TIDMHEAD
RNS Number : 3388Y
Headlam Group PLC
06 September 2022
6 September 2022
Headlam Group plc
('Headlam' or the 'Company')
Interim Results
Improved profitability despite economic backdrop
Pleasing progress in delivery on the strategy
Headlam Group plc (LSE: HEAD), the leading floorcoverings
distributor, today announces its interim results for the six months
ended 30 June 2022 (the 'Period') and an update on current
trading.
Period Overview
Financials(1)
-- Total revenue of GBP323.8 million (H1 2021: GBP329.9
million), with a 5.2% uplift in Continental Europe helping to
offset a 2.9% decline in the UK related to weakness in the
residential sector
-- Gross margin temporarily lifted to a high of 33.7% (H1 2021:
32.7%) due to the unprecedented inflationary environment
-- Underlying (2) distribution costs and administrative expenses
comparable with H1 2021 despite widespread operational cost
inflation due to focus on operational efficiency and cost control
(H1 2022: GBP91.1 million; H1 2021: GBP90.5 million)
-- I mproved underlying (2) operating profit and underlying (2)
profit before tax of GBP17.9 million and GBP17.3 million
respectively (H1 2021: underlying (2) operating profit GBP17.4
million; underlying (2) profit before tax GBP16.7 million)
-- Statutory profit before tax of GBP21.6 million (H1 2021:
GBP14.0 million), an uplift on underlying (2) profit due to
proceeds received as part of an ongoing insurance claim creating a
net profit from non-underlying items
-- Undrawn banking facilities of GBP74.0 million and net funds
(3) of GBP6.0 million at the Period end (31 December 2021: GBP53.7
million net funds (3) )
-- Progressive dividend reflecting the improved profit
performance, with a 2022 interim ordinary dividend of 6.2 pence per
share (2021 interim ordinary dividend: 5.8 pence per share)
Operational
-- Good progress in demonstrating and delivering on the revenue
growth and operational efficiency strategy
-- Commissioned specialist research indicating improved market share in the Period
-- New and improved trade counter sites demonstrating strong
KPIs against uninvested sites. On track to have a total of 59 sites
(of which 28 invested) by year end towards the 90 target by 2025
(all invested)
-- New customers gained in the multiple retailer / larger
customer space, including recent contracts signed with a top 10 UK
housebuilder and Homebase
-- Continued progress towards 30% target of sales coming from
new and improved digital channels, 26% at the Period end from a
base of 11% in 2019
-- New and exclusive 'Everyroom' brand launched post the Period
end offering great quality and design at affordable prices, with
initial feedback very positive
-- Ongoing investment in the network (sites and equipment) and
systems to optimise performance and support future revenue
growth
Current Trading and Outlook
-- Revenue performance year to date continuing to be only marginally below the prior year period
-- Company remains on track to meet market expectations (4) for
the year, although trading remains challenging and operational cost
inflation continues
Commenting, Chris Payne, Chief Executive, said:
"T he financial performance in the Period was pleasing given the
economic environment and inflationary impact on consumer spending.
Underlying (2) profitability improved year on year, and revenue was
only marginally below the prior year period despite a weak
residential sector. Commissioned specialist research indicated that
the Company improved its market share in the Period, and new
customers have also been secured within the multiple retailers /
larger customers space. All of this provides a high degree of
confidence that the Company's strategy of driving additional
revenue opportunities from a more efficient and modernised
operating base and improving the service offering to all customers
is the right one . Headlam should be set fair for when the current
headwinds ease, and the Company is focused on long term
success."
Presentations
The Company's interim results presentation accompanying this
announcement is available on its website at Reports &
presentations | Headlam .
The Company will be hosting an in person presentation for
analysts in London today at 10:00am BST. To register your interest,
please email headlam@almapr.co.uk.
The Company will also be hosting an online presentation and
Q&A for investors today at 1:00pm BST. The presentation is open
to all existing and potential shareholders. Investors can register
to attend the webinar at the following link:
https://bit.ly/HEAD_H1_Results . A recording of the webinar will be
made available on the Company's website following its
conclusion.
Footnotes
(1)The financial results represent continuing operations only,
and exclude the contribution from the Swiss business Belcolor AG
('Belcolor') in the comparative period(s), following its disposal
in May 2021 (as detailed in Note 8 to the Financial
Statements).
(2) Underlying is before non-underlying items, which comprises:
i) amortisation of acquired intangible assets; ii) impairment of
intangibles, fixed assets and right of use assets; iii) property
disposal profit; iv) business restructuring costs; v) fire-related
impairment of property, plant and equipment and inventory and
related insurance recovery.
(3)Net funds numbers are given excluding lease liabilities, with
this being an Alternative Performance Measure ('APM'), see
Financial Review for detail on APMs.
(4) Company-compiled consensus market expectations for revenue
and underlying profit before tax, on a mean basis, are available on
the Company's website at www.headlam.com .
Enquiries:
Headlam Group plc Tel: 01675 433 000
Chris Payne, Chief Executive Email: headlamgroup@headlam.com
Catherine Miles, Director of IR
and ESG
Panmure Gordon (UK) Limited (Corporate Tel: 020 7886 2500
Broker)
Erik Anderson / Edward Walsh /
Ailsa MacMaster
Peel Hunt LLP (Corporate Broker) Tel: 020 7418 8900
George Sellar / John Welch / Andrew
Clark
Alma PR (Financial PR) Tel: 020 3405 0205
David Ison / Lily Soares Smith Email: headlam@almapr.co.uk
/ Stephen Samuel
Notes for Editors:
Operating for 30 years, Headlam is the leading floorcoverings
distributor, providing the channel between suppliers and trade
customers of floorcoverings.
Headlam works with suppliers across the globe manufacturing a
diverse range of floorcovering products, and provides them with a
cost efficient and effective route to market for their products
into the highly fragmented trade customer base.
To maximise customer reach, Headlam operates 66 businesses
across the UK and Continental Europe (France and The Netherlands).
Each business operates under its own trade brand and utilises
individual sales teams to capture regional and national sales while
being supported by the group's network and centralised teams and
processes.
The Company's extensive customer base covers both the
residential and commercial sectors, with principal customer groups
being independent retailers and smaller flooring contractors
alongside other customer segments such as larger (multiple)
retailers, housebuilders, specifiers, and larger contractors
(including local government / authorities).
Headlam provides customers with a market leading service
through:
-- the broadest product offering;
-- unrivalled product knowledge;
-- tailored service propositions and solutions;
-- sales team and marketing support;
-- ecommerce support and digital applications;
-- nationwide delivery; and
-- trade counter and collection service.
www.headlam.com
Chief Executive's Statement and Financial Review
Introduction
Headlam is now in its 30(th) year, although some businesses
within the group have far longer heritages, and the Company is the
clear market leader. The Company's comprehensive strategy detailed
below is designed to further this leadership position and support
the long-term success of the Company. Key elements of it include
investing in and growing the nationwide network, developing new
customer segments and channels to market, and improving the
customer service proposition to all market segments.
While weak trading environments such as that being experienced
across many consumer facing industries currently may subdue some
growth metrics in the short-term, the Company is still able to
deliver on its strategy and capture market share. This positions it
well for when markets improve.
As stated within the July 2022 Pre-Close Trading Update, the
financial performance in the Period was pleasing given the economic
environment and inflationary impact on consumer spending.
Underlying (2) profitability improved year on year, and revenue was
only marginally below the prior year period despite a weak
residential sector which accounts for roughly two-thirds of the
Company's revenue. Commissioned specialist research indicated that
the Company improved its market share in the Period, and new
customers have also been secured within the multiple retailers /
larger customers space. All of this provides a high degree of
confidence that the Company's strategy is the right one.
With four months to go, the group still remains on track to meet
market expectations for the year, although trading remains
challenging and operational cost inflation continues so headwinds
remain. However, Headlam should be set fair for when the current
headwinds ease, especially as the group enjoys a high degree of
operating leverage, and the Company is focused on long term
success.
Financial Performance for the Period
Revenue
Total revenue in the Period was GBP323.8 million (H1 2021:
GBP329.9 million), with a 5.2% uplift in Continental Europe (France
and The Netherlands) helping to offset a 2.9% decline in the UK
related to weakness in the residential sector. The UK and
Continental Europe accounted for 86.3% and 13.7% of total revenue
respectively in the Period (H1 2021: UK 87.3%; Continental Europe
12.7%).
Within the UK, the commercial sector was a positive contributor,
up 4.8%, as it showed recovery from mainly COVID-19 related issues
in the prior two years. Conversely the residential sector declined
6.3% as it was particularly affected by the inflationary impact on
consumer spending. However, it is worth noting that residential
sector performance was strong in the prior year period due to being
a beneficiary of limited avenues for discretionary expenditure due
to ongoing COVID-19 restrictions. Continental Europe was a positive
contributor across both the residential and commercial sectors,
being up 5.0% and 5.7% respectively in the Period.
For the group as a whole, residential sector revenue declined
5.0% in the Period and accounted for 66.4% of total revenue (H1
2021: 68.5%), with commercial sector revenue increasing 4.9% and
accounting for 33.6% of total revenue (H1 2021: 31.5%).
Gross Margin
Gross margin was temporarily lifted to a high of 33.7% in the
Period (H1 2021: 32.7%) despite the higher margin residential
sector accounting for a lower proportion of revenue, and was due to
the unprecedented inflationary environment. The proliferation of
manufacturer-led price increases in the Period were passed directly
through to customers, with the Company benefiting from pricing
uplifts on its existing inventory position. This level of gross
margin is therefore not expected to be maintained, and is
anticipated to normalise as the number and scale of price increases
reduces in the second half.
