Floorcoverings firm Headlam Group has indicated that it increased its prices following the EU Brexit vote to counter balance the adverse weakening in sterling.
According to its interim results for the six-month period ended 30 June 2016, Headlam saw total sales grow 4.8% to £328.7m from £313.5m last year. Operating profit rose 18.5% to £15.4m, whilst pre-tax profit registered a 22.4% uptick to £15.11m from £12.35m in H12015.
Headlam reported basic earnings per share up 23.1% to 14.4 pence. Further gains achieved in UK market share with like-for-like revenues increasing by 3.4% and an additional working day in 2016 adding a further increase of 0.9%.
However, due to crash in sterling Headlam upped its prices for residential floorcoverings imported from Continental Europe and said the ‘board remains confident of achieving full year expectations’.
Tony Brewer, Headlam’s Group chief executive, said: “It is pleasing to report further progress during the first half of 2016, reflecting the continued outperformance of our UK business, an improving trend in our Continental Europe businesses and the ongoing delivery of our strategy to increase market share.
“To date, this seasonal business seems to have been unaffected by the result of June’s referendum on EU membership. However, the referendum result gave rise to a weakening in sterling, and the group has sought to mitigate this adverse inflationary effect by implementing price increases earlier this month for residential floorcoverings imported from Continental Europe.
“It is pleasing that these price increases appear to have had no adverse impact on the level of residential revenues to date.”
Headlam also confirmed further expansion of the service centre network with centres in Croydon, Hull and Bristol opened in the first half bringing the total to 32 with a further three centres in development.