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Headlam
(LSE:HEAD)
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Rating:41Neutral
Price Target:
9.00 p
▼(-6.05% Downside)
Action:Upgraded
Date:08/19/26
The score is primarily held down by deteriorating fundamentals—multi-year revenue contraction, losses, and ongoing cash burn—with added balance-sheet strain from higher debt and lower equity. Technicals reinforce the risk, with the price in a pronounced downtrend versus all major moving averages and negative MACD. Valuation is not a strong offset because the negative P/E reflects losses and dividend support is not shown.
Positive Factors
Established Distribution Network
The established distribution platform, including warehousing, inventory holding and delivery capabilities, supports product availability and fulfilment speed. This infrastructure can encourage repeat purchasing and creates an operational base that may support recovery when flooring demand improves.
Negative Factors
Persistent Revenue Contraction and Losses
Several years of falling revenue indicate sustained demand or market-share pressure rather than a single weak quarter. The shift from positive margins in 2021–2022 to losses in 2024–2025 also reduces operating leverage and makes a durable earnings recovery less certain.
Read all positive and negative factors
Positive Factors
Negative Factors
Established Distribution Network
The established distribution platform, including warehousing, inventory holding and delivery capabilities, supports product availability and fulfilment speed. This infrastructure can encourage repeat purchasing and creates an operational base that may support recovery when flooring demand improves.
Read all positive factors
Headlam (HEAD) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£8.39M
Dividend YieldN/A
Average Volume (3M)318.67K
Price to Earnings (P/E)―
Beta (1Y)-0.09
Revenue Growth-15.92%
EPS Growth-227.33%
CountryUK
Employees2,215
SectorConsumer Cyclical
Sector Strength84
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)-1.02
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 primarily makes money by buying floorcoverings and related accessories from third-party manufacturers (and, where applicable, brand owners) and reselling them to trade customers at a markup. Revenue is therefore largely volume- and price-d...
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
9.58
Price Trends
12.42
Negative
23.53
Negative
34.74
Negative
Market Momentum
-0.79
Negative
46.00
Neutral
58.27
Neutral
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 9.58 is above the 20-day moving average (MA) of 9.47, below the 50-day MA of 12.42, and below the 200-day MA of 34.74, indicating a bearish trend. The MACD of -0.79 indicates Negative momentum. The RSI at 46.00 is Neutral, neither overbought nor oversold. The STOCH value of 58.27 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | £4.46B | 16.42 | 22.80% | 2.86% | 4.15% | 5.60% | |
64 Neutral | £44.25M | 11.83 | 8.41% | 11.65% | -3.78% | -43.43% | |
63 Neutral | £71.98M | 10.29 | 22.35% | 0.43% | 5.39% | 29.75% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | £56.37M | 25.84 | 3.09% | 1.96% | -0.90% | ― | |
47 Neutral | £378.98M | 10.87 | 13.23% | 0.72% | 8.82% | 440.57% | |
41 Neutral | £8.39M | -0.09 | -61.90% | ― | -15.92% | -227.33% |
* Consumer Cyclical Sector Average
GB:HEAD
Headlam
9.32
-64.28
-87.34%
GB:CFX
Colefax
1,440.00
595.49
70.51%
GB:DFS
DFS Furniture
165.00
11.16
7.25%
GB:HWDN
Howden Joinery
804.50
-19.84
-2.41%
GB:ULTP
Ultimate Products plc
55.00
-4.82
-8.06%
GB:SDG
Sanderson Design Group PLC
77.00
25.72
50.15%
Headlam Corporate Events
Business Operations and StrategyM&A Transactions
Headlam Sells Netherlands Units to Focus on Core UK Business
Positive
Aug 27, 2026
Headlam Group plc has completed the sale of its Netherlands operations, comprising Headlam Holdings B.V., Headlam B.V. and Dersimo B.V., to SIL 2025 Limited, a company managed by Rcapital Partners LLP. The disposal is aligned with Headlam’s ...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Headlam Advances Strategic Review as Liquidity Pressures Persist
Negative
Jul 31, 2026
Headlam Group plc has reported that trading remains challenging, although July revenue is running about 3.5% ahead of June, underscoring a still fragile but slightly improving backdrop. The UK floor coverings distributor is in the midst of a rapid...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Headlam Warns on Losses as Revenue Slumps and Strategic Review Accelerates
Negative
Jul 14, 2026
Headlam Group has reported a sharp 22.8% year-on-year fall in first-half revenue from continuing operations to £188.8 million, driven by the planned exit from low-margin business, weak market conditions, inventory shortages and adverse weathe...
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...
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.