Headlam (GB:HEAD)
LSE:HEAD
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Headlam
(LSE:HEAD)
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Rating:42Neutral
Price Target:
19.00 p
▼(-59.31% Downside)
Action:Reiterated
Date:06/20/26
The score is driven primarily by weak financial performance (losses, declining revenue, and cash burn) and a deteriorating balance sheet trend. Technical indicators reinforce the risk with a strong downtrend despite oversold readings. Valuation offers limited support due to a negative P/E and no provided dividend yield.
Positive Factors
Distribution network & product breadth
A broad distribution network and wide product range to trade and commercial customers provide durable revenue diversification and logistical advantages. Persistent delivery capability and category breadth support repeat wholesale demand and protect market share versus niche competitors.
Negative Factors
Multi-year revenue decline
Sustained top-line contraction erodes scale economics, reduces supplier negotiating power, and pressures fixed-cost absorption. Continued revenue declines materially weaken long-term margin sustainability and make it harder to fund investments needed to regain growth over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Distribution network & product breadth
A broad distribution network and wide product range to trade and commercial customers provide durable revenue diversification and logistical advantages. Persistent delivery capability and category breadth support repeat wholesale demand and protect market share versus niche competitors.
Read all positive factors
Headlam (HEAD) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£16.22M
Dividend YieldN/A
Average Volume (3M)318.67K
Price to Earnings (P/E)―
Beta (1Y)-0.21
Revenue Growth-15.92%
EPS Growth-227.33%
CountryUK
Employees2,000
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-0.88
Shares Outstanding80,871,740
10 Day Avg. Volume244,832
30 Day Avg. Volume318,670
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.34
Price to Sales (P/S)0.08
P/FCF Ratio-0.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.2
Revenue Forecast (FY)£527.05M
Headlam Business Overview & Revenue Model
Company Description
Headlam Group plc, through its subsidiaries, functions as a major distributor and marketer of floor coverings and related accessories. The company's operations extend across the United Kingdom and mainland Europe. Its extensive client base spans b...
How the Company Makes Money
Headlam makes money primarily by purchasing floorcovering products and related accessories from manufacturers/suppliers and reselling them to customers at a markup, generating revenue from product sales. Its key revenue stream is wholesale/distrib...
Headlam Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
38
Negative
Cash Flow
18
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 498.70M | 593.10M | 656.50M | 663.60M | 667.20M |
| Gross Profit | 143.70M | 167.00M | 206.40M | 219.50M | 220.50M |
| EBITDA | -18.60M | -9.30M | 34.40M | 64.70M | 50.00M |
| Net Income | -81.90M | -25.00M | 7.70M | 33.60M | 24.40M |
Balance Sheet | |||||
| Total Assets | 354.70M | 397.70M | 462.30M | 435.40M | 472.50M |
| Cash, Cash Equivalents and Short-Term Investments | 26.10M | 12.00M | 21.10M | 2.10M | 61.20M |
| Total Debt | 125.70M | 62.30M | 94.10M | 38.00M | 43.50M |
| Total Liabilities | 244.70M | 206.70M | 241.90M | 210.60M | 240.40M |
| Stockholders Equity | 110.00M | 191.00M | 220.40M | 224.80M | 232.10M |
Cash Flow | |||||
| Free Cash Flow | -49.60M | -3.00M | -5.70M | -2.90M | 6.90M |
| Operating Cash Flow | -45.20M | 7.60M | 12.50M | 10.90M | 13.80M |
| Investing Cash Flow | 16.60M | 50.70M | -13.40M | -12.10M | 9.30M |
| Financing Cash Flow | 45.20M | -67.70M | 19.30M | -58.20M | -22.10M |
Headlam Technical Analysis
Negative
46.70
Price Trends
33.98
Negative
37.63
Negative
44.87
Negative
Market Momentum
-4.84
Positive
30.16
Neutral
4.96
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HEAD, the sentiment is Negative. The current price of 46.7 is above the 20-day moving average (MA) of 27.88, above the 50-day MA of 33.98, and above the 200-day MA of 44.87, indicating a bearish trend. The MACD of -4.84 indicates Positive momentum. The RSI at 30.16 is Neutral, neither overbought nor oversold. The STOCH value of 4.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HEAD.
