We have increased our FY16 earnings forecast by 6% to reflect a strong Q416 for both residential and contract flooring businesses. Further to today’s upgrade, the shares now trade on a FY16 PE of 12.7x and a total yield of 7.5% as we now anticipate the special dividend will be triggered. Headlam shares have moved sideways over the past 18 months despite meaningful earnings growth implying a steady de-rating. Recent management changes will allow a fresh look at efficiencies in the busine
