RESULTS PRESENTATION
Final results for the year ended 31 December 2021
Europe's leading floorcoverings distributor
AGENDA
Chris Payne
Chief Executive
and Chief Financial Officer
- About Us
- Financial Overview
- Strategy and Operations
- 2021 Financial Performance
- Surplus Capital Return
- ESG Strategy
- Post Period End and Current Trading
2
ABOUT US
Europe's leading floorcoverings distributor
Market Leading
- 30 years operating
- 24,830 trade customer accounts
- Most comprehensive service offering
- 39,000 SKUs
Nationwide Operations
- 66 businesses
- 21 distribution hubs and centres
- 53 trade counters
- Dedicated sales teams
Strong Foundation
- Financial strength
- Track record, including governance and returns
- Business change strategy delivering
Growth Opportunities
- Targeting increased share of £3bn UK market
- On track for 7.5% operating margin target
3
2021 FINANCIAL HIGHLIGHTS
Operated effectively throughout despite COVID-19 and industry issues
- Revenue +15.4% at £667.2m, a strong rebound from 2020 which was materially impacted by COVID-19 related closures of operations in H1 20 (2020: £578.1m)
- Gross margin increased to a record 33.0% (2020: 30.8%) owing to the inflationary environment and other factors including business change strategy
- Underlying operating margin improved to 5.6% (2020: 3.0%), on track to reach stated 7.5% target during 2023 through increasing realisation of benefits
- Underlying profit before tax of £35.8m (2020: £15.4m)
- Average net funds (excluding lease liabilities) of £38.3m, strong recovery from 2020 net debt position caused by COVID-19 (2020: £8.6m average net debt)
- Net funds position (including lease liabilities) at 31 Dec 2021 of £17.7m (1 Jan 2021: £8.3m)
- Proposed final ordinary dividend of 8.6p in line with the Capital Allocation Parameters, giving total dividend payout in respect of 2021 of 16.4p
- In addition, a surplus capital return totaling £30 million (see page 25)
*Continental Europe: France and the Netherlands
All financial results represent continuing operations only, and exclude the contribution from the Swiss business Belcolor in the year, and the comparator year(s), following its disposal in May 2021
Underlying is before non-underlying items, which includes i) amortisation of acquired intangible assets, ii) impairment of goodwill and intangible assets, iii) property disposal profit, iv) business restructuring costs, and v) impairment of property, plant and equipment and inventory (following a fire)
Revenue
Residential sector | 68.5% |
Commercial sector | 31.5% |
UK | 87.8% |
Continental Europe* | 12.2% |
4 |
FINANCIAL TRACK RECORD
Strong recovery from impact of COVID-19
Revenue
Statutory basic (loss)/earnings per share
Underlying operating profit
£667.2m | 719.2 | ||
578.1 | 667.2 | ||
+15.4% | |||
(2020: £578.1m) | |||
2019 | 2020 | 2021 |
23.5p
+213.5%
(2020: (20.7)p)
£37.3m
+114.4%
(2020: £17.4m)
Statutory operating profit £29.1m (2020: £(12.2)m loss)
42.2
37.3
17.4
2019 2020 2021
Total dividend | ||||
16.4p | ||||
25.0 | ||||
(2020: 0.0p) | ||||
16.4 | ||||
00.0 | ||||
2019 | 2020 | 2021 |
Underlying profit before tax
£35.8m | 39.5 | ||
35.8 | |||
+132.5% | |||
(2020: £15.4m) | 15.4 | ||
2019 | 2020 | 2021 |
Average net funds/(debt)
£38.3m
38.3
+545.3%(Net
funds)
(2020: £(8.6)m net debt)
(3.3) (8.6)
2019 2020 2021
All financial results represent continuing operations only, and exclude the contribution from the Swiss business Belcolor in the year, and the comparator year(s), following its disposal in May 2021
Underlying is before non-underlying items, which includes i) amortisation of acquired intangible assets, ii) impairment of goodwill and intangible assets, iii) property disposal profit, iv) business restructuring costs, and v) impairment of property, plant and equipment and inventory (following a fire)
Average net funds / (debt) is calculated by aggregating the net funds / (debt) position, excluding the impact of IFRS 16 'Leases', for each business day and dividing by the total number | |
of business days | 5 |
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Disclaimer
Headlam Group plc published this content on 09 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 March 2022 08:20:05 UTC.