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Headlam
(LSE:HEAD)
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Rating:41Neutral
Price Target:
10.00 p
▲(4.38% Upside)
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
Broad distribution footprint
Headlam’s broad flooring range, trade and retail customer channels, and distribution network support a clear route from manufacturers to end users. This operating footprint can help the company serve varied flooring demand and maintain relevance across its markets over the medium term.
Negative Factors
Multi-year revenue contraction
Revenue has contracted for several consecutive years, including about 9% in 2024 and 8.5% in 2025. Persistent top-line decline indicates sustained pressure on demand or activity levels, reducing the sales base available to cover distribution costs and limiting near-term earnings recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad distribution footprint
Headlam’s broad flooring range, trade and retail customer channels, and distribution network support a clear route from manufacturers to end users. This operating footprint can help the company serve varied flooring demand and maintain relevance across its markets over the medium term.
Read all positive factors
Headlam (HEAD) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£8.43M
Dividend Yield5.49%
Average Volume (3M)0.00
Price to Earnings (P/E)―
Beta (1Y)-0.07
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. Volume0
30 Day Avg. Volume0
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 distributing floorcovering products: it buys flooring and related items from third-party manufacturers/suppliers and resells them to customers at a markup, earning gross profit on the spread between purchase cost a...
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
Positive
9.58
Price Trends
10.09
Positive
15.58
Negative
28.45
Negative
Market Momentum
0.03
Positive
51.11
Neutral
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HEAD, the sentiment is Positive. The current price of 9.58 is below the 20-day moving average (MA) of 10.50, below the 50-day MA of 10.09, and below the 200-day MA of 28.45, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 51.11 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | £4.14B | 15.66 | 22.80% | 2.85% | 4.15% | 5.60% | |
64 Neutral | £40.98M | 10.52 | 8.41% | 6.24% | -3.78% | -43.43% | |
63 Neutral | £67.73M | 9.68 | 22.35% | 0.46% | 5.39% | 29.75% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | £339.69M | 9.81 | 12.31% | 0.68% | 2.64% | 43.03% | |
60 Neutral | £54.92M | 25.50 | 3.09% | 1.97% | -0.90% | ― | |
41 Neutral | £8.43M | -0.10 | -61.90% | 5.49% | -15.92% | -227.33% |
* Consumer Cyclical Sector Average
GB:HEAD
Headlam
10.50
-42.50
-80.19%
GB:CFX
Colefax
1,355.00
469.58
53.03%
GB:DFS
DFS Furniture
147.00
-11.81
-7.43%
GB:HWDN
Howden Joinery
767.50
-27.14
-3.42%
GB:ULTP
Ultimate Products plc
48.90
-7.14
-12.73%
GB:SDG
Sanderson Design Group PLC
76.00
29.60
63.80%
Headlam Corporate Events
Business Operations and StrategyDelistings and Listing ChangesLegal ProceedingsM&A Transactions
Headlam Sells Core Assets to Likewise and Plans London Listing Cancellation
Negative
Oct 7, 2026
Headlam Group plc, a major UK floorcoverings distributor, has been in administration since early September, with joint administrators overseeing an accelerated restructuring and sale process. The group’s assets include the Thatcham distribut...
Business Operations and StrategyLegal Proceedings
Headlam Places Ceco (Flooring) Into Administration as Wider Group Restructures Continue
Negative
Oct 1, 2026
Headlam Group has placed its subsidiary Ceco (Flooring) Limited into administration, appointing Interpath’s Ian Leonard and Stuart Irwin as joint administrators after concluding that no viable options, including a sale of the business and it...
Delistings and Listing ChangesFinancial DisclosuresLegal ProceedingsRegulatory Filings and Compliance
Headlam’s Half-Year Results Delay Extends Share Suspension
Negative
Sep 30, 2026
Headlam Group plc has confirmed it will miss the regulatory deadline for publishing its half-year financial results for the period from 1 January to 30 June 2026, citing its ongoing administration process. The delay means that, even if the company...
Business Operations and StrategyExecutive/Board ChangesDelistings and Listing ChangesFinancial DisclosuresLegal ProceedingsPrivate Placements and Financing
Headlam Enters Administration to Pursue Debt Restructuring and Board Overhaul
Negative
Sep 8, 2026
Headlam Group plc, a leading distributor of floorcoverings to trade customers in the U.K. and Europe, is structured around multiple trading subsidiaries supported by central funding and governance from the listed parent company. While its main cor...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
Headlam boosts balance sheet with Bristol sale-and-leaseback
Positive
Sep 8, 2026
Headlam Group plc has completed a sale and leaseback of its Bristol distribution centre for £3.15 million, a 50% premium to book value and above the last independent valuation, while retaining the site as a core hub with operations continuing...
Business Operations and StrategyDelistings and Listing ChangesFinancial DisclosuresLegal Proceedings
Headlam moves towards administration and suspends London trading
Negative
Sep 1, 2026
Headlam Group has filed a notice of intention to appoint administrators for the parent company and its subsidiary HFD Limited after exhausting its liquidity and breaching month-end covenants under its existing financing facility. Other subsidiarie...
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...
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.