Floorcoverings firm Headlam Group has revealed that it intends to increase the prices of its residential products due to the ‘weakening’ of the pound following the Brexit result.
According to its latest half year trading update for the six months ended 30 June 2016, Headlam reported that one effect of the prevailing sterling euro exchange rate is to increase the cost to the group of residential floorcoverings, which are imported predominantly from Belgium and the Netherlands, by an average of 6%.
The group also posted a rise in revenue for the period by 4.8%, while UK like-for-like sales rose by 3.4% compared with the first six months last year, with residential increasing by 4.7% and commercial up by 0.4%.
Combined revenues from the Continental European businesses, measured in constant currency, increased by 2.8%, while on translation to sterling, combined revenues increased by 8.9%.
In a statement, Headlam commented on the recent results: “The group continues to trade in line with board expectations. The recent UK referendum has resulted in the weakening of sterling against other key currencies. As a consequence, selling price increases of a similar amount will be implemented by the group for these products over the course of the next month.
“It is too early to forecast any other effects that the referendum result may have on the group’s business but the board will continue to monitor the situation carefully and manage the group accordingly.”