance sheet position underpinned by freehold properties valued at £149 million, over £100 million of net positive working capital and strong operating cash generation