Expenses
Due to the continued focus on operational efficiency and cost
control as part of the Company's strategy, underlying (2)
distribution costs and administrative expenses in the Period were
comparable with the prior year period despite widespread
operational cost inflation (Period: GBP91.1 million; H1 2021:
GBP90.5 million). Certain actions taken in the prior year had full
period effects in the Period, including network and transport
consolidations, and streamlining of the sales team and other
functions. Further actions taken in the Period such as reducing
temporary staff and a focus on continuous improvement in the
efficiency of operations provided further support to managing
costs. An adverse impact on costs later in the year will be a
significant rise in the Company's energy costs from October 2022
following the expiry of a fixed price energy contract. The Company
has actions and plans in place to reduce energy usage, which will
help offset some of these rising costs going forward (see ESG
Strategy below). Statutory distribution costs and administrative
expenses in the Period were GBP91.8 million (H1 2021: GBP93.2
million), marginally higher than underlying (2) due to non-cash
amortisation of acquired intangibles detailed below. There was a
higher level of non-underlying expenses, including non-recurring
business restructuring costs, in the prior year period.
Profit and Non-underlying items
The positive gross margin and expenses performances led to an
improved underlying (2) operating profit and underlying (2) profit
before tax of GBP17.9 million and GBP17.3 million respectively (H1
2021: underlying (2) operating profit GBP17.4 million; underlying
(2) profit before tax GBP16.7 million). The underlying (2)
operating margin in the Period was 5.5% (H1 2021: 5.3%). The
statutory profit before tax in the Period was GBP21.6 million (H1
2021: GBP14.0 million), an uplift on underlying (2) due to proceeds
received as part of an ongoing insurance claim creating a net
profit from non-underlying items.
Total non-underlying items before tax reflected a net profit of
GBP4.3 million in the Period, and comprised a GBP5.0 million of
received and expected proceeds from the insurance claim offset by a
GBP0.7 million non-cash amortisation of acquired intangibles. In
the 2021 Annual Report and Accounts the Company recognised a
non-underlying impairment of GBP7.3 million (pre-tax) following a
fire that completely destroyed the MCD Kidderminster distribution
centre in December 2021. As part of the insurance claim, GBP5.0
million of proceeds relating to inventory losses were recognised in
the Period, with further proceeds anticipated to be determined once
the plans for the proposed reinstatement of the building are
finalised. MCD Kidderminster is currently operating effectively out
of a temporary site where it was quickly relocated to in January
2022 and is being supported by other group sites.
Basic earnings per share on an underlying (2) basis increased
from 14.7 pence per share in the prior year period to 16.5 pence
per share. 1.6 pence of this improvement reflected the increased
profit performance and 0.2 pence was as a result of the impact of
the Share Buyback programme which reduced the weighted average
number of shares (as detailed in Note 6 to the Financial
Statements). Statutory basic earnings per share was 20.6 pence (H1
2021: 11.6 pence).
Tax
The Company's consolidated underlying effective tax rate for the
Period was 20.2%, which reflects the expected effective tax rate
for the full year. This is higher than the standard rate of
corporation tax in the UK of 19.0% primarily due to expenses not
deductible for tax purposes and overseas profit taxed at a higher
rate. The planned increase in the UK headline tax rate to 25% will
increase the effective tax rate in 2023.
Investments
During the Period investments were made to support delivery of
the strategy. As planned, investment levels will increase in the
second half as the investment momentum builds, although overall
capital expenditure will continue to be modest due to the
relatively capital light nature of the strategy (see the
constituents of the strategy in Strategy section).
Capital expenditure in the Period was GBP2.8 million (H1 2021:
GBP3.4 million) and primarily focused on trade counter improvement
and roll-out (detailed below), and investment in equipment and
systems to optimise performance and support future revenue
growth.
Total capital expenditure for the year is anticipated to be in
excess of GBP10 million, with the majority accounted for by trade
counters, and the balance going towards the ongoing programme to
modernise and improve the existing network and equipment. This will
have the benefit of improving service levels to all customers.
Cash flows and Balance Sheet
There was a cash outflow of GBP29.8 million in the Period, the
largest component of which was GBP25.8 million of shareholder
returns (a return of surplus capital alongside the 2021 final
ordinary dividend). There was also a working capital outflow
relating to an investment in inventory of GBP16.9 million and a net
increase in supplier payments of GBP21.3 million to protect against
product supply, to prepare for the busier second half trading
months and to support new product launches to capture market share
(see Everyroom below). Inventory at Period end was GBP148.1 million
(30 June 2021: GBP120.6 million; 31 December 2021: GBP130.9
million). There is an ongoing relatively low risk of inventory
obsolescence. This inventory position, alongside the net funds (3)
position detailed below and GBP109.5 million nationwide freehold
property portfolio (5) , underpin the Company's strong balance
sheet.
The Company had undrawn banking facilities totalling GBP74.0
million and net funds (3) of GBP6.0 million at the Period end (31
December 2021: GBP53.7 million net funds (3) ). The Company had
drawn GBP26.4 million of banking facilities at 30 June 2022.
Dividend and Share Buyback Programme
Reflecting the improved underlying (2) profitability in the
Period, the Board is declaring a progressive dividend payment with
a 2022 interim ordinary dividend of 6.2 pence per share (2021
interim ordinary dividend: 5.8 pence per share). This will be
payable on 28 November 2022 to shareholders on the register as at
28 October 2022, and amount to a total payment of approximately
GBP5.2 million. Reflecting the traditional trading profile of the
group, a higher weighting is typically given to the final ordinary
dividend.
The Company is engaged in an ongoing total GBP15 million Share
Buyback Programme ('SBB') via its brokers which is designed to be
earnings per share enhancing and which formed part of a total GBP30
million return of surplus capital to shareholders announced in
March 2022. The outflow in the Period related to the SBB was GBP3.7
million. As at market close on 2 September 2022, the Company had
purchased 1,281,998 shares through the SBB, all of which are held
in treasury, resulting in a cash outflow to-date since the start of
the programme of GBP4.3 million.
Alternative Performance Measures
The Company uses Alternative Performance Measures ('APMs') to
assess its financial, operational and social performance towards
the achievement of its strategy. Such measures may either exclude
amounts that are included in, or include amounts that are excluded
from, the most directly comparable statutory measure (where one
exists), calculated and presented in accordance with IFRS. Such
exclusions or inclusions give in the Company's opinion more
normalised performance measures, and the Company believes that
these APMs are also used by investors, analysts and other
interested parties in their analysis.
The APMs have limitations and may not be comparable to other
similarly titled measures used by other companies. They should not
be viewed in isolation, but as supplementary information.
An explanation of each APM is provided in the Financial Review
of the 2021 Annual Report and Accounts and a reconciliation of the
adjustments made to the Income Statement to derive underlying
profit measures is shown at the end of the Financial Statements.
Underlying items are calculated before charges associated with the
acquisition of businesses and other items which by virtue of their
nature, size or/and expected frequency require adjustment to show
the performance of the group in a consistent manner which is
comparable year on year. These underlying measures are relevant to
investors and other stakeholders, as supplementary information, to
fully understand the underlying performance of the business. A
limitation of underlying profit measures is that they exclude the
recurring amortisation of intangible assets acquired in business
combinations but do not similarly exclude the related revenue.
Strategy and Operational Performance in the Period
The Company's strategy is focused on driving additional revenue
opportunities from a more efficient and modernised operating base,
and improving the service offering to all customers. The key
revenue growth drivers are:
-- Accelerating roll-out of new and improved Trade Counter sites nationwide
-- Actively targeting the Multiple Retailers and other Larger
Customer segments where the Company is very underweight with
tailored service propositions
-- Enhanced Digital and Ecommerce capabilities and applications
to increase revenue opportunities in all customer segments
-- New launches and relaunches of Products and Brands to increase sales and capture market share
Alongside these revenue drivers, the Company is focused on
operating efficiency and cost control, continuous improvement, and
investment in the network (sites and equipment) and systems to
optimise performance and support revenue growth. The development of
the Company's articulated ESG Strategy, which sits as part of the
overall strategy, is also an important opportunity for commercial
advantage.
Pleasing progress was made in the Period in demonstrating and
delivering on the strategy, which will continue to be built upon
during the second half.
Trade Counters
The Company is on-track to have 59 trade counter sites by year
end, of which 28 will be new or refurbished, with a maintained
target of 90 fully invested sites by 2025 targeted to add
approximately GBP120 million of revenue to the GBP80 million
reported for 2021. The sites that have been invested in to-date
have demonstrated strong KPIs against uninvested sites in terms of
revenue, new account openings, and margins. In the Period, the
revenue performance of invested sites was up 12% on the same period
last year (on a like for like basis). In line with the accelerating
roll-out, the Company is generating a strong pipeline of
prospective sites, and has the target of a further 25 invested
sites in 2023 of which 13 will be new. The capital investment in
relation to the target of 90 sites is currently estimated at GBP18
million in total, of which GBP3.0 million has been incurred thus
far with GBP1.2 million in the Period.
Multiple Retailers and Larger Customers
In the last 12 months, following the commencement of a concerted
approach and assembly of a dedicated team, a number of new
customers have been gained in the multiple retailer / larger
customer space. These include a DIY chain, a builders merchant, a
furniture retailer with a new flooring offering, and a top 10 UK
housebuilder. This demonstrates the breadth and size of the
opportunity open to Headlam in this area, with considerable
scalability opportunity as the number of SKUs with these customers
is increased. Headlam has traditionally held a modest position in
this area, belying its market leading position and strong service
proposition, reducing complexity and cost for the supplier and the
customer.
