Headlam’s interims are 3.8% ahead of our estimates at the PBT level (excl. IFRS 16 effects), largely due to an 80bps beat in gross margins, reflecting better volume and the impact of higher-margin acquisitions, despite adverse mix. H2 19 trading has commenced with “small” LFL revenue growth, suggesting stabilisation in trends with Board expectations left unchanged. We retain our Neutral recommendation.
28 Aug 2019
H1 19 interims – first take
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H1 19 interims – first take
Headlam Group plc (HEAD:LON) | 172 0 0.0% | Mkt Cap: 139.3m
- Published:
28 Aug 2019 -
Author:
Kunal Walia -
Pages:
3
Headlam’s interims are 3.8% ahead of our estimates at the PBT level (excl. IFRS 16 effects), largely due to an 80bps beat in gross margins, reflecting better volume and the impact of higher-margin acquisitions, despite adverse mix. H2 19 trading has commenced with “small” LFL revenue growth, suggesting stabilisation in trends with Board expectations left unchanged. We retain our Neutral recommendation.