Headlam's operating margin shows signs of improvement

Shares in floor-coverings distributor Headlam trudged higher after it said group revenue growth so far in 2016 had fed through to help its operating margin show signs of improvement.

Group revenue was up 4.5% in the four months to 30 April, with the like-for-like contribution from the UK up 4%. Within this, residential activity was ahead by a strong 6.1%, but that from the commercial business retreated 0.4%.

Headlam said revenues from the Continental European businesses collectively improved 2.2% in constant-currency terms, with all three countries -- France, Switzerland and Netherlands -- contributing to the positive result and reversing the 3.8% decline seen in the year to 31 December, 2015.

"The group's revenue increase, in combination with gross margin and expenses in-line with trading expectations, has resulted in the operating margin showing further improvement compared with the equivalent period last year," said chairman Dick Peters.

"Whilst early in the year, and with the busy trading months ahead, the board remains confident of achieving further progress during 2016," he said in a statement.

Headlam's shares were up more than 1% this afternoon.