As an example of a new customer, in May 2022 the Company signed
a two year contract with Homebase, a leading home improvement
retailer and garden centre with over 150 stores across the United
Kingdom and Republic of Ireland. An initial number of laminate SKUs
are now being delivered to their entire store network, with the
potential to add further products.
Additionally, last month Headlam signed a contract with a top 10
UK housebuilder representing a potential substantial new revenue
opportunity, particularly as the vast majority of all new homes in
the UK are sold with flooring specified. This is the Company's
first national contract with a housebuilder, and Headlam is
providing a product range, sampling, and training package to the
regional sales centres to help secure sales.
Revenue contribution from the trade counters and multiple
retailer / larger customers will have a higher contribution in the
second half compared with the Period as activity rolls out. This
will mitigate anticipated weakness in the Company's existing
revenue in the multiple retailer space, which was evident in the
Period due to the economic environment.
Digital and Ecommerce
Enhanced Digital and Ecommerce capabilities and applications not
only increase revenue opportunities by supporting and appealing to
a wider base of customers, but also helps lower the cost to serve
customers. The Company continues to make progress towards its
target of 30% of sales coming from its new and improved digital
channels, being 26% at the Period end from a base of 11% in 2019.
Since its launch in November 2021, over GBP3.7 million of sales
have now been received by the Company's industry-leading app
myheadlam , with 2,100 registered customers. Importantly, the app
is now available to download at Apple and Google Play stores.
The Company is focused on the development and expansion of its
digital and marketing strategy so it can effectively support the
strategy of growth and efficiency. Investment is being made in
people skills, digital capability, product brand awareness, the
core operating system, and further systems integration to
particularly support larger customers and suppliers.
Products and Brands
The Company has a number of well regarded and recognised product
brands spanning price points from less than GBP10 per sq metre to
over GBP150 per sq metre (at average selling retail prices), with
the majority of the Company's product offering at lower to middle
price points. Several existing brands have been refreshed /
relaunched so far this year, with improved websites to keep them
relevant and help increase sales. Additionally, after the Period
end the Company launched Everyroom, its new and exclusive brand
available to all Headlam customers offering great quality and
design at affordable prices. Initial feedback from customers has
been very positive, with the new brand helping customers secure
sales at a time when end-consumers are more cost conscious.
ESG Strategy
The Company is committed to a bi-annual update on its ESG
Strategy and progress against its actions, with the next timetabled
update in November 2022. As a brief summary ahead of this:
-- The Company now has an established Executive ESG Committee
assisting the Board on the development of the Company's ESG
Strategy, and ensuring the progression of all constituents within
it;
-- The Company is engaged in Net Zero emissions transition
planning in support of its 2035 ambition;
-- The Company is already actively engaged in reducing its
energy usage (Scope 1 and 2), which will help offset some of its
rising energy costs referred to above. The Company intends rolling
out the installation of solar panels at its larger sites from the
start of next year (6) ; and
-- In relation to People and Communities, a number of recent
actions have been taken: i) the locally focused Community Programme
launched ii) increased number of Mental Health First Aiders towards
the Company's target iii) review of National Living Wage completed
with a small number of colleagues' base pay increased; and iv) DEI
survey completed, with initial insights and next steps shared
across the group.
People
The Company announced at the beginning of this month the
appointment of Karen Hubbard to the Board as an Independent
Non-Executive Director. Karen has over 25 years' experience in
retail, at both Executive and Director levels across various
industries and markets and will further enhance the skills on the
Board and oversight of delivery of the strategy. She was previously
Chief Executive Officer of Card Factory plc, the UK's leading
specialist retailer of greeting cards, gifts, wrap and bags, where
she diversified their income from a UK High Street business to a
Multi Channel, International, Wholesale and Franchised operation.
Karen has also served as Chief Operating Officer at B&M, on the
ASDA Stores Executive Board as Executive Director for Property,
Multi-Channel and Format Development, in addition to working for BP
Oil in their Retail divisions.
The Company is still in the process of appointing a permanent
Chief Financial Officer due to a candidate withdrawing at the very
end of the process specifying location reasons. However, the Board
is pleased with the calibre of candidates currently being
interviewed and hopes to reach a conclusion in the near future. In
the meantime, Patrick Butcher, formerly Group CFO at Capita plc,
The Go-Ahead Group plc and Network Rail, will continue as Interim
Chief Financial Officer while the independent search process is
ongoing.
A number of senior management appointments have been made since
the beginning of the year which have materially increased the
team's depth and breadth, and built capability to support and
accelerate the strategy. These include the new position of Managing
Director of Trade Counters to head-up this fast growing business
unit, and the strengthening of other functions with the hiring of a
new Chief People Officer and Chief Information Officer.
Headlam's people are its greatest asset, and the pleasing
performance in the Period against the documented headwinds would
not have been possible without their dedication and expertise, and
the Board shares its thanks to all. The Company continues to focus
on making Headlam a great place to work at, and ensure colleagues
share in the Company's long-term success. Building on the
improvements detailed in the 2021 Annual Report including in the
areas of pension, holiday entitlement and sick pay, the Company is
launching a recognition programme to celebrate colleagues' great
performances and commitment. Additionally, to recognise and applaud
the long heritage of businesses and colleagues within the group, an
awards scheme for long service is planned.
Current Trading and Summary
The revenue performance in the past two months has continued
that of the Period, with revenue year to date continuing to be only
marginally below the prior year period. Within this, the UK
residential sector performance has weakened slightly further since
the Period end. However, the Company's UK commercial sector
activity has continued to be more buoyant, with its strengthening
helping to offset the residential weakness. Additionally,
Continental Europe has again been a positive contributor across
both sectors.
The opportunities now available to the group are much expanded
from recent years given the comprehensive strategy being pursued.
The maximization and acceleration of these opportunities is an
immediate priority given the current economic backdrop which is
continuing to suppress underlying volumes in the residential
sector. Thus far, the strategy has proven to have provided a
countermeasure and protection against the weaker market. The
Company currently remains on track to meet market expectations (4)
for the year, although the marketplace will undeniably continue to
present weakness and uncertainty, and the operational cost
inflation headwinds remain including the Company's energy costs
referred to above. Should the market weakness deepen, the Company
has a number of measures it could take to help offset. It is
important though to look beyond the near-term environment, and as
previously highlighted, the group believes it is set fair
especially for when headwinds ease.
Going Concern and Viability
The viability modelling exercise performed for the 2021 Annual
Report and Accounts, including a reverse stress test, has been
refreshed (as described in Note 1 to the Financial Statements) to
assess going concern for this interim report.
T he Board has a reasonable expectation that the Company has
adequate resources to continue in operation during the next 12
months and that it is appropriate for the going concern basis to be
adopted in preparing this interim report and financial
statements.
Principal Risks and Uncertainties
Headlam is exposed to a number of principal risks which may
affect its performance, business model, solvency or liquidity. The
group has a well-established framework for reviewing and assessing
these risks on a regular basis; and has put in place appropriate
processes, procedures and actions to mitigate against them.
However, no system of control or series of mitigations can
completely eliminate all risks. The principal risks and
uncertainties that may affect the group were last reported on
within the 2021 Annual Report and Accounts (on pages 34 to 38).
The principal risks remain broadly unchanged since last
reported, and the Board does not see material changes in the
overall, post mitigation likelihood and impact of principal risks,
although specific elements continue to evolve.
The economic backdrop, for example, could impact 'Market Demand'
risk. Market demand in certain consumer facing industries has been
adversely impacted by the current inflationary environment which is
reducing consumers' disposable income and therefore affecting
sales.
Directors' Responsibility Statement
We confirm that, to the best of our knowledge:
(a) the condensed set of financial statements has been prepared
in accordance with IAS 34 'Interim Financial Reporting';
(b) the interim report includes a fair review of the information
required by DTR 4.2.7R (indication of important events during the
Period and description of principal risks and uncertainties for the
remaining six months of the year); and
(c) the interim report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related parties' transactions
and changes therein).
For and on behalf of
the Board
Chris Payne
Director
6 September 2022
(5) Value of the Company's current freehold property portfolio
at the last independent valuation date of January 2020, plus the
book value of the freehold Ipswich distribution centre which was
built and became operational in July 2020.
(6) Both the Coleshill and Ipswich sites already have solar
panels installed .
