Headlam Group PLC reinstates dividend after sales recovery

PLC () said it is reinstating the full-year dividend for the 12 months to December 31, 2020, to be declared in March and paid in May after sales recovered throughout 2020.

The floorcoverings distributor posted a 5% dip in sales to-date in January, typically its quietest trading month.

READ: Headlam to continue operating during new coronavirus lockdown

Earlier this month Headlam confirmed that its operations in the UK and Continental Europe are remaining fully open for the duration of the coronavirus lockdown periods, with extra safety measures.

This year the group said it plans to accelerate new projects since its operational improvement programme is progressing to plan.

In the full year, sales dropped 15% to £609mln however there was an improvement over the second half, considering the first half saw sales plunging 31%.

The recovery was driven by the UK residential sector which performed exceptionally well despite the continuation of restrictions and further lockdown periods, and compensated for a significantly weaker commercial sector particularly in the UK.

In the second-half, residential sector revenue was up 9% against the prior year compared to a decline of 18% for the commercial sector.

Underlying profit before tax is expected to come in at around £16mln, while the period ended with net cash of £50mln and total banking facilities available of £110mln.