Headlam Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £71.23M | 11.61 | 20.89% | 0.55% | 7.44% | 30.27% | |
72 Outperform | £4.36B | 16.31 | 23.58% | 2.57% | 4.13% | 8.25% | |
68 Neutral | £38.97M | 9.89 | 8.41% | 11.65% | -3.78% | -43.43% | |
68 Neutral | £53.84M | 24.66 | 3.09% | 3.45% | -0.90% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | £305.03M | 8.89 | 13.23% | ― | 8.82% | 440.57% | |
42 Neutral | £16.22M | -0.23 | -61.90% | ― | -15.92% | -227.33% |
* Consumer Cyclical Sector Average
GB:HEAD
Headlam
20.30
-71.30
-77.84%
GB:CFX
Colefax
1,415.00
635.07
81.43%
GB:DFS
DFS Furniture
135.00
-25.79
-16.04%
GB:HWDN
Howden Joinery
799.00
-18.53
-2.27%
GB:ULTP
Ultimate Products plc
46.00
-24.23
-34.50%
GB:SDG
Sanderson Design Group PLC
73.50
29.35
66.47%
Headlam Corporate Events
Executive/Board ChangesShareholder Meetings
Headlam fends off shareholder bid to shake up board
Neutral
Jun 2, 2026
Headlam Group’s board has seen off a shareholder attempt to overhaul its non-executive leadership, with all five resolutions proposed by investor First Seagull AS decisively defeated at a requisitioned general meeting. Around 70% of the shar...
Business Operations and StrategyShareholder Meetings
Headlam to Proceed with Requisitioned General Meeting Despite Shareholder’s Withdrawal Move
Neutral
Jun 1, 2026
Headlam Group has confirmed that a general meeting will proceed as scheduled at its Birmingham head office on 2 June 2026, despite a move by requisitioning shareholder First Seagull AS to withdraw its requisition and proposed resolutions. The comp...
Business Operations and Strategy
Headlam Raises £15.3m from Surplus Property Disposals to Bolster Balance Sheet
Positive
May 22, 2026
Headlam Group has completed the disposal of two surplus properties, contributing to approximately £15.3 million of net proceeds from recent property sales, which will be used to strengthen its balance sheet and support working capital. The co...
Business Operations and StrategyShareholder Meetings
Headlam shareholders back all AGM resolutions amid notable dissent on pay and board re-elections
Neutral
May 20, 2026
Headlam reported that all resolutions at its 2026 annual general meeting were approved by shareholders on a poll, including the receipt of accounts, approval of the remuneration report and policy, board elections and re-elections, auditor reappoin...
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresShareholder Meetings
Headlam steps up restructuring as sales slide and debt rises
Negative
May 20, 2026
Headlam reported that revenue from continuing operations fell 21% year on year in the four months to 30 April 2026, reflecting both weak end-market conditions and a deliberate pullback in certain sales as it pivots toward core independent retail a...
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresShareholder Meetings
Headlam steps up turnaround as revenue slumps and property sales bolster liquidity
Negative
May 20, 2026
Headlam has reported a 21% year-on-year revenue decline in the first four months of 2026 for its continuing operations, reflecting both tough end-market conditions and a deliberate pullback in certain sales as it refocuses on independent retailers...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Headlam Faces Boardroom Challenge as Investor Forces June Vote
Negative
May 13, 2026
Headlam Group has called a general meeting for 2 June 2026 at its Birmingham head office following a requisition by shareholder First Seagull AS to overhaul part of its board. Shareholders will be asked to vote on resolutions to remove three curre...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Headlam Board Rejects Activist’s Bid to Replace Directors
Negative
Apr 28, 2026
Headlam Group, the UK’s largest floorcoverings distributor, runs multiple businesses and trade brands across the UK, France and the Netherlands, using a centralised network to give suppliers an effective route to market and customers a wide ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Headlam Faces Boardroom Challenge from 10% Shareholder First Seagull
Negative
Apr 27, 2026
Headlam Group has received a requisition notice from shareholder First Seagull AS, which holds just over 10% of the company’s issued share capital, seeking to call a general meeting. The proposed resolutions aim to remove the chair and two n...
Business Operations and StrategyExecutive/Board Changes
Headlam strengthens board with two senior non-executive appointments
Positive
Apr 14, 2026
Headlam Group, the UK’s leading distributor of floorcoverings, partners with suppliers worldwide to supply a wide range of flooring products to trade customers, supported by multiple trade and product brands in the UK, France and the Netherl...
Financial DisclosuresRegulatory Filings and Compliance
Headlam files 2025 Annual Report and reinforces disclosure for investors
Positive
Apr 9, 2026
Headlam Group plc, the UK’s leading distributor of floorcoverings, sources a wide range of products from global manufacturers and supplies them to trade customers through an extensive network and brand portfolio in the UK and continental Eur...
Business Operations and StrategyExecutive/Board ChangesDividendsFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Headlam deepens losses but backs 2027 profit goal as core customer strategy accelerates
Negative
Mar 25, 2026
Headlam Group, the UK’s leading floorcoverings distributor, has been reshaping its business around core independent retailer and contractor customers, rationalising product ranges and consolidating operations to improve margins and resilienc...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.