March 25 (Reuters) - British carpet maker Headlam warned on Wednesday that revenue will drop materially during the next two years as the flooring distributor refocuses on core customers, while the
British carpet-maker Headlam says revenues will be squeezed until 2027
Headlam Faces Revenue Pressure Amid Industry Challenges
March 25 (Reuters) - British wholesale flooring distributor Headlam said the Middle Eastern conflict had added pressure across the industry by pushing up the price of materials and warned on Wednesday its revenue would fall over the next two years.
The wider housing sector has braced for rising building costs after the U.S.-Israeli war on Iran drove up energy prices, raised the risk of inflation and squeezed margins.
Company Overview and Market Exposure
Headlam, based in Birmingham, central England, sells carpets, vinyl, wood and laminate flooring to homebuilders, retailers and architects across the UK and Continental Europe.
Apart from increased fuel and freight costs, it is exposed to higher prices for the petrochemical polypropylene, which is used to make synthetic carpets.
Financial Performance and Share Price Impact
PRETAX LOSS WIDENED, SHARE PRICE FALLS
On Wednesday it said its pretax loss widened to 39.5 million pounds ($52.88 million) in 2025 and revenue fell by 5%, pushing its shares down by 2% to 43.9 pence at 0945 GMT.
Turnaround Strategy and Future Outlook
It reiterated a prediction it made in November that it did not expect to return to profitability until 2027 once it has exited low-margin business and shifted its focus to core independent retailers and contractors.
“The market will recover and, when it does, we will be well-placed to support our customers - initially smaller, but stronger, more focused and more profitable,” interim executive chair Stephen Bird said in a statement.
The company said its cost‑saving initiatives were on track and it expected overall net operating margins to return to the mid‑single digits once its turnaround strategy is completed.
Industry and Consumer Trends
As the Iran war adds to pressures on householders, Britons have cut major purchases, which for the building sector means customers focus on small decorating and refurbishment projects rather than extensive home improvements.
Additional Information
($1 = 0.7469 pounds)
(Reporting by Raechel Thankam Job and Yadarisa Shabong in Bengaluru; Editing by Subhranshu Sahu, Sherry Jacob-Phillips and Barbara Lewis)