Condensed Consolidated Interim Income Statement
Six
Six months Year
months ended ended
ended 30 31
Underlying Non-underlying 30 June Underlying Non-underlying June Underlying Non-underlying December
(Note 3) (Note 3) (Note 3)
Note 2022 2022 2022 2021 2021 2021 2021 2021 2021
GBPM GBPM GBPM GBPM GBPM GBPM GBPM GBPM GBPM
Continuing
operations Unaudited Unaudited Audited
--------------- ---- ----------------------------------- ----------------------------------- ------------------------------------
Revenue 2 323.8 - 323.8 329.9 - 329.9 667.2 - 667.2
Cost of sales (214.8) - (214.8) (222.0) - (222.0) (446.7) - (446.7)
--------------- ---- ---------- -------------- ------- ---------- -------------- ------- ---------- -------------- --------
Gross profit 109.0 - 109.0 107.9 - 107.9 220.5 - 220.5
Distribution
costs (64.6) - (64.6) (61.8) - (61.8) (125.9) - (125.9)
Administrative
expenses (26.5) (0.7) (27.2) (28.7) (2.7) (31.4) (57.3) (8.2) (65.5)
Other operating
income - 5.0 5.0 - - - - - -
--------------- ---- ---------- -------------- ------- ---------- -------------- ------- ---------- -------------- --------
Operating
profit/(loss) 2 17.9 4.3 22.2 17.4 (2.7) 14.7 37.3 (8.2) 29.1
Finance income 4 0.4 - 0.4 0.2 - 0.2 0.4 - 0.4
Finance
expenses 4 (1.0) - (1.0) (0.9) - (0.9) (1.9) - (1.9)
--------------- ---- ---------- -------------- ------- ---------- -------------- ------- ---------- -------------- --------
Net finance
costs (0.6) - (0.6) (0.7) - (0.7) (1.5) - (1.5)
--------------- ---- ---------- -------------- ------- ---------- -------------- ------- ---------- -------------- --------
Profit/(loss)
before tax 17.3 4.3 21.6 16.7 (2.7) 14.0 35.8 (8.2) 27.6
Taxation 5 (3.5) (0.8) (4.3) (4.4) 0.2 (4.2) (9.2) 1.5 (7.7)
--------------- ---- ---------- -------------- ------- ---------- -------------- ------- ---------- -------------- --------
Profit/(loss)
from
continuing
operations 2 13.8 3.5 17.3 12.3 (2.5) 9.8 26.6 (6.7) 19.9
--------------- ---- ---------- -------------- ------- ---------- -------------- ------- ---------- -------------- --------
Profit from
discontinued
operation - - - 0.1 4.4 4.5 0.1 4.4 4.5
--------------- ---- ---------- -------------- ------- ---------- -------------- ------- ---------- -------------- --------
Profit/loss)
for the period
attributable
to the equity
shareholders 13.8 3.5 17.3 12.4 1.9 14.3 26.7 (2.3) 24.4
--------------- ---- ---------- -------------- ------- ---------- -------------- ------- ---------- -------------- --------
Earnings per
share for
profit from
continuing
operations
Basic 6 16.5p 20.6p 14.7p 11.6p 31.5p 23.5p
--------------- ---- ---------- -------------- ------- ---------- -------------- ------- ---------- -------------- --------
Diluted 6 16.3p 20.4p 14.4p 11.4p 31.1p 23.2p
--------------- ---- ---------- -------------- ------- ---------- -------------- ------- ---------- -------------- --------
Earnings per
share for
profit from
discontinued
operations
Basic 0.1p 5.3p 0.2p 5.3p
--------------- ---- ---------- -------------- ------- ---------- -------------- ------- ---------- -------------- --------
Diluted 0.1p 5.2p 0.2p 5.2p
--------------- ---- ---------- -------------- ------- ---------- -------------- ------- ---------- -------------- --------
Ordinary
dividend per
share
Interim
dividend
proposed for
the financial
period 7 6.2p 5.8p 5.8p
--------------- ---- ---------- -------------- ------- ---------- -------------- ------- ---------- -------------- --------
Final dividend
declared for
the financial
period 7 - - 8.6p
--------------- ---- ---------- -------------- ------- ---------- -------------- ------- ---------- -------------- --------
Declared
special
dividend for
the financial
period 7 - - 17.7p
--------------- ---- ---------- -------------- ------- ---------- -------------- ------- ---------- -------------- --------
Condensed Consolidated Interim Statement of Comprehensive
Income
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2022 2021 2021
GBPM GBPM GBPM
Unaudited Unaudited Audited
Profit for the period attributable to
the equity
shareholders 17.3 14.3 24.4
Other comprehensive income:
Items that will never be reclassified
to profit or loss
Re-measurement of defined benefit plans 0.1 (2.6) (2.6)
Related tax - 0.6 0.8
0.1 (2.0) (1.8)
Items that are or may be reclassified
to profit or loss
Exchange differences arising on translation
of overseas operations 0.2 (0.8) (1.2)
Reclassification of foreign currency
translation reserve on disposal of subsidiary - (4.8) (4.8)
0.2 (5.6) (6.0)
------------------------------------------------ ----------- ----------- --------------
Other comprehensive income/(expense)
for the period 0.3 (7.6) (7.8)
Total comprehensive income attributable
to the equity shareholders for the period 17.6 6.7 16.6
------------------------------------------------ ----------- ----------- --------------
Total comprehensive income attributable
to the equity shareholders for the period
arising from:
Continuing operations 17.6 7.0 16.9
-------------------------------------------- ----- ------ ------
Discontinued operations - (0.3) (0.3)
-------------------------------------------- ----- ------ ------
17.6 6.7 16.6
-------------------------------------------- ----- ------ ------
Condensed Consolidated Interim Statement of Financial
Position
At At At
30 June 30 June 31 December
202 2 20 21 20 21
GBPM GBPM GBPM
Unaudited Unaudited Audited
Assets
Non-current assets
Property, plant and equipment 112.9 115.9 113.3
Right-of-use assets 32.6 37.4 35.0
Intangible assets 17.9 19.0 18.1
163.4 172.3 166.4
-------------------------------- ---------- ---------- -------------
Current assets
Inventories 148.1 120.6 130.9
Trade and other receivables 118.8 109.6 114.0
Cash and cash equivalents 32.4 62.7 61.2
299.3 292.9 306.1
-------------------------------- ---------- ---------- -------------
Non-current assets classified - 1.5 -
as held for sale
-------------------------------- ---------- ---------- -------------
299.3 294.4 306.1
-------------------------------- ---------- ---------- -------------
Total assets 462.7 466.7 472.5
--------------------------------- ---------- ---------- -------------
Liabilities
Current liabilities
Bank overdrafts (0.9) (0.1) -
Other interest-bearing loans
and borrowings (25.5) (1.9) ( 0.6 )
Lease liabilities (10.5) (10.7) ( 10.5 )
( 178.0
Trade and other payables (169.3) (176.9) )
Income tax payable (2.6) (1.1) ( 1.0 )
Employee benefits (1.0) (1.0) (1.0)
( 191.1
(209.8) (191.7) )
-------------------------------- ---------- ---------- -------------
Non-current liabilities
Other interest-bearing loans
and borrowings - (6.8) ( 6.9 )
Lease liabilities (23.2) (27.7) ( 25.5 )
Provisions (2.7) (2.1) (2. 7 )
Deferred tax liabilities (10.3) (8.3) ( 10.3 )
Employee benefits (3.3) (4.0) ( 3.9 )
(39.5) (48.9) ( 49.3 )
-------------------------------- ---------- ---------- -------------
( 240.4
Total liabilities (249.3) (240.6) )
--------------------------------- ---------- ---------- -------------
Net assets 213.4 226.1 232.1
--------------------------------- ---------- ---------- -------------
Equity attributable to equity
holders of the parent
Share capital 4.3 4.3 4.3
Share premium 53.5 53.5 53.5
Other reserves (16.0) (2.0) (1.6)
Retained earnings 171.6 170.3 175.9
Total equity 213.4 226.1 232.1
--------------------------------- ---------- ---------- -------------
Condensed Consolidated Interim Statement of Changes in
Equity
Unaudited
Capital
Share Share redemption Special Translation Treasury Retained Total
capital premium reserve reserve reserve reserve earnings equity
GBPM GBPM GBPM GBPM GBPM GBPM GBPM GBPM
Balance at 1
January ( 4
202 2 4.3 53.5 0.1 1.5 1 .7 .9) 175.9 232.1
Profit for the
period
attributable
to the
equity
shareholders - - - - - - 17.3 17.3
Other
comprehensive
income - - - - 0.2 - 0.1 0.3
--------------- ---------- ---------- ------------ ---------- -------------- ----------- ----------- ---------
Total
comprehensive
income for
the period - - - - 0.2 - 17.4 17.6
--------------- ---------- ---------- ------------ ---------- -------------- ----------- ----------- ---------
Transactions
with
equity
shareholders,
recorded
directly in
equity
Share based
payments - - - - - - 0.6 0.6
Repurchase of
own shares - - - - - (15.0) - (15.0)
Share options
exercised
by employees - - - - - 0.4 (0.2) 0.2
Dividends to
equity
holders - - - - - - (22.1) (22.1)
--------------- ---------- ---------- ------------ ---------- -------------- ----------- ----------- ---------
Total
contributions
by and
distributions
to equity
shareholders - - - - - (14.6) (21.7) (36.3)
--------------- ---------- ---------- ------------ ---------- -------------- ----------- ----------- ---------
Balance at 30
June
202 2 4.3 53.5 0.1 1.5 1.9 (19.5) 171.6 213.4
--------------- ---------- ---------- ------------ ---------- -------------- ----------- ----------- ---------
Condensed Consolidated Interim Statement of Changes in
Equity
Unaudited
Capital
Share Share redemption Special Translation Treasury Retained Total
capital premium reserve reserve reserve reserve earnings equity
GBPM GBPM GBPM GBPM GBPM GBPM GBPM GBPM
Balance at 1
January
202 1 4.3 53.5 0.1 1.5 7.7 (5.9) 158.8 220.0
Profit for the
period
attributable
to the
equity
shareholders - - - - - - 14.3 14.3
Other
comprehensive
expense - - - - (5.6) - (2.0) (7.6)
--------------- ---------- ---------- ------------ ---------- -------------- ----------- ----------- ---------
Total
comprehensive
(expense)/
income for
the period - - - - (5.6) - 12.3 6.7
--------------- ---------- ---------- ------------ ---------- -------------- ----------- ----------- ---------
Transactions
with
equity
shareholders,
recorded
directly in
equity
Share based
payments - - - - - - 0.4 0.4
Share options
exercised
by employees - - - - - 0.2 (0.1) 0.1
Deferred tax
on share
options - - - - - - 0.6 0.6
Dividends to
equity
holders - - - - - - (1.7) (1.7)
--------------- ---------- ---------- ------------ ---------- -------------- ----------- ----------- ---------
Total
contributions
by and
distributions
to equity
shareholders - - - - - 0.2 (0.8) (0.6)
--------------- ---------- ---------- ------------ ---------- -------------- ----------- ----------- ---------
Balance at 30
June
202 1 4.3 53.5 0.1 1.5 2.1 (5.7) 170.3 226.1
--------------- ---------- ---------- ------------ ---------- -------------- ----------- ----------- ---------
Condensed Consolidated Interim Statement of Changes in Equity
continued
Audited
Capital
Share Share redemption Special Translation Treasury Retained Total
capital premium reserve Reserve reserve reserve earnings equity
GBPM GBPM GBPM GBPM GBPM GBPM GBPM GBPM
Balance at ( 5.9
1 January 20 21 4.3 53.5 0. 1 1 .5 7.7 ) 158.8 220.0
Profit for the
period
attributable to
the
equity
shareholders - - - - - - 24.4 24.4
Other
comprehensive
expense - - - - (6.0) - (1.8) (7.8)
------------------ ---------- ---------- ----------- ---------- ------------- ---------- ----------- ---------
Total
comprehensive
(expense)/income
for
the period - - - - (6.0) - 22.6 16.6
------------------ ---------- ---------- ----------- ---------- ------------- ---------- ----------- ---------
Transactions with
equity
shareholders,
recorded
directly in
equity
Share-based
payments - - - - - - 1.2 1.2
Share options
exercised (0. 3
by employees - - - - - 1.0 ) 0.7
Deferred tax on
share
options - - - - - - 0.2 0.2
Dividends to
equity ( 6.6 ( 6.6
holders - - - - - - ) )
Total
contributions
by and
distributions
to equity ( 5.5 ( 4.5
shareholders - - - - - 1.0 ) )
------------------ ---------- ---------- ----------- ---------- ------------- ---------- ----------- ---------
Balance at
31 December 20 ( 4.9
21 4.3 53.5 0. 1 1 .5 1.7 ) 175.9 232.1
------------------ ---------- ---------- ----------- ---------- ------------- ---------- ----------- ---------
Condensed Consolidated Interim Cash Flow Statements
Restated* Year ended
Six months Six months 31 December
ended ended 2021
30 June 30 June GBPM
2022 2021
GBPM GBPM
Unaudited Unaudited Audited
Cash flows from operating activities
Profit before tax for the period:
Continuing operations 21.6 14.0 27.6
Discontinued operations - 5.8 5.8
------------------------------------------------- ------------- ------------ -------------
21.6 19.8 33.4
Adjustments for:
Depreciation of property, plant and equipment,
amortisation and impairment 3.6 5.0 9.2
Depreciation of right of use assets 5.8 6.8 13.5
Finance income (0.4) (0.2) (0.4)
Finance expense 1.0 0.9 1.9
Profit on sale of property, plant and
equipment - (6.8) (11.1)
Insurance proceeds for property, plant (0.4) - -
and equipment following fire
Impairment of property, plant and equipment
and inventory following fire - - 7.3
Loss on sale of subsidiary - 0.1 0.1
Share-based payments 0.6 0.4 1.2
Operating cash flows before changes in
working capital and other payables 31. 8 26.0 55.1
Change in inventories (16.9) (11.5) (26.6)
Change in trade and other receivables (4.4) (12.0) (16.6)
Change in trade and other payables (21.3) 5.1 5.4
------------------------------------------------- ------------- ------------ -------------
Cash generated from the operations (10. 8 ) 7.6 17.3
Interest paid (1.0) (1.5) (0.5)
Interest received 0.5 0.3 0.5
Tax paid (2.7) (2.2) (3.5)
Net cash flow from operating activities ( 14.0 ) 4.2 13.8
------------------------------------------------- ------------- ------------ -------------
Cash flows from investing activities
Proceeds from sale of property, plant
and equipment - 14.1 19.7
Disposal of discontinued operation, net
of cash disposed of - (3.5) (3.5)
Acquisition of property, plant and equipment (2.2) (3.4) (6.1)
Insurance proceeds for property, plant 0.4 - -
and equipment following fire
Acquisition of intangible assets (0.6) - (0.8)
------------------------------------------------- ------------- ------------ -------------
Net cash flow from investing activities (2. 4 ) 7.2 9.3
------------------------------------------------- ------------- ------------ -------------
Cash flows from financing activities
Proceeds from the issue of treasury shares 0.2 0.1 0.7
Payment to acquire own shares** (3.7) - -
Proceeds from borrowings 25.0 - -
Repayment of borrowings (7.0) (0.1) (1.2)
Principal elements of lease payments (5.8) (7.5) (15.0)
Dividends paid (22.1) (1.7) (6.6)
------------------------------------------------- ------------- ------------ -------------
Net cash flow from financing activities (13.4) (9.2) (22.1)
------------------------------------------------- ------------- ------------ -------------
Net increase in cash and cash equivalents (29.8) 2.2 1.0
Cash and cash equivalents at 1 January 61.2 60.8 60.8
Effect of exchange rate fluctuations on
cash held 0.1 (0.4) (0.6)
Cash and cash equivalents at end of period 31.5 62.6 61.2
------------------------------------------------- ------------- ------------ -------------
* Operating cash flows have been restated to separately disclose
the loss on sale of subsidiary.
**During the Period 1,044,042 shares were acquired for GBP3.7
million under the Group's share buy-back initiative.
Notes to the Condensed Consolidated Interim Financial
Statements
Unaudited
1 BASIS OF REPORTING
Reporting entity
Headlam Group plc, the 'company', is a company incorporated in
the UK. The Condensed Consolidated Interim Financial Statements
consolidate those of the company and its subsidiaries which
together are referred to as the 'Group' as at and for the six
months ended 30 June 2022.
The Consolidated Financial Statements of the Group as at and for
the year ended 31 December 2021 are available upon request from the
company's registered office or the website.
The comparative figures for the financial year ended 31 December
2021 are not the Group's statutory accounts for that financial
year. Those accounts have been reported on by the Group's auditor
and delivered to the registrar of companies. The report of the
auditor was (i) unqualified, (ii) did not include a reference to
any matters to which the auditors drew attention by way of emphasis
without qualifying their report, and (iii) did not contain a
statement under section 498(2) or (3) of the Companies Act
2006.
These Condensed Consolidated Interim Financial Statements have
not been audited or reviewed by the auditor pursuant to the
Auditing Practices Board's Guidance on Financial Information.
Statement of compliance
These Condensed Consolidated Interim Financial Statements have
been prepared and approved by the directors in accordance with the
Disclosure Guidance and Transparency Rules sourcebook of the UK's
Financial Conduct Authority and UK adopted International Accounting
Standard IAS 34, Interim Financial Reporting.
They do not include all of the information required for full
annual financial statements and should be read in conjunction with
the Consolidated Financial Statements of the Group as at and for
the year ended 31 December 2021, which were prepared in accordance
with UK-adopted International Accounting Standards, with future
changes being subject to endorsement by the UK Endorsement
Board.
These Condensed Consolidated Interim Financial Statements were
approved by the Board of Directors on 6 September 2022.
Significant accounting policies
As required by the Disclosure Guidance and Transparency Rules of
the Financial Conduct Authority, the condensed set of financial
statements has been prepared applying the accounting policies and
presentation that were applied in the preparation of the Group's
published Consolidated Financial Statements for the year ended 31
December 2021 and has adopted accounting policies as follows:
Insurance proceeds
Insurance proceeds are recognised when recovery is virtually
certain and the amounts can be measured reliably. Insurance
proceeds recognised are shown as other operating income, separately
from any related costs. Insurance proceeds recoverable at the
period end are recognised within other receivables.
Taxation
In the prior year, the Group has modified its taxation
accounting policy so that the effect of the taxation rate change
from 19% to 25% on deferred taxation was spread over the full
year.
Impacts of standards and interpretations in issue but not yet
effective
There are no other new standards, amendments to existing
standards, or interpretations that are not yet effective that would
be expected to have a material impact on the Group.
Going concern
The Group's performance, position and business activities,
together with the factors likely to affect its future development,
are described in the Chief Executive's Statement and Financial
Review.
The Directors have reviewed current performance and forecasts,
combined with borrowing facilities and expenditure commitments, and
three downside trading scenarios, as summarised below.
i) A sustained recession, characterised by a long period of
underperformance throughout the assessment period;
ii) An economic crash with a sharp 15% year on year decline in
the first year, before a recovery; and
iii) A less likely, more severe scenario (reverse stress test)
where the Company experiences a significant 22% year on year
decline in revenue in the first year.
The impact of inflation on the results for the Period and the
inflationary impact on consumer spending which could contribute to
the occurrence of these scenarios have been considered as part of
the assessment.
In each scenario, even in the absence of any significant
mitigating actions, the Group continues to operate within its
current banking facilities and the covenant restrictions set out
therein.
After making enquiries, the Directors have a reasonable
expectation that the Group has adequate financial resources to
continue in operation, including contractual and commercial
commitments, for the next 12 months. For these reasons, the going
concern basis has been adopted in preparing the financial
statements.
Bank facilities at 30 June 202 2
Committed credit Uncommitted credit
facilities facilities Total facilities
GBP million GBP million GBP million
Drawn funds 25.5 0.9 26.4
Undrawn funds 56.5 17.5 74.0
----------------- ------------------- -------------------
82.0 18.4 100.4
================= =================== ===================
Judgements and estimates
The preparation of interim financial statements requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual
results may differ from these estimates.
In preparing these Condensed Consolidated Interim Financial
Statements, the significant judgements made by management in
applying the Group's accounting policies and key sources of
estimation uncertainty were the same as those that applied to the
Consolidated Financial Statements as at and for the year ended 31
December 2021, with the addition of the following:
Judgement - Recognition of insurance proceeds
Insurance proceeds are recognised when their recovery is
virtually certain and the amounts can be measured reliably. This
therefore requires judgement over whether the assets can be
measured reliably. The Directors judge that the insurance amounts
relating to the reinstatement of the damaged property and contents,
following the fire that destroyed a building in Kidderminster in
December 2021, cannot be measured reliably at June 2022
because:
-- the decision to progress with the reinstatement is not yet
final and a change to that decision would cause the insurance
refund to be based on a negotiated settlement rather than the
like-for-like reinstatement costs and the resulting values could be
materially different;
-- there is uncertainty about whether some significant
construction preparation items will be required for the
reinstatement;
-- the competitive tendering process for the construction has
not yet started and so the construction costs are not known;
and
-- the insurance receipts are due as reinstatement progresses
alongside a volatile construction market.
It has therefore been concluded that the insurance proceeds for
the insurance claim relating to the reinstatement of the damaged
property and contents should not be recognised but that a
contingent asset should be disclosed.
Risks and uncertainties
The risk factors which could cause the Group's results to differ
materially from expected results are set out in detail in the 2021
Annual Report and Accounts, with the result of a review of those
risks subsequent to the publication of this interim report listed
above.
2 SEGMENT REPORTING
At 30 June 2022, the Group had 63 operating segments in the UK
and three operating segments in Continental Europe. Each segment
represents an individual trading operation and each operation is
wholly aligned to the sales, marketing, supply and distribution of
floorcovering products. The operating results of each operation are
regularly reviewed by the Chief Operating Decision Maker, which is
deemed to be the Chief Executive. Discrete financial information is
available for each segment and used by the Chief Executive to
assess performance and decide on resource allocation.
The operating segments have been aggregated to the extent that
they have similar economic characteristics, with relevance to
products and services, type and class of customer, methods of sale
and distribution and the regulatory environment in which they
operate. The Group's internal management structure and financial
reporting systems differentiate the operating segments on the basis
of the differing economic characteristics in the UK and Continental
Europe and accordingly present these as two separate reportable
segments. This distinction is embedded in the construction of
operating reports reviewed by the Chief Executive, the Board and
the executive team and forms the basis for the presentation of
operating segment information given below.
Continuing operations
UK Continental Europe Total
31 31 December 31
30 June 30 June December 30 30 June 2021 30 June 30 June December
2022 2021 2021 June 2021 GBPM 2022 2021 2021
GBPM GBPM GBPM 2022 GBPM GBPM GBPM GBPM
GBPM
Revenue
External
revenues 279.6 287.9 585.8 44.2 42.0 81.4 323.8 329.9 667.2
------------- ---------- ---------- ---------- --------- --------- ------------ ---------- ---------- ----------
Reportable
segment
underlying
operating
profit 16.3 17.1 37.0 2.4 1.8 3.1 18.7 18.9 40.1
------------- ---------- ---------- ---------- --------- --------- ------------ ---------- ---------- ----------
Reportable
segment
assets 316.2 292.8 280.6 37.7 38.9 30.3 353.9 331.7 310.9
Reportable
segment ( 211.2 ( 231.4
liabilities ) (197.9) (196.4) (20.2) (27.6) (27.1) ) (225.5) (223.5)
------------- ---------- ---------- ---------- --------- --------- ------------ ---------- ---------- ----------
During the periods shown above there have been no inter-segment
revenues for the reportable segments (2021: GBPnil).
Reconciliations of reportable segment profit, assets and
liabilities and other material items:
30 June 30 June 31 December
2022 2021 2021
GBPM GBPM GBPM
Profit for the period
Total underlying profit for reportable
segments 18.7 18.9 40.1
Non-underlying items 4.3 (2.7) (8.2)
Unallocated expense (0.8) (1.5) (2.8)
------------------------------------------ -------- -------- ------------
Operating profit 22.2 14.7 29.1
Finance income 0.4 0.2 0.4
Finance expense (1.0) (0.9) (1.9)
------------------------------------------ -------- -------- ------------
Profit before taxation 21.6 14.0 27.6
Taxation (4.3) (4.2) (7.7)
------------------------------------------ -------- -------- ------------
Profit from continuing operations 17.3 9.8 19.9
------------------------------------------ -------- -------- ------------
Profit from discontinued operations - 4.5 4.5
------------------------------------------ -------- -------- ------------
Profit for the period 17.3 14.3 24.4
------------------------------------------ -------- -------- ------------
30 June 30 June 31 December
2022 2021 2021
GBPM GBPM GBPM
Assets
Total assets for reportable segments 353.9 331.7 310.9
Unallocated assets:
Properties, plant and equipment 93.8 98.1 97.5
Right of use assets 0.6 0.7 0.7
Non-current assets classified - 1.5 -
as held for sale
Cash and cash equivalents 14.4 34.7 63.4
Total assets 462.7 466.7 472.5
--------------------------------------------- -------- -------- ------------
Liabilities
( 231.4
Total liabilities for reportable segments ) (225.5) (223.5)
Unallocated liabilities:
Lease liabilities (0.7) (0.7) (0.7)
Employee benefits (4.3) (5.0) (4.9)
Other interest-bearing loans - - -
and borrowings
Income tax payable (2.6) (1.1) (1.0)
Deferred tax liabilities (10.3) (8.3) (10.3)
( 249.3
Total liabilities ) (240.6) (240.4)
============================================= ======== ======== ============
Reportable
Continental segment Consolidated
UK Europe total Unallocated total
Continuing operations: GBPM GBPM GBPM GBPM GBPM
Other material items
30 June 2022
Capital expenditure 2.2 - 2.2 - 2.2
Depreciation 1.7 0.2 1.9 1.0 2.9
Depreciation of right
of use assets 4.9 0.9 5.8 - 5.8
Non-underlying items (excluding
finance expenses and impairments) (4.4) 0.1 (4.3) - (4.3)
Other material items 30
June 2021
Capital expenditure 2.9 0.1 3.0 0.4 3.4
Impairment of goodwill 1.2 - 1.2 - 1.2
Depreciation 1.5 0.4 1.9 1.0 2.9
Depreciation of right
of use assets 5.8 1.0 6.8 - 6.8
Non-underlying items (excluding
finance expenses and impairments) 1.4 0.1 1.5 - 1.5
Other material items 31
December 2021
Capital expenditure 5.7 0.4 6.1 - 6.1
Impairment of goodwill 1.2 - 1.2 - 1.2
Impairment of intangible
assets 0.9 - 0.9 - 0.9
Impairment of property,
plant and equipment and
inventory (following fire) 7.3 - 7.3 - 7.3
Depreciation 2.3 0.4 2.7 2.5 5.2
Depreciation of right
of use assets 11.6 1.9 13.5 - 13.5
Non-underlying items (excluding
finance expenses and impairments) (1.1) (0.1) (1.2) - (1.2)
------------------------------------ -------- -------------- ----------- -------------- ---------------
In the UK the Group's freehold properties are held within
Headlam Group plc and a rent is charged to the operating segments
for the period of use. Therefore, the operating reports reviewed by
the Chief Executive show all the UK properties as unallocated and
the operating segments report a segment result that includes a
property rent. This is reflected in the above disclosure.
Each segment is a continuing operation.
The Chief Executive, the Board and the executive team have
access to information that provides details on revenue by principal
product group for the two reportable segments, as set out in the
following table:
UK Continental Europe Total
31 31 December 31 December
30 30 June December 30 30 June 2021 30 30 June 2021
June 2021 2021 June 2021 GBPM June 2021 GBPM
2022 GBPM GBPM 2022 GBPM 2022 GBPM
GBPM GBPM GBPM
Revenue
Residential 187.5 200.0 407.2 27.4 26.1 49.7 214.9 226.1 456.9
Commercial 92.1 87.9 178.6 16.8 15.9 31.7 108.9 103.8 210.3
------------- ------- ---------- ----------- ------- ---------- ------------ ------- ---------- -------------
279.6 287.9 585.8 44.2 42.0 81.4 323.8 329.9 667.2
------------- ------- ---------- ----------- ------- ---------- ------------ ------- ---------- -------------
3 NON-UNDERLYING ITEMS
Non-underlying items relate to the following:
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2022 2021 2021
GBPM GBPM GBPM
Continuing operations:
Impairment of intangibles, fixed assets
and right of use assets - 1.2 2.1
Amortisation of acquired intangibles 0.7 0.9 1.6
Property disposal - (0.9) (5.1)
Impairment of property, plant and equipment
and inventory (following fire) - - 7.3
Business restructuring - 1.5 2.3
Insurance proceeds (following fire) (5.0) - -
(4.3) 2.7 8.2
Taxation on non-underlying items 0.8 (0.2) (1.5)
--------------------------------------------- ----------- ----------- --------------
(3.5) 2.5 6.7
--------------------------------------------- ----------- ----------- --------------
Discontinued operation:
Disposal of subsidiary (including Swiss
property disposal) - (4.4) (4.4)
--------------------------------------------- ----------- ----------- --------------
(3.5) (1.9) 2.3
--------------------------------------------- ----------- ----------- --------------
4 FINANCE INCOME AND EXPENSE
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2022 2021 2021
GBPM GBPM GBPM
Interest income:
Bank interest 0.1 0.1 0.3
Other 0.3 0.1 0.1
Finance income 0.4 0.2 0.4
--------------------------------------------- ----------- ----------- --------------
Interest expense:
Bank loans, overdrafts and other financial
expenses (0.2) (0.2) (0.4)
Interest on lease liability (0.6) (0.7) (1.3)
Net interest on defined benefit plan
obligation - - (0.1)
Other (0.2) - (0.1)
Finance expenses (1.0) (0.9) (1.9)
--------------------------------------------- ----------- ----------- --------------
5 TAXATION
The Group's consolidated underlying effective tax rate ('ETR')
for the interim period is 20.2%. This is slightly higher than the
standard rate of corporation tax in the UK due to expenses not
deductible for tax purposes and overseas profits taxed at a higher
rate.
The UK headline corporation tax rate for the six months ended 30
June 2022 was 19% (six months ended 30 June 2021: 19%; 12 months
ended 31 December 2021: 19%). The deferred tax balance in respect
of UK entities has been calculated at 25% (30 June 2021: 25%; 31
December 2021: 25%) following the enactment in 2021 of the increase
in the UK tax rate from 1 April 2023.
6 EARNINGS PER SHARE
The calculation of the basic and diluted earnings per share is
based on the following data:
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2022 2021 2021
GBPM GBPM GBPM
Continuing operations earnings
Earnings for basic and diluted earnings
per share 17.3 9.8 19.9
Earnings for underlying basic and underlying
diluted earnings per share 13.8 12.3 26.6
---------------------------------------------- ------------- ------------- --------------
Discontinued operations earnings
Earnings for basic and diluted earnings
per share - 4.5 4.5
Earnings for underlying basic and underlying
diluted earnings per share - 0.1 0.1
---------------------------------------------- ------------- ------------- --------------
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2022 2021 2021
Number of shares
Weighted average number of ordinary
shares for the purposes of basic earnings
per share 83,872,158 84,409,416 84,484,084
Effect of diluted potential ordinary
shares:
Weighted average number of ordinary
shares at period end 83,872,158 84,409,416 84,484,084
Dilutive effect of share options 906,056 1,242,836 1,070,830
---------------------------------------------- ------------- ------------- --------------
Weighted average number of ordinary
shares for the purposes of diluted earnings
per share 84,778,214 85,652,252 85,554,914
---------------------------------------------- ------------- ------------- --------------
Continuing operations earnings per
share
Basic 20.6p 11.6p 23.5p
Diluted 20.4p 11.4p 23.2p
Underlying basic 16.5p 14.7p 31.5p
Underlying diluted 16.3p 14.4p 31.1p
---------------------------------------------- ------------- ------------- --------------
Discontinued operations earnings per
share
Basic - 5.3p 5.3p
Diluted - 5.2p 5.2p
Underlying basic - 0.1p 0.2p
Underlying diluted - 0.1p 0.2p
-------------------------------------- --- ----- -----
7 DIVIDS
Six months Six months
ended ended Year ended
30 June 30 June 31 December
202 2 20 21 20 21
GBPM GBPM GBPM
Final dividend for 2021 of 8.60p paid 7.2 - -
27 May 2022
Special dividend of 17.70p paid 27 May 14.9 - -
2022
Dividend of a nominal amount of 2.00
p paid 2 8 May 202 1 - 1.7 1.7
Interim dividend for 2021 of 5.80p paid
29 November 2021 - - 4.9
22.1 1.7 6.6
----------------------------------------- ----------- ----------- --------------
The Board of Directors have declared for 2022, an interim
ordinary dividend of 6.2 pence per share. This dividend is payable
on 28 November 2022 to shareholders on the register as at 28
October 2022, and is discussed further in the Chief Executive's
Statement and Financial Review above.
8 DISCONTINUED OPERATIONS
On 28 April 2021, the Group entered into a sale agreement to
dispose of Belcolor AG (' Belcolor '). Belcolor is a floorcoverings
distribution business based in St. Gallen, Switzerland, and
represents the entirety of Headlam's Swiss operations.
On 29 April 2021, as a condition of the sale agreement, Belcolor
undertook a sale and leaseback of its property for gross proceeds
of GBP12.4 million and paid a dividend of GBP11.1 million to its
parent company, Headlam Group plc. Gross assets disposed of were
GBP18.8 million. Cash consideration before costs of GBP0.9 million
was received on sale of the subsidiary.
The subsidiary was sold on 28 April 2021 with effect from 17 May
2021 and was reported in the financial statements for the year
ending 31 December 2021 as a discontinued operation.
Financial information relating to the discontinued operation for
the period to the date of disposal is set out below.
Financial performance of discontinued operation
Restated *
Period ended 17 May 2021
Underlying Non-underlying Total
GBPM GBPM GBPM
Revenue 9.1 - 9.1
Expenses (9.0) - (9.0)
Other gains (profit on sale of building) - 5.8 5.8
----------------------------------------------------------------------------------- ---------- -------------- -----
Profit before tax - 5.8 5.9
Attributable tax expense - (1.3) (1.3)
-----------------------------------------------------------------------------------
Profit after tax of discontinued operation 0.1 4.5 4.6
Loss on sale of subsidiary after tax - (0.1) (0.1)
---------- -------------- -----
Profit from discontinued operation 0.1 4.4 4.5
----------------------------------------------------------------------------------- ---------- -------------- -----
Reclassification of foreign currency translation reserve on disposal of subsidiary 4.8
----------------------------------------------------------------------------------- ---------- -------------- -----
Other comprehensive income from discontinued operation 4.8
----------------------------------------------------------------------------------- ---------- -------------- -----
The information reported within this note for Belcolor relates
to the prior year only as the business was discontinued on 17 May
2021.
Restated *
Period ended
17 May
2021
GBPM
-------------------------------------------------------------------------------------
Consideration received:
Cash 0.9
Costs of disposal (0.1)
------------------------------------------------------------------------------------- -------------
Net disposal consideration 0.8
Carrying amount of net assets sold (5.7)
------------------------------------------------------------------------------------- -------------
Loss on sale before tax and reclassification of foreign currency translation reserve (4.9)
Reclassification of foreign currency translation reserve on disposal of subsidiary 4.8
Tax expense on loss -
------------------------------------------------------------------------------------- -------------
Loss on sale after tax (0.1)
------------------------------------------------------------------------------------- -------------
Cash flows from discontinued operation
Net cash outflow from ordinary activities (1.8)
------------------------------------------------------------------------------------- -------------
Net cash inflow from investing activities 12.4
------------------------------------------------------------------------------------- -------------
Net increase in cash generated by the subsidiary 10.6
------------------------------------------------------------------------------------- -------------
Effect of disposal on the financial position of the Group
Restated *
Period ended
17 May
2021
GBPM
--------------------------------------
Property, plant and equipment (1.4)
Right-of-use-assets (1.2)
Inventories (8.7)
Trade and other receivables (3.2)
Cash and cash equivalents (4.3)
Employee benefits 2.8
Current tax liability 1.5
Trade and other payables 3.0
Deferred tax liabilities 0.3
Lease liabilities 5.5
-------------------------------------- -------------
Net assets and liabilities (5.7)
-------------------------------------- -------------
Net disposal consideration 0.8
Cash and cash equivalents disposed of (4.3)
-------------------------------------- -------------
Net cash outflow (3.5)
-------------------------------------- -------------
The net cash consideration of GBP0.8 million represents the
residual consideration following the GBP11.1 million dividend
previously paid up to the parent company. Cash balances of GBP4.3
million were held by Belcolor on disposal.
*At the year end 31 December 2021, the allocation of amounts
between the loss on sale of subsidiary and the profit on sale of
building was reassessed. As a result, the disclosures in relation
to the discontinued operations made as part of the 2021 Interim
Results have been restated. Other gains (profit on sale of
building) and the attributable tax expense were restated from
GBP8.6m and GBPnil, to GBP5.8m and GBP(1.3)m respectively, whilst
the loss on sale of subsidiary after tax was restated from
GBP(4.2)m to GBP(0.1)m. There has been no change to the total
profit from discontinued operations or the Income Statement
previously disclosed in the 2021 Interim Results.
9 FINANCIAL INSTRUMENTS
The fair value of the Group's financial assets and liabilities
as detailed below at 30 June 2022 were not materially different to
the carrying value.
The table below sets out the Group's accounting classification
of each class of financial assets and liabilities at 30 June
2022.
Fair value
through Amortised Total
profit cost carrying
or loss GBPM value
(FVPL) GBPM
GBPM
Cash and cash equivalents - 32.4 32.4
Bank overdraft - (0.9) (0.9)
Borrowings due within one
year - (25.5) (25.5)
Trade payables - (119.3) (119.3)
( 38.5 ( 38.5
Non-trade payables - ) )
Leasing liability - (33.7) (33.7)
Trade receivables - 84.9 84.9
Other receivables - 19.1 19.1
Provisions - (2.7) (2.7)
Derivative asset 0.1 - 0.1
( 84.2 ( 84.1
0.1 ) )
--------------------------- ----------- ------------ -----------
Financial instruments carried at fair value are categorised
according to their valuation method. The different levels have been
defined below:
-- Level 1: quoted prices (unadjusted) in active markets for
identical assets or liabilities.
-- Level 2: inputs other than quoted prices included within
level 1 that are observable for the asset or liability, either
directly, as prices or indirectly, derived from prices.
-- Level 3: inputs for the asset or liability that are not based
on observable market data (unobservable inputs).
The Group has forward currency contracts which were fair valued
in accordance with level 2 (30 June and 31 December 2021: level
2).
Fair values
The carrying amounts shown in the Statement of Financial
Position for financial instruments are a reasonable approximation
of fair value.
Trade receivables, trade payables and cash and cash
equivalents
Fair values are assumed to approximate to cost due to the
short-term maturity of the instrument.
Borrowings, other financial assets and other financial
liabilities
Where available, market values have been used to determine fair
values. Where market values are not available, fair values have
been estimated by discounting expected future cash flows using
prevailing interest rate curves. Amounts denominated in foreign
currencies are valued at the exchange rate prevailing at the
Statement of Financial Position date.
10 CAPITAL COMMITMENTS
As at 30 June 2022, the Group had contractual commitments
relating to the purchase of property, plant and equipment of
GBP10.5 million and intangibles of GBP1.5 million (30 June 2021:
GBP3.1 million and GBPnil; 31 December 2021: GBP0.4 million and
GBP1.9 million).
11 RELATED PARTIES
The Group has a related party relationship with its subsidiaries
and with its key management. There have been no changes to the
nature of related party transactions entered into since the last
annual report.
12 CONTINGENT ASSET
At June 2022, the Group identified a contingent asset relating
to parts of an insurance claim for losses arising from damage to
the Group's property and contents, as a result of the Kidderminster
fire in December 2021, whilst the asset relating to the inventory
losses has been recognised in the financial statements.
The insurers have accepted liability in respect of the
Kidderminster fire claim. However, the refund relating to the
property and contents damage cannot be reliably measured
because:
-- the decision to progress with the reinstatement is not yet
final and a change to that decision would cause the insurance
refund to be based on a negotiated settlement rather than the
like-for-like reinstatement costs and the resulting values could be
materially different;
-- there is uncertainty about whether some significant
construction preparation items will be required for the
reinstatement;
-- the competitive tendering process for the construction has
not yet started and so the construction costs are not known;
and
-- the insurance receipts are due as reinstatement progresses
alongside a volatile construction market.
An amount of GBP0.6 million was recognised in the financial
statements at June 2022 relating to refunds for property and
contents damage, with GBP0.4 million received in cash and a further
GBP0.2 million interim payment having been recommended by the loss
adjusters to the insurers.
The GBP4.4 million insurance claim refund relating to inventory
losses as a result of the Kidderminster fire was recognised in the
financial statements at June 2022, with GBP2.6 million received in
cash in the period and the remaining GBP1.8 million payment having
been recommended by the loss adjusters to the insurers at June
2022.
13 SUBSEQUENT EVENTS
Management have given due consideration to any events occurring
in the period from the reporting date to the date these Interim
Financial Statements were authorised for issue and have concluded
that there are no material adjusting or non-adjusting events to be
disclosed in these Interim Financial Statements other than detailed
in the Chief Executive's Statement and Financial Review.
Adjusted Results Reconciliation
30 June 2022
Insurance proceeds Amortisation of acquired Adjusted Results
Total Results (following fire) intangibles (underlying)
Continuing operations GBPM GBPM GBPM GBPM
------------------------- ------------- ------------------------ ------------------------ ------------------------
Revenue 323.8 - - 323.8
Cost of sales (214.8) - - (214.8)
------------------------- ------------- ------------------------ ------------------------ ------------------------
Gross profit 109.0 - - 109.0
Distribution costs (64.6) - - (64.6)
Administrative expenses (27.2) - 0.7 (26.5)
Other operating income 5.0 (5.0) - -
------------------------- ------------- ------------------------ ------------------------ ------------------------
Operating profit/(loss) 22.2 (5.0) 0.7 17.9
Finance income 0.4 - - 0.4
Finance expenses (1.0) - - (1.0)
------------------------- ------------- ------------------------ ------------------------ ------------------------
Net finance costs (0.6) - - (0.6)
------------------------- ------------- ------------------------ ------------------------ ------------------------
Profit/(loss) before tax 21.6 (5.0) 0.7 17.3
Taxation (4.3) 1.0 (0.2) (3.5)
------------------------- ------------- ------------------------ ------------------------ ------------------------
Profit/(loss) from
continuing operations 17.3 (4.0) 0.5 13.8
------------------------- ------------- ------------------------ ------------------------ ------------------------
Profit/(loss) for the
year attributable to the
equity shareholders 17.3 (4.0) 0.5 13.8
------------------------- ------------- ------------------------ ------------------------ ------------------------
Earnings/(loss) per share
for profit from
continuing operations
Basic 20.6p (4.8)p 0.7p 16.5p
Diluted 20.4p (4.8)p 0.7p 16.3p
------------------------- ------------- ------------------------ ------------------------ ------------------------
Adjusted Results Reconciliation
30 June 2021
Impairment
of goodwill Amortisation Profit from Adjusted
and of acquired Business Property discontinued Results
Total Results intangibles intangibles restructuring disposal operation (underlying)
Continuing
operations GBPM GBPM GBPM GBPM GBPM GBPM GBPM
---------------- ------------- ------------ ------------ ------------- ------------- ------------ -------------
Revenue 329.9 - - - - - 329.9
Cost of sales (222.0) - - - - - (222.0)
---------------- ------------- ------------ ------------ ------------- ------------- ------------ -------------
Gross profit 107.9 - - - - - 107.9
Distribution
costs (61.8) - - - - - (61.8)
Administrative
expenses (31.4) 1.2 0.9 1.5 (0.9) - (28.7)
---------------- ------------- ------------ ------------ ------------- ------------- ------------ -------------
Operating
profit/(loss) 14.7 1.2 0.9 1.5 (0.9) - 17.4
Finance income 0.2 - - - - - 0.2
Finance expenses (0.9) - - - - - (0.9)
---------------- ------------- ------------ ------------ ------------- ------------- ------------ -------------
Net finance
costs (0.7) - - - - - (0.7)
---------------- ------------- ------------ ------------ ------------- ------------- ------------ -------------
Profit/(loss)
before tax 14.0 1.2 0.9 1.5 (0.9) - 16.7
Taxation (4.2) (0.1) 0.1 (0.2) - - (4.4)
---------------- ------------- ------------ ------------ ------------- ------------- ------------ -------------
Profit/(loss)
from continuing
operations 9.8 1.1 1.0 1.3 (0.9) - 12.3
---------------- ------------- ------------ ------------ ------------- ------------- ------------ -------------
Profit/(loss)
from
discontinued
operation 4.5 - - - - (4.4) 0.1
---------------- ------------- ------------ ------------ ------------- ------------- ------------ -------------
Profit/(loss)
for the year
attributable to
the equity
shareholders 14.3 1.1 1.0 1.3 (0.9) (4.4) 12.4
---------------- ------------- ------------ ------------ ------------- ------------- ------------ -------------
Earnings/(loss)
per share for
profit from
continuing
operations
Basic 11.6p 1.5p 1.1p 1.5p (1.0)p - 14.7p
Diluted 11.4p 1.5p 1.1p 1.5p (1.1)p - 14.4p
---------------- ------------- ------------ ------------ ------------- ------------- ------------ -------------
Earnings/(loss)
per share for
profit from
discontinued
operations
Basic 5.3p - - - - (5.2)p 0.1p
Diluted 5.2p - - - - (5.1)p 0.1p
---------------- ------------- ------------ ------------ ------------- ------------- ------------ -------------
Adjusted Results Reconciliation
31 December 2021
Impairment
of
property,
plant and
equipment
Impairment and
of goodwill inventory Amortisation Profit from Adjusted
Total and following of acquired Business Property discontinued Results
Results intangibles fire intangibles restructuring disposal operation (underlying)
Continuing
operations GBPM GBPM GBPM GBPM GBPM GBPM GBPM GBPM
---------------- -------- ----------- ---------- ------------ ------------- -------- ------------ ------------
Revenue 667.2 - - - - - - 667.2
Cost of sales (446.7) - - - - - - (446.7)
---------------- -------- ----------- ---------- ------------ ------------- -------- ------------ ------------
Gross profit 220.5 - - - - - - 220.5
Distribution
costs (125.9) - - - - - - (125.9)
Administrative
expenses (65.5) 2.1 7.3 1.6 2.3 (5.1) - (57.3)
---------------- -------- ----------- ---------- ------------ ------------- -------- ------------ ------------
Operating
profit/(loss) 29.1 2.1 7.3 1.6 2.3 (5.1) - 37.3
Finance income 0.4 - - - - - - 0.4
Finance expenses (1.9) - - - - - - (1.9)
---------------- -------- ----------- ---------- ------------ ------------- -------- ------------ ------------
Net finance
costs (1.5) - - - - - - (1.5)
---------------- -------- ----------- ---------- ------------ ------------- -------- ------------ ------------
Profit/(loss)
before tax 27.6 2.1 7.3 1.6 2.3 (5.1) - 35.8
Taxation (7.7) (0.2) (1.0) 0.2 (0.4) (0.1) - (9.2)
---------------- -------- ----------- ---------- ------------ ------------- -------- ------------ ------------
Profit/(loss)
from continuing
operations 19.9 1.9 6.3 1.8 1.9 (5.2) - 26.6
---------------- -------- ----------- ---------- ------------ ------------- -------- ------------ ------------
Profit/(loss)
from
discontinued
operation 4.5 - - - - - (4.4) 0.1
---------------- -------- ----------- ---------- ------------ ------------- -------- ------------ ------------
Profit/(loss)
for the year
attributable to
the equity
shareholders 24.4 1.9 6.3 1.8 1.9 (5.2) (4.4) 26.7
---------------- -------- ----------- ---------- ------------ ------------- -------- ------------ ------------
Earnings/(loss)
per share for
profit from
continuing
operations
Basic 23.5p 2.3p 7.5p 2.2p 2.2p (6.2)p - 31.5p
Diluted 23.5p 2.3p 7.4p 2.2p 2.2p (6.2)p - 31.1p
---------------- -------- ----------- ---------- ------------ ------------- -------- ------------ ------------
Earnings/(loss)
per share for
profit from
discontinued
operations
Basic 5.3p - - - - - (5.1)p 0.2p
Diluted 5.2p - - - - - (5.0)p 0.2p
---------------- -------- ----------- ---------- ------------ ------------- -------- ------------ ------------
-Ends-
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END
IR BKPBQABKDCCK
(END) Dow Jones Newswires
September 06, 2022 02:00 ET (06:00 GMT)